Special Credit Linked Capital Subsidy Scheme (SCLCSS) for Scheduled Caste/Scheduled Tribe

Description
Launched by the Ministry Of Micro, Small & Medium Enterprises, Special Credit Linked Capital Subsidy Scheme SCLCSS for Scheduled Caste / Scheduled Tribe is a sub scheme under National Scheduled Caste and Scheduled Tribe Hub NSSH scheme. This scheme aims to facilitate capacity augmentation of existing SC/ST MSEs and for creation on new enterprises among SC/ST communities, 25 percent capital subsidy is provided for purchase of plant & machinery / equipment through institutional finance bank loan .

Exclusions
• Units availing subsidy under SCLCSS shall not be allowed to avail any other subsidy for procurement of the same plant & machinery and equipment from any other scheme of Central / State Government and vice-versa.
• Fabricated or second-hand machinery.

Benefits
• 25% subsidy to SC/ST MSEs on institutional finance for procurement of Plant & Machinery/equipment (i.e. a subsidy cap of ₹ 25,00,000/-) without any sector-specific restrictions is provided.

Eligibility Criteria
1. Sole proprietorships, partnerships, co-operatives, private/public limited companies owned by SC/ST entrepreneurs in manufacturing or service sectors.
2. Must have valid Udyam Registration.
3. SC/ST units graduated from small to medium scale within 3 years of graduation.
4. New industries graduating to medium scale due to loan.

Application Process
Step 1: The eligible SC/ST MSEs need to submit the application along with the required documents to their Prime Lending Institution (PLI). This is the bank from which they have availed the term loan for procuring plant and machinery/equipment.
The Nodal b…
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The eligible SC/ST MSEs need to submit the application along with the required documents to their Prime Lending Institution (PLI). This is the bank from which they have availed the term loan for procuring plant and machinery/equipment.
The Nodal banks/agencies notified by the Ministry of MSME will then upload the claim application of the SC/ST MSEs on a dedicated MIS Portal.
The nodal banks/agencies will only consider proposals for credit that has been approved by their respective branches. For other eligible Primary Lending Institutions (PLIs), SIDBI and NABARD will be the nodal agencies for releasing the subsidy under SCLCSS.

Required Documents
• Self-certified copy of UAM & GST
• Self-certified copy of PAN card - In case of proprietorship, PAN card of SC/ST proprietor ought to be submitted
• Self-certified copy of Caste certificate of proprietor/ all partners/ directors
• Details of shareholding in case of partnership / Pvt. Ltd / LLP firm. In case of partnership concerns, shareholding of the enterprise would be required to ascertain status of the MSE as SC/ST MSE (shareholding of SC/ST entrepreneur to be > 51%). Attested copy of Partnership Deed for Partnership Firm / Memorandum and Article of Association in case of LLP/Private Limited Company are required
• Attested or original copy (signature with stamp) of payment receipt and system generated GST invoice for total amount paid to respective testing center or laboratory for availing various testing services
• NABL/ BIS attested copy of final testing report received from the laboratory duly stamped and signed for all tests availed by SC-ST MSE unit
• Proof of transferred amount as reimbursement by NSSHO/ NSIC through PFMS under the scheme, where any such assistance is availed earlier with in the same financial year
• Cancelled Cheque of the current account of the enterprise from which the testing charges have been debited

Frequently Asked Questions
Q: What is Special Credit Linked Capital Subsidy Scheme (SCLCSS)?
A: Special Credit Linked Capital Subsidy Scheme (SCLCSS) is to facilitate capacity augmentation of existing SC/ST MSEs and for creation on new enterprises among SC/ST communities, 25 percent capital subsidy is provided for purchase of plant & machinery / equipment through institutional finance (bank loan).

Q: Which department has launched this scheme?
A: This scheme has been launched by the Ministry Of Micro, Small & Medium Enterprises.

Q: What are the provisions available under SCLCSS?
A: Under SCLCSS, 25% subsidy to SC/ST MSEs on institutional finance for procurement of Plant & Machinery / equipment without any sector specific restrictions is provided.

Q: Which products/ sub-sectors have been approved under the SCLCSS component?
A: There is no such restriction. The scheme covers SC/ST MSEs of both manufacturing and service sectors. However, the industries covered under the RED category as per the Classification of industries for consent management (Schedule- VIII, rules 3(2) and 12 of Ministry of Environment & Forests, Govt. of India) shall not be eligible for subsidy under the above scheme.

Q: Whether the Scheme is applicable for new MSEs?
A: Yes.

Q: Is SCLCSS applicable for medium and large-scale Enterprises?
A: No, only Micro and Small-Scale Enterprises (existing & new) are eligible under SCLCSS.

Q: Whether the subsidy can be availed for replacement of machinery and equipment?
A: The subsidy shall be admissible for investment in acquisition/replacement of plant & machinery/equipments & technology up-gradation of any kind through institutional finance. But fabricated /second-hand machinery /equipment will not be eligible for subsidy under the component of the scheme.

Q: Whether this subsidy can be claimed in combination with any other scheme?
A: The units availing subsidy under the SCLCSS shall be eligible for all other types of subsidies except any other Central Government /State Government Subsidy for technology upgradation.

Q: What is the tenure of term loan eligible for this subsidy?
A: To avail the subsidy benefit under the scheme, the sanctioned term loan should not be for less than three years including moratorium period for MSEs.

Q: What is the mechanism for disbursement of subsidy to the unit?
A: Banks will follow the principle of First -In -First -Out (FIFO) while submitting the claims online under SCLCSS Scheme. The principle of First -In -First -Out (FIFO) will also be followed by the NSSH Cell for disbursement of subsidy to the eligible beneficiary unit.