Since 2002, CLCS subsidy is one of the most sought after and most used subsidy by MSMEs. This was a very ambitious scheme launched by Central Govt.
This subsidy was launched to support MSMEs for technology up-gradation and higher output from the machineries. MSMEs were asked to buy and install latest machineries which were energy efficient, cost effective and offering very good output in terms of production. Govt decided to offer 15% subsidy on the procurement cost of such equipment or on buying technical know how. Govt also decided to put the capping on higher limits.
Quantum of the subsidy was designed in a way that MSMEs were schedules to get 15% subvention from central government as Subsidy on Invoice Price of Machine subject to Rs 15.00 Lacs as subsidy.
In such case all the machines and equipment worth Rs 100 Lacs were covered under this scheme. So a customer will get 15% of equipment cost or Rs 15.00 Lacs whichever is lower.
Central govt also came up with list of machineries which can avail such subsidy across more than 60 industries. Every industry were requiring newer technology investment and up-gradation of their factories. This incentive (push) from central government made this transition very fast and adapted by MSMEs very smoothly.
CLCS is one of the most successful and highly used subsidy initiative of central government.
This scheme was operational till 31 March 2020 and is not accepting any fresh application.
