The objective of the Scheme is to facilitate technology up-gradation in MSEs by providing an upfront capital subsidy of 15 per cent (on institutional finance of upto Rs 1 crore availed by them) for induction of well-established and improved technology in the specified 51 subsectors/ products approved. In other words the major objective is to upgrade their plant & machinery with state-of-the-art technology, with or without expansion and also for new MSEswhich have set up their facilities with appropriate eligible and proven technology duly approved under scheme guidelines. List of Technologies is available at    

The Scheme is a demand driven one without any upper limit on overall annual spending on the subsidy disbursal.

Nature of assistance:

The revised scheme aims at facilitating technology up-gradation by providing 15% up front capital subsidy to MSEs, including tiny, khadi, village and coir industrial units, on institutional finance availed by them for induction of well established and improved technologies in specified sub-sectors/products approved under the scheme.

Who can be benefitted:

Micro and Small Enterprises (MSEs) having a valid UAM number.

How to apply:

Online Application and Tracking System has been introduced w.e.f. 01.10.2013. To claim subsidy under (LCSS, eligible MSEs are required to apply online through Primary Lending Institutions (PUs), from where the MSEs avail terms loan. The completed application is being uploaded by the PU through Online Application and Tracking System to the attached Nodal Agency, which, in turn, recommends the application online to Office of DC (MSME) for release of subsidy. After processing of application and subject to availability of funds, due approval is accorded from competent authority with concurrence of Internal Finance Wing, after which funds are released to Nodal Agencies. Funds are then transferred by the Nodal Agencies to the PUs where the account of the MSE is operated.

Status of Scheme:

At present the Scheme is under revision and will be launched soon after obtaining the necessary approvals.