Nearly 300% jump in FY23 claims filed by SC-ST MSEs under Special Credit Linked Capital Subsidy Scheme
- IBEF
- August 8, 2023
Under the National SC-ST Hub's Special Credit Linked Capital Subsidy Scheme (SCLCSS), the number of claims submitted by SC-ST micro and small enterprises (MSEs) increased by 292% year-over-year (YoY) to 577 in FY23, involving Rs. 69.66 crore (US$ 8.4 million) in issued subsidies. According to the information provided by Mr. Bhanu Pratap Singh Verma, Minister of State in the MSME Ministry, 147 claims were submitted by SC-ST MSEs in FY22, and a subsidy amount of Rs. 19.24 crore (US$ 2.3 million) was released.
The scheme offers a 25% capital subsidy to SC/ST-owned MSEs on institutional financing for the procurement of machinery and equipment, with a total subsidy cap of Rs. 25 lakh (US$ 30,201.45) and no industry-specific limitations. Up till December 2022, 98 claim applications from SC/ST MSEs received a subsidy of Rs. 15.24 crore (US$ 1.8 million) under the SCLCSS. According to the MSME ministry's FY23 annual report, reimbursement of Rs. 15.03 lakh (US$ 18,157.11) for 48 SC/ST MSEs was given under various reimbursement subsidy programmes.
According to the specifics of the scheme, SC/ST entrepreneurs operating sole proprietorships, partnerships, co-operatives, societies, and MSEs in the manufacturing and service industries are eligible to apply for funding under the scheme.
Since the portal's inception in July 2020, 13.08 lakh units have been registered by SC entrepreneurs, according to Udyam registration statistics as of July 25, 2023. Out of the total 1.77 Udyam registrations, ST entrepreneurs registered 4.32 lakh units, and OBC entrepreneurs registered 53.12 lakh MSEs.
The government's credit guarantee scheme for collateral-free financing up to Rs. 5 crore (US$ 604,209) aims to increase credit to SC-ST entrepreneurs.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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