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Reintroduce Credit Linked Capital Subsidy Scheme For MSMEs' Tech Up-gradation: PHDCCI To Govt

Indian MSME sector is the key driver for the implementation of important government initiatives like make in India, startup India, energy efficiency programs, zero effect zero defect (ZED) etc, says PHDCCI

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The PHD Chamber of Commerce and Industry on Wednesday urged the Modi government to reintroduce the credit-linked capital subsidy scheme (CLCSS) for technology up-gradation for the micro, small and medium enterprises (MSME) sector. 

In a letter addressed to the MSME minister Narayan Rane, it said that the chamber has been receiving feedback from MSME members requesting to take up this issue with the Centre as MSMEs still need this kind of financial support. 

"We, therefore, earnestly request your good self to kindly look into this matter and initiate necessary measures for the reintroduction of the credit-linked capital subsidy scheme for technology up-gradation in MSMEs," it said in the letter.

Under CLCSS, the Centre is providing an upfront capital subsidy of 15 per cent subject to a maximum amount of Rs 15.0 lakh (on institutional finance of up to Rs 1 crore availed by them) for induction of well-established and improved technology in the specified 51 sub-sectors/products.

"You may kindly appreciate that the said CLCSS scheme was playing an important role in bringing technological advancements to improve the scale and quality of products manufacturing in the MSMEs which could help them to become globally competitive," it added.

There are various industries where entrepreneurs could claim CLCSS subsidy on their new and as well as expansion projects, as per the PHDCCI.

Therefore, technology upgradation in MSMEs is highly desirable to improve efficiency and scale up their production capacities in sectors like defence, railways, electronics, communications etc, it added.