As the scheme progresses, the above list of products/sub-sectors may be expanded with the approval of the Governing and Technology Approval Board (GTAB) constituted under this scheme.

Eligible Borrowers

Sole Proprietorships, Partnerships, Co-operative Societies, Private and Public Limited Companies in SSI Sector. Priority shall be given to women entrepreneurs.

Type of units to be covered under the Scheme

i. Existing SSI unite registered with the State Directorate of Industries, which upgrade with the state-of-the-art technology, with or without expansion.

ii. New SSI units, which are registered with the State Directorate of Industries and which, have set up their facilities only with the appropriate eligible and proven technology duly approved by
the GTAB.

Eligibility Criteria

i. Capital subsidy under the Scheme shall be available only for such projects, where terms loans have bean sanctioned by the eligible PLIs (eligible Scheduled Commercial Banks, eligible Cooperative Banks, eligible RRBs, NSIC, SFCs and NEDFi) on or after October 1, 2000. Machinery purchased under Hire Purchase Scheme of NSIC is also eligible for subsidy.

ii. Cases covered under Refinance Scheme for Technology Modernisation Fund (RTDM of SIDBI are also eligible for capital subsidy under the proposed scheme subject to the project also conforming to the stipulated under CLCSS.

iii. Industry graduating from small scale to medium scale on account of sanction of additional loan under CLCSS shall be eligible for assistance.

iv. Labor intensive and/or export oriented new sectors/ activities will be considered for inclusion under the scheme.

Duration of the Scheme

The scheme will be in operation for a period of five years from October 1, 2000 to September 30, 2005, or till the time sanctions of capital subsidy by the Nodal Agency reach Rs.600 crore. whichever is earlier.

Nodal Agency

Small industries Development Bank of India (SIDBI) and National Bank for Agriculture and Rural Development (NABARD) will act as the Nodal Agencies.

Cap on amount of Subsidy

i. The financial assistance by the eligible PLIs for technology upgradation will be need based. However the 15% capital subsidy support would be limited to the loan amount indicated below:

ii. Value of Plant & Machinery being acquired under the scheme will be determined by its purchase price.

iii. Capital subsidy under this scheme will not be admissible for loan amount exceeding the limits indicated above.