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

What is the Special Credit Linked Capital Subsidy Scheme (SCLCSS)?

Special Credit Linked Capital Subsidy Scheme (SCLCSS) is a component of the National SC-ST Hub (NSSH), a scheme of the Ministry of Micro, Small and Medium Enterprises. According to the National SC-ST Hub portal, SCLCSS was introduced in 2017 to promote new enterprises and support the expansion of existing ones, so that Scheduled Caste and Scheduled Tribe entrepreneurs can participate more fully in public procurement.

Under SCLCSS there is a provision of a 25% subsidy to SC/ST micro and small enterprises for the procurement of plant and machinery or equipment through institutional credit (a bank term loan), with an overall ceiling of Rs 25 lakh on the subsidy and no sector-specific restrictions. The subsidy applies to the purchase of new plant and machinery or equipment that is eligible for a term loan from the Prime Lending Institutions (PLIs).

Originally the scheme covered manufacturing units. Based on stakeholder consultation, the service sector was included under SCLCSS in the revised NSSH guidelines dated 15 November 2021. As a result, SC/ST micro and small enterprises in both the manufacturing and the service sector are now eligible for the subsidy.

Who is eligible for SCLCSS?

You can apply if:

• Your enterprise is a sole proprietorship, partnership, co-operative, society, or private micro/small enterprise owned by SC/ST entrepreneurs.
• The enterprise is engaged in manufacturing or service activities.
• You have taken a term loan from a Prime Lending Institution to buy new plant and machinery or equipment.
• For a partnership, LLP or private limited company, more than 51% of the shareholding is held by SC/ST entrepreneurs.

You cannot apply if:

• Your enterprise is engaged in trading activities, traders are not eligible for the SCLCSS subsidy.
• The enterprise is not owned by SC/ST entrepreneurs (or SC/ST holding is 51% or less).
• The plant and machinery is second-hand, or was not financed through an institutional term loan.
• You have already availed, or intend to avail, another Central/State subsidy on the same plant and machinery. This is not permitted, and vice versa.

What documents are required?

How to apply for SCLCSS

1. Take a term loan from a Prime Lending Institution (bank) for the purchase of new plant and machinery or equipment for your SC/ST-owned MSE.
2. Submit the SCLCSS application along with the required documents to the concerned Prime Lending Institution — the bank from which the term loan was availed.
3. The nodal bank/agency notified by the Ministry of MSME uploads the claim application on the dedicated MIS portal. For loans from other eligible PLIs, SIDBI and NABARD are the nodal agencies for releasing the subsidy.
4. Ensure the claim is filed within one year of the reference date. The date of release or disbursement of the last instalment of the term loan.

Because SCLCSS is a bank-routed subsidy, there is no separate self-registration for the subsidy on a citizen portal. The lending bank initiates the claim on your behalf through the MIS portal.

How much benefit does SCLCSS provide?

The subsidy is 25% of the cost of new plant and machinery or equipment financed through the term loan, subject to an overall ceiling of Rs 25 lakh. There are no sector-specific restrictions on the type of machinery, and both manufacturing and service enterprises qualify. The subsidy cannot be combined with any other Central or State subsidy on the same machinery.

Help and contact

• National SC-ST Hub / NSIC toll-free: 1800-11-1954
• Phone: 011-26926275
• Email: scsthub@nsic.co.in
• Portal: scsthub.in

For the exact eligibility of specific equipment and the list of activities not covered, refer to the SCLCSS guidelines and Standard Operating Procedure published on the National SC-ST Hub portal.