Credit Linked Capital Subsidy Scheme (CLCS-TU)

Ministry of Micro, Small and Medium Enterprises (MSME)

CLCS-TU was a technology-upgradation scheme that provided capital subsidy to eligible MSEs for adopting approved technologies and upgrading their machinery.

Eligibility Criteria

MSMEs planning technology upgradation
Must invest in new and approved machinery/technology – Second-hand machinery is not allowed
Applicable to 51 specified sub-sectors/technologies
Maximum eligible loan limit: ₹1 crore
Eligible Entities: Sole Proprietorships, Partnership Firms, Cooperative Societies, Private Limited Companies, Public Limited Companies
Priority Categories: SC/ST entrepreneurs, Women entrepreneurs, Units in North Eastern Region (NER), Hilly states and Aspirational districts

Benefits

15% capital subsidy on institutional credit
Maximum subsidy up to ₹15 lakh
Reduces loan burden and capital investment cost
Supports technology upgradation and modernisation
Enhances: Productivity, Product quality and Market competitiveness
Encourages: Energy-efficient technologies and Environment-friendly processes
Includes: Tiny industries and Khadi, village, and coir units

How to Apply

Apply through: Banks or recognised nodal agencies such as Small Industries Development Bank of India and National Bank for Agriculture and Rural Development
Register on the Udyam Portal
Select approved machinery/technology
Apply for a term loan through a PLI
Submit: Loan application and Subsidy-related documents
The bank sanctions the loan and uploads the claim via the MIS portal
The nodal agency verifies and approves the claim
Subsidy is credited to the loan account