Objectives:

• Objective: The primary objective of the CLCSS is to promote technological upgradation and modernization of MSMEs in order to enhance their competitiveness, productivity, and sustainability.
• Eligibility: All small-scale industries, including micro, small, and medium enterprises (manufacturing and service enterprises) are eligible to apply for the CLCSS. The enterprises should be registered and operated as per the relevant guidelines and criteria specified by the government.
• Subsidy: Under the CLCSS, eligible enterprises can avail of a capital subsidy to partially offset the cost of technology upgradation. The subsidy is linked to institutional credit and is provided as a percentage of the loan amount taken for the purpose of machinery and equipment upgradation. The subsidy rate can vary depending on the category of the enterprise and the specific project.

• Categories of Enterprises: The CLCSS classifies enterprises into three categories based on their investment in plant and machinery: a) Micro Enterprises: Investment in plant and machinery up to Rs. 25 lakhs. b) Small Enterprises: Investment in plant and machinery between Rs. 25 lakhs and Rs. 5 crores. c) Medium Enterprises: Investment in plant and machinery between Rs. 5 crores and Rs. 10 crores.
• Application Process: To avail the subsidy under the CLCSS, enterprises need to submit their applications to the respective nodal agencies designated by the government. The application should include details of the proposed technology upgradation project, estimated cost, loan details, and other relevant documents as specified by the nodal agency.
• Nodal Agencies: The implementation of the CLCSS is facilitated through various nodal agencies, including banks, financial institutions, and specialized agencies designated by the government. These agencies assess the applications, sanction loans, and disburse the capital subsidy.