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The Credit Linked Capital Subsidy Scheme (CLCSS) is a Government of India initiative implemented by the Ministry of Small-Scale Industries to facilitate technology upgradation of Small-Scale Industries (SSI).
The scheme provides an upfront capital subsidy to SSI units, including tiny, khadi, village, and coir industrial units, on institutional finance availed for modernization of plant and machinery and induction of well-established and improved technologies in approved sub-sectors.
The scheme aims to enhance productivity, improve product quality, reduce production costs, and strengthen the competitiveness of SSI units in a liberalized and globalized market.
The SSI unit should approach an eligible Primary Lending Institution (PLI) such as a Scheduled Commercial Bank, State Financial Corporation, Cooperative Bank, Regional Rural Bank, or other eligible financial institution.
The unit must apply for a term loan from the eligible PLI for technology upgradation by purchasing approved plant and machinery.
The application for assistance under CLCSS must be submitted in the prescribed application form along with the loan proposal to the lending institution.
After appraisal and sanction of the term loan, the eligible PLI will execute an agreement with the SSI unit on behalf of the Government of India.
The PLI will then process and forward the subsidy claim to the designated nodal agency (SIDBI / NABARD or other notified nodal banks/agencies).
The capital subsidy is released upfront by the PLI to the beneficiary unit in proportion to the loan disbursed, subject to the prescribed ceiling.
The lending institution is responsible for ensuring eligibility, disbursement, and monitoring of the subsidy under the scheme.
| Subject | Date | Uploaded on |
| Credit Linked Capital Subsidy Scheme (CLCSS) | 05 Jan 2026 | Download |