Ludhiana: The industry in Ludhiana wants the revival of Credit Linked Capital Subsidy Scheme (CLCSS) that has been discontinued for about six years now. The scheme was beneficial for small and medium enterprises in helping upgrade machinery, but since its discontinuation, it has stalled the progress of upgradation, industry leaders say. The scheme was introduced in year 2000 and continued till 2020. The subsidy was was applicable only on capitol investment like a new plant or machinery or technology predation equipment. The government provided a financial subsidy of usually 15% of the machinery cost. The maximum subsidy amount was around Rs 15 lakh for equipment costing up to Rs 1 crore. The eligible micro and small enterprises could get an upfront capital sub of 15% on the cost of eligible missionary purchased with a bank loan. It was aimed at making it easier for small industries to adopt modern efficient and competitive technology, improving productivity quality, and sometimes energy efficiency. The scheme covered about 50 sub-sectors or products, including textiles food processing. The scheme benefits many sectors, including textile & garments, food processing, auto components, engineering & metal products, chemicals & pharmaceuticals, electronics & electrical equipment, furniture & wood products, foundry & forging, hand tools, bricks, tiles, cement products, pre-fabricated materials, weaving dyeing, processing, hosiery, and ready-made garments. Badish Jindal, president, World MSME Forum, said there was an urgent need for resumption of the CLCS Scheme as it was helping the industry upgrade their equipment and stay competitive. Revival of the scheme is the need of the hour for the industry, he said. In fact, the industry had been demanding increase of the subsidy amount, but ironically the scheme was discontinued. Many industry associations and organisations have demanded the limit be increased from Rs 1 crore to Rs 5 crore. Ashpreet Singh Sahni, former chairman of CII Ludhiana chapter, said the industry had benefited, but no alternate scheme was offered. It must be revived, he said. “It was a good scheme and many units in Ludhiana took benefit from।the scheme and upgraded their machines and infrastructure. It must be revived by the government,” he added. “There is a big need for technology upgradation and investment, but lack of incentives to upgrade, the machines are getting outdated and the only way to stay in the business to change with the changing market demands and scenario. The government must either restart the scheme or provide an even better alternative scheme. It is urgently required,” another industrialist in Focal Point area said.
