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Home » Credit Linked Capital Subsidy Scheme (CLCSS) for Technology Upgradation

Credit Linked Capital Subsidy Scheme (CLCSS) for Technology Upgradation

Of Small Scale Industries (SSI)

When big businesses like banks, healthcare organizations, and large corporations lose data due to computer crashes, they can call in engineers. While small and medium-sized enterprises can do this as well as they are more vulnerable to these risks, they cannot afford the extra expense of having a large team of on-call IT professionals. Technology up-gradation has become a must-consider agenda for many small and medium enterprises (MSEs) today. This is because the traditional “big computer” concept of enterprise computing, in the past, has changed into a smaller, portable, affordable, and productive one. Businessmen can no longer afford to ignore technology as an important strategic asset in their quest to achieve efficiency, flexibility, and competitiveness. A little laptop or computer can be a big help to growing SMEs. But no matter how helpful they can be, they will always face performance issues and hardware errors. To solve this problem, it is necessary to upgrade the current technology. Technology up-gradation is a pressing need for small and medium businesses, as the computers that run their operation can get slow to a crawl.

Objective of the Scheme

Small Scale Industries (SSIs) in India provide employment to millions of people across the length and breadth of the country. Yet, many of them are not able to keep pace with the fast-changing market scenario. Help us modernize small-scale industries by providing technology upgrades. The scheme’s objective is to provide up-front capital subsidies of 15% (on institutional finance of up to Rs 1 crore) for the induction of well-established and improved technology in specified 51 sub-sectors/products. This means that manufacturers are eligible for a subsidy if they upgrade their plant & machinery with state-of-the-art technology. The scheme also allows fresh investments by new manufacturing units if they have set up facilities with appropriate eligible and proven technology approved under scheme guidelines.

Eligibility for the Scheme

Any Micro and Small Enterprises (MSEs) sole proprietorships, partnerships, co-operative societies, and private and public limited companies in the MSE sector having a valid UAM number are eligible to become a beneficiary of the scheme.

Project Cost

  • Under the revised scheme, The ceiling on loans under the scheme has been increased from Rs.40 lakh to Rs.1 crore.
  • The ceiling on the subsidy will be Rs.15 lakh or 15 percent of the investment in eligible plants and machinery, whichever is lower.
  • The capital subsidy is calculated in relation to the price of plant and machinery, instead of a loan that is disbursed through regular payments over time.

How to Apply

  • Eligible beneficiaries can apply through
  • To claim subsidy under CLCSS, eligible MSEs are required to apply online through Primary Lending Institutions (PLIs)
  • The completed application form will be uploaded by the PLI through the Online Application and Tracking System to the attached Nodal Agency, which will forward it online to the Office of DC (MSME) for release of subsidy.
  • Once the application has been processed and funds are available, the Competent Authority will approve the release of funds to Nodal Agencies, with the Internal Finance Wing’s concurrence.
  • Nodal Agencies then transfer funds to the PLIs where the accounts of MSEs are operated.

Credit Linked Capital Subsidy Scheme (CLCSS) for Technology Upgradation Details

Collateral Security: As per Norms

Processing Fees: As per Norms

Scheme Validation: Enforced till 31/03/2020 – Not Active

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