Credit Linked Capital Subsidy Scheme (CLCSS) for Technology Up-gradation of Small Scale Industries (SSI)

  • a) Scheme Objectives
The objective of this scheme is to facilitate Technology upgradation of SSI units in the specified products / sub-sectors by providing 15 % capital subsidy for induction of well established and improved technologies.
  • b) Eligibility Criteria
The units eligible for availing the CLCSS should take up:
  1. Up-gradation with state of the art technology with or without expansion
  2. New units setting up facilities with appropriate and proven technology approved by Governing and Technology Approval Board (GTAB) only

c) Scheme Details (Financial Parameters)

15% of the cost of eligible plant and machinery is eligible for support with a maximum ceiling on loan of Rs. 100 lakh and the ceiling on subsidy is Rs. 15 lakh.

d) Procedure to Avail the Scheme

  1. The eligible Primary Lending Institution PLI (excluding the new nodal banks / agencies) executes General Agreement (GA) with nodal agencies for availing capital subsidy under the scheme
  2. After sanction of the assistance, the eligible PLI will get an agreement executed with the concerned SSI unit on behalf of Government of India (GoI). It then obtains application for assistance under the CLCSS.
  3. The eligible PLI furnishes subsidy forecast on quarterly basis, through its Head Office to the Regional Office/ Branch Office of SIDBI or NABARD located in the region. It then releases the subsidy amount with each installment of loan in a manner proportionate to the amount of term loan disbursed (on pro- rata basis), subject to the ceiling of the term loan/ subsidy amount.
  4. The eligible PLI furnishes details of release of subsidy to the beneficiary units, together with the request for replenishing advance money placed with PLI for release of subsidy, on quarterly basis.
  5. The eligible PLI shall be responsible for ensuring eligibility for sanction of subsidy to the SSI units in terms of GOI guidelines under this scheme and also for disbursal and monitoring of the assisted units

e) Contact Details

Small Industries Development Bank of India
Ground Floor, Videocon Tower
E-1, Rani Jhansi Road
Jhandewalan Extension 
New Delhi – 110 055 
Tel. : 23682473 – 77 
Fax: (011) 23682461, 23682464

f) Scheme details can be viewed at: