MSME Champions
Technology Upgradation & Competitiveness
The Credit Linked Capital Subsidy for Technology Upgradation (CLCSS) and MSME Champions scheme helps MSMEs modernize their production techniques.
In a globalized market, MSMEs need to stay competitive by using the latest machinery. The CLCS-TUS scheme provides integrated support for technology upgradation, design, intellectual property rights, and quality certification.
It aims to facilitate technology upgradation by providing 15% upfront capital subsidy to MSMEs for induction of well-established and improved technologies in the specified sub-sectors.
The scheme is now part of the larger 'MSME Champions' umbrella, which also includes ZED (Zero Defect Zero Effect) certification support.
“Modern technology is not an expense—it is the best investment for global survival.”
What is the CLCS-TUS Scheme?
The scheme is designed to help MSMEs move from outdated technology to state-of-the-art production methods. The 15% subsidy helps reduce the effective cost of new machinery significantly.
It covers over 51 sub-sectors including Food Processing, Corrugated Boxes, Leather, Electronics, and Textiles.
Under the 'Design' component, the government also provides financial assistance for hiring professional design consultants for product improvement.
Who is Eligible for the MSME Champions?
Who is eligible?
Existing MSMEs
Units looking to modernize their current production lines.
New MSMEs
Startups setting up with advanced technologies from day one.
Export Units
Units aiming for quality improvements for international markets.
ℹ️ Eligibility Checklist:
- •Must have valid Udyam Registration.
- •Project must use technologies approved by the Technical Subcommittee (TSC).
- •Must source the loan from eligible PLIs (Primary Lending Institutions).
What Types of Projects are Covered?
Supported activities:
Modern Machinery
Purchase of high-efficiency production equipment.
ZED Certification
Applying for Zero Defect Zero Effect quality mark.
IPR Support
Filing for Patents, Trademarks, and Designs.
Key Benefits
Upfront Subsidy
15%
Direct credit to your loan account reducing principal.
Max Subsidy
₹15L
Calculated on a project cost up to ₹1 Crore.
Lending Institutions
Various financial institutions provide loans under this scheme:
- ✓SIDBI
- ✓NABARD
- ✓All Public Sector Banks
- ✓Select Cooperative Banks
How to Apply? (Step-by-Step)
Technology Selection
Choosing the machine that falls under the approved list.
See approved technology list →Loan Application
Applying for a term loan at your bank specifically mentioning CLCSS.
Online Upload
Uploading the claim for subsidy on the MSME portal through the bank.
Release of Funds
Subsidy is released after the inspection of the machine.
ℹ️ Approval Timeline: 6-12 months for subsidy release.
Documents Required
Note: Subsidy is subject to the availability of funds with the Ministry. First-come, first-served!
Common Mistakes Applicants Make
⚠️ Non-Approved Tech
Buying machinery that is not in the approved technology list of the ministry.
⚠️ Delayed Claim
Failing to upload the subsidy claim within the stipulated time after loan disbursement.
Frequently Asked Questions
Is the subsidy taxable?
No, it is treated as a capital receipt and not as revenue income.
Can I get this for used machinery?
No, the scheme is strictly for NEW technology induction.
Conclusion
The MSME Champions scheme is the key to turning a local shop into a global factory. High quality and low cost are only possible through technology.
We help you navigate the complex list of approved technologies and handle the subsidy application through your bank.
Modernize Your Factory
Let's check if your machinery qualifies for the 15% upfront subsidy.
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