What is CLCSS Scheme
The Ministry of Micro, Small and Medium Enterprises (M/o MSME) has launched a subsidy scheme which is named as Credit Linked Capital Subsidy Scheme (which is the CLCSS full form) for technology up-gradation of Micro and Small Enterprises (MSE’s). The primary focus of this scheme is to provide growth and development of Small Scale Industries (SSI) in rural and urban areas.
Large percentage of SSI units still works with out-dated technology and plant and machinery. The Scheme aims at helping technology up-gradation by providing upfront capital subsidy to SSI units, including tiny units, khaadi units, village units and coir industrial units. The capital subsidy is provided to SSIs for the modernization of their production equipment (plant and machinery) and techniques.
Eligibility Criteria for the CLCSS
- The subsidy rate has been advanced to 15% of the investment in eligible machinery (on institutional finance of up to Rs 1 crore, availed by them)
- The capital subsidy of 15% rate in eligible plant and machinery under the scheme shall be available only for projects, where term loans have been sanctioned by the eligible PLI
- The industries which are upgrading from small scale to medium scale on account of sanction of additional loan under CLCSS are eligible for assistance
- Eligibility for capital subsidy under the scheme is not linked to any refinance scheme for the nodal agencies
- Export oriented and labour intensive new sectors / activities will be considered under this scheme
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Benefits of CLCSS
This scheme brought many advantages to SSI industries. There benefits are as follows:
- The main objective is to help in up-gradation of technology in Tiny and SSI units in the specified products / Sub-sectors as notified by Govt. of India by providing 15% capital subsidy for investment in eligible plant and machinery
- By introducing this scheme, many non-productive industries were improved
- Both the existing SSI Units and New SSI units which are registered are covered in this scheme
- The scheme would cover the following technology / needs / products / sub-sectors:
|1. Drugs and Pharmaceuticals||13.Mineral Water Bottle||25.Transformer/ Electrical Stampings/ Laminations /Coils/Chokes including Solenoid coils||37. Industry based on Medicinal and Aromatic plants|
|2. Glass and Ceramic items including tiles||14. Toys||26. Mineral Filled Sheathed Heating Elements||38. Glass and Ceramic Items, including tiles|
|3. Bio-tech Industry|
|15. Steel Furniture||27. Control; Analytical, Medical, Electronic Consumer & Communication equipment, etc.||39.Information Technology (Hardware)|
|4. Food Processing (including Ice Cream manufacturing)|
|16. Readymade Garments||28. Forging & Hand Tools xxvi) Foundries – Steel and Cast Iron||40. Plastic Moulded/ Extruded Products and Parts/ Components|
|5. Wooden Furniture||17. Wires & Cable Industry xxii) Auto Parts and Components||29. Combustion Devices/ Appliances||41.Non-Ferrous Foundry|
|6. Rubber Processing including Cycle/ Rickshaw Tyres||18. Steel Re-rolling and /or Pencil Ingot making Industries|
|30. Khadi and Village Industries||42. Sewing Machine Industry|
|7. Machine Tool|
|19. Agricultural Implements and Post-Harvest Equipment||31. Paints, Varnishes, Alkyds and Alkyd products||43.Locks|
|8. Cosmetics||20. Sport Goods||32. Electronic equipment via test, measuring and assembly/ manufacturing, Industrial process||44. Welding Electrodes|
|9. Fans & Motors Industry||21 Agricultural Implements and Post-Harvest Equipment||33. General Light Service(GLS) lamps||45. Dimensional Stone Industry (excluding Quarrying and Mining)|
|10. Dyes and Intermediates||22. Beneficiation of Graphite and Phosphate||34. Common Effluent Treatment Plant||46. Corrugated Boxes|
|11. Printing Industry|
|23. General Engineering Works xxviii) Gold Plating and Jewellery||35. Leather and Leather Products including Footwear and Garments||47. Coir and Coir Products|
|12. Zinc Sulphate||24. Poultry Hatchery & Cattle Feed Industry||36. Bicycle Parts||48. Industrial Gases|
Documents required for CLCSS Scheme
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How To Claim Subsidy Under CLCSS
To avail or claim a subsidy under CLCSS, you need to apply online via Primary Lending Institutions (PLIs) from where the Micro and Small Enterprises (MSEs) avail term loan.
FAQs on CLCSS
Q. Is this scheme only for rural people?
Ans. This scheme is for technological advancement of small scale industries both in rural and urban areas.
Q. Who are the beneficiaries of this subsidy scheme?
Ans. The eligible beneficiaries for this scheme are Private and Public Limited Companies in the SSI sector, Co-operative societies, Partnerships, Proprietorships.
Q. What is the maximum subsidy offered under CLCSS?
Ans. The ceiling on the subsidy would be Rs. 15 lakh or 15% of the investment in eligible plant and machinery, whichever is lower.
Q. I’m currently availing State government provided technology up-gradation subsidy, can I apply for this?
Ans. No, the Subsidy under CLCSS shall not avail any other subsidy for technology up-gradation from the Central/State/UT Government. Except Cases covered under National Equity Fund (NEF) Scheme and Units in North-Eastern region are eligible under CLCSS can also be covered under this scheme.
Q. I have wooden furniture business from last year which I want to expand, I already have can I apply under this scheme?
Ans. Yes, any beneficiary unit shall remain in commercial production for a period of at-least 3 years.