CLCSS — Tech Upgrade Subsidy for MSMEs — Quick Overview
| Scheme Name | CLCSS 2026 — Credit Linked Capital Subsidy Scheme: 15% Subsidy for MSME Technology Upgrade | msme.gov.in |
| 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 | 25 May 2026 |
| Official Portal | https://msme.gov.in |
What is CLCSS — Tech Upgrade Subsidy for MSMEs?
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.
Under this scheme, eligible beneficiaries 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. The scheme was launched in 2000 and is implemented by the Government of India.
Benefits of CLCSS — Tech Upgrade Subsidy for MSMEs
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
Who is Eligible for CLCSS — Tech Upgrade Subsidy for MSMEs?
- ✓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 for CLCSS — Tech Upgrade Subsidy for MSMEs
How to Apply for CLCSS — Tech Upgrade Subsidy for MSMEs Online?
- 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
Apply directly on the official government website. This is the only authorised portal — never pay anyone to apply on your behalf.
🔗Apply on msme.gov.inFrequently Asked Questions — CLCSS — Tech Upgrade Subsidy for MSMEs
Related Employment Schemes
PM Vishwakarma Yojana 2026 — ₹3 Lakh Loan + ₹15,000 Toolkit for 18 Trades | pmvishwakarma.gov.in
PM Vishwakarma Yojana is a central government scheme launched on 17 September 2023 that supports traditional artisans and craftspeople across 18 trades with free skill training (₹500/day stipend), a ₹15,000 toolkit e-voucher, and collateral-free loans up to ₹3 lakh at just 5% interest. Implemented by the Ministry of MSME with a ₹13,000 crore budget over 5 years (FY2023-24 to FY2027-28). Registration is done FREE at Common Service Centres (CSC) using Aadhaar biometric authentication.
E-Shram Card 2026 — Free Registration for Unorganized Workers
E-Shram is a national database for unorganized sector workers providing a Universal Account Number (UAN) card, ₹2 lakh accident insurance, and priority access to 12 government welfare schemes.
MGNREGA / NREGA Job Card 2026 — 100 दिन काम की गारंटी, ₹267/दिन मजदूरी
Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) guarantees 100 days of wage employment per year to every rural household in India. Workers receive ₹267/day (minimum wage varies by state) directly to their bank accounts. With over 15 crore active Job Card holders, MGNREGA is the world's largest employment guarantee programme.
PM Internship Scheme 2026 — ₹9,000/Month Stipend | 1 Crore Youth | pminternship.mca.gov.in
PM Internship Scheme is a flagship Government of India initiative launched in 2024 that places 1 crore young Indians (aged 21–24) in 12-month paid internships at top 500 companies across sectors. Interns receive ₹9,000/month stipend (₹6,000 from government + ₹3,000+ from company CSR), ₹6,000 one-time travel grant, and ₹2 lakh accident insurance under PM Jeevan Jyoti Bima Yojana.