Credit Linked Subsidy Scheme for Technology Upgradation of MSE Units

With the view to aware the MSMEs about various schemes run by the government, the Ministry of Micro, Small & Medium Enterprises (MSME) in a tweet informed about its scheme for technology up-gradation of MSE called the Credit Linked Capital Subsidy Scheme (CLCSS).

The Scheme aims at facilitating technology upgradation by providing upfront capital subsidy to MSE 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 (pre-revised) is provided at 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 sub-sectors/products approved under the Scheme.

The eligible amount of subsidy calculated under the pre-revised scheme was based on the actual loan amount not exceeding Rs.40 lakh. The Scheme was revised with a subsidy of 15 per cent upfront up to subsidy cap of 15 lakhs (Up to total cost of plant & machinery of 1 crore) with effect from the 29th September, 2005.

At present there are 51 sub sectors in which the machinery are approved under CLCSS to avail subsidy by a beneficiary MSE unit. For better implementation and transparency of the Scheme, Online Application and Tracking System has been implemented from 1st October, 2013.

Some of the approved Sub-sectors Credit Linked Capital Subsidy Scheme (CLCSS) are - Bio-tech Industry; Common Effluent Treatment Plant; Corrugated Boxes; Drugs and Pharmaceuticals; Dyes and Intermediates and more.