Credit Link Capital Subsidy Scheme for Technology Upgradation (CLCSS)

The scheme is operated by Ministry of Micro, Small & Medium Enterprises. The Scheme aims at facilitating technology upgradation by providing upfront capital subsidy to Micro, small and medium units, including tiny, khadi, village and coir industrial units, on institutional finance (credit) availed by them for modernization of their production equipment (plant and machinery) and techniques.

Pattern of Assistance:

The scheme provides assistance for the following components.

1. Capital Subsidy
   • 15% of Loan amount sanctioned from Primary Lending Institutions
   • Max Loan eligibility from Primary lending Institutions is Rs. 1 Crore.
   • Subsidy Ceiling – Rs. 15 Lakhs

Eligible Technology for assistance under this scheme:

Almost all technologies are covered under this scheme, however the following is the Ineligible components under this scheme

1. The cost of equipments such as tools, jigs, dies, moulds and spare parts for maintenance and the cost of consumable stores;
2. The cost of installation of plant & machinery;
3. The cost of research & development equipment and pollution control equipment ( except where these have been approved for specific product/sub sector by the GTAB ;
4. The cost of generation sets and extra transformer installed by the undertaking as per the regulations of the State Electricity Board; (except where gas based generation sets have been approved for specific product/sub­ sector by the GTAB).
5. The bank charges and service charges paid to the National Small Industries Corporation Ltd or the State Small Industries Corporation;
6. The cost involved in procurement or installation of cables, wiring, bus bars, electrical control panels (not those mounted on individual machines), oil circuit breakers or miniature circuit breakers which are necessarily to be used for providing electrical power to the plant & machinery or for safety measures;
7. The cost of gas producer plants ( except where these have been approved for specific product/sub sector by the GTAB) ;
8. Transportation charges (excluding of sales­tax and excise) for indigenous machinery from the plac of manufacturing to the site of the factory;
9. Charges paid for technical know­how for erection of plant & machinery;
10. Cost of such storage tanks which store raw materials, finished products only and are not linked with the manufacturing process;
11. Cost of fire fighting equipment

Important to remember:

1. The technology which has been approved by the ministry is only eligible for the capital subsidy
2. Every technology has prescribed cost norms, the capital subsidy is calculated based on these norms only
3. The Governmental assistance cannot be utilized for the purposes other than for which it has been sanctioned
4. If it is found that capital subsidy from the Government has been availed of on the basis of any false information, the industrial unit shall be liable to refund the Government the capital subsidy availed, along with interest to be charged from the date of disbursal to the date of refund.
5. The beneficiary unit shall remain in commercial production for a period of at least three years after installation of eligible plant and machinery on which subsidy under CLCSS has been availed.

For more details about the scheme please contact us. We can help you with

1. Arrangement of Finance Loans
2. Provide advice on the eligibility of your project for the scheme
3. Provide advice on the cost norms for various technologies as prescribed by the MSME Dept.
4. Preparing Project report as per the norms of the scheme
5. Assist you in the regular Inspections

The scheme would cover the following technology needs / products/sub ­ sectors:

1. Bio­tech Industry
2. Common Effluent Treatment Plant
3. Corrugated Boxes
4. Drugs and Pharmaceuticals
5. Dyes and Intermediates
6. Industry based on Medicinal and Aromatic plants
7. Plastic Moulded/ Extruded Products and Parts/ Components
8. Rubber Processing including Cycle/ Rickshaw Tyres
9. Food Processing (including Ice Cream manufacturing)
10. Poultry Hatchery & Cattle Feed Industry
11. Dimensional Stone Industry (excluding Quarrying and Mining)
12. Glass and Ceramic Items including Tiles
13. Leather and Leather Products including Footwear and Garments
14. Electronic equipment viz test, measuring and assembly/ manufacturing, Industrial process control; Analytical, Medical, Electronic Consumer & Communication equipment etc.
15. Fans & Motors Industry
16. General Light Service(GLS) lamps
17. Information Technology (Hardware)
18. Mineral Filled Sheathed Heating Elements
19. Transformer/ Electrical Stampings/ Laminations /Coils/Chokes including Solenoid coils
20. Wires & Cable Industry
21. Auto Parts and Components xxii) Bicycle Parts
22. Combustion Devices/ Appliances
23. Forging & Hand Tools
24. Foundries – Steel and Cast Iron
25. General Engineering Works
26. Gold Plating and Jewellery
27. Locks
28. Steel Furniture
29. Toys
30. Non­Ferrous Foundry
31. Sport Goods
32. Cosmetics
33. Readymade Garments
34. Wooden Furniture
35. Mineral Water Bottle
36. Paints, Varnishes, Alkyds and Alkyd products
37. Agricultural Implements and Post Harvest Equipment
38. Beneficiation of Graphite and Phosphate
39. Khadi and Village Industries
40. Coir and Coir Products
41. Steel Re­rolling and /or Pencil Ingot making Industries
42. Zinc Sulphate
43. Welding Electrodes
44. Sewing Machine Industry

Our Unique Services

1. Preparation of Detailed Project Reports (DPR)
2. Layout Drawings
3. Facilitating various permissions required from various Govt. Departments
4. Error free application processing for various subsidies and incentives
5. Facilitating the arrangement of subsidies and incentives from Govt. Departments
6. Advisory on Purchase of Machinery / Technology and Civil works