Credit Linked Capital Subsidy Scheme for Technology Upgradation CLCSS / CLCSS-TUS

Purpose:

CLCSS facilitates technology upgradation in Micro and Small Enterprises by providing an upfront capital subsidy on institutional finance used for purchasing eligible machinery and technology. It covers improvements in productivity, quality, packaging, pollution control, energy conservation, testing and working conditions.

Benefits

• Upfront capital subsidy of 15% on eligible institutional finance.
• Maximum subsidy of ₹15 lakh under the cited CLCSS framework.
• Eligible machinery investment considered up to ₹1 crore.
• Support for state-of-the-art or near-state-of-the-art technology.
• Assistance for improvements in productivity, quality, pollution control, energy conservation and testing.

Key documents:

• Udyam Registration Certificate.
• Loan application and sanction letter.
• Detailed Project Report.
• Machinery quotations and invoices.
• Purchase and installation evidence.
• Term-loan account statement.
• Chartered Accountant’s certificate regarding investment.
• PAN, GST and constitution documents.
• Bank details and applicable declarations.
• Evidence of compliance with approved technology requirements.

How to apply:

sclcss.msme.gov.in/Common/Home.aspx

1. Approach an eligible bank or Primary Lending Institution.
2. Submit a loan proposal for eligible machinery and technology upgradation.
3. Obtain loan sanction and complete the required documentation.
4. The lending institution uploads the subsidy claim through the designated system.
5. The nodal agency verifies and processes the claim.
6. The subsidy is adjusted through the lending institution under the scheme conditions.

Eligibility

• New or existing Micro and Small Enterprises in eligible sectors.
• Enterprises undertaking technology upgradation through approved machinery.
• Institutional finance must be sanctioned through an eligible Primary Lending Institution.
• Machinery and technology must meet applicable scheme requirements.

FAQ

Can an MSME submit the subsidy claim directly?

Generally, the lending institution submits the subsidy claim to the concerned nodal agency.

What is the subsidy under the cited framework?

It provides a 15% upfront capital subsidy, subject to a maximum of ₹15 lakh.

Is every machine eligible?

No. Machinery must fall within the eligible categories prescribed under the scheme.

Beneficiary:

As mentioned above

Benefits:

Capital subsidy on institutional finance obtained for eligible technology-upgradation machinery and equipment.