Credit Linked Capital Subsidy Scheme (CLCSS) for technology up-gradation, is an Indian Government scheme launched in October 2000. this Scheme provides an upfront capital subsidy for upcoming technology for new or existing Micro, Small, and Medium Enterprises (MSMEs).This scheme provides up to 15% of the capital subsidy for over 1 crore rupees for MSMEs such as khadi, poultry, cattle feed, and other mini industries. This scheme has no upper limit and is demands. Accordingly, to upgrade the latest and equipment funds endorsement required. This scheme launched intending to produce improved quality products and have high productivity. This scheme currently has 51 sub-sectors or products.
In February, the Cabinet Committee on Economic Affairs has approved the outlay of Rs 2,900 crore for this scheme. There are 51 sectors in which this scheme would be available this list of the sectors are available on the government websites you can check them. If your industry falls under one of these sectors/products, then you are eligible to apply for the up-gradation scheme. These comprise Sole Proprietorship, Partnership, Co-operative societies, and Private and Public limited companies in the SSI sector. Besides, according to this scheme priority will be given to Women entrepreneurs. The subsidy of 15% is available only to businesses that have invested in eligible plant machinery by using term loans borrowed from the pre-approved list of Public Lending Institutions.
The Industries that are transforming from a small scale to medium-scale with the help of additional loans under the CLCSS are also eligible for the subsidy in this scheme. Online application and tracking have been introduced in 2013 for the Credit Linked Capital Subsidy Scheme. Eligible persons are required to apply for the Credit Linked Capital Subsidy Scheme subsidy from Primary Lending Institutions where they have availed term loans.
This scheme has the following goals:
- To provide technologically advanced equipment to MSMEs.
- To Upgrade MSME’s plant and machinery with the latest technology.
- To aid in their expansion if needed in the future.
Documents Required for Credit Linked Capital Subsidy Scheme.
The following documents for getting the Credit Linked Capital Subsidy Scheme.
- PAN card of the individual and the business
- Aadhaar Card/Voter ID (for identity proof)
- Personal address proof
- Business address proof
- Recent passport size photographs
- Proof of business like partnership deep, company registration, etc.