{"id":41200,"date":"2022-03-16T11:48:13","date_gmt":"2022-03-16T06:18:13","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=41200"},"modified":"2022-03-16T11:49:30","modified_gmt":"2022-03-16T06:19:30","slug":"credit-linked-capital-subsidy-scheme-for-technology-upgradation","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/credit-linked-capital-subsidy-scheme-for-technology-upgradation\/","title":{"rendered":"Credit Linked Capital Subsidy Scheme for Technology Upgradation\u2013 An Overview"},"content":{"rendered":"\n<p class=\"has-drop-cap\">The\nMSME or Micro, Small and Medium Enterprises have introduced a subsidy scheme\ncalled Credit Linked Capital Subsidy Scheme (CLCSS) and Technology Upgradation\nScheme (CLCS-TUS) for MSEs. The CLCSS or Credit Linked Capital Subsidy Scheme\naims to aid technology up-gradation for providing upfront Capital Subsidy to\nSSI units, comprising khadi units, coir industrial units, tiny units, and\nvillage units to modernise their production process &amp; activity.<\/p>\n\n\n\n<p>Due\nto lack of investment and lack of awareness of both the quality standards and\naccess to modern technologies, a huge percentage of SSI units continue with\noutdated technology and plant and machinery. With rising competition because of\nthe liberalisation of the economy, the growth &amp; development of the SSI\nunits are critically dependent on their modernisation &amp; technological\nupgradation. Upgradation of both the process of manufacture &amp; corresponding\nplant and machinery is vital for the small enterprises to lessen the production\ncost and remain price competitive at a time when cheaper products are easily\navailable in the international market.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/corpbiz.io\/learning\/credit-linked-capital-subsidy-scheme-for-technology-upgradation\/#What_is_the_Objective_of_Credit_Linked_Capital_Subsidy_Scheme_CLCSS_for_Technology_Upgradation\" >What is the\nObjective of Credit Linked Capital Subsidy Scheme (CLCSS) for Technology\nUpgradation?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/corpbiz.io\/learning\/credit-linked-capital-subsidy-scheme-for-technology-upgradation\/#Meaning_of_Technology_Upgradation\" >Meaning of Technology\nUpgradation<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/corpbiz.io\/learning\/credit-linked-capital-subsidy-scheme-for-technology-upgradation\/#Nodal_Agencies_Banks_for_the_Credit_Linked_Capital_Subsidy_Scheme\" >Nodal Agencies\n&amp; Banks for the Credit Linked Capital Subsidy Scheme<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/corpbiz.io\/learning\/credit-linked-capital-subsidy-scheme-for-technology-upgradation\/#Eligible_Beneficiaries_and_Primary_Lending_Institutions\" >Eligible\nBeneficiaries and Primary Lending Institutions<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/corpbiz.io\/learning\/credit-linked-capital-subsidy-scheme-for-technology-upgradation\/#How_to_claim_for_subsidy_under_Credit_Linked_Capital_Subsidy_Scheme\" >How to claim\nfor subsidy under Credit Linked Capital Subsidy Scheme?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/corpbiz.io\/learning\/credit-linked-capital-subsidy-scheme-for-technology-upgradation\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_the_Objective_of_Credit_Linked_Capital_Subsidy_Scheme_CLCSS_for_Technology_Upgradation\"><\/span>What is the\nObjective of Credit Linked Capital Subsidy Scheme (CLCSS) for Technology\nUpgradation?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The Credit Linked Capital Subsidy Scheme is aimed to provide the technology upgradation by providing capital subsidy for the SSI and <a href=\"https:\/\/corpbiz.io\/msme-registration\"><strong>MSME <\/strong><\/a>units comprising khadi, village, coir industrial, and tiny units. The technology upgradation of infrastructure &amp; machinery will enable the industry to be competitive enough to produce products or items in an inexpensive way.<\/p>\n\n\n\n<p><strong><em>Following\nare some industries which can avail benefits from the CLCSS Scheme:<\/em><\/strong><\/p>\n\n\n\n<ol><li>Dyes and Intermediates;<\/li><li>Corrugated Boxes;<\/li><li>Rubber Processing including\nCycle or Rickshaw Tyres;<\/li><li>Food Processing;<\/li><li>Biotech Industry;<\/li><li>Drugs and Pharmaceuticals;<\/li><li>Common Effluent Treatment\nPlant;<\/li><li>Poultry Hatchery and Cattle\nFeed Industry;<\/li><li>Industry based on Aromatic\n&amp; Medicinal Plants;<\/li><li>Extruded\nProducts and parts or components\/Plastic Moulded.<\/li><\/ol>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Meaning_of_Technology_Upgradation\"><\/span>Meaning of Technology\nUpgradation<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>In\nthis context, Technology Upgradation meant a step up from the present\ntechnology level to a high-end technology that was capable of increasing\nproductivity, environmental conditions, improving product quality, including\nthe work surrounding the unit. It also comprised installing energy-conserving\nmachinery and setting up anti-pollution measures. In-house quality control and\ntesting measures were also covered under the Technology Upgradation. However,\nreplacing the present equipment or machinery with similar technology didn&#8217;t\nqualify for the subsidy. Purchasing 2<sup>nd<\/sup> hand machinery was not\nencouraged either.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Nodal_Agencies_Banks_for_the_Credit_Linked_Capital_Subsidy_Scheme\"><\/span>Nodal Agencies\n&amp; Banks for the Credit Linked Capital Subsidy Scheme<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The SIBDI (Small Industries Development Bank of India) and the <strong>NABARD (National Bank for Agriculture &amp; Rural Development<\/strong><sup><a href=\"https:\/\/www.nabard.org\/\"><strong>[1]<\/strong><\/a><\/sup><strong>)<\/strong> were the nodal agencies for implementation the CLCSS. Also, 9 public sector banks and Government agencies were appointed as nodal agencies or banks for the implementation of the scheme, such as Canara Bank, State Bank of India (SBI), the National Small Industries Corporation Limited, Andhra Bank, and Bank of Baroda.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Eligible_Beneficiaries_and_Primary_Lending_Institutions\"><\/span>Eligible\nBeneficiaries and Primary Lending Institutions<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li><strong>Eligible\nBeneficiaries:<\/strong><\/li><\/ul>\n\n\n\n<ol><li>New units, registered with the\nState Directorate of Industries, which has the suitable technology approved by\nTSC or GTAB, can apply for a subsidy;<\/li><li>Machinery bought under the Hire\nPurchase Scheme of the NSIC was eligible;<\/li><li>Labour intensive,\nexport-related activities were also considered;<\/li><li>Women entrepreneurs are given\npreference;<\/li><li>Present units registered with\nthe State Directorate of Industries, can apply for upgrading under the SSI\nsector are eligible;<\/li><li>Partnerships, Public &amp;\nPrivate Limited Companies, Sole-Proprietors, and Co-operative Societies under\nSSI sector are eligible;<\/li><li>Present units registered with\nthe State Directorate of Industries can apply for upgrading the present plant\n&amp; machinery;<\/li><li>Business advancement for small\nscale or medium-scale on account of the extra loan was eligible;<\/li><li>The term loan for upgrading\nshould be sanctioned on\/after September 29, 2005.<\/li><\/ol>\n\n\n\n<ul><li><strong>Eligible\nPrimary Lending Institutions:<\/strong><\/li><\/ul>\n\n\n\n<ol><li>Scheduled Commercial Banks;<\/li><li>SFCs or State Finance\nCorporations;<\/li><li>Scheduled Co-operative Banks;<\/li><li>NEFDI or North Eastern\nDevelopment Financial Institution;<\/li><li>RRBs or Regional Rural Banks. <\/li><\/ol>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_to_claim_for_subsidy_under_Credit_Linked_Capital_Subsidy_Scheme\"><\/span>How to claim\nfor subsidy under Credit Linked Capital Subsidy Scheme?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>An\nonline application and tracking system was introduced in 2013. To claim subsidy\nunder Credit Linked Capital Subsidy Scheme, eligible MSEs are required to apply\nonline via PLIs (Primary Lending Institutions), from where the MSEs avail term\nloan. The application is being uploaded by the PLI via an online application\n&amp; tracking system to the attached Nodal Agency, which recommends the\napplication online to Office to DC (MSME) for release of subsidy. After\nprocessing of application &amp; subject to availability of funds, due approval\nis accorded from the CA (Competent Authority) with the concurrence of IFW\n(Internal Finance Wing), after which funds are released to Nodal Agencies.\nFunds are transferred by the Agencies to the PLIs, where the account of the MSE\nis operated.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The scheme (pre-advised) provided for a 12% capital subsidy to SSI units, comprising tiny units, on institutional finance (credit) availed of by them for induction of well-established and improved technology in selected sub-products\/sectors approved under the Credit Linked Capital Subsidy Scheme. The eligible amount of subsidy estimated under the pre-revised scheme was based on the actual loan amount not exceeding Rs. 40 lakh.<\/p>\n\n\n\n<p class=\"text-left\"><b>Read our Article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/msme-sector-in-india-potential-and-future-prospects\/\">MSME Sector in India: Potential and Future Prospects<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The MSME or Micro, Small and Medium Enterprises have introduced a subsidy scheme called Credit Linked Capital Subsidy Scheme (CLCSS) and Technology Upgradation Scheme (CLCS-TUS) for MSEs. The CLCSS or Credit Linked Capital Subsidy Scheme aims to aid technology up-gradation for providing upfront Capital Subsidy to SSI units, comprising khadi units, coir industrial units, tiny [&hellip;]<\/p>\n","protected":false},"author":35,"featured_media":41202,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[176],"tags":[2185],"acf":{"service_id":"71"},"authorName":"Karan Singh","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2022\/01\/processed-1-150x150.jpeg","authorDescription":"A legal writing enthusiast, a wanderer, and a zealous reader. After gaining a lot of knowledge about the diverse legal topics and developing research skills, Karan joined the league of legal content writers to deliver quality-rich blogs.","postViews":4726,"readingTime":3,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/41200"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/35"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=41200"}],"version-history":[{"count":8,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/41200\/revisions"}],"predecessor-version":[{"id":41210,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/41200\/revisions\/41210"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/41202"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=41200"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=41200"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=41200"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}