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

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 entrepreneurship 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