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Letter to BS: Credit linked capital scheme to provide benefits to MSMEs

The most welcome feature of this scheme is the special provisions that have been made to promote entrepreneurship among SC/STs, women, the hill states

Business Standard 

Sewn up: Employees sew clothes at the Estee garment factory in Tirupur, in  Tamil Nadu. Relatively high labour cost is costing the textile town its competitive advantage. Photo: Reuters

The government’s decision to extend CLCS (Credit Linked Capital Scheme) by another three years with an outlay of Rs 2,900 crore is another olive branch offered to micro, small and medium enterprises (MSMEs). The scheme is expected to provide many benefits to the MSMEs. The most welcome feature of this scheme is the special provisions that have been made to promote among SC/STs, women, the hill states of Jammu & Kashmir, Himachal Pradesh, Uttarakhand, island territories like Andaman, Nicobar, Lakshadweep, and the aspirational districts. In these cases, the subsidy is available even for investment in acquisition/replacement of plant and machinery and equipment and technology upgradation of any kind.

Of late, the government has been concentrating to provide necessary financial impetus to MSMEs to make them highly competitive and also accelerate employment generation. The objective to keep doubling the effort and make them self-reliant at various levels of their export production is also appreciable. The government should also look at providing necessary infrastructural facilities to these units to boost both domestic and overseas trade. Their potential in exports should be harnessed to achieve the desired results.

A Sathyanarayana New Delhi



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First Published: Thu, February 14 2019. 20:41 IST
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