Lok Sabha Question No. 1982 (UNSTARRED), answered on 2025-12-11
Subject: Credit-Linked Capital Subsidy Scheme for Technology Upgradation
Ministry: MICRO, SMALL AND MEDIUM ENTERPRISES
Asked by: Shri Saptagiri Sankar Ulaka

## GOVERNMENT OF INDIA MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES

## LOK SABHA UNSTARREDQUESTION NO. 1982 TO BE ANSWERED ON: 11.12.2025

## CREDIT-LINKED CAPITAL SUBSIDY SCHEME FOR TECHNOLOGY UPGRADATION

1982.

SHRI SAPTAGIRI SANKAR ULAKA:

Will the Minister of MICRO, SMALL AND MEDIUM ENTERPRISES be pleased to state:

- (a) the details on the total number of micro and small enterprises that have availed benefits under the Credit Linked Capital Subsidy Scheme (CLCSS) for Technology Upgradation during the last five years, year-wise and State/UT-wise;
- (b) the details on the total amount of subsidy disbursed under the scheme during the said period, year-wise and State/UT-wise;
- (c) whether  the  Government  has  plans  to  expand  or  modify  the  scope  of  CLCSS  in  view  of emerging  technologies,  green  energy  adoption  and  Industry  4.0  requirements,  and  if  so,  the  details thereof; and
- (d) whether the Government has set up monitoring and grievance redressal mechanisms to ensure the timely processing of applications and the disbursal of subsidies to MSMEs under the scheme, if so, the details thereof and if not, the reasons therefor?

## ANSWER

## MINISTER OF STATE FOR MICRO, SMALL AND MEDIUM ENTERPRISES (SUSHRI SHOBHA KARANDLAJE)

(a) and (b): Credit Linked Capital Subsidy (CLCS) Scheme  launched on 1 October 2000 aimed at facilitating technology up-gradation in Micro and Small Enterprises (MSEs) by providing an upfront capital subsidy of 15 percent to the MSEs on institutional finance availed by them. It was in operation till  31.03.2020  only.  Since  inception,  the  scheme  benefitted  around  87,989  units  by  providing  them with total capital subsidy of Rs 5685.87 crore since its inception. Government is providing financial support for procurement of equipment/machinery through schemes such as Mutual Credit Guarantee Scheme (MCGS-MSME) for credit facility upto Rs. 100 crore , Special Credit Linked Capital Subsidy (SCLCSS) under National Schedule Caste and Schedule Tribe Hub (NSSH) etc.

- (c): Ministry  of  Micro,  Small  and  Medium  Enterprises  is  supporting  digital  empowerment  of MSME through  digital  registration  under  Udyam,  training  in  Tool  Rooms  Technology  Centres  for technology adoption, incubation of new ideas and technologies through MSME Innovative Scheme and MSE  Green  Investment  for  Financing  Transformation  scheme  for  promoting  investment  in  green technologies.  Components  of  financial  incentives,  capacity  building  and  awareness  are  suitably embedded in the design of the above Government funded schemes. On technological intervention and adoption of Industry 4.0 initiatives taken by Government inter-alia, include scheme for "Enhancement of  Competitiveness  in  the  Indian  Capital  Goods  Sector  for  setting  up  of  4  Smart  Advanced Manufacturing  and  Rapid  Transformation  Hub  (SAMARTH)  Centres  These  includes:  Centre  for Industry 4.0 Lab Pune, IITD-AIA Foundation for Smart Manufacturing, IIT Delhi; 1-4.0 India @ IISc, Bengaluru; Smart Manufacturing Demo & Development Cell, CMTI, Bengaluru.
- (d): The scheme was operational in digital mode. To ensure the timely processing of applications and the disbursal of subsidies to MSMEs, CHAMPIONS portal was launched to cover many aspects of e-governance including redressal of grievances and handholding of MSMEs.