**Executive Summary**
The document is a response to a parliamentary question regarding the Credit-Linked Capital Subsidy Scheme (CLCSS) for Technology Upgradation. It details the scheme's impact on Micro and Small Enterprises (MSEs), including subsidies disbursed and the number of beneficiaries. The document also describes initiatives for digital empowerment, technology adoption, and grievance redressal. The question was slated to be answered on December 11, 2025.
**Key Points / Main Content**
* **Credit Linked Capital Subsidy (CLCS) Scheme:**
* Launched on October 1, 2000, to facilitate technology upgrades in MSEs.
* Provided a 15% upfront capital subsidy to MSEs on institutional finance.
* Was operational until March 31, 2020.
* Benefitted around 87,989 units with a total capital subsidy of Rs 5685.87 crore.
* **Financial Support for Procurement:**
* The government provides financial support through schemes such as Mutual Credit Guarantee Scheme (MCGS-MSME) for credit facility up to Rs. 100 crore.
* Special Credit Linked Capital Subsidy (SCLCSS) under National Schedule Caste and Schedule Tribe Hub (NSSH).
* **Digital Empowerment & Technology Adoption:**
* MSME supports digital empowerment through digital registration under Udyam and training in Tool Rooms Technology Centres.
* It involves incubation of new ideas and technologies through MSME Innovative Scheme and MSE Green Investment for Financing Transformation.
* The government supports Industry 4.0 adoption through the "Enhancement of Competitiveness in the Indian Capital Goods Sector" scheme, setting up Smart Advanced Manufacturing and Rapid Transformation Hub (SAMARTH) Centres (e.g., Centre for Industry 4.0 Lab Pune).
* **Monitoring & Grievance Redressal:**
* The scheme was operational in digital mode.
* The CHAMPIONS portal was launched for e-governance, grievance redressal, and handholding of MSMEs.
**Impact Analysis**
**Micro and Small Enterprises (MSEs)**
* **Impact:** Access to capital subsidies to facilitate technology upgrades and improved competitiveness; access to support for digital adoption.
* **Action Required:** Utilize available subsidies and schemes to upgrade technology and improve operational efficiency.
**Ministry of Micro, Small and Medium Enterprises**
* **Impact:** Responsible for the successful implementation and monitoring of the CLCSS and related initiatives.
* **Action Required:** Continue to support and expand digital empowerment, technology adoption, and grievance redressal mechanisms for MSEs.
Key Entities Referenced
Credit Linked Capital Subsidy Scheme (CLCSS): A scheme for technology upgradation in Micro and Small Enterprises (MSEs) by providing capital subsidy.
Ministry of Micro, Small and Medium Enterprises: The primary ministry responsible for the schemes and initiatives mentioned in the document.
CHAMPIONS portal: Portal launched to ensure timely processing and disbursal of subsidies to MSMEs.
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.
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