SCLCSS

The Special Credit Linked Capital Subsidy Scheme is an initiative by the Ministry of Micro, Small, and Medium Enterprises (MSME), Government of India, designed to support the technological advancement of Micro and Small Enterprises (MSEs) owned by Scheduled Caste (SC) and Scheduled Tribe (ST) entrepreneurs. Launched under the National SC-ST Hub (NSSH) scheme, SCLCSS aims to facilitate the procurement of modern plant and machinery, thereby enhancing the competitiveness and efficiency of SC/ST MSEs.

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Key Features of SCLCSS

  • Capital Subsidy: The scheme provides a 25% capital subsidy on institutional credit availed for the purchase of new plant and machinery, with a maximum subsidy cap of ₹25 lakh.
  • Scope: Unlike some other subsidy schemes, SCLCSS does not impose sector-specific restrictions, allowing SC/ST MSEs across various manufacturing and service sectors to benefit.

Eligibility Criteria

  • Ownership: The enterprise must be a sole proprietorship, partnership firm, cooperative society, private, or public limited company with at least 51% ownership by SC/ST entrepreneurs.
  • Enterprise Category: Only Micro and Small Enterprises (MSEs) are eligible under this scheme.
  • Udyam Registration: The MSE should possess a valid Udyam Registration Certificate.

Application Process

  • Loan Sanction: Eligible SC/ST entrepreneurs should approach a Prime Lending Institution (PLI), such as public sector banks, private sector banks, or regional rural banks, to apply for a term loan for purchasing new plant and machinery.
  • Submission of Application: After the loan is sanctioned, the applicant must submit the prescribed application form for the subsidy to the concerned PLI.
  • Forwarding to Nodal Agency: The PLI will review the application and, upon satisfaction, forward it to the designated nodal agency, such as the National Bank for Agriculture and Rural Development (NABARD), for subsidy release.
  • Disbursement of Subsidy: Upon approval, the subsidy amount is disbursed to the beneficiary's loan account through the PLI, effectively reducing the loan liability.