NATIONAL SCHEDULED CASTE & SCHEDULED TRIBE HUB

Special Credit Linked Capital Subsidy Scheme

Special Credit Linked Capital Subsidy Scheme (SCLCSS)

Special Credit Linked Capital Subsidy Scheme (SCLCSS) was introduced under National SC-ST Hub (NSSH) scheme in 2017 with an objective to promote new enterprises and support the existing enterprises in their expansion for enhanced participation of SC/ST entrepreneurs in the public procurement. The guidelines and Standard Operating Procedure (SOP) are available at https://www.scsthub.in/content/special-credit-linked-capital-subsidy-scheme

Benefits of Registration

To ease the access to latest technology, under SCLCSS, there is a provision of 25% subsidy to the SC-ST MSEs for procurement of Plant & Machinery/ Equipment through institutional credit (bank loan) with the overall ceiling of Rs. 25 Lacs on the subsidy, without any sector specific restrictions. SCLCSS, is applicable for the purchase of new Plant & Machinery / Equipment eligible for Term Loan from the Prime Lending Institutions (PLIs). Based on the stakeholder consultation, service sector was included under SCLCSS in the revised NSSH Guidelines dated 15.11.2021 and now, all the SC-ST MSEs of manufacturing as well as service sector are eligible for subsidy under SCLCSS component of NSSH.

Eligibility

  • Sole Proprietorships, Partnerships, Co-operative and Societies, Private Micro / Small enterprises owned by SC/ST Entrepreneurs engaged in the manufacturing and service activities shall be eligible for seeking assistance.
  • SC/ST MSEs engaged in trading activities shallnot beapplicable for SCLCSS subsidy.
  • Units availing subsidy under SCLCSS shall not be allowed to avail any other subsidy for procurement of the sameplant & machinery and equipment from any other scheme of Central / State Government and vice-versa

How to Apply

The eligible SC/ST MSEs may submit the application alongwith requisite documents for SCLCSS subsidy to the concerned Prime Lending Institution (Bank from which term loan has been availed for procurement of plant & machinery / equipment). The Nodal banks/agencies as notified from time to time by the Ministry of MSME shallupload the claim application of SC-ST MSEs on the dedicated MIS Portal. The nodal banks/agencies shall consider the proposals only in respect of credit approved by their respective branches, whereas, for other eligible Primary Lending Institutions (PLIs), SIDBI and NABARD shall be the nodal agencies for the release of subsidy under SCLCSS.

Timeline for acceptance of SCLCSS subsidy claims is one year from the reference date  (date of release / disbursement of last installment of term loan for purchase of plant & machinery / equipment)

 

Guidelines Standard Operating Procedure Circular Timeline for Applications Application Form Query Clarification

Process Flow of Special Credit Linked Capital Subsidy Scheme (SCLCSS)

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