Credit Linked Capital Subsidy Scheme

The Credit Linked Capital Subsidy Scheme was introduced to facilitate technology up-gradation in Micro and Small Enterprises (MSEs). The scheme intends to provide an upfront capital subsidy of 15 per cent, limited to the maximum of Rs 1 crore is offered to the eligible MSEs for upgrading their technology with the well-established and improved technology as approved under the scheme. In this article, we view the features, eligibility, application procedure for the Credit Linked Capital Subsidy Scheme in detail.

CLCS Scheme Update

The Indian Government has commended the three-year extension of the CLCS scheme for MSEs with the general expenditure of Rs. 2,900 crores. The scheme has been authorised for continuation from 2017-2018 to 2019-2020. The scheme motivates the technology up-gradation to MSMEs, improvement in the quality of products, enhancement in productivity, reduction in waste and will promote a culture of continuous improvement.

Eligibility Criteria for Providing Financial Assistance on Scheme

The incubation support will be provided by Host Institutions are listed out.

Indian Institutes of Technology (IITs)
National Institutes of Technology ( NITs)
Engineering Colleges
Technology Development Centres, Tool Rooms, etc
Other recognised R&D&/or Technical Institutes/Centres, Development Institutes of DIP&P in the field of Paper, Rubber, Machine Tools, etc.

Loan Amount and Capital Subsidy

The Cabinet Committee on Economic Affairs has confirmed the changes in the ceiling of credit from Rs.40.00 lakhs to Rs 1.00 crore with the rate of subsidy enhanced from 12 per cent to 15 per cent of the investment in eligible plant and machinery, whichever is lower.

Industrial Sectors Approved under the Scheme

The following are the industrial sectors which are approved for availing the assistance under the scheme are mentioned below:

Biotech 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 tests, measuring and assembly/ manufacturing, industrial process control, analytical, medical, electronic consumer and communication equipment etc.
Fans and 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 and Cable Industry
Auto parts and components
Bicycle Parts
Combustion Devices/ Appliances
Forging and Hand Tools
Foundries - Steel and Cast Iron
General Engineering Works
Gold Plating and Jewellery
Locks
Steel Furniture
Toys
Non-Ferrous Foundry
Sport Goods
Cosmetics
Ready mate 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 Furniture
Toys
Non-Ferrous Foundry
Sports Goods
Cosmetics
Ready-made Garments
Wooden Furniture
Mineral Water Bottle
Paints, Varnishes, Alkyds and Alkyd Products
Agricultural Implements and Post Harvest Equipment
Beneficiation of Graphic and Phosphate
Khadi and Village Industries
Coir and Coir Products
Steel Re-rolling and Pencil Ingot making Industries
Zinc Sulphate
Welding Electrodes
Sewing Machine Industry

Online Application Procedure

The following are the procedure to register for CLCS Scheme are mentioned below: Step 1: The applicant has to visit the official website of the MSME department. Step 2: Click on “Online Application” tab which is displayed on the homepage of the portal. [caption id="attachment_75212" align="aligncenter" width="576"]

Credit Linked Capital Subsidy Scheme - Image 1 Step 3: Select the scheme “CLCSS” under the online application menu. [caption id="attachment_75213" align="aligncenter" width="589"]

Credit Linked Capital Subsidy Scheme - Image 2 Step 4: The user has to provide the login details such as user id and password and then click on the “Login” button. [caption id="attachment_75216" align="aligncenter" width="592"]

Credit Linked Capital Subsidy Scheme - Image 3 Step 5: After logging into the portal, the applicant has to apply online by filling the form with the required details. Step 6: After completing the application procedure the applicant can track the status of the application.

Track Application Status

To track the application status follow the steps mentioned below: Step 1: Click on “Search application status” link is present on the login page. [caption id="attachment_75218" align="aligncenter" width="573"]

Credit Linked Capital Subsidy Scheme - Image 4 Step 2: Enter your ID number, Unit PAN number, Verification code and then click on the “Search “ button. [caption id="attachment_75220" align="aligncenter" width="559"]

Credit Linked Capital Subsidy Scheme - Image 5 Step 3: Now the applicant can able to view the status of the application.

Implementation Process

The completed application is being loaded by the Primary Lending Institutions (PLIs) through Online Application and Tracking System to the attached Nodal Agency which, in turn, recommends the application online to Office of DC (MSME) for the release of subsidy. After processing of the application and subject to availability of funds, due approval is accorded from the Competent Authority with the concurrence of Internal Finance Wing, after which funds are released to Nodal Agencies. The Nodal Agencies then transfer funds to the PLIs where the account of the MSE is operated. Also, read about Government Schemes for MSME