All details on Credit-Linked Capital Subsidy Scheme

Credit Linked Capital Subsidy Scheme or CLCSS is meant for MSMEs. It has been introduced by the Ministry of Micro, Small and Medium Enterprises to boost production of small scale industries by providing them access to subsidised capital. Under this scheme, eligible enterprises can enjoy a capital subsidy of 15% on loan availed from a financial institution. 

Main Objective of Credit-Linked Capital Subsidy Scheme

he objective of the Scheme is to facilitate technology up-gradation in MSEs by providing an upfront capital subsidy of 15 per cent (on institutional finance of upto Rs 1 crore availed by them) for induction of well-established and improved technology in the specified 51 sub-sectors/products approved.

  1. Financial Support:
    • The scheme provides a subsidy linked to the credit availed for the purchase of eligible machinery and equipment.
  2. Eligibility:
    • Small-Scale Industries (SSI) and Small and Medium Enterprises (SMEs) are typically eligible for the CLCSS.
  3. Scope:
    • The scheme covers various sectors, and the list of eligible machinery and equipment is outlined by the government.
  4. Implementation:
    • Financial institutions and banks play a crucial role in implementing the scheme. They provide credit linked with the subsidy.
  5. Application Process:
    • Entrepreneurs or business owners interested in availing the benefits of CLCSS usually need to apply through the participating financial institutions.
  6. Subsidy Amount:
    • The subsidy is calculated as a percentage of the eligible investment in plant and machinery, subject to a maximum limit.
  7. Technology Upgradation:
    • The scheme encourages businesses to adopt new and improved technologies, thereby enhancing productivity and efficiency.
  8. National Small Industries Corporation (NSIC):
    • NSIC, a government agency, is often involved in the implementation and monitoring of the scheme.

It’s important to check the latest guidelines, eligibility criteria, and subsidy rates as they may have been updated or modified after my last knowledge update. For the most recent and accurate information, you should refer to the official government websites or contact relevant government departments or financial institutions