Ludhiana Industry Leaders Urge Government to Restart Key Subsidy Scheme
Industrial stakeholders in Ludhiana are mounting pressure on authorities to revive the Credit Linked Capital Subsidy Scheme (CLCSS), a crucial financial support mechanism that has remained inactive for approximately six years. The scheme, which operated from 2000 until its discontinuation in 2020, provided substantial assistance to small and medium enterprises (SMEs) for upgrading their machinery and technological infrastructure.
How the Scheme Functioned and Its Impact
The CLCSS offered a financial subsidy typically amounting to 15% of the machinery cost, with a maximum cap of around Rs 15 lakh for equipment valued up to Rs 1 crore. This upfront capital subsidy was specifically designed for micro and small enterprises that purchased eligible machinery through bank loans.
The primary objectives of the scheme were multifaceted:
- Facilitating the adoption of modern, efficient, and competitive technology
- Enhancing overall productivity and product quality
- Improving energy efficiency in industrial operations
The program covered an extensive range of approximately 50 sub-sectors and products, including but not limited to:
- Textiles and garments
- Food processing
- Auto components
- Engineering and metal products
- Chemicals and pharmaceuticals
- Electronics and electrical equipment
Industry Voices Growing Concerns
Badish Jindal, President of the World MSME Forum, emphasized the urgent need for resumption of the CLCS Scheme, noting that it played a critical role in helping industries upgrade their equipment and maintain competitiveness in domestic and international markets. "Revival of the scheme is the need of the hour for the industry," Jindal stated unequivocally.
Ashpreet Singh Sahni, former Chairman of the CII Ludhiana chapter, highlighted the void left by the scheme's discontinuation. "The industry had benefited significantly, but no alternate scheme was offered to fill this gap. It must be revived," Sahni asserted. He further explained, "It was a good scheme and many units in Ludhiana took advantage of it to upgrade their machines and infrastructure. The government must bring it back."
The Current Technological Challenge
An industrialist operating in Ludhiana's Focal Point area, who requested anonymity, detailed the pressing technological challenges facing local businesses. "There is a substantial need for technology upgradation and investment, but without incentives to upgrade, machinery is becoming increasingly outdated. The only way to remain viable in business is to adapt to changing market demands and scenarios," the industrialist explained.
The industry representative added a clear recommendation: "The government must either restart the scheme or provide an even better alternative scheme. This action is urgently required to prevent further deterioration of our industrial competitiveness."
Growing Demands for Enhanced Support
Interestingly, before its discontinuation, industry groups had been advocating for an expansion of the scheme's benefits rather than its termination. Multiple industry associations and organizations have consistently demanded that the investment limit be increased from Rs 1 crore to Rs 5 crore, reflecting the growing capital requirements of modern industrial operations.
The absence of the CLCSS has reportedly stalled progress in machinery upgradation across Ludhiana's industrial landscape, affecting numerous sectors that previously benefited from the program. Industry leaders argue that without such supportive mechanisms, small and medium enterprises struggle to keep pace with technological advancements and maintain their competitive edge in an increasingly globalized market.
