The scheme “Margin Money Grant to Nano Units” is a loan-linked scheme operated by Directorate of Industries & Commerce, Govt. of Kerala. The scheme aims to provide financial assistance to Nano units in the State, engaged in manufacturing, job work & service activity having any type of value addition.
Scheme for Margin Money Grant to Nano Units - Introduction
The scheme “Margin Money Grant to Nano Units” is a loan-linked scheme operated by the Directorate of Industries and Commerce, Government of Kerala. The scheme aims to provide financial assistance to Nano units in the State, engaged in manufacturing, job work, and service activity having any type of value addition.
Objectives:
The objective of the scheme is to promote/incentivize deserving entrepreneurs in setting up Nano enterprises within the State through Margin Money loans to Nano units for loan-linked projects.
Project Cost: The Project cost under this scheme shall include the following-
- Cost of land and its development including documentation charges. The cost of land and its development shall not exceed 10% of the project cost.
- Cost of building. This shall not exceed 25% of the project cost.
- Plant & Machinery, equipment including all accessories, tools, jigs, fixtures, essential office equipment and furniture, lab equipment, pollution control devices, and generators.
- Electrification.
- Preliminary and pre-operative expenses which shall include Registration charges of the firm, engineering drawings, cost of the project report, Technical know-how, and cost of technical supervision during the implementation period. However, these preliminary and pre-operative expenses shall not exceed 10 % of the project cost.
- Allowance for cost escalation (contingencies). The contingency allowance shall not exceed 10% of the cost of the item for which it is meant.
- Working Capital. The working capital shall not exceed 40% of the project cost or one working cycle, whichever is lower.
Benefits
- Units with project costs up to ₹10 Lakhs will be covered in the scheme.
- Margin Money Grant of 30% to 40% of the total project cost according to the category of the applicant.
- 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.
- The maximum limit of margin money grant under the scheme shall be ₹4 lakhs per unit as follows.
- Loan given by financial institution/KFC/Co-operative bank: Minimum 40% of the project cost
- Promoter’s contribution: Minimum 30% of the project cost
- Margin money grant by Industries department: 30% of the project cost limited to a maximum of ₹3 lakhs
- 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:
| Category | Loan from Financial Institution (Minimum) | Beneficiary Contribution (Minimum) | Margin Money Grant (Maximum) |
| General | 40% | 30% | 30% |
| Special | 40% | 20% | 40% |
Note: The assistance under the scheme shall be released to the eligible entrepreneur by bank on a pro-rata basis.
Eligibility
- 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.
Exclusions
Application Process
The application 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. A copy of the passbook showing the details of beneficiary contribution remitted is 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 by verifying the Pass Book) and after satisfying that the entrepreneur has complied with 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.