Subsidy scheme for technology upgradation of MSMEs

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SME Times News Bureau | 19 Feb, 2014
Due to insufficient investment and lack of awareness about quality standards and modern technologies, a large percentage of Micro, Small and Medium Enterprises (MSMEs) continue with outdated technologies and plant & machineries, the Minister of State (Independent Charge) for MSME, K. H. Muniyappa has said in a written reply to a question in the Rajya Sabha on Tuesday.

"In this regard, Ministry of Micro, Small and Medium Enterprises is operating a scheme for technology upgradation of SMEs called "Credit Linked Capital Subsidy Scheme" (CLCSS), which aims at facilitating technology upgradation by providing 15 percent upfront capital subsidy (maximum up to Rs.15.00 lakh) on institutional finances availed by them," the minister said in a press statement.

Under this scheme, for technology upgradation of MSMEs, a financial assistance of Rs. 108.81 crore has been given to 17391 MSME units during the last three years till December 31, 2013.

Based on the Fourth All India Census of MSMEs with reference year 2006-07, it is estimated that around 12.31 percent of MSMEs were using 'Technical Know-how' obtained from abroad or through Domestic Collaborating companies/ Domestic R & D institutions/ specialized agencies/ organizations, he added.

Under CLCSS, till December 31, 2013 the govenmnet has given the financial assistance of Rs. 29409.9 Lakh to 4446 MSMEs in FY 13-14.

Also a World Bank line of credit of USD 400 million was availed by SIDBI for MSMEs during last three years till December 31, which has been fully disbursed.

This financial assistance to MSMEs includes, inter alia, technological requirements, he added.