Cabinet Committee on Economic Affairs (CCEA) today approved the following amendments to the on-going Credit Linked Capital Subsidy Scheme (CLCSS) for Small Scale Industries (SSI):
(a) Raising the ceiling on loans under the scheme from Rs.40 lakh to Rs.1 crore;
(b) Raising the rate of subsidy from 12 per cent to 15 per cent for SSI units in general;
(c) Calculating the admissible capital subsidy with reference to the purchase price of plant and machinery, instead of the term loan disbursed to the beneficiary unit,
(d) Doing away with the practice of categorization of SSI units in different slabs on the basis of their present investment for determining the eligible subsidy and
(e) Extending the period of validity of the scheme up to March 31, 2007.
The modifications in the existing CLCSS guidelines will encourage small-scale industrial units to undertake modernization through technology up-gradation programme to be competitive.
YSR/HS/HK/LV