Credit Linked Capital Subsidy Scheme (CLCSS) for Upgradation of SSI - Government of India

The Credit Linked Capital Subsidy Scheme (CLCSS) for Technology Upgradation was launched by the Government of India during 2000-01 with the aim to facilitate technology upgradation by SSI units in the specified products / sub-sectors by providing capital subsidy for induction of proven technologies. NABARD, as nodal agency is implementing the scheme through good working RRBs and Cooperative banks (since 4 December 2002 ) and Commercial banks (since 17 January 2005 ) and NEDFi.

The eligible borrowers under the scheme are sole proprietorships, partnerships, cooperative societies, private and public limited companies in MSME sector. Preference is given to women entrepreneurs. The scheme is to benefit the entrepreneurs in the Tiny Industries and MSME sector.

As per the amended CLCSS which came into effect from 29 September 2005, ceiling on loan under the scheme has been raised from Rs.40 lakh to Rs.1 crore, the rate of subsidy raised from existing 12% to 15% and calculation of admissible subsidy done with reference to the purchase price of plant and machinery instead of the term loan disbursed to the beneficiary unit. At present, the scope of the scheme covers 45 subsectors of the MSME sector which includes Khadi and Village industries.

Release of subsidy

Regional Offices of NABARD located in all the States have been delegated powers to sanction and release admissible subsidy to the eligible units through the PLIs. Capital subsidy to the tune of Rs.32.9328 crore was released by NABARD upto 31 October 2011 through 37 PLIs in respect of 765 eligible units financed by them.

Credit Linked Capital Subsidy Scheme - year-wise disbursements

The guidelines issued by the Ministry of MSME, GoI on CLCSS can be downloaded from the website: www.dcmsme.gov.in