Capital subsidy scheme for MSEs revived
Responding to calls from micro and small enterprises (MSEs), the Cabinet has given the go-ahead to the concerned ministry to re-introduce credit-linked capital subsidy (CLCS) scheme for MSEs in the 11th Plan. The scheme which was introduced in October 2000 to provide financial support for technological upgradation of these enterprises was discontinued from April 1, 2007. The notification on the restoration is expected to be issued next week. Micro, Small & Medium Enterprises Development (MSMED) ministry additional secretary and development commissioner Jawhar Sircar said that with the scheme’s revival, all pending claims on subsidy account to eligible MSEs would be released by the ministry within a fortnight. About Rs 115 crore is likely to be disbursed to nearly 2,500 units as their outstanding claims on capital subsidy for taking bank loans for technology upgradation. He was speaking at a seminar on ‘SME East 2008’, organised by CII (eastern region) on Monday. The government has taken the decision to revive capital subsidy grant to MSEs for technological upgradation based on the recommendations of the Planning Commission and the National Council of Applied Economic Research (NCAER).