Credit Linked Capital Subsidy upto 25%. Complete information on SPICE Scheme for Capital Subsidy. - Video

This is complete information on Credit Linked Capital Subsidy under MSE Scheme for Promotion and Investment in Circular Economy (MSE SPICE).

To get support in availing Subsidy scheme, submit your details at below link:

https://bit.ly/msmesupport

INTRODUCTION OF THE SCHEME
The global landscape is witnessing a paradigm shift towards sustainability, with increasing recognition of the imperative to adopt circular economy principles. Circular economy practices enable MSMEs to optimize resource usage by promoting recycling, reuse, and responsible consumption. This not only reduces the environmental footprint but also enhances operational efficiency and cost-effectiveness. In the overall global sustainability effort, encouraging circular practices in micro and small enterprises (MSEs) has become a strategic necessity. The introduction of the MSE -Scheme for Promotion and Investment in Circular Economy (MSE SPICE) is a proactive step to harness the potential of MSEs in driving sustainable development. MSE SPICE is a pioneering initiative by the Ministry of Micro, Small and Medium Enterprises (MoMSMEs) dedicated to empowering Micro, Small Enterprises (MSEs) in embracing sustainable practices through the circular solutions. The primary goal of this scheme is to promote resource efficiency, reduce environmental impact, and enhance the competitiveness of MSEs in India.

OBJECTIVES OF THE SCHEME
i. Promote Circular Economy and incentivize MSEs to adopt CE and thereby contribute to achieving G20 goals made by the Government of India regarding CE.
ii. Enable MSEs to comply with Extended Producers Responsibility (EPR) and Waste Recycling targets set for industries
iii. Spread awareness among MSEs for adoption of Circular Economy and resource efficiency

COMPONENTS OF THE SCHEME
The Scheme has components namely;
i. Credit Linked Capital Subsidy and
ii. Information, Education, and Communication Component (IEC).

Credit Linked Capital Subsidy component will address the need for the availability of affordable finance to the MSEs to adopt Circular Solutions (both domestic and global inclusive of taxes and duties).

In Brown Field Projects, this component upgrades/expands existing CE projects to promote/implement CE principles across MSEs.

A maximum of INR 50 lakhs is admissible under the scheme with 25 % subsidy only for plant and machinery.

Under the Scheme, projects costing more than INR 50 Lakhs will also be eligible, but subsidy shall be limited to INR 12.5 Lakhs.

ELIGIBILITY AND COVERAGE OF THE SCHEME
MSE registered under the Udyam Registration portal are eligible. They can utilize the scheme only for brownfield projects.

PRIMARY LENDING INSTITUTION(PLIs):
All Scheduled Commercial Banks, All India Financial Institutions (including SIDBI), Small Finance Banks, and Non-Banking Financial Companies (NBFCs), Micro Finance Institutions (MFIs), would be eligible to participate in the Scheme, after signing a Memorandum of Understanding (MoU) with SIDBI.

SCHEME DURATION :

4 years (FY 2023-24 to 2026-27)

EXPECTED IMPACT

More than 3400 units would be benefited from implementing Brownfield projects of MSE units