FY23 sees triple claims rise by SC-ST MSEs under Credit Linked Capital Subsidy.

The National SC-ST Hub’s Special Credit Linked Capital Subsidy Scheme (SCLCSS) has witnessed a significant surge in claims submitted by SC-ST micro and small enterprises (MSEs) in FY23, with a remarkable 292% year-over-year increase. These claims totaled 577 and amounted to Rs. 69.66 crore (US$ 8.4 million) in subsidies granted. This surge contrasts with the previous year, FY22, during which only 147 claims were filed, leading to a subsidy disbursement of Rs. 19.24 crore (US$ 2.3 million).

The SCLCSS scheme offers a 25% capital subsidy to SC/ST-owned MSEs to support the acquisition of machinery and equipment through institutional financing. This subsidy is capped at Rs. 25 lakh (US$ 30,201.45) and is applicable without any industry-specific restrictions. The scheme, as of December 2022, had already granted subsidies totaling Rs. 15.24 crore (US$ 1.8 million) to 98 SC/ST MSEs. Furthermore, the MSME ministry’s annual report for FY23 highlighted the reimbursement of Rs. 15.03 lakh (US$ 18,157.11) to 48 SC/ST MSEs under various reimbursement subsidy programs.

Eligibility for funding under the SCLCSS scheme extends to SC/ST entrepreneurs involved in sole proprietorships, partnerships, cooperatives, societies, and MSEs operating in both the manufacturing and service sectors.

The Udyam registration data as of July 25, 2023, indicates a robust response from SC entrepreneurs, with a total of 13.08 lakh units registered since the portal’s initiation in July 2020. Out of the 1.77 crore Udyam registrations, ST entrepreneurs accounted for 4.32 lakh units, while OBC entrepreneurs contributed 53.12 lakh MSE registrations.

The government’s credit guarantee scheme, which facilitates collateral-free financing up to Rs. 5 crore (US$ 604,209), aims to enhance credit accessibility for SC-ST entrepreneurs.