CLCSS Scheme – 15% Capital Subsidy up to ₹15 Lakh for Technology Upgradation
Credit Linked Capital Subsidy Scheme for Technology Upgradation
Government technology upgradation scheme that provided eligible Micro and Small Enterprises with an upfront capital subsidy of 15% on institutional finance up to ₹1 Crore for purchasing approved new plant and machinery. The maximum subsidy available was ₹15 Lakh. The CLCS component is no longer open for fresh applications.
Who Can Apply?
Verified criteria and borrower eligibility guidelines set by the Government of India.
Micro & Small Enterprises
Eligible Micro and Small Enterprises could avail assistance for technology upgradation through institutional finance under the applicable CLCSS guidelines.
Approved Plant & Machinery
The subsidy was available for eligible new plant and machinery incorporating approved, well-established and improved technologies specified under the scheme.
Institutional Term Loan
The enterprise was required to obtain an eligible term loan from a participating Primary Lending Institution for acquisition of approved plant and machinery.
Eligible MSE Registration
The beneficiary unit was required to qualify as a Micro or Small Enterprise and hold the applicable MSME registration required under the scheme.
Technology Upgradation
Assistance was intended for technology induction or upgradation that could improve productivity, product quality, working conditions or environmental performance.
Specified Sectors
The original CLCSS framework covered approved technologies across 51 identified products and sub-sectors.
Key Features
Core benefits, guarantees, and subsidy structures under this flagship program.
15% Upfront Capital Subsidy
Eligible MSEs could receive an upfront capital subsidy equal to 15% of eligible institutional credit used for approved technology upgradation.
Maximum ₹15 Lakh Subsidy
The subsidy was calculated on eligible institutional credit up to ₹1 Crore, resulting in a maximum capital subsidy of ₹15 Lakh.
Approved Technology Requirement
Plant and machinery had to meet the technology and sector eligibility requirements prescribed under the CLCSS framework.
New Machinery Requirement
The scheme supported acquisition of eligible new plant and machinery. Second-hand or fabricated machinery was not eligible under applicable provisions.
Bank-Led Application
MSEs did not claim the subsidy directly from the Ministry. The financing Primary Lending Institution submitted eligible subsidy claims through the prescribed online system.
Three-Year Subsidy Retention
The released subsidy was generally retained in a Term Deposit Receipt for three years in accordance with applicable CLCSS conditions before adjustment to the beneficiary's loan account.
Scheme Benefits
Application Process
Verify Technology Eligibility
The enterprise had to verify that the proposed plant and machinery and applicable technology were eligible under the approved CLCSS sector and technology list.
Obtain Institutional Term Loan
The eligible MSE obtained a term loan from a participating Primary Lending Institution for acquisition of approved plant and machinery.
Subsidy Claim by Lending Institution
The Primary Lending Institution uploaded the eligible subsidy claim through the prescribed Online Application and Tracking System and routed it through the designated Nodal Agency.
Subsidy Release & Retention
After approval and subject to availability of funds and scheme conditions, the subsidy was released through the Nodal Agency and lending institution and retained according to the applicable TDR provisions.
Documents Required
Keep the following paperwork ready for instant verification and fast processing.
Frequently Asked Questions
CLCSS Closed – Explore Current MSME Technology Upgradation Schemes
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