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Govt approves 3-year extension of CLCS-TUS Scheme for MSMEs with Rs 2,900 crore outlay
Feb-14-2019

With an aim to improve competitiveness of Micro, Small and Medium Enterprises (MSMEs), the government has approved a three-year extension of the Credit Linked Capital Subsidy and Technology Up-gradation (CLCS-TUS) Scheme for MSMEs with total outlay of Rs 2,900 crore. The scheme has been approved for continuation beyond the 12th five-year Plan for three years from 2017-18 to 2019-20.

CLCS-TUS scheme will facilitate technology upgradation to MSMEs, improvement in quality of products, enhancement in productivity, reduction in waste, and it will promote a culture of continuous improvement. The objective of the scheme is to facilitate technology up-gradation in MSEs by providing an upfront capital subsidy of 15% (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 approved.

Besides, under the scheme, special provisions have been made to promote entrepreneurship for SC/STs, women, hill states (Jammu & Kashmir, Himachal Pradesh & Uttarakhand), island territories (Andaman & Nicobar and Lakshadweep) and the aspirational districts/ LWE (Left-wing extremism) districts, as in these cases the subsidy will be admissible also for investment in acquisition /replacement of plant & machinery/equipment & technology up-gradation of any kind.

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