Credit Linked Capital Subsidy Scheme (CLCSS) for Technology Upgradation

Provides upfront capital subsidy at the rate of 15% on eligible investment in plant and machinery.

The Ministry of Small-Scale Industries (SSI) is operating a scheme for technology upgradation of Small Scale Industries (SSI) called the Credit Linked Capital Subsidy Scheme (CLCSS). The Scheme aims at facilitating technology upgradation by providing upfront capital subsidy to SSI units, including tiny, khadi, village and coir industrial units, on institutional finance (credit) availed of by them for modernisation of their production equipment (plant and machinery) and techniques. The Scheme (prerevised) provided for 12 per cent capital subsidy to SSI units, including tiny units, on institutional finance availed of by them for induction of well established and improved technology in selected subsectors/products approved under the Scheme.

Credit Linked Capital Subsidy Scheme (CLCSS) for Technology Upgradation Objective Image

Objectives

The revised scheme aims at facilitating technology upgradation by providing 15 per cent upfront capital subsidy with effect from the 29 th September, 2005 (12 per cent prior to 29.09.2005) to SSI units, including tiny, khadi, village and coir industrial units (hereinafter referred to as SSI units), on institutional finance availed of by them for induction of well established and improved technologies in the specified subsectors / products approved under the scheme.

Benefits

The scheme is implemented from retrospective date, therefore subsidy should be calculated on the Investment on eligible machineries as per earlier practice. The quantum of capital subsidy would be restricted to 15% (maximum up to Rs.15 lakh) of the eligible investment.
The subsidy claims for which the Term loans are sanctioned after date of notification of these guidelines (i.e. 13.08.2019), the subsidy would be 15% of the loan / credit amount or cost of P/M whichever is lower, maximum up to Rs.15 lakh. The ceiling limit of loan to be considered for granting the subsidy under the Credit Linked Capital Subsidy (CLCS) is Rs. 100.00 Lakh.

Credit Linked Capital Subsidy Scheme (CLCSS) for Technology Upgradation Benefit Image

Eligibility

Any Micro and Small Enterprise (MSE) availing institutional credit to buy new Plant & Machinery approved under the scheme.
Special Benefits- In case of SC/ST, Women, NER / Hill States / Aspirational Districts /LEW Districts, the subsidy shall be admissible for investment in acquisition /replacement of Plant & Machinery /equipments & Technolog up-gradation of any kind (Core plant & Machinery). Second hand & fabricated will not be eligible.

How to Apply?

Applicant meeting the eligibility criteria may approach to loan lending bank branch / PLI, on behalf of applicant the lending bank branch will examine & apply for subsidy claim through a dedicated online application & tracking management System (MIS), the application will reach to the Ministry through 11 nodal Banks / Agencies. These are SIDBI, NABARD, SBI, BoB, PNB, BOI, TIICL, Andhra Bank, Corporation Bank, Canara Bank and Indian Bank.