Credit to SC-ST MSEs: The claims for subsidy filed by SC-ST micro and small enterprises (MSEs) under the National SC-ST Hub’s Special Credit Linked Capital Subsidy Scheme have jumped by 292 per cent year-on-year (YoY) to 577 in FY23 involving Rs 69.66 crore subsidy amount released. In FY22, 147 claims were submitted by SC-ST MSEs and Rs 19.24 crore subsidy amount was released, according to the data shared by Bhanu Pratap Singh Verma, Minister of State in the MSME Ministry in a written reply to a question in the Rajya Sabha.
The scheme provides a 25 per cent capital subsidy to the SC/ST-owned MSEs on institutional finance for procurement of plant and machinery/equipment with an overall ceiling of Rs 25 Lacs on the subsidy, without any sector-specific restrictions. Till December 2022, a subsidy of Rs 15.24 crore was released under SCLCSS in respect of 98 claim applications of SC/ST MSEs. Similarly, reimbursement of Rs. 15.03 lakh in respect of 48 SC/ST MSEs was made under different reimbursement subsidy schemes, according to the MSME ministry’s FY23 annual report.
According to the scheme’s details, sole proprietorships, partnerships, co-operatives and societies, MSEs by SC/ST entrepreneurs engaged in manufacturing and service activities are eligible for seeking assistance under the scheme.
Meanwhile, according to the Udyam registration data, 13.08 lakh units were registered by SC entrepreneurs as of July 25 since the launch of the portal in July 2020. 4.32 lakh units were registered by ST entrepreneurs and 53.12 lakh were MSEs owned by OBC entrepreneurs out of overall 1.77 Udyam registrations.
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Importantly, to boost credit to SC-ST entrepreneurs, the government’s credit guarantee scheme for collateral-free credit up to Rs 5 crore CGTMSE had included SC/ST entrepreneurs as well in December last year along with women entrepreneurs, MSEs certified with the Zero Defect and Zero Effect (ZED) scheme, and MSEs based in aspirational districts in the country.