CLCSS Scheme FAQ’s issued by Government

FREQUENTLY ASKED QUESTIONS (FAQs) RELATED TO CLCSS

Following are the FAQ’s relating to CLCSS Scheme sourced from site www.dcmsme.gov.in

To download the FAQ’s from government website, pls follow this link

Q.1         What is CLCSS ?

Ans.       It is Credit Linked Capital Subsidy Scheme (CLCSS) for technology upgradation/purchase of new machine of Micro and Small enterprises in the country.

Q.2         Whether the CLCSS is in operation at present?

Ans.       Yes

Q.3        When CLCSS was launched?

Ans.       The Scheme was launched in the financial year 2000-2001.

Q.4         What were the salient features of the CLCSS ?

Ans.       Under the scheme, 15 per cent capital subsidy, limited to maximum of Rs 15 lakh is provid.ed to the Micro and Small Enterprises for upgrading their technology with the well-established and improved technology as approved under the scheme.

Q.5         How many products/sub-sectors have been approved under the CLCSS

Ans.       51 products/sub-sectors have been approved under the CLCSS till date. List IS available in the Scheme guidelines.

Q.6         Whether the Scheme is restricted to 51 sub-sectors only?

Ans.       Technologies/new sub-sectors/products can be added as per the need/proposal received from industrial associations/units in the prescribed format (available on the website) after approval of Technical Sub-Committee (TSC) and Governing and Technical Approval Board (GTAB).

Q.7.        How can I get benefit under the Scheme?

Ans.       If you are as MSE manufacturing a product/sector (falling under the 51 categories approved under CLCSS) and want to upgrade the technology of manufacturing the product through institutional finance, then you may have to approach to the concerned bank/nodal agencies/eligible financial institution. Concerned BankiPLI will upload the — — ———” online application of CLCSS and forward to their Nodal Bank/Agency. Nodal Bank/Agency will forward the same online to Office of DC (MSME) after scrutiny.

Q.8         Which are the Nodal Agencies for implementation of CLCSS ?

Ans.       Small Industries Development Bank of India(SIDBI), National Bank for Agriculture and Rural Development(NABARD), Canara Bank, Bank of Baroda, Bank of India, The Tamilnadu Industrial Investment Corporation Limited, Chennai (TIIC), Andhra Bank, State Bank of Bikaner & Jaipur, State Bank of India, Corporation Bank, Indian Bank and Punjab National Bank are the nodal agencies for implementation of the CLCSS at present. Nomination of nodal agencies are continuous process.

Q.9.        Why all the banks are not covered under the Scheme?

Ans.       All Scheduled Commercial Banks are covered under the scheme either as nodal bank or as PLI to SIDBI or NABARD.

Q.10.     Whether the Scheme is applicable for new MSEs ?

Ans.       Yes.

Q.11.     Whether CLCSS is applicable for medium scale Enterprises?

Ans.       Units graduated from small scale to medium scale are eligible for subsidy under CLCSS for a period of three years from the date of graduation.

Q12.       What are the new steps that have been taken by the Ministry for effective implementation’ of CLCSS ?

Ans.       For effective implementation and transparency, Online Application and Tracking System has been introduced w.e.f. 01.10.2013 for submission of online application by concerned Nodal Banks.

Q.13.     Whether individual MSEs can directly apply for subsidy?

Ans.       No, this scheme is applicable to those units who have availed term loan from banks to acquire upgraded technology/machines. Units cannot apply directly online but banks will forward the application to Office of Development Commissioner (MSME).

Q 14.      What is the time limit for applying for subsidy?

Ans.       Eligible claim with reference date (date of release of last instalment of term loan) of each quarter should reach upto the end of next quarter. For example, if reference date falling between 1 st January, 2015 to 31st March, 2015 the claim should be forwarded latest by so” June, 2015 to Office of DC (MSME).

Q15.       What is the mechanism for disbursement of subsidy to the unit?

Ans.       Subsidy is to be kept in the form of Term Deposit Receipt (TOR) for 3 years by bank after release by Office of DC (MSME) in the concerned unit account and interest amount on the term loan should be reduced accordingly. The beneficiary unit shall remain in commercial production for a period of at least three years after installation of eligible plant & machinery on which subsidy under CLCSS has been availed. If the unit fulfils the condition, the TOR will be transferred to unit’s account after three years.

Q.16.     Is there any web-site where from I can get more details of the CLCSS?

Ans.       Yes. Web-site is www.dcmsme.gov.in under the tab ‘Technology Upgradation’