Credit Linked Capital Subsidy Scheme (CLCSS) for Technology Upgradation of Small Scale Industries (SSI)



The revised scheme aims at facilitating technology upgradation of Micro and Small Enterprises (MSEs) by providing 15% capital subsidy (limited to maximum INR 15 lakhs) for purchase of Plant & Machinery. Maximum limit of eligible loan for calculation of subsidy under the scheme is INR 100 lakhs. Presently, more than 1500 well established/improved technologies under 51 sub-sectors have been approved under the Scheme.

The scheme would cover the following technology needs / products/sub - sectors:
·         Bio-tech Industry
·         Common Effluent Treatment Plant
·         Corrugated Boxes
·         Drugs and Pharmaceuticals
·         Dyes and Intermediates
·         Industry based on Medicinal and Aromatic plants
·         Plastic Moulded/ Extruded Products and Parts/ Components
·         Rubber Processing including Cycle/ Rickshaw Tyres
·         Food Processing (including Ice Cream manufacturing)
·         Poultry Hatchery & Cattle Feed Industry
·         Dimensional Stone Industry (excluding Quarrying and Mining)
·         Glass and Ceramic Items including Tiles
·         Leather and Leather Products including Footwear and Garments
·         Electronic equipment viz test, measuring and assembly/ manufacturing, Industrial process control; Analytical, Medical, Electronic Consumer & Communication equipment etc.
·         Fans & Motors Industry
·         General Light Service(GLS) lamps
·         Information Technology (Hardware)
·         Mineral Filled Sheathed Heating Elements
·         Transformer/ Electrical Stampings/ Laminations /Coils/Chokes including Solenoid coils
·         Wires & Cable Industry
·         Auto Parts and Components
·         Bicycle Parts
·         Combustion Devices/ Appliances
·         Forging & Hand Tools
·         Foundries – Steel and Cast Iron
·         General Engineering Works
·         Gold Plating and Jewellery
·         Locks
·         Steel Furniture
·         Toys
·         Non-Ferrous Foundry
·         Sport Goods
·         Cosmetics
·         Readymade Garments
·         Wooden Furniture
·         Mineral Water Bottle
·         Paints, Varnishes, Alkyds and Alkyd products
·         Agricultural Implements and Post Harvest Equipment
·         Beneficiation of Graphite and Phosphate
·         Khadi and Village Industries
·         Coir and Coir Products
·         Steel Re-rolling and /or Pencil Ingot making Industries
·         Zinc Sulphate
·         Welding Electrodes
·         Sewing Machine Industry

Definition of Technology Up gradation

·         Technology up gradation would ordinarily mean induction of state-of-the-art or near state-of-the-art technology. In the varying mosaic of technology obtaining in more than 7500 products in the Indian small scale sector, technology up gradation would mean a significant step up from the present technology level to a substantially higher one involving improved productivity, and/or improvement in the quality of products and/or improved environmental conditions including work environment for the unit. It would also include installation of improved packaging techniques as well as anti-pollution measures and energy conservation machinery. Further, the units in need of introducing facilities for in-house testing and on-line quality control would qualify for assistance, as the same is a case of technology up gradation.
·         Replacement of existing equipment/technology with the same equipment/technology will not qualify for subsidy under this scheme, nor would the scheme be applicable to units upgrading with second hand machinery.

Other conditions for loans   

·         Promoters' contribution, security, debt-equity ratio, up-front fee, etc. will be determined by the lending agency as per its existing norms.
·         Units availing subsidy under the CLCSS shall not avail any other subsidy for technology up gradation from the Central/State/UT Government. However, cases covered under National Equity Fund (NEF) Scheme, which are otherwise eligible under the CLCSS can also be covered under this scheme.
·         Units in the North-Eastern Region which are availing financial incentives/subsidy under any other scheme from the Government in the Region would, however, be eligible for subsidy under the CLCSS.
·         One of the main requirements for sanction of assistance under the technology up gradation scheme will be availability of competent management in the unit concerned to carry out the up gradation program and to manage the operation of the unit efficiently. Towards this end, the lending agencies may stipulate conditions as may be considered necessary
To know more about this scheme please visit CLCSS...