जीएससी, प्र.का, सिडबी लखनऊ/GSC, SIDBI-LHO
Process Flow- CREDIT LINKED CAPITAL SUBSIDY SCHEME (CLCSS)
Governed by Ministry of MSME, Govt. of India
(The final authority in all matters relating to subsidy)
Stage-1: Necessary steps for sanction of subsidy:
(A) At entrepreneur’s level:
· To approach co-opted PLI (General Agreement executed with SIDBI) or SIDBI BO [Lending Agency] seeking financial assistance/term loan alongwith consideration of subsidy under CLCSS.
· To submit application for financial assistance/term loan and subsidy to the Lending Agency alongwith duly self attested copy of SSI registration certificate or EM Part-I or II/UAM (Udyog Aadhar Memorandum) alongwith UAA (Udyog Aadhar Acknowledgement) clearly showing the MSME status, activity of the unit.
· To procure and install the eligible plant & machinery covered under CLCSS after getting disbursement of financial assistance/term loan from the Lending Agency and to submit self attested copy of bill/tax invoice the same to the Lending Agency.
(B) At Lending Agency’s (SIDBI BO/PLI) level:
· Sanction of financial assistance/term loan by Lending Agency envisaging subsidy and suitable letter conveying sanction of financial assistance/term loan and envisaging subsidy to the entrepreneur unit (borrower) to be issued.
· Execution of agreement between the entrepreneur unit (borrower) and the Lending Agency.
· Disbursement of financial assistance/ term loan by the Lending Agency to the entrepreneur unit (borrower) for the eligible plant & machinery covered under CLCSS.
· Obtention and verification of bills/invoices furnished by the unit for the plant & machineries eligible under CLCSS.
· Verification of machines by the Lending Agency at site after procurement and installation.
· The subsidy amount re-worked, if required, on the basis of final invoice value of machinery.
· The claims be lodged by PLI/BO in CLCSS portal (as Level-1) on real time basis without waiting till last date, i.e. the last date of the quarter subsequent to the quarter in which "Reference Date" (last date of loan disbursement for purchase of eligible Plant & Machinery) falls to avoid bunching of claims on last date.
· Bifurcation of modalities for SIDBI BOs and other PLIs are as under:
For SIDBI BOs:
o to forward the claims to GSC, SIDBI, HO.
For Co-opted PLIs :
o through their Nodal offices to forward claims to GSC, SIDBI, HO.
· At the time of applying the claim by the Lending Agency, it has to ensure
o Eligibility of the unit as per extant guidelines of CLCSS.
o Eligibility of the Plant & Machinery, Sector/Sub-Sector etc. as per extant guidelines of CLCSS.
o Proper calculation of subsidy based on the final invoice of Plant & Machinery.
o Uploading legible copy of SSI registration certificate or EM Part-I or II/UAM alongwith UAA of the unit, sanction letter/relevant sanction note and relevant tax invoice duly verified by the unit and the Lending Agency.
· ID Number generated on lodgment of claim to be informed to the unit by the PLI/SIDBI BO for tracking of application.
(C) At GSC, SIDBI HO level:
· Verification & forwarding of eligible claims at GSC, SIDBI, HO (as Level-2) on FIFO basis to DC(MSME) by 15th of the month following the last date of the quarter by which PLI submits claim.
(D) At DC(MSME) level:
· DC (MSME) (as Level-3) is the final authority in all subsidy related matters, including CLCSS, DC (MSME) approves unitwise sanction of subsidy and informs GSC, SIDBI, HO. of releases unitwise subsidy to GSC, SIDBI, HO for further remittance to concerned PLIs / SIDBI BOs.
Stage-2: Necessary steps for release of subsidy:
(A) At DC(MSME) level:
· Transferring fund in SIDBI HO A/c under intimation to GSC, SIDBI, HO towards onward release (unitwise) pertaining to SIDBI BOs and PLIs.
(B) At GSC, SIDBI, HO level:
· After getting advice regarding release of subsidy and fund from DC(MSME) in SIDBI HO A/c:
Release of subsidy to SIDBI BOs:
o Obtention of confirmation by way of email from SIDBI BOs regarding identifying cases pertaining to each BO among the total SIDBI cases appearing in the sanction list.
o Unitwise disbursement to SIDBI BOs is made by raising credit advice alongwith intimation through email with the concerned BOs.
Release of subsidy to PLIs:
o Obtention of duly signed in bank mandate form/RTGS details of the PLIs if the same was not taken at the time of co-option or there is any change in details.
o Request for fund requisition to be made to Admin. Vertical HO to release subsidy of PLIs.
o PLI wise total subsidy amount is released by way of transfer through RTGS alongwith intimation through email to the nodal office of the PLI.
o Obtention of confirmation from the PLIs regarding receipt of the subsidy released in their respective accounts.
· Lending Agencies would be advised to update the release of subsidy in CLCSS webportal and furnish utilization certificate in hardcopy form as per specified format.
· Upon up-dating the release of subsidy in webportal and furnishing of utlisation certificate by Lending Agencies, Monthly Progress Report is furnished to the O/o DC(MSME).
(C) At Lending Agency’s (SIDBI BO/PLI) level:
· After receipt of subsidy amount by Lending Agency, treatment of the same has to be given in terms of extant guidelines viz., immediately the same should be knocked off with the loan outstanding (no interest would be charged for that loan amount reduced equivalent to subsidy amount) and a TDR of same amount (0% interest bearing) to be kept for 3 years and the same would be adjusted against the respective outstanding loan account of the customer after expiry of 3 years.
· To update the release of subsidy in CLCSS webportal and furnish utilization certificate in hardcopy as per specified format to GSC, SIDBI, HO.
Other Matters/issues being looked into:
· To handle/attend various references/RTI queries/grievances/court cases/advocate notices received from following sources/channels:
o Beneficiary
o PLI/SIDBI BO
o Nodal Bank
o Industry Association
o O/o DC(MSME)
o Grievance Cell
o CMD/DMD Secretariat
o Various Courts/Judiciary Authorities
· General process for handling references/court cases/RTI queries etc.
o Letter/notice received from the complainant/information seeker/petitioner.
o Checking of details of the case with records available with GSC, HO. For cases pertaining to SIDBI, information/clarification is sought for from the concerned BO.
o Process of the assignment at GSC, HO.
o After completion of process at GSC, HO, reply is to be sent to the desired places. However, depending upon the importance/nature of the matter, for some cases, draft reply is to be vetted at LV, HO and then reply to be sent.
· To review policy and other matters as per the guidelines of DC(MSME)/our Bank’s policy and needbased guidance to be prepared and circulated to sensitize SIDBI BOs/PLIs in various operational and other matters related to the scheme.
· Periodically reconciliation of CLCSS subsidy account.
· Furnishing of MIS data for the purpose of Annual Report, Parliamentary Questions, at the requirement of O/o DC(MSME) etc.
· Govt. of India is the final authority in all matters pertaining to subsidy and the mandatory things to follow by the SIDBI BOs/PLIs are given at Annexure.
Annexure
List of mandatory instructions to be followed by SIDBI BOs and PLIs
1. The Application for availing subsidy under the CLCSS scheme to be submitted along with the application for loan.
2. The sanction order sanctioning the loan mentions that the case is eligible for sanction of subsidy under CLCSS.
3. The unit places order for purchase of machinery. This would be termed as investment decision for the purpose of CLCSS.
4. The Bank to decide the quantum of subsidy based on the CLCSS guidelines.
5. Subsidy is released by the Govt. of India, after the last instalment of loan is disbursed. Subsidy is to be kept in the form of TDR for 3 years. It neither earns interest nor is interest charged by the bank from the beneficiary, for the subsidy amount. The principal amount is also reduced by the bank proportionately.
6. After 3 years the bank certifies that all the conditions under CLCSS particularly the working of machinery have been fulfilled and thereafter it credits it to the account of the beneficiary.
7. Banks will follow the principal of FIFO (First –in –First –Out) while submitting claims under CLCSS to GOI.
8. Beneficiary unit transfers its loan liability/account from the Bank which provided subsidy to it under CLCSS to another bank -Transfer of loan liability allowed only to those banks who are also co-opted with the nodal agency provided the unit is monitored in accordance with the extant guidelines and do not change the terms and conditions and the loan liability of the unit is continuing.
9. Eligibility of Micro & Small Enterprises to claim subsidy under CLCSS for more than one sub-sector
a. MSE should be registered for the said sub-sector and engaged in its production (for existing units) and proposed to be engaged in production (new units).
b. Registration date should be prior to the date of application of term loan as well as for subsidy under CLCSS.
c. Subsidy should be calculated for each subsectors separately within the overall limit of `15 lakh or 15% of the cost of machinery whichever is less.
d. Ensure fulfillment of schematic guidelines of CLCSS.
10. Submission of online claims by Nodal Banks through “Online Application and Tracking System” ONLY w.e.f. 01/10/2013 under CLCSS.
11. Discrepancies observed in the online filing of claims by the nodal banks for eg.
I. Machines approved by the bank are not as per guidelines of the scheme,
II. Accessories etc have been included in the cost of the machines
III. Description of machines/ other details are not in line with the invoices, mismatching of reference dates etc.
12. Further, the office may not consider such ineligible proposals for release of subsidy. Nodal banks to be careful in submitting claims as per guidelines of the scheme.
13. Copy of invoices and other documents may be properly verified before uploading, It should be clear and readable
14. Dissipation of information regarding unit ID number by banks to respective units for CLCSS.
15. 2nd hand machinery and self fabricated machines are not permissible for CLCSS. Essential accessories required for operation of the approved machines are eligible for the purpose of calculation of subsidy amount.
16. The claims be lodged by PLI/BO in CLCSS portal (as Level-1) on real time basis without waiting till last date, i.e. the last date of last month of next quarter of "Reference Date" (last date of loan disbursement for purchase of eligible Plant & Machinery) to avoid bunching of claims on last date
17. To avoid instances of return/ rejection at Level 2, in future, PLIs and SIDBI BOs are urged to adopt the “FIRST TIME RIGHT POLICY” and lodge claims on real time basis. It is pertinent to mention here that a deficient claim lodged before the stipulated time frame cannot be qualified as a valid claim and no plea from the PLI/BO as to lodgment of claim within the specified timeframe will be considered when any deficient claim has been returned; and resubmitted by the PLI after the stipulated timeframe. It is reiterated that the fresh claims/re-submitted applications submitted by level 1 to Level 2 for processing will be taken up on FIFO basis only.
Important:
The above guidelines are to be read in conjunction with the guidelines hosted on the website of DC(MSME) i.e. www.dcmsme.gov.in and it is reiterated that GoI is the Final Authority in all the subsidy related matters.
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