Special Credit Linked Capital Subsidy Scheme (SCLCSS)

Special Credit Linked Capital Subsidy Scheme (SCLCSS) has been introduced under National SC-ST Hub with the objectives to promote new enterprises and support the existing enterprises in their expansion for enhanced participation in the public procurement. SCLCSS is applicable for the purchase of Plant & Machinery eligible for Term Loan from the Prime Lending Institutions (PLIs).

The above scheme is being implemented by the O/o DC-MSME and the implementation mechanism is as per the prevalent guidelines of Credit Linked Capital Subsidy component under CLCS- TU Scheme.

Subsidy 

Under SCLCSS, there is a provision of 25% subsidy for procurement of Plant & Machinery through credit (bank loan) with the overall ceiling of Rs. 1 Crore (maximum subsidy Rs.25 Lacs).

Eligibility  

• On Going (Existing) & new Micro / Small Enterprises (MSEs) of manufacturing sector owned by SC/ST entrepreneurs.
• A valid Udyog Aadhaar Memorandum (UAM) Number.
• Plant & Machinery should be procured through Bank Loan.
• The SC/ST Enterprise would be defined as under :
  ⇒Proprietor should be SC/ST, in case of Proprietorship concern.
  ⇒Shareholding of the SC-ST Partners of Partnership firm or Directors of Private Limited Company / Limited Company should be more than 51%.

How to apply

• To claim subsidy under SCLCSS, eligible SC/ST MSEs are required to apply online through Primary Lending Institutions (PLIs) from where the term loan for procurement of Plant & Machinery has been availed.
• The completed application is uploaded by the PLI through “Online Application and Tracking System” of the O/o DC-MSME to the attached Nodal Agency which, in turn, recommends the application online to Office of DC (MSME) for release of subsidy.
• After processing of application and subject to availability of funds, due approval is accorded, and then subsidy under National SC-ST Hub is released to the Nodal Banks /Agencies by NSIC.
• Subsidy is then transferred by the Nodal Banks /Agencies to the PLIs where the bank account of the MSE is operated.

Nodal banks / agencies 

• Small Industries Development Bank of India (SIDBI)
• National Bank for Agriculture and Rural Development (NABARD)
• State Bank of India (SBI)
• Canara Bank
• Bank of Baroda (BoB)
• Punjab National Bank (PNB)
• Bank of India (BoI)
• Andhra Bank
• Indian Bank (IB)
• Corporation Bank (COB)
• Tamil Nadu Industrial Investment Corporation Limited (TIICL)

Scheme Guidelines

If you want to download scheme guidelines, then click on the below button.

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Information on schemes and interventions introduced for SC-ST entrepreneurs under National SC-ST Hub (NSSH)

National Scheduled Caste Scheduled Tribe Hub scheme (NSSH), an initiative of the Ministry of MSME, Government of India was launched to promote entrepreneurship within the SC/ST community for fulfillment of the 4% procurement target as per Public Procurement Policy. The above scheme is being implemented by National Small Industries Corporation (NSIC), a CPSE under the Ministry of MSME. The following support is being provided under NSSH to the aspiring and existing SC-ST entrepreneurs.

NSSH Offices

To make it convenient for SC-ST entrepreneurs to seek in-person handholding and support, 15 National SC-ST Hub Offices (NSSHOs) are in operation across the country in locations such as Agra, Patna, Guwahati, Kolkata, Pune, Bhubaneswar, Chennai, Ranchi, Mumbai, Ludhiana, Bengaluru, Hyderabad, Surat, Lucknow and Shilong. SC-ST entrepreneurs can also visit the NSSH Head Office in New Delhi. NSSH Offices are facilitating the SC/ST entrepreneurs in Tender participation, CPSE empanelment, bank loan, assistance under various sub-schemes / interventions of NSSH and are working closely with relevant stakeholders such as CPSEs, state governments, financial & banking institutions, industry associations to provide professional support to the SC-ST MSEs. Information on NSSHOs can be viewed online at NSIC.

Capacity Building training programs

The Hub envisions capacity building of SC-ST MSEs to play an important role in achieving its objective. In this regard, NSSH has tied up with various institutes and is offering over 100 types of skill / entrepreneurship development training programs, free of cost, at various locations across the country. These residential / non-residential programs are planned through institutes with proven track record in imparting training and promoting entrepreneurship. 

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NSSH Schemes for market linkage and capacity building 

There are various sub-schemes / interventions being implemented to offer benefits to the SC-ST entrepreneurs and include : 

• Special Credit Linked Capital Subsidy Scheme (SCLCSS) which has a provision of 25 % capital subsidy for procurement of Plant & Machinery through credit, with overall investment ceiling of Rs.1 crore, without any restriction of technology up-gradation for new and existing SC/ST MSEs.
• Special Marketing Assistance Scheme (SMAS) : To enhance marketing capabilities & competitiveness of the MSMEs by facilitating participation in various on-ground marketing activities e.g. 4 domestic & 2 approved international exhibitions/trade fairs in a financial year and buyer-seller meets, etc.
• Single Point Registration Scheme (SPRS) : 100% subsidy for registration on token payment of Rs.100 plus GST that enables exemption from payment of Earnest Money Deposit (EMD), free of cost issuance of tender documents and other benefits as per public procurement policy.
• Reimbursement of Bank Loan processing fee : 50% or Rs. 1,00,000/- (excluding GST), whichever is less, on the processing fee charged by the banks for business loans.
  
• Reimbursement of bank charges on Performance Bank Guarantee charges : 50% or Rs. 1,00, 000/- (excluding GST), whichever is less, of the bank charges on performance bank guarantee for participation in tenders of Central/ State Govt. and CPSEs. –
• Reimbursement of Testing Fee : 50% with a ceiling limit of Rs. 1,00,000/- (excluding GST) on the testing, calibration charges of NABL accredited / Govt. laboratories and license or certification fee of BIS. 
• Reimbursement of Membership fee of Export Promotion Councils : 50% with a limit of Rs 20,000/- (excluding GST), on Membership fee of various Export Promotion Councils (EPCs). 
• Subsidy on membership fee of B2B portal (www.msmemart.com) : 100% subsidy for annual membership fee of the online B2B platform of National Small Industries Corporation (NSIC) and 80% for renewal of membership.
• Reimbursement of short-term course fee of top 50 NIRF rated management institutions : 90% or Rs. 1 Lakh (whichever is lower) of the fee of top 50 NIRF rated management institutions for attending up to 2 short term courses (1-30 days duration) in one financial year for SC-ST entrepreneurs and their ward.