Scheme for Margin Money Grant to Nano Units
Scheme for Margin Money Grant to Nano Units (नैनो यूनिट्स के लिए मार्जिन मनी ग्रांट योजना)
The "Margin Money Grant to Nano Units" is a significant initiative by the Directorate of Industries and Commerce, Government of Kerala, designed to bolster the financial support for Nano enterprises. This scheme focuses on assisting small businesses engaged in manufacturing, job work, and various service activities that add value to their operations. By facilitating access to loan-linked financial aid, the scheme aims to empower aspiring entrepreneurs in the region.
Objectives of the Scheme
The primary aim of this scheme is to encourage and incentivize potential entrepreneurs to establish Nano enterprises across Kerala through Margin Money loans specifically tailored for loan-linked projects.
Project Cost Breakdown
The project cost under this initiative encompasses several components:
- Land Costs: Including development and documentation, capped at 10% of the total project cost.
- Building Costs: Limited to 25% of the overall project cost.
- Plant and Machinery: All essential equipment and accessories.
- Electrification: Necessary electrical installations.
- Preliminary and Pre-operative Expenses: Such as registration charges, engineering drawings, project report costs, and technical supervision, not exceeding 10% of the project cost.
- Contingency Allowance: Limited to 10% of the specific cost item.
- Working Capital: Capped at 40% of the project cost or one working cycle, whichever is lower.
Benefits of the Scheme
This scheme offers numerous benefits aimed at enhancing the entrepreneurial landscape:
- Eligibility for units with project costs up to ₹10 Lakhs.
- A Margin Money Grant ranging from 30% to 40% of the total project cost, based on the applicant’s category.
- Additional 10% grant for women, youth (aged 18-40), differently-abled individuals, ex-servicemen, and SC/ST applicants.
- The maximum Margin Money Grant per unit is capped at ₹4 Lakhs, structured as follows:
- Loan from financial institutions/KFC/cooperative banks: Minimum 40% of the project cost.
- Promoter’s contribution: Minimum 30% of the project cost.
- Margin money grant from the Industries Department: 30% of the project cost, up to ₹3 Lakhs.
- For special categories, the Margin Money Grant will be 40% of the project cost, limited to ₹4 Lakhs, with a promoter's contribution of 20%.
Financial Assistance Structure
| Category | Loan from Financial Institution (Minimum) | Beneficiary Contribution (Minimum) | Margin Money Grant (Maximum) |
|---|---|---|---|
| General | 40% | 30% | 30% |
| Special | 40% | 20% | 40% |
Note: Financial assistance will be disbursed to eligible entrepreneurs by banks on a pro-rata basis.
Eligibility Criteria
To qualify for assistance under this scheme, the following criteria must be met:
- New Nano proprietary enterprises in manufacturing, food processing, job works, and service sectors with project costs (fixed and working capital) up to ₹10 Lakhs are eligible.
- The unit must not have previously received grant assistance under any schemes from the Government of India, Government of Kerala, or local self-government.
Note: Special consideration is given to women, differently-abled persons, ex-servicemen, and individuals from SC/ST backgrounds. Youth entrepreneurs up to the age of 40 are prioritized, with 30% of beneficiaries being women entrepreneurs.
Obligations of the Applicant
- Provide accurate information and details required by the sanctioning authority.
- Allow inspections and verifications of all details and assets mentioned in the application.
- Submit original documentation when requested for verification, including land ownership documents, invoices for machinery, etc.
- Execute necessary legal agreements online and furnish signed hard copies as required.
- Utilize the funds strictly as agreed upon in the application.
- Maintain continuous operation of the unit for three years post-receipt of the grant.
Application Process
To apply for the scheme, follow these steps:
- Visit the official website of the Directorate of Industries and Commerce, Government of Kerala.
- Select the "One Family One Enterprise" scheme from the listed online services and click on "Apply Now."
- New users must register; existing users can log in directly.
- Complete the application form after logging in.
- Submit the filled application form for processing.
Conclusion
The "Margin Money Grant to Nano Units" scheme serves as a vital financial support mechanism for aspiring entrepreneurs in Kerala. By providing structured assistance and promoting inclusivity, this initiative aims to foster a vibrant entrepreneurial ecosystem in the state.
Eligibility Criteria
All new Nano proprietary enterprises in manufacturing/food processing and job works and units engaged in the service sector having any type of value addition, whose project cost includes fixed capital and working capital up to 10 lakhs are eligible for assistance under the scheme.
The unit shall not have availed any grant assistance earlier under any schemes of the Government of India & Government of Kerala or Local Self Government Department.
Note 01: Preference is given to special categories such as women, handicapped persons, ex-servicemen, and persons belonging to SC/ST.
Note 02: Youth entrepreneurs up to the age of 40 are also given priority under the scheme.
Note 03: 30% of the beneficiaries under the scheme shall be women entrepreneurs.
Note 04: Industrial units which receive the assistance will be under obligation to remain working continuously for three years from the date of receipt of the grant. However, it is necessary that a unit shall be a working one as of the date of release of the assistance.
Obligation of an applicant:
The applicant shall provide all required details and declare such information as to be true.
The applicant shall provide clarifications of further details sought by the recommending/ sanctioning authority.
The applicant shall allow inspection or verification of any details mentioned in the application including plant and machinery and all other assets if so required by recommending/sanctioning authority.
Applicants shall produce originals of any important documents if so required by the recommending/ sanctioning authority for verification including:
Title deed of land/land tax receipt if any/Lease agreement/rent agreement as the case may be.
Ownership Certificate of the building if any.
Invoice or bill of Plant and machinery.
The applicant shall execute the requisite legal agreement online and if required on paper as and when the proposal is approved for implementation and furnish the signed hard copy subsequently via post or otherwise.
The applicant shall utilize the amount received only in the manner agreed upon.
The applicant shall operate the unit as stipulated in the agreement in which the quantum of support received, failing which the assistance shall be resumed by restoring the provisions of the Kerala Revenue Recovery Act.
Benefits
1. Units with project costs up to ₹10 Lakhs will be covered in the scheme.
2. Margin Money Grant of 30% to 40% of the Total Project cost according to the category of the applicant.
3. Women, Youth (Age between 18 and 40), Differentially-Abled Persons, Ex-Servicemen, and persons belonging to the SC/ST category will be eligible for a 10% additional Grant.
4. The maximum limit of margin money grant under the scheme shall be ₹4 lakhs per unit as follows.
a. Loan given by financial institution/KFC/Co-operative bank: Minimum 40 % of the project cost
b. Promoter’s contribution: Minimum 30 % of the project cost
c. Margin money grand by Industries department: 30 % of the project cost limited to a maximum of 3 lakhs
d. In case of special categories MMG will be 40 % of the project cost limited to a maximum of 4 lakhs and promoter’s contribution shall be 20%.
Financial Assistance:
CategoryLoan from Financial Institution (Minimum)Beneficiary Contribution (Minimum)Margin Money Grant (Maximum)
General40%30%30%
Special40%20%40%
Note: The assistance under the scheme shall be released to the eligible entrepreneur by bank on a pro-rata basis.
Application Process
Apply OnlineStep 01: Application can be submitted online through the Official website of the Directorate of Industries & Commerce, Government of Kerala. The applicant needs to visit the official website
.
Step 02: The applicant may select the scheme “One Family One Enterprise” from the available Online Services listed on the home page and click on the “Apply Now” option. Clicking “Apply Now” redirects to the Login Page, if the new user uses the “Registration” option and if already registered use the ‘Login’ option.
Step 03: A new user can register by filling in his/her details and after successful registration, the user can login.
Step 04: After successful login, the applicant may fill out the application form.
Step 05: After filling out the application form completely and then click on ‘Submit’.
Apply OfflineApplication form
shall be submitted to the Assistant District Industries Officer, Taluk Industries Office concerned with all supporting documents including the sanction letter with recommendation from the bank.
Copy of the passbook showing the details of beneficiary contribution remitted to be submitted along with the application.
Recommending Authority:
The respective Assistant District Industries Officers, Taluk Industries Offices shall be the recommending authority for assistance under the scheme. As and when the entrepreneur approaches for assistance under this scheme the Assistant District Industries concerned shall forward TFR to the Financial Institution/ Banks/ Kerala Financial Corporation/ Co-operative Banks. After receipt of the sanction letter with recommendations from Bank/Financial Institution/Kerala Financial Corporation/ Co-operative Banks along with a copy of passbook showing the details of the beneficiary contribution remitted (the Assistant District Industries Officer shall ensure that the party has remitted the beneficiary verifying the Pass Book) and after satisfying that the entrepreneur complied all the eligibility criteria, he shall accept the application and place them before the sanctioning authority with the recommendation for disbursing the assistance.
Sanctioning Authority:
The General Managers, District Industries Centres concerned shall be the sanctioning authority.
References & Official Links
Scheme Details
| Full Name | Scheme for Margin Money Grant to Nano Units |
| Short Title | SMMGNU |
| Level | State |
| Scheme For | Infra |
| Categories | Business & Entrepreneurship |
| States | Kerala |
| Gender | All |
| Age Range | 18 — 40 years |
| Caste/Category | SC, ST, PwD |
| Area | Both |
| Source | www.myscheme.gov.in ↗ |