New Delhi 93197 33599 l Ahmedabad 73035 33599

1. The Cabinet Committee on Economic Affairs has approved the Credit Linked Capital Subsidy and Technology Up-gradation Scheme (CLCS-TUS) with a total outlay of Rs.2900 crore.

2. This scheme aims at improving the competitiveness of MSMEs by integrating various ongoing schematic interventions aimed at
a. up-grading technology through Credit Linked Capital Subsidy (CLCS),
b. hand holding for zero defect zero effect manufacturing (ZED),
c. increasing productivity through waste reduction (Lean),
d. design intervention (Design), cloud computing (Digital MSMEs), facilitation of intellectual property (IPR) and nurturing new ideas (Incubation).

3. Special provisions have been made in this scheme to promote entrepreneurship for SC/STs, women NER, Hill States (Jammu & Kashmir, Himachal Pradesh &
Uttarakhand) Island Territories (Andaman & Nicobar and Lakshadweep) and the Aspirational Districts/ LWE Districts, as in these cases the subsidy shall be admissible also for investment in acquisition /replacement of plant & machinery / equipment & technology up-gradation of any kind. The scheme would be demand driven. But its coverage has been made more inclusive.

4. In addition, the scheme through Zero Defect & Zero Effect, component will promote reduction in emission level of greenhouse gases and improve the competitiveness through reduction in defect / wastage during the manufacturing process of the products.

5. It will also promote the innovation, digital empowerment of MSMEs, design interventions and support the protection of intellectual property of MSMEs.

6. The scheme will facilitate technology up-gradation to MSEs, improvement in Quality of products by MSMEs, enhancement in productivity, reduction in waste and shall promote a culture of continuous improvement.