Credit Linked Capital Subsidy Scheme for Technology Upgradation
Description:-
The objective of the Scheme is to facilitate technology up-gradation in MSEs by providing an upfront capital subsidy of 15 per cent (on institutional finance of upto Rs 1 crore availed by them) for induction of well-established and improved technology in the specified 51 sub-sectors/products approved. In other words the major objective is to upgrade their plant & machinery with state-of-the-art technology, with or without expansion and also for new MSEs which have set up their facilities with appropriate eligible and proven technology duly approved under scheme guidelines. List of Technologies is available at www.dcmsme.gov.in
The Scheme is a demand driven one without any upper limit on overall annual spending on the subsidy disbursal.

Nature of assistance:
The revised scheme aims at facilitating technology up-gradation by providing 15% up front capital subsidy to MSEs, including tiny, khadi, village and coir industrial units, on institutional finance availed by them for induction of well established and improved technologies in specified sub-sectors/products approved under the scheme.

Who can be benefitted:
Micro and Small Enterprises (MSEs) having a valid UAM number.

How to apply:
Online Application and Tracking System has been introduced w.e.f. 01.10.2013. To claim subsidy under CLCSS, eligible MSEs are required to apply online through Primary Lending Institutions (PLIs), from where the MSEs avail term loan. The completed application is being uploaded by the PLI through Online Application and Tracking System to the attached Nodal Agency which, in turn, recommends the application online to Office of DC (MSME) for release of subsidy. After processing of application and subject to availability of funds, due approval is accorded from the Competent Authority with concurrence of Internal Finance Wing, after which funds are released to Nodal Agencies. Funds are then transferred by the Nodal Agencies to the PLIs where the account of the MSE is operated.

Status of Scheme:
The CLCSS component of CLCS-TU scheme was inforce till 31/03/2020.