The Margin Money Grant to Nano Units scheme is a loan-linked initiative launched by the Directorate of Industries and Commerce, Government of Kerala. The scheme is designed to provide financial assistance to Nano units engaged in manufacturing, job work, and service activities involving value addition in the state.
Objectives of the Scheme
The primary objective of the scheme is to encourage deserving entrepreneurs to set up Nano enterprises within Kerala. It aims to support them through Margin Money loans for projects related to manufacturing, service activities, and job works.
Project Cost Details
The Project Cost under this scheme can cover various expenses, which include:
- Cost of Land and Development: This includes documentation charges and development costs, with a limit of up to 10% of the total project cost.
- Building Cost: Maximum of 25% of the total project cost.
- Plant and Machinery: Includes the cost of machinery, equipment, tools, office furniture, pollution control devices, and generators.
- Electrification: To support power supply and electrical work for the unit.
- Preliminary and Pre-operative Expenses: Includes registration charges, project reports, technical know-how, and supervision costs, with a maximum of 10% of the project cost.
- Contingencies: A contingency allowance of up to 10% of the cost of the item for which it is allocated.
- Working Capital: Can cover up to 40% of the project cost or one working cycle, whichever is lower.
Benefits of the Scheme
- Project Costs: Units with a project cost of up to ₹10 Lakhs are eligible.
- Margin Money Grant: Offers a 30% to 40% grant on the total project cost, based on the applicant’s category.
- Additional Grants: Special categories such as women, youth (18-40 years), differently-abled persons, ex-servicemen, and SC/ST persons can receive an additional 10% grant.
- Maximum Grant: The maximum limit for the Margin Money Grant (MMG) is ₹4 Lakhs per unit:
- General Category: 40% of the project cost, with a maximum of ₹3 Lakhs.
- Special Categories: 40% of the project cost, with a maximum of ₹4 Lakhs (with promoter contribution at 20%).
Financial Assistance Breakdown
| Category | Loan from Financial Institution (Minimum) | Beneficiary Contribution (Minimum) | Margin Money Grant (Maximum) |
|---|---|---|---|
| General | 40% | 30% | 30% |
| Special | 40% | 20% | 40% |
Note: The financial assistance is released to eligible entrepreneurs by the bank on a pro-rata basis.
Eligibility Criteria
- The scheme is open to new Nano proprietary enterprises involved in manufacturing, food processing, and job works or service sectors that add value.
- The project cost, including both fixed capital and working capital, should not exceed ₹10 Lakhs.
- The applicant should not have received any previous grant under any other schemes by the Government of India, Kerala, or Local Self Government Departments.
- Preference is given to special categories such as:
- Women Entrepreneurs
- Differently-abled Persons
- Ex-Servicemen
- SC/ST Persons
- Youth Entrepreneurs (up to 40 years)
Note: 30% of the beneficiaries under this scheme must be women entrepreneurs.
Obligations of the Applicant
- The applicant must provide accurate information and allow inspection/verification of the details.
- Required documents, such as land ownership certificates, plant invoices, and passbooks, should be submitted for verification.
- The applicant must sign an agreement and utilize the funds only for the agreed-upon purposes.
- The unit must remain operational for at least three years from the date of receiving the grant. If not, the assistance will be revoked under the Kerala Revenue Recovery Act.
Application Process
Online Application:
- Visit the official website of the Directorate of Industries and Commerce, Kerala.
- Select the “One Family One Enterprise” option from the Online Services menu.
- Register as a new user or log in if already registered.
- Fill out the application form and click “Submit”.
Offline Application:
- Submit the completed application form to the Assistant District Industries Officer, Taluk Industries Office, with all necessary supporting documents.
- Include the sanction letter with recommendation from the bank, along with proof of beneficiary contribution.
Recommending and Sanctioning Authorities
- Recommending Authority: Assistant District Industries Officers, Taluk Industries Offices.
- Sanctioning Authority: General Managers, District Industries Centres.
Documents Required
- Project Report
- Title Deed of Land / Land Tax Receipt
- Ownership Certificate of the Building (if applicable)
- Lease or Rent Deed (if applicable)
- Proforma Invoice/Quotation for plant machinery and electrification
- Engineer’s Valuation (for Civil Construction)
- Sanction letter from a financial institution or bank
- Any other document as required by the sanctioning authority
Frequently Asked Questions
1. What is the goal of the scheme? The scheme aims to support Nano units in setting up enterprises with financial assistance through Margin Money loans.
2. Who is eligible for the scheme? New Nano proprietary enterprises with project costs up to ₹10 Lakhs, engaged in manufacturing or service activities with value addition.
3. How much grant will I receive under the scheme? You will receive a 30% to 40% grant based on your category, with a maximum of ₹4 Lakhs.
4. Can I apply if I have received grant assistance under other schemes before? No, previous grant assistance under any government schemes disqualifies you from applying.
5. How do I apply for the scheme? You can apply either online through the official portal or offline by submitting the form to the Assistant District Industries Officer with supporting documents.