Technology plays an important
role in the success of small businesses, especially in the manufacturing
sector. Micro, small and medium enterprises need to invest in machinery and
equipment to develop products that meet global and national standards. With
machine costs running into millions of rupees, it is difficult for MSMEs to
invest in equipment and raise capital to upgrade existing technology. This is where the revolutionary CLCSS comes
into play.
What is the CLCSS?
The full form of CLCSS is Credit linked capital subsidy scheme, is an innovative loan product launched by the Ministry
of Micro, Small and Medium Enterprises. The primary objective of this project
is to help micro and small enterprises improve their technology, especially in
rural and semi-urban areas. Numerous small scale industries in India are still
operating with outdated technology. They could not upgrade the machinery due to
lack of funds. CLCSS helps small businesses upgrade their equipment and plant
machinery by providing capital subsidies to purchase machinery.
Benefits of CLCSS
The scheme offers various
benefits to small scale businesses:
- MSME helps to improve the technology of small scale industries belonging to various sectors / product categories announced by the Ministry.
- It offers a 15% subsidy on the purchase of qualified plant equipment and machinery. This helps to reduce the overall credit burden of micro and small enterprises.
- It facilitates the development of rural industries that can now produce high quality products.
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