The Special Credit Linked Capital Subsidy Scheme (SCLCSS) is a key financial support initiative by the Ministry of Micro, Small, and Medium Enterprises (MSME) under the National Scheduled Caste and Scheduled Tribe Hub (NSSH). This scheme is designed to promote entrepreneurship and enhance the capacity of SC/ST-owned Micro and Small Enterprises (MSEs) by offering a 25% capital subsidy on the purchase of plant and machinery or equipment financed through institutional loans.
The objective is to empower SC/ST entrepreneurs, support new enterprises, and upgrade existing ones in both manufacturing and service sectors.
Benefits
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Capital Subsidy of 25% on institutional loans for the purchase of plant & machinery or equipment.
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Maximum subsidy cap: ₹25,00,000 per enterprise.
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No restrictions based on sector, allowing broad-based support to eligible businesses.
Eligibility Criteria
The following conditions must be fulfilled to avail of the subsidy under SCLCSS:
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The unit must be owned by Scheduled Caste (SC) or Scheduled Tribe (ST) entrepreneurs.
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Ownership types include: Sole Proprietorship, Partnership, Co-operatives, and Private/Public Limited Companies.
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Must operate in the manufacturing or service sector.
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Udyam Registration is mandatory.
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SC/ST MSEs that have graduated to medium enterprises within 3 years of expansion remain eligible.
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New units that have transitioned into medium enterprises due to a loan are also considered.
Exclusions
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Dual subsidy is not permitted. If a subsidy under SCLCSS is availed, the same machinery cannot be claimed under any other Central/State Government scheme.
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Second-hand or fabricated machinery is not eligible.
Application Process
Step-by-Step Guide for Offline Process:
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Eligible applicants must approach their Prime Lending Institution (PLI)—the bank or financial institution from which the loan was availed.
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Submit the filled application form along with all required documents.
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The nodal bank or agency will upload the claim on the Ministry’s dedicated MIS portal.
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Only approved credit cases by the respective branches will be forwarded for consideration.
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SIDBI and NABARD act as nodal agencies for releasing the subsidy amount.
Documents Required
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Self-attested Udyam Registration (UAM) and GST certificate
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Self-attested PAN Card (in case of proprietorship, PAN of the SC/ST proprietor is required)
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Caste certificate of all owners/partners/directors
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Shareholding details (proof of >51% SC/ST ownership)
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Partnership Deed / MoA and AoA (for Partnership, LLP, or Pvt. Ltd. companies)
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GST invoice and payment receipt for the equipment or plant purchased
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NABL/BIS-certified testing reports (if testing services were availed)
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Proof of prior assistance (if availed in the same financial year under similar schemes)
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Cancelled cheque of the enterprise’s current account used for payments
Frequently Asked Questions (FAQs)
Q: What is the Special Credit Linked Capital Subsidy Scheme (SCLCSS)?
A: It’s a scheme providing a 25% capital subsidy to SC/ST-owned MSEs for the purchase of plant & machinery through institutional finance.
Q: Who launched this scheme?
A: The Ministry of Micro, Small and Medium Enterprises (MSME), Government of India.
Q: Are there any product or sector restrictions under this scheme?
A: No, the scheme does not have sector-specific restrictions.
Q: Can new enterprises apply for SCLCSS?
A: Yes, new SC/ST MSEs are eligible if they meet the ownership and registration requirements.
Q: Is this scheme applicable to medium or large-scale enterprises?
A: Only MSEs are eligible, including those that have recently graduated to medium scale due to loans.
Q: Can subsidy be used to replace old machinery?
A: No, SCLCSS is not applicable for the replacement of existing machinery or equipment.
Q: Can this subsidy be combined with another government subsidy?
A: No, overlapping subsidies for the same machinery are not allowed.
Q: What is the tenure of the eligible loan?
A: The term loan must be approved by the bank and used solely for plant/equipment procurement.
Q: How is the subsidy disbursed?
A: Once the application is verified, the nodal agency transfers the subsidy directly to the bank, which adjusts it in the beneficiary’s loan account.
