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Credit Linked Capital Subsidy for Technology Upgradation (CLCSS)

Name of the schemeCredit Linked Capital Subsidy for Technology Upgradation (CLCSS)
Ministry/DepartmentMinistry of Micro, Small and Medium Enterprises (MSME)
Description·         The objective of the scheme is to facilitate technology up-gradation in MSEs for induction of well-established and improved technology in the specified 51 sub-sectors/products approved.
Nature of assistancea.       Upfront subsidy of 15% on institutional credit up to Rs. 1.00 Cr. (i.e. a subsidy cap of Rs. 15.00 lakhs) for identified sectors/subsectors/ technologies

b.       For SC/ST, women entrepreneurs and entrepreneurs from NER, Hill states (Jammu & Kashmir, Himachal Pradesh & Uttarakhand) island territories (Andaman & Nicobar and Lakshadweep) and Aspirational Districts/ Left-wing Extremism (LWE) Districts: Subsidy shall also be admissible for investment in acquisition/replacement of plant & machinery /equipments & technology up-gradation of any kind.


b. Special Credit Linked Capital Subsidy Scheme (SCLCSS):

•       Additional subsidy for SC/ST owned enterprises under National SC-ST Hub

•       25% capital subsidy with an overall investment ceiling of Rs. 1.00 Cr. without any restriction on the sectors or machinery & technology

Who can apply?·         Any micro and small enterprise (MSE) having valid Udyam Registration and availing institutional credit to buy new plant & machinery approved under the scheme.

·         Special benefits are applicable in case of SC/ST, Women, NER / Hill States / Aspirational Districts /LWE Districts.

  • Benefits will be extended only if the eligible benchmarked machinery is purchased by availing term loan from a notified lending agency.
  • Fabricated and second-hand plant and machinery shall not be eligible for consideration for subsidy under this component
  • MSEs availing subsidy under this component of the scheme shall not be eligible to avail any other subsidy for technology up-gradation from the Central/State/UT Government for the same purpose and vice versa.

·         The beneficiary unit will have to remain in commercial production for a period of three years after installation & commissioning of the plant & machinery, on which subsidy under the CLCS-TUS has been availed.

How to apply?·         To claim subsidy under CLCSS, eligible MSEs may apply online through Primary Lending Institutions (PLIs), from where the MSEs avail term loan.

·         The completed application is uploaded by the PLI through Online Application and Tracking System to the attached Nodal Agency which, in turn, recommends the application online to Office of DC (MSME) for release of subsidy.

·         After processing of application and subject to availability of funds, approval may be accorded, after which funds are released to Nodal Agencies.

·         Funds are then transferred by the Nodal Agencies to the PLIs where the account of the MSE is operated.

Download scheme guidelines here: https://clcss.dcmsme.gov.in/

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