- September 6, 2019
- Posted by: @webmaster
- Category: Current Affairs News
Why in News?
The updated Credit-Linked Subsidy Scheme (CLCSS) for MSMEs has been launched by the government. CLCSS provides an upfront subsidy of 15% on institutional credit upto Rs 1 crore for the MSME sector in the specified 51 sub-sectors.
What is CLCSS?
- An upfront capital subsidy of 15% is will be provided to the MSMEs on institutional finance of upto Rs 1 crore availed by them. This scheme is being implemented to help the MSMEs in employing well-established and improved technology in the pre-approved specified sub-sectors.
- The primary objective of the scheme is to improve the competitiveness of MSMEs by integrating various current schemes aimed at upgrading technology through the CLCSS, increasing productivity through waste reduction, design intervention, cloud computing, facilitation of intellectual property rights and nurturing new ideas.
- The scheme will also give attention on improving the quality of products and enhancement in productivity. This promote a culture of continuous development.
- Special provisions are incorporated into the scheme to increase entrepreneurship opportunity for backwards, women, hill states, island territories and aspirational districts.
The MSME sector has emerged as a very vibrant, effective and highly dynamic sector of the Indian Economy. Starting from providing employment in rural areas to presenting a prelude to industrialisation, the MSME sector is in the forefront. MSMEs are the alternatives to the large industries as ancillary units and this sector contributes enormously to the socio economic development of the country.