The technology develops itself every day and becomes better. The use of good and better equipment makes it easy for the industries to handle their business. By leaving some of the work on machines and technological equipment, the businessman or its workers can focus on doing other tasks which can not be performed by the machines. This would save time and energy and these efforts can be used in some other areas.
Credit Linked Capital Subsidy Scheme
However, many of the small scale Industries use outdated technology equipment. This not only takes much time but it also wastes the manual efforts of the workers. Seeing this, the government has decided to help the small scale Industries to upgrade their equipment. And for this, it introduced the Credit Linked Capital Subsidy Scheme.
The Credit Linked Capital Subsidy Scheme 2024 aims to fund MSMEs. MSME is short for Micro, Small and Medium Enterprise. The enterprises are Small Scale Industries and are based in Rural and Urban areas.
The Ministry of MSME has launched the Credit Linked Capital Subsidy Scheme for giving funding MSMEs. Through this scheme, the government will provide up to 15% capital subsidy for technology degradation and the development of such enterprises.
Any existing industry that comes under small scale industries and is registered can apply for the scheme. Irrespective of the location of the industry, the industry can avail of the benefits whether it is located in the rural areas and urban areas.
To learn more about eligibility and other important details, read further:
CLCSS Eligibility Criteria
To avail the Credit Linked Capital Subsidy Scheme, the industries belonging to MSMEs or small scale Industries must meet the following criteria:
- The industry that seeks to avail the subsidy scheme shall not be availing any other technology up-gradation aid from either the Central or State or Union Territory government.
- And the company that belongs to small scale Industries or are private or public limited companies can avail from the scheme. Partnerships and proprietorships can apply under the scheme.
- The beneficiaries can avail of a maximum subsidy benefit of Rs 1 crore.
- The beneficiary company can belong to either a rural area or an urban area.
- Any small scale industry that is upgrading to a medium scale with the help of the Credit Linked Capital Subsidy Scheme can apply for the scheme.
- All the companies that are seeking help from the industry must get their term loan sanctioned by PLI.
Important Documents Needed For CLCSS
You will need the following documents to apply for the subsidy scheme:
- Aadhar Card/ PAN card
- Proof of Business
- KYC
- Passport Photograph
- Proof of Address
How To Fill CLCSS Application Form
Read below to find out how you can apply for the Credit Linked Capital Subsidy Scheme:
- The interested candidates must apply online through their respective PLIs which sanction their loan. To know more about how you can apply through your PLI, you may contact your bank.
- The applicants can track the status of their application through the online portal.
- The PLIs will then send the completed form to the competent authorities for approval and sanction of funds.
- After approval, the funds are transferred to PLI which are then brought to MSE for the use and implementation.
Credit Linked Capital Subsidy Benefits
Credit Linked Capital Subsidy Scheme covers the following benefits:
- The companies in need can avail of a maximum benefit of Rs. 1 crore by applying in the scheme.
- The small scale industries with the help of this scheme can also upgrade to Medium scale industries.
- The Credit Linked Capital Subsidy Aims to helps small scale industries like Drugs, Mineral Water Bottle, Glass items, etc.
- The scheme would help small scale and medium scale industries to upgrade their existing technology equipment and develop their business.
- Ths subsidy rate under the scheme is 15% of the investment made in the machinery.
- The companies which are currently registered under small scale industries or who are going to register themselves under small scale industries can avail benefit from the scheme.
Conclusion
Ministry of MSME has launched a subsidy scheme to benefit small scale industries. Many short industries still use old equipment due to a lack of funds. This takes time and wastes energy. If they invest their resources in some other areas then they can increase their business more rapidly.
In light of this, the ministry of MSME has launched the Credit Linked Capital Subsidy Scheme. Through this scheme, small scale industries can get a benefit of Rs 1 crore. For other updates check Timesalert.
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