The Credit Linked Capital Subsidy Scheme (CLCSS) has been formed on 1st October, 2000. The main aim of the CLCSS is towards facilitating technology up-gradation in the Micro and Small Enterprises (MSEs) by means of furnishing capital subsidy of 15% (limited to maximum of Rs.15.00 lakhs) on institutional finance availed through them for induction of well-established as well as better technology in the stated 51 sub-sectors/products which has been approved under the scheme. The maximum limit of eligible loan for calculation of subsidy as per the Credit Linked Capital Subsidy Scheme is Rs.100.00 lakhs.
The Cabinet Committee on Economic Affairs (CCEA) had approved the variations in the ceiling of credit from Rs 40.00 lakhs to Rs 1.00 crore with the rate of subsidy boosted from 12% to 15% by. 29th September 2005.
Presently, the Credit Linked Capital Subsidy Scheme facilitates subsidy towards 51 sub-sectors/products which includes Khadi and Village Industries. As the Scheme had gradually progressed, the list of products/sub-sectors was also expanded through inducting new technologies/goods/sub-sectors with the support of the competent authority that is, Technical Sub-Committee (TSC) as well as Governing and Technology Approval Board (GTAB) of the Credit Linked Capital Subsidy Scheme.
Currently, there are 12 Nodal Banks/Agencies under Credit Linked Capital Subsidy Scheme, they are;
• Small Industries Development Bank of India
• National Bank for Agriculture and Rural Development
• Bank of Baroda
• State Bank of Bikaner and Jaipur
• Bank of India
• Indian Bank
• Corporation Bank
• Canara Bank
• State Bank of India
• Punjab National Bank
• Tamilnadu Industrial Investment Corporation
• Andhra Bank
The list of approved sectors or sub-sectors under the Credit Linked Capital Subsidy Scheme is;
• 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 (which includes Ice Cream manufacturing)
• Poultry Hatchery and Cattle Feed Industry
• Dimensional Stone Industry (excluding Quarrying and Mining)
• Glass and Ceramic Items which includes Tiles
• Leather and Leather Products which includes Footwear and Garments
• Electronic equipment viz tests, measuring and assembly or 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 or Electrical Stampings or Laminations or Coils or Chokes which includes 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
• Readymade 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 Re-rolling or Pencil Ingot making Industries
• Zinc Sulphate
• Welding Electrodes
• Sewing Machine Industry
• Industrial Gases
• Printing Industry
• Machines Tools
• Copper Strip Industry:
• Ferric and Non-Ferric Alum
• Pesticides Formulation
How to apply for the Credit Linked Capital Subsidy Scheme
Online Application and Tracking System was introduced on 1st October 2013. In order to claim the subsidy under the Credit Linked Capital Subsidy Scheme, qualified MSEs must apply online through Primary Lending Institutions (PLIs), from where the MSEs shall avail the term loan. The application after completed successfully shall be uploaded by the Primary Lending Institutions through Online Application and Tracking System towards the attached Nodal Agency which would suggest the online application to Office of DC (MSME) relating to the release of subsidy. After processing the application and subject to obtainability of funds, due approval is given from the Competent Authority with the concurrence of Internal Finance Wing, after which capitals are released towards Nodal Agencies. Funds are then transferred through the Nodal Agencies to the PLIs where the account of the MSE is functioned.
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