CLCS (Credit Linked Capital Subsidy)

CLCS is a Central Govt. Scheme for Small and Micro Scale Industries. 15% Subsidy is available on the Machinery value, Max. Limit is Rs. 15 Lacs.

The Credit Linked Capital Subsidy Scheme, shortly referred to as the CLCSS is an innovative credit product launched by the Ministry of Micro, Small and Medium Enterprises. The primary objective of this scheme is to aid the technology up-gradation of micro and small enterprises, especially in rural and semi-urban areas.

A large number of small-scale industries in India still work with out-dated technology. They are unable to upgrade their machinery due to non-availability of funds. The CLCSS helps small-scale industries upgrade their equipment and plant machinery by offering capital subsidies on purchase of machinery.

Key Features of the CLCSS

  • Under the CLCSS, businesses can avail up to 15% subsidy (with a maximum limit of up to Rs. 1 crore) on investment in eligible machinery.
  • 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 PLIs (Public Lending Institutions).
  • Industries that are transforming from small scale to medium scale due to sanction of additional loans under the CLCSS are also eligible for the subsidy.

Who is eligible for the CLCSS?

  • Micro and small enterprises belonging to the 51 sub-sectors mentioned by the Ministry of MSME are eligible for capital subsidy.
  • The subsidy is available to both existing and new enterprises.
  • The subsidy is available to small and micro enterprises in rural and urban areas.
  • This scheme is available to all micro and small enterprises having a valid UAM number. It can include sole-proprietorships, partnerships, private limited companies including khadi, tiny industries, cottage industries, coir units, village industries and more.

Products and Industries covered under the CLCSS

Drugs and pharmaceuticals Glass and ceramic items including tiles Bio-tech industry Food processing Rubber processing including manufacture of tyres
Wooden furniture Cosmeticsfurniture Machine Toolsfurniture Fans and motorsfurniture Dyes and Intermediatesfurniture
Printing Industryfurniture Zinc Sulphatefurniture Steel furniturefurniture Toysfurniture Mineral water bottlefurniture
Wires and cablesfurniture Auto industry componentsfurniture Readymade garmentsfurniture Pencil ingot making industriesfurniture Steel rollingfurniture
Locksfurniture Paints and varnishesfurniture Sports goodsfurniture Agricultural equipmentfurniture Forging and hand toolsfurniture
Bicycle partsfurniture Industrial gasesfurniture Poultry, cattle feed and hatchery industryfurniture Gold plating and jewelleryfurniture General engineering worksfurniture
Leather and leather productsfurniture Coir productsfurniture Common effluent treatment  plantsfurniture Welding electrodesfurniture Sewing machine industryfurniture
Industry-based on medicinal and aromatic plantsfurniture Transformers, coils, chokes, electrical stampings, Heating elementsfurniture Hardware for information technologyfurniture Plastic moulded componentsfurniture

PSI (Package Scheme of Incentives)

PSI is a State Govt. Scheme providing Basket of Incentives ,the total quantum of benefits is almost 30% - 100% of Investment in Industrial Project.

TUF(Technology Up gradation Fund)

TUF is a State Govt. Scheme provided on Machinery available for Modernisation/Expansion of Existing Units & for setting up of New Units with Benchmark Level of Technology. 5% Subsidy is available on the Machinery value. Max. Limit is Rs.25 Lacs.

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