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Get Government Subsidy on Loans Taken for Technology Up-gradation

The Ministry of Small Scale Industries (SSI) has been operating a scheme called Credit Linked Capital Subsidy Scheme (CLCSS) for technology up gradation to small businesses. The scheme aims to facilitate technology up-gradation by providing upfront capital subsidy to small industries on institutional finance availed by businesses to upgrade their production technique and methods.

To make small industries environment friendly

It has been seen that most of the small industries in India are still using outdated technology for production due to unavailability of financial assistance. This scheme aims to encourage the businesses to upgrade technology not only for the sake of enhanced production but also to produce environment friendly products along with improved working conditions.

Financial Assistance  

The revised scheme provides 15% upfront capital subsidy to SSI units on institutional finance (banks and lending institutions) availed by them for technology up-gradation in specified sub-sectors/products approved into this scheme. More details have been described below:

  • The capital subsidy will be provided on loans up to INR 1 Cr.
  • Capital subsidy is calculated on the amount used in purchasing price of plant and machinery, instead of term loans taken by the businesses.


  • Proprietorship, Partnerships, Cooperative Societies, Private Limited and Public Limited Companies.
  • Women entrepreneurs will be given priority.
  • Replacement of old machines and technologies with same new machines won’t be considered under this scheme.

Nodal Agencies

  1. Small Industries Development Bank of India (SIDBI) and
  2. National Bank for Agriculture and Rural Development (NABARD) will act as the Nodal Agencies.

How to avail

The claim sent through co-opted PLIs of SIDBI within three months after the reimbursement of the last capital subsidy provided under this scheme. So, if a business have bought a machinery in April then it has to lodge its claim with the office of DC(MSME) through SIDBI, by the end of September and so on.

Till September 2014, 18544 units have benefited under this scheme.

For more information, CLICK HERE.

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