(a): whether the Government has launched a scheme pn credit linked capital subsidy;
(b): if so, the details thereof;
(c): the criteria fixed for getting assistance under this scheme; and
(d): the number of SSI units are benefited by this scheme since its inception in the country, State-wise, particularly in Uttar Pradesh?
MINISTER OF SMALL SCALE INDUSTRIES & AGRO AND RURAL INDUSTRIES (SHRI MAHABIR PRASAD)
(a) : Yes, Sir.
(b) : The Government of India in the Ministry of Small Scale Industries (SSI) has been operating a scheme
for technology upgradation for SSI, called the Credit Linked Capital Subsidy Scheme (CLCSS) since October 1, 2000.
The Scheme provides 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 eligible amount of subsidy is calculated on the actual loan amount not exceeding
Rs.40 lakh. The new SSI units which are registered with the respective State Directorates of Industries and have
set up their units based on eligible technologies are also covered under the Scheme.
(c): The guidelines prescribed for availing subsidy under the CLCSS, inter alia, include the following:
(i) Capital subsidy under the Scheme shall be available only for such projects where term loans have been
sanctioned by the eligible primary lending institutions (PLIs) on or after October 1, 2000.
(ii) The financial assistance by the eligible PLIs for technology upgradation will be need based.
However, the 12 per cent capital subsidy support would be limited to the loan amounts given in the table below:
Sl. Investment limit Maximum ceiling Maximum subsidy No. of loan eligible for available under the support# scheme
1 Tiny units with investment in plant Rs.8 lakh Rs. 0.96 lakh & machinery less than Rs.10 lakh.
2 Tiny units with investment in plant Rs.20 lakh Rs. 2.40 lakh & machinery between Rs. 10 lakh to Rs.25 lakh.
3 Small units with investment in Rs 040 lakh Rs. 4.80 lakh plant & machinery above Rs.25 lakh.
(# = The eligible subsidy would be calculated on the actual loan amount or maximum ceiling on Ioan.-eligible for subsidy, whichever is lower.)
SI. No. State Number of units#
1 Andhra Pradesh 74 2 Bihar 05 3 Chattisgarh 16 4 Delhi 46 5 Goa 02 6 Haryana 38 7 Jharkhand 02 8 Karnataka 66 9 Kerala 02 10 Madhya Pradesh 20 11 Maharashtra 90 12 Gujarat 28 13 Orissa 02 14 Punjab 59 15 Rajasthan 56 16 Tamilnadu 309 17 Uttar Pradesh 42 18 West Bengal 08
TOTAL 865
# = Up to end July, 2005