New Delhi: To help micro and small enterprises belonging to Scheduled Castes & Tribes upgrade technology, the government has approved a scheme to provide 25 per cent capital subsidy up to Rs 25 lakh via banks for purchase of plant and machinery.

The scheme – Special Credit Linked Capital Subsidy Scheme (SCLCSS) under National SC/ST Hub Scheme will be applicable to existing as well as new SC/ST-owned micro and small enterprises and will be monitored by the Micro, Small and Medium Enterprises (MSME) Ministry, as per the guidelines of the scheme posted on the Ministry’s website. The beneficiary unit shall remain in commercial production for a period of at least three years after installation of eligible plant and machinery on which subsidy under this scheme has been availed, said the guidelines.

Coverage

The scheme would cover purchase of all plants and machinery without any restriction on the technologies but subject to consent/NOC from the Pollution Control Board.

The implementing agency of the scheme would be the Office of Development Commissioner, MSME, and the nodal agencies will be the same as approved for CLCSS, such as the Small Industries Development Bank of India, National Bank for Agriculture and Rural Development, State Bank of India, Canara Bank, Bank of Baroda, Punjab National Bank, Bank of India, Andhra Bank, Tamil Nadu Industrial Investment Corporation.

The guidelines make it clear that “no individual SC/ST MSE can directly apply for subsidy but banks will forward the application to the Ministry of MSME.”The scheme shall remain valid till March 31, 2020, subject to availability of funds and “further continuation of the scheme shall be subject to review/evaluation.”

As per the guidelines, the definition of SC/ST enterprises is (a) in case of proprietary MSE, proprietor shall be SC/ST (b) in case of partnership MSE, the SC/ST partners shall be holding at least 51 per cent shares in the unit and (c) in case of private limited companies, at least 51 per cent shares shall be held by SC/ST promoters.In October 2016, Prime Minister Narendra Modi had launched the National SC/ST Hub in Ludhiana. The scheme, announced in this year’s Budget, has an initial outlay of Rs 490 crore for the period 2016-2020.

Source: The Hindu Business Line