CREDIT LINKED CAPITAL SUBSIDY (CLCSS)

January 25, 2016 by

The Ministry of Small Scale Industries (SSI) is operating a scheme for Technology Up gradation of Small Scale Industries (SSI) called the Credit Linked Capital Subsidy Scheme (CLCSS). The Scheme aims at facilitating technology up gradation 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 Modernization of their production equipment (plant and machinery) and techniques.

ELIGIBILITY CRITERIA TO APPLY FOR CLCSS

  • Existing SSI units registered with the State Directorate of Industries, which upgrade their existing plant and machinery with the state-of-the-art technology, with or without expansion.
  • New SSI units which are registered with the State Directorate of Industries and which have set up their facilities only with the appropriate eligible and proven technology duly approved by the GTAB/TSC.
  • Industry graduating from small scale to medium scale on account of sanction of additional loan under CLCSS shall be eligible for assistance.
  • Eligibility for capital subsidy under the Scheme is not linked to any refinance Scheme of the Nodal Agency. Hence, it is not necessary that the PLI will have to seek refinance in respect of the term loans sanctioned by them from any of the refinancing Nodal Agencies.
  • Labour intensive and/or export oriented new sectors/ activities will be considered for inclusion under the scheme.
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HOW MUCH SUBSIDY WILL BE RECEIVED?

The maximum limit of eligible loan under the revised scheme is Rs. 100 lakh. Accordingly, the ceiling on subsidy would be Rs.15 lakh or 15 per cent of the investment in eligible plant and machinery, whichever is lower.

In calculating the value of plant & machinery, the following shall be excluded, namely:

  • The cost of equipments such as tools, jigs, dies, moulds and spare parts for maintenance and the cost of consumable stores
  • The cost of installation of plant & machinery
  • The cost of research & development equipment and pollution control equipment (except where these have been approved for specific product/sub sector by the GTAB

WHAT IS THE TIME LIMIT FOR APPLYING FOR SUBSIDY?

Last date of next quarter in which Loan has done. For example, if Loan is done between 1st Januarys, 2016 to 31st March, 2016 then claim should be forwarded latest by 30th June, 2016 to Office of DC (MSME).

WHETHER AN INDIVIDUAL CAN DIRECTLY APPLY FOR SUBSIDY?

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).

WHICH ARE THE NODAL AGENCIES FOR IMPLEMENTATION OF CLCSS ?

Following are the Nodal Agencies or Bank for Implementation of CLCSS :

  • Small Industries Development Bank of India(SIDBI)
  • National Bank for Agriculture and Rural Development(NABARD)
  • State Bank of India
  • Canara Bank
  • Bank of Baroda
  • Punjab National Bank
  • Bank of India
  • Andhra Bank
  • State Bank of Bikaner & Jaipur
  • Tamil Nadu Industrial Investment Corporation
  • The National Small Industries Corporati