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RAJASTHAN STATE INDUSTRIAL DEVELOPMENT & INVESTMENT
CORPORATION LIMITED UDYOG BHAWAN, TILAK MARG,
JAIPUR.
No. FDI/PID/CLCSS/2004-05
Dated : March 10, 2005 OFFICE ORDER Sub: Credit Linked Capital
Subsidy Scheme (CLCSS) for Technology Upgradation of the Small Scale
industries The Board of Directors in its meeting held on March 29, 2004 have noted the inclusion of the Corporation as an eligible Prime Lending Institution under the Credit Linked Capital Subsidy Scheme (CLCSS), introduced by the Ministry of Small Scale Industries, Govt. of India for technology upgradation of the Small Scale industries. The Board has also accorded its approval to enter into a general agreement with SIDBI for availing the subsidy under CLCSS in respect of the units which have availed financial assistance from the Corporation. Accordingly, the Corporation has entered into an agreement with SIDBI on May 18, 2004. The scheme would be operational w.e.f. 1.10.2000 to 30.9.2005 or till the time sanction of subsidy by Nodal Agencies under the scheme reaches to Rs.600 Crores whichever is earlier. The list of thirty(30) products/sub sectors in SSI covered under the scheme is enclosed as Annexure-I. The CLCS
scheme provides twelve percent (12%) capital subsidy support to the SSI
units, however the support would be limited to the loan amount indicated
below:- (Amt.Rs.
in Lacs)
i.
The eligible subsidy shall be calculated on gross value of the
eligible plant & machinery acquired under the scheme restricted to term
loan or maximum ceiling on loan eligible for subsidy, whichever is lower.
ii.
The value of plant & machinery being acquired under the scheme
shall be determined by its purchase price. The
implementation of the Credit Linked Capital Subsidy Scheme (CLCSS)shall be as under:- I.
SANCTION OF SUBSIDY
(A)
For the units where term loan
have been sanctioned between October 1, 2000 to February 15, 2005 1.
The SSI units who have availed term loan assistance during October 1,
2000 to February 15, 2005 shall submit its application for availing subsidy
under the scheme in the prescribed format in triplicate to the PID Cell along
with a certificate in support of the unit being in production. 2.
PID Cell shall examine the eligibility of the unit as per the
provisions of the scheme and put up a sanction note for the consideration of
the CMD. The note for sanction shall indicate the details such as the sector
and the technology under which the application is covered, machines
required for technology upgradation, purchase price of machinery, maximum
ceiling of loan eligible for support, maximum subsidy available under the
scheme etc. 3.
Subsequent to sanction, PID Cell shall issue letter of sanction to
the concerned company/concern, with a copy to Documentation Cell for
execution of necessary documents. (B) For the units whose request for sanction of term loan is under
consideration with the Corporation
II. DISBURSEMENT OF SUBSIDY
The following procedure shall be observed for the disbursement of the subsidy under the CLCS Scheme: 1.
The Documentation Cell shall execute the necessary
agreements/documents within a period of thirty (30) days from the date of
sanction of subsidy. It shall forward the legal report to the PID Cell for
processing the request of the company/concern for disbursement of the
subsidy. 2.
PID Cell shall approach SIDBI for obtaining advance funds for
disbursement of subsidy to the eligible units. 3.
PID Cell shall verify the expenditure incurred on the eligible plant
& machinery under the scheme from the bills/vouchers submitted by the
company/concern. PID Cell shall also advise the unit(s) to submit a
certificate from the Chartered Accountant in support of the expenditure
incurred on the eligible plant & machinery. In case, the unit is under
production, the company shall also be advised to submit an undertaking in
respect of its current operational status. 4.
The request for disbursement of subsidy shall be entertained only
after creation of the eligible plant & machinery at the site. 5.
PID Cell shall put up a disbursement note for the approval of the
CMD. The subsidy shall be disbursed to the units as and when received from
SIDBI. In case entire term loan has already been disbursed then the subsidy
amount would be released in one installment. In case of part disbursement of term loan, the subsidy amount shall
be released on proportionate basis to the amount of term loan disbursed
subject to ceiling to the term loan/subsidy amount as per scheme. III.
GENERAL CONDITIONS 1.
The Credit Linked Capital Subsidy Scheme (CLCSS) shall be available only for such eligible unit(s) where
term loan has been sanctioned by the Corporation on or after October 1, 2000. 2.
The existing SSI units registered with the State Directorate of Industries,
which upgrade with the state of the art technology, with/without expansion
shall be eligible. However, the industry graduating from small scale to
medium scale on account of additional loan under CLCSS shall also be eligible
for assistance. 3.
The financial parameters such as promoter's contribution, security,
debt equity ratio, up front fee shall be determined by the lending agency as
per its existing norms. 4.
The units availing subsidy under CLCSS shall not avail any other
subsidy for technology upgradation from the Central/State/UT Govt. 5.
In case, it is found that capital subsidy has been availed on the
basis of any false information, the industrial unit shall be liable to refund
the Govt. capital subsidy availed, along with interest to be charged from the
date of disbursal to the date of refund. The rate of interest shall be
prevailing rate of interest of PLIs concerned at the time of invoking this
penal clause. In case of
units availing interest subsidy under the two (2) percent (%) interest subsidy
scheme of the State Government, the company/concern shall submit a written
option for availing the subsidy under CLCSS. The unit opting for Credit
Linked Capital Subsidy Scheme (CLCSS)
shall refund the amount obtained under two (2) percent (%) interest subsidy
together with interest before sanction of subsidy under CLCSS. In case of
expansion scheme, the fresh investment by the company/concern at the same
location or elsewhere shall however be eligible Credit Linked Capital Subsidy
Scheme (CLCSS). 6.
The accounting treatment of amount of subsidy disbursed and recovered
,if any, under the scheme shall be as
per the prevailing accounting policies of the Corporation. 7.
The subsidy shall be disbursed only after receipt of advance funds
from SIDBI ( Ajit Singh ) Financial
Advisor |
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Annexure I Credit Linked Capital Subsidy Scheme for Technology Upgradation shall cover the following products/sub-sectors in the SSI: - 1.
Bio tech Industry 2.
Common Effluent Treatment Plant 3.
Corrugated Boxes 4.
Drugs and Pharmaceuticals 5.
Dyes and Intermediates 6.
Industry based on Medicinal and Aromatic plants 7.
Plastic Moulded/Extruded Products and Parts/Components 8.
Rubber Processing including Cycle/Rickshaw Tyres 9.
Food Processing (including Ice Cream manufacturing) 10.
Poultry Hatchery & Cattle Feed Industry 11.
Dimensional Stone Industry (excluding quarrying and mining) 12.
Glass and Ceramic Items including Tiles 13.
Leather and Leather Products including footwear and garments 14.
Electric equipment 15.
Fans & Motors Industry 16.
General Light Service (GLS) 17.
Information Technology (Hardware) 18.
Mineral Filled Sheathed Heating Element 19.
Transformer/Electrical Stampings/Limitations/Coils/Chokes including
solenoid coils 20.
Wires & Cable Industry 21.
Auto Parts and Components 22.
Bicycle Parts 23.
Combustion Devices/appliances 24.
Forging & Hand Tools 25.
Foundries-Steel and Cast Iron 26.
General Engineering Works 27.
Gold Plating and Jewellery 28.
Locks 29.
Steel Furniture 30.
Toys |
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No. FDI/PID/CLCSS/2004-05
Dated : June 24, 2006 OFFICE ORDER Sub: Amendment to the Credit Linked Capital
Subsidy Scheme (CLCSS) for Technology Upgradation of the Small Scale
Industries Subsequent upon the
approval of the Government of India, the Office of the Development
Commissioner (Small Scale Industries),
Ministry of Small Scale Industries,
Government of India, New Delhi has vide its letter no.
22/CLTUC/Scheme/2005 dated September 29, 2006 has informed about the
extension of the Credit Linked
Capital Subsidy Scheme (CLCSS) for Technology Upgradation of the Small Scale
Industries up to 31st March, 2007 or till the time sanction
of subsidy by the Nodal Agencies under the scheme reaches to Rs.600 Crores
whichever is earlier, with the following amendments to the existing Scheme.
With immediate effect : Ceiling on loan under the
scheme is raised from Rs.40 lakh to Rs.1 Crore. The rate of subsidy is
raised from existing 12% to 15% for SSI units. Calculation of admissible
subsidy will be done with reference to the purchase price of plant &
machinery instead of the term loan disbursed to the beneficiary unit. Categorisation of SSI
units into different slabs on the basis of their present investment for
determining the eligible subsidy has been done away with. The other terms and
conditions of the Scheme as modified from time to time, will remain
unchanged. ( Ajit Singh ) Financial Advisor |