About Capital Subsidy (CLCSS 15%)
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Eligibility Criteria
- 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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Amount of Subsidy
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
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What is Modernisation
Technology upgradation would ordinarily mean induction of state-of-the-art or near state-of- theart technology. In the varying mosaic of technology covering more than 7,500 products in Indian small scale sector, technology upgradation would mean a significant step up from the present technology level to a substantially higher one involving improved productivity, improvement in quality, improved environmental conditions including work environment for the unit.
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Other conditions for loans
- Promoters' contribution, security, debt equity ratio, upfront fee, etc. will be determined by the lending agency as per its existing norms.
- Units availing subsidy under the CLCSS shall not avail any other subsidy for technology up gradation from the Central/State/UT Government. However, cases covered under National Equity Fund (NEF) Scheme, which are otherwise eligible under the CLCSS can also be covered under this scheme.
- One of the main requirements for sanction of assistance under the technology up gradation scheme will be availability of competent management in the unit concerned to carry out the up gradation programme and to manage the operation of the unit efficiently. Towards this end, the lending agencies may stipulate conditions as may be considered necessary.
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