The Ministry of Small Scale Industries is planning to make the Credit Linked Capital Subsidy Scheme (CLCSS) for technology upgradation of small and medium industries more attractive in the coming months. The ministry is known to have realized the need to increase the subsidy limit from the current 12 per cent to 20 per cent and the maximum limit of loan from Rs 40 lakhs to Rs one crore for better serving the small scale sector. The revamped CLCSS is likely to prove a blessing for the small scale drug units in the country that are in the process of complying with the Schedule M norms by the end of the current year.

Small Industries Development Bank of India (SIDBI) and National Bank for Agriculture and Rural Development (NABARD) are the nodal agencies for the scheme.

The SSI Ministry had recently announced a revised list of technologies for which drugs and pharmaceutical companies can avail the loan facilities through the scheme. There are 30 technologies (see the attachment) coming under different heads like 'Tablets and Capsules Section', 'Liquid Oral Section', 'Injectable Section', 'Dry Syrup Section', 'Quality Control Department', 'Environment Control Devices' etc that has been approved under the revised guidelines of CLCSS for technology upgradation.

It should be noted that pharmabiz had recently highlighted the absence of enthusiasm among the small scale drug manufacturers to avail the benefits of the system.

In a genuine attempt to find the reasons for the "unattractiveness" of the scheme, ministry sources informed that any proposal for technology upgradation, even if the requirement doesn't come under the approved list of technologies, would be considered by the ministry. "All that the SSIs would have to do is to apply for the loan in the prescribed format after explaining the need for the technology which they are asking for", ministry officials said.

The financial assistance would be given purely on need based technology upgradation schemes, they informed. As per the current scheme, the capital subsidy support for tiny units with investment in plant & machinery less than Rs.10 lakhs if a maximum amount of Rs.8 lakhs with subsidy working out to Rs.0.96 lakhs. In the case of SSI units with investment in plant and machinery above Rs 25 lakhs, the maximum ceiling of loan eligible for support is Rs 40 lakhs and the maximum subsidy is Rs 4.8 lakhs.

For the technologies coming under the scheme, Please click here