SPECIAL CREDIT LINKED CAPITAL SUBSIDY
Dear Businessman/Investors,
In Series of KIP: Business and Subsidy Update, today we are going to share quantum of assistance and benefit of “SPECIAL CREDIT LINKED CAPITAL SUBSIDY FOR TECHNOLOGY ENABLEMENT OF SC/ST MSES by NATIONAL SCHEDULED CASTE AND SCHEDULED TRIBE HUB”.
Objective:
Ministry of Micro, Small and Medium Enterprises (MSME), Govt. of India has been operating a scheme for technology upgradation of Micro & Small Enterprises called the Credit Linked Capital Subsidy Scheme (CLCSS) to facilitate purchasing of plant & machinery by providing upfront capital subsidy to the existing as well as new MSEs.
Quantum of Assistance:
25% subsidy to the SC/ST MSEs for procurement of Plant & Machinery/ Equipment through institutional credit (bank loan) with the overall ceiling of Rs. 25 Lacs on the subsidy, without any sector specific restrictions. SCLCSS, is applicable for the purchase of new Plant & Machinery / Equipment eligible for Term Loan from the Prime Lending Institutions (PLIs).
Eligible Entities:
Sole Proprietorships, Partnerships, Co-operative and Societies, Private Micro / Small enterprises owned by SC/ST Entrepreneurs engaged in the manufacturing and service activities shall be eligible for seeking assistance.
Eligibility Criteria:
- It is mandatory to have a valid Udyam Registration for availing the subsidy under SCLCSS.
- Eligibility for capital subsidy under the Scheme is not linked to any re-finance Scheme of the Nodal Agency (ies). Hence, it is not necessary that the PLI will have to seek refinance in respect of the term loans sanctioned by them from any of the refinancing Nodal Agencies.
- SC/ST Units graduated from small scale to medium scale are eligible for subsidy under SCLCSS for three years from the date of graduation.
- Industry graduating from small scale to medium scale on account of sanction of additional loan under this scheme shall be eligible for assistance.
- Fabricated and second-hand plant and machinery shall not be eligible for consideration for subsidy under this component.
- SC/ST owned MSEs who have already availed subsidy under the existing CLCSS/ SCLCSS, before the date of notification of this scheme, may claim additional subsidy on account of difference in the rate of subsidy for procurement of plant and machinery after issuance of notification in this regard, which is now permissible under this scheme. The overall limit on the subsidy shall be Rs. 25 lakh. Further, an Undertaking shall be obtained from the applicant SC-ST MSEs, duly signed by its Proprietor / Partner / Director regarding availment of subsidy under CLCSS/SCLCSS earlier.
- MSEs availing subsidy under this scheme shall be eligible for all other types of subsidy except any other Central Government subsidy for technology up-gradation.
Commencement and Applicability:
The scheme is applicable from the date of sanction till 31.03.2026.
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