Credit Linked Capital Subsidy Scheme

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Created by Er. K.N. Singh



       Credit linked capital subsidy scheme means it links subsidy only with availing credit facility. This scheme is only for those entrepreneurs that have to expand their enterprise for technology up-gradation. they have to go on the finance scheme for technology up-gradation. Today technology has become the basic need of human life, it is required by every field of our life. But for the betterment of our life, it demands updated with current technology. Whereas the manufacturing/producing sector is concerned, today it is suffering from a lack of technology of the current age. It requires the updated technology for this sector for quality production, quality packaging, to improve the quality and capacity of products, the capability of productions to meet the modern age demands of customers and to meet the global competitions. Production and service sectors play a vital role in the country’s development’s economy.
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Credit Linked Capital Subsidy Scheme

      Enabling the latest technology may be a lack of finance. We cannot undertake funds from public financing. It should update the products and services provided technology with today’s tune.

        Today Indian production and service sector is suffering from a lack of the latest technology, lack of skill managements, lack of hiring skilled manpower. Considering this, to meet this blackness and complete global competitions, MSME has launched a subsidiary scheme for providing technology up-gradation, packaging up-gradation, improving production capacity and capability, improving the pollution controlling systems and for the betterment of service sectors. 

Indian entrepreneur is suffering from lack of current technology, skilled manpower, lack of awareness among entrepreneurs on products, productions and production cost, lack of managerial skills and poor adaptability to change trade, trends. Productivity creates competitions by which the entrepreneur uses its skill human, capital and natural resources. The development of technology in the productive sector will be important to improve product quality and complete the competitions. Poor technology affects it’s all these things. India Govt. has well assessed these all things and trying to develop skilled human resources, current technology, production, and productivity so that Indian entrepreneurs may face the global meet. This is the reason, and keeping in mind, India’s Govt. has launched a scheme named Credit Linked Capital Subsidy.

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        The MSME department of India Govt. has launched an up-front capital subsidy scheme for Micro, Small and Medium enterprises called Credit Linked Capital Subsidy to attract private capital. The name of the scheme directly shows its aims- SUBSIDY ON CAPITAL INVESTMENT FOR TECHNOLOGY UP-GRADATION WHICH IS LINKED WITH CREDIT. This scheme will facilitate subsidy @ 15% to the said enterprises for its technology up-gradation against loans disbursed by any financial institutions. The maximum amount of subsidy will be Rs. 15.00 lakhs. Actually, this scheme was launched in the year-2000. U. K. Sinha committee studied the Scheme. RBI also approved the recommendations and amendments. The MSME Minister Mr. Nitin Gadkari has announced to prepare a final report on U. K. Sinha’s recommendations and RBI suggestions as soon as possible.

Related image Credit Linked Capital Subsidy Scheme


          MSME Minister Mr. Nitin Gadkari said that this revised scheme will play a vital role to increase the domestic products from 29 percent to 50 percent and also 40 percent to 50 percent of the export potentials.


Mudra Loan Scheme

          The cabinet committee on economic affairs held this February has approved a sum of Rs.2,900.00 crore for the scheme Credit Linked Capital Subsidy. it has approved this scheme only for 51 sectors/subsectors. The MSME Minister said that it has provided an extra 10 percent to SC/ST entrepreneurs covering under special provisions. He specially said that a committee formed will look at the delayed payments in the MSME secretary.

         The MSME Minister said that the companies registered under companies act 2013 having ATO above 500 crores and central public sector enterprises will also come to this platform.

STATUS of Credit Linked Capital Subsidy Scheme

       This scheme is under the process of revision and will be launched soon after the approvals. It announced this scheme on 01/10/2000. The present status of this scheme in 2017-18 and 2018-19 is as below. Figures for 2019-20 are unavailable.

OBJECTIVES of the Credit Linked Capital Subsidy Scheme

      To provide the facility of subsidy to well-established enterprises for up-gradation of its Technology with or without expansion of the enterprise.
         With new MSME an enterprise that has set up its facilities with appropriate and proved the technology, approved as per scheme guidelines are eligible for.
         it will apply this scheme only on the selected category of Micro, Small and Medium enterprises


PMEGP Loan Scheme

          Capital investment in approved plant and machinery for technology up-gradation should maximum 1.00 crore.

         The MSME units including the Tiny industry, the Khadi industry, the COIR industry, and the Village industry can avail of this facility.

         This facility can be availed by running enterprises to improve product quality, to improve environmental conditions, work environment, to install new technology for quality packaging, new technology for energy conservation, a measure of anti-pollution environments and online quality control equipment.
            The facility is for specified 51 sub-sectors/products approved.

How to apply for the Credit Linked Capital Subsidy Scheme

         it has launched A web portal on 01/10/2013 for the applicant tracking system. The finance lending institutions will claim under the credit-linked capital subsidy scheme. After application filling and completing all formalities, DC MSME will disburse the subsidy to the lending agencies on approval and availability of funds.

 List of Technologies and nodal agencies are available at

Who may apply:- All the finance lending institutions can directly apply to the DC MSME web portal.

Created by Er. K. N. Singh

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