Credit Linked Capital Subsidy Scheme (CLCSS)

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The Ministry of Micro, Small and Medium Enterprises is operating a scheme namely “Credit Linked Capital Subsidy Scheme (CLCSS) for technology upgradation of Micro and Small Enterprises. The scheme was launched in October-2000 and revised from 29.9.2005. The revised scheme aims at facilitating technology upgradation of Micro and Small Enterprises (MSEs) by providing 15% capital subsidy (limited to maximum Rs.15 lakhs) for purchase of Plant & Machinery. Maximum limit of eligible loan for calculation of subsidy under the scheme is Rs.100 lakhs. Presently, more than 1500 well established/improved technologies under 51 sub-sectors have been approved under the Scheme.

Scope of the Scheme:

The scheme would cover the following technology needs/products/sub ­ sectors:

  • Bio­tech Industry
  • Common Effluent Treatment Plant
  • Corrugated Boxes
  • Drugs and Pharmaceuticals
  • Dyes and Intermediates
  • Industry based on Medicinal and Aromatic plants
  • Plastic Moulded/ Extruded Products and Parts/ Components
  • Rubber Processing including Cycle/ Rickshaw Tyres
  • Food Processing (including Ice Cream manufacturing)
  • Poultry Hatchery & Cattle Feed Industry
  • Dimensional Stone Industry (excluding Quarrying and Mining)
  • Glass and Ceramic Items including Tiles
  • Leather and Leather Products including Footwear and Garments
  • Electronic equipment viz test, measuring and assembly/ manufacturing, Industrial process control; Analytical, Medical, Electronic Consumer & Communication equipment etc.
  • Fans & Motors Industry
  • General Light Service(GLS) lamps
  • Information Technology (Hardware)
  • Mineral FilledSheathed Heating Elements
  • Transformer/ Electrical Stampings/ Laminations /Coils/Chokes including Solenoid coils
  • Wires & Cable Industry
  • Auto Parts and Components
  • Bicycle Parts
  • Combustion Devices/ Appliances
  • Forging & Hand Tools
  • Foundries – Steel and Cast Iron
  • General Engineering Works
  • Gold Plating and Jewellery
  • Locks
  • Steel Furniture
  • Toys
  • Non­Ferrous Foundry
  • Sport Goods
  • Cosmetics
  • Readymade Garments
  • Wooden Furniture
  • Mineral Water Bottle
  • Paints, Varnishes, Alkyds and Alkyd products
  • Agricultural Implements and Post Harvest Equipment
  • Beneficiation of Graphite and Phosphate
  • Khadi and Village Industries
  • Coir and Coir Products
  • Steel Re­rolling and /or Pencil Ingot making Industries
  • Zinc Sulphate
  • Welding Electrodes
  • Sewing Machine Industry

Q.1 What is CLCSS ?

Ans. It is Credit Linked Capital Subsidy Scheme (CLCSS) for technology upgradation/purchase of new machine of Micro and Small enterprises in the country.

Q.2 Whether the CLCSS is in operation at present? Ans. Yes

Q.3 When CLCSS was launched? Ans. The Scheme was launched in the financial year 2000-2001.

Ans. The Scheme was launched in the financial year 2000-2001.

Q.4 What were the salient features of the CLCSS ? Ans. Under the scheme, 15 per cent capital subsidy, limited to

Ans. Under the scheme, 15 per cent capital subsidy, limited to maximum of Rs 15 lakh is provid.ed to the Micro and Small Enterprises for upgrading their technology with the well-established and improved technology as approved under the scheme.

Q.5 How many products/sub-sectors have been approved under the CLCSS

Ans. 51 products/sub-sectors have been approved under the CLCSS till date. List IS available in the Scheme guidelines.

Q.6 Whether the Scheme is restricted to 51 sub-sectors only?

Ans. Technologies/new sub-sectors/products can be added as per the need/proposal received from industrial associations/units in the prescribed format (available on the website) after approval of Technical Sub-Committee (TSC) and Governing and Technical Approval Board (GTAB).

Q.7. How can I get benefit under the Scheme?

Ans. If you are as MSE manufacturing a product/sector (falling under the 51 categories approved under CLCSS) and want to upgrade the technology of manufacturing the product through institutional finance, then you may have to approach to the concerned bank/nodal agencies/eligible financial institution. Concerned BankiPLI will upload theonline application of CLCSS and forward to their Nodal Bank/Agency. Nodal Bank/Agency will forward the same online to Office of DC (MSME) after scrutiny. 0.8 Which are the Nodal Agencies for implementation of

Q.8 Which are the Nodal Agencies for implementation of CLCSS ?

Ans. Small Industries Development Bank of India(SIDBI), National Bank for Agriculture and Rural Development(NABARD), Canara Bank, Bank of Baroda, Bank of India, The Tamilnadu Industrial Investment Corporation Limited, Chennai (TIIC), Andhra Bank, State Bank of Bikaner & Jaipur, State Bank of India, Corporation Bank, Indian Bank and Punjab National Bank are the nodal agencies for implementation of the CLCSS at present. Nomination of nodal agencies are continuous process.

Q.9. Why all the banks are not covered under the Scheme? Ans. All Scheduled Commercial Banks are covered under the scheme either as

Ans. All Scheduled Commercial Banks are covered under the scheme either as nodal bank or as PLI to SIDBI or NABARD.

Q.10. Whether the Scheme is applicable for new MSEs ? Ans. Yes. 0.11. Whether

Ans. Yes.

Q.11. Whether CLCSS is applicable for medium scale Enterprises? Ans. Units graduated from small scale to medium scale are eligible for subsidy under CLCSS for a period of three years from the date of graduation. 012. What are the new steps that have been taken by the Ministry for effective implementation’ of

Ans. Units graduated from small scale to medium scale are eligible for subsidy under CLCSS for a period of three years from the date of graduation. 012. What are the new steps that have been taken by the Ministry for effective implementation’ of

Q.12. What are the new steps that have been taken by the Ministry for effective implementation’ of CLCSS ?

Ans. For effective implementation and transparency, Online Application and Tracking System has been introduced w.e.f. 01.10.2013 for submission of online application by concerned Nodal Banks. 0.13. Whether individual MSEs can directly apply for

Q.13. Whether individual MSEs can directly apply for subsidy? Ans. No, this scheme is applicable to those units who have availed term loan from banks to acquire upgraded technology/machines. Units cannot apply directly online but banks will forward the application to Office of Development Commissioner (MSME).

Ans. No, this scheme is applicable to those units who have availed term loan from banks to acquire upgraded technology/machines. Units cannot apply directly online but banks will forward the application to Office of Development Commissioner (MSME).

Credit Linked Capital Subsidy Scheme

 

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