The practice of categorisation of SSI units in different slabs on the basis of their present investmentįor determining the eligible subsidy has been done away with and Machinery, instead of the term loan disbursed to the beneficiary unit
The admissible capital subsidy is to be calculated with reference to the purchase price of plant and The rate of subsidy has been enhanced from 12 per cent to 15 per cent The ceiling on loans under the Scheme has been raised from Rs. Further, in the light of the experience gathered in implementing the Scheme, certain other modifications were also required to make it more useful to the SSI units, including tiny, khadi, village and coir industrial units, in taking up technology upgradation on a larger scale.Īfter considering these issues, the CLCSS has been amended as follows : 1 crore and rate of subsidy from 12 per cent to 15 per cent. It is in this background that the Finance Minister made an announcement in the Budget Speech of 2004-05 to raise the ceiling for loans under the Scheme from Rs. Upgradation of both the process of manufacture and corresponding plant and machinery is necessary for the small enterprises to reduce the cost of production and remain price competitive at a time when cheaper products are easily available in the global market. With increasing competition due to liberalisation of the economy, the survival and growth of the SSI units are critically dependent on their modernisation and technological upgradation. The eligible amount of subsidy calculated under the pre-revised scheme was based on the actual loan amount not exceeding Rs.40 lakh.ĭue to insufficient investment and lack of awareness of both the quality standards and access to modern technologies, a large percentage of SSI units continue with outdated technology and plant & machinery. The Scheme (pre-revised) provided for 12 per cent capital subsidy to SSI units, including tiny units, on institutional finance availed of by them for induction of well established and improved technology in selected sub-sectors/products approved under the Scheme.
The Scheme aims at facilitating technology upgradation by providing upfront capital subsidy to SSI units, including tiny, khadi, village and coir industrial units, on institutional finance (credit) availed of by them for modernisation of their production equipment (plant and machinery) and techniques. The Ministry of Small Scale Industries (SSI) is operating a scheme for technology upgradation of Small Scale Industries (SSI) called the Credit Linked Capital Subsidy Scheme (CLCSS). Xxxxii) Steel Re-rolling and /or Pencil Ingot making Industriesī) List of Primary Lending Institutions (PLI) (Scheduled Commercial Banks, State Financial Corporation (SFC) & the NSIC Ltd, Cooperative Banks, Regional Rural Banks and North Eastern Development Financial Institution, other nodal banks / agencies participating in the scheme (Appendix II).Ĭ) Agreement for Financial Assistance under the CLCSS (Appendix III)ĭ) Application Form for Assistance under the CLCSS (Appendix IV).Į) Addresses of the SIDBI Head Office and its branches.į) Addresses of the NABARD Head office and its field offices. Xxxix) Beneficiation of Graphite and Phosphate Xxxviii) Agricultural Implements and Post Harvest Equipment Xxxvii) Paints, Varnishes, Alkyds and Alkyd products Xxix) Transformer/ Electrical Stampings/ Laminations /Coils/Chokes including Solenoid coils Xviii) Mineral Filled Sheathed Heating Elements Xiv) Electronic equipment viz test, measuring and assembly/ manufacturing, Industrial process control Analytical, Medical, Electronic Consumer & Communication equipment etc. Xiii) Leather and Leather Products including Footwear and Garments Xii) Glass and Ceramic Items including Tiles Xi) Dimensional Stone Industry (excluding Quarrying and Mining) X) Poultry Hatchery & Cattle Feed Industry Ix) Food Processing (including Ice Cream manufacturing) Viii) Rubber Processing including Cycle/ Rickshaw Tyres Vii) Plastic Moulded/ Extruded Products and Parts/ Components Vi) Industry based on Medicinal and Aromatic plants Guidelines of the Credit Linked Capital Subsidy Scheme(CLCSS)Ī) Approved list of Well Established and Improved Technologies under the CLCSS (Appendix - I )