CLCSS

Credit Linked Interest Subsidy Scheme

Ministry of Micro, Small and medium enterprises, Government of India.

Eligible entity:-

Applicable to only Micro and Small Enterprises (MSEs)

Eligible beneficiaries:-

Micro and Small Industries
Industry graduating from small to medium scale on account of sanction of additional term loan.

ACTIVITIES COVERED UNDER THIS SCHEME

Manufacturing
Service

SUBSIDY CAP

WHICH EVER IS LOWER

When to apply

END OF NEXT QUARTER FROM QUARTER IN WHICH LAST DISBURSEMENT TAKEN

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.

Plant & Machinery

New Benchmarked machinery is purchased from a notified lending agency would be eligible. Second hand machinery would not be eligible for assistance

Spare & Accesserioes of main Plant & Machinery.

No assistance on spare & accessories of main plant & machinery.

Cost of Plant & Machinery

“In case of imported machinery:- Following shall be included while calculating the value of plant & machinery cost:-
• Import Duty
• Custom charges
• GST”

Term loan conditions:
Qualified lending institution	Implementing / Nodal Agencies : SIDBI, NABARD, SBI, Punjab National Bank, Bank of Baroda, Canara Bank, Corporation Bank, Indian Bank, Andhra Bank and TIICL
Sanction date	During the operative period of scheme.
Manimum loan of machinery cost	No limit
Tenure of loan (Minimum )	Not defined
Transfer of existing loan	Yes, Subject to terms & conditions mentioned under Scheme.

Other Significant Points:-
Machinery life as Commercial Production	The beneficiary unit will have to remain in commercial production until repayment of term loan.
Benefits under other scheme:-	MSEs availing subsidy under this component of the scheme shall not be eligible to avail any other subsidy for technology up-gradation from the CentraljState/UT Government for the same purpose and vice versa.
Where subsidy be credited/Kept	Subsidy will be kept as TDS for 3 years from date of reference date. After completion of 3 years, subsidy amount will be credited in term loan account of beneficiary.
Location of Machinery	Anywhere in India
Timeline for Machinery Installation	No time line
Machinery Specification	Technological upgraded