About this employment scheme
Credit Linked Capital Subsidy Scheme (CLCSS) is a Ministry of MSME scheme that provides a 15% upfront capital subsidy (maximum ₹15 lakh per unit) to Small and Micro enterprises for upgrading their plant and machinery to newer, state-of-the-art technology. The subsidy is credit-linked — the enterprise must take a bank loan, and the government pays 15% of the eligible investment (cap ₹1 crore investment → max ₹15 lakh subsidy) directly into the enterprise's loan account, reducing outstanding principal. CLCSS covers 51 approved sub-sectors including food processing, hosiery, hand tools, drugs & pharmaceuticals, stationery, bicycle parts, auto components, packaging, printing, and more. Subsidy is released through Nodal Banks and Agencies (SBI, NABARD, SIDBI, NHB, Bank of Baroda, etc.). Average time from loan sanction to subsidy release: 60-90 days.
Programme snapshot
| Scheme Name | CLCSS 2026 — Credit Linked Capital Subsidy Scheme: 15% Subsidy for MSME Technology Upgrade |
| Launched By | Government of India |
| Launch Year | 2000 |
| Benefit | 15% upfront capital subsidy on machinery investment (max ₹15 lakh per unit for investment up to ₹1 crore) + Reduces bank loan principal + Covers 51 approved technology sub-sectors |
| Category | Employment |
| Last Verified | 4 September 2026 |
| Official Portal | https://msme.gov.in |
What workers receive
15% upfront capital subsidy on machinery investment (max ₹15 lakh per unit for investment up to ₹1 crore) + Reduces bank loan principal + Covers 51 approved technology sub-sectors
Which workers qualify
- ✓Micro and Small enterprises (investment in plant & machinery: up to ₹25 crore for manufacturing)
- ✓Enterprise must be in one of 51 approved sub-sectors (list at dcmsme.gov.in/clcss)
- ✓Must be upgrading to identified better/newer technology (not purchasing same old technology)
- ✓Must have Udyam Registration
- ✓Medium enterprises are NOT eligible (only Micro and Small)
- ✓Existing units upgrading machinery AND new units both eligible
Documents required at enrolment
Registration process
- 1Identify your sub-sector in the CLCSS approved 51 sub-sectors list at dcmsme.gov.in
- 2Approach a Nodal Bank (SBI, NABARD, SIDBI, Bank of Baroda, Punjab National Bank, etc.) for a term loan for machinery
- 3Bank appraises the machinery purchase and sanctions loan
- 4Bank submits subsidy claim to Nodal Agency (SIDBI/NABARD) on behalf of MSME
- 5Subsidy (15% of investment, max ₹15 lakh) credited to loan account within 60-90 days
- 6MSME repays only the balance loan (principal reduced by subsidy amount)
Official Government Portal
Submit your application yourself on msme.gov.in; it costs nothing. Treat anyone demanding money to "get you approved" as a scam.
🔗Apply on msme.gov.in