Maharashtra Long Term Loan Scheme for SC Co-op Spinning Mills: 50% Funding

Launched by the Department of Social Justice & Special Assistance, Government of Maharashtra, the “Long Term-Loan to SC Co-op Spinning Mills under Special Component Plan” scheme is designed to support the development of spinning mills owned by Scheduled Caste members. This initiative provides financial assistance in the form of a loan that covers 50% of the project cost, thereby encouraging the establishment and expansion of SC co-operative spinning mills.

Benefits

• Loan Funding:
  The scheme offers a loan covering 50% of the project cost.

• Financial Leverage:
  The financial assistance helps reduce the burden on the co-operative by subsidizing half the investment required for the project.

Eligibility

• Minimum Capital Contribution:
  The spinning mill must secure a minimum of ₹80,00,000 as member shares or at least 5% of the project cost.

• Project Enumeration:
  The project must be enumerated and verified by recognized financial institutions or banks. Recognized enumerators include:

  • Maharashtra Industrial & Technical Consultancy Organization Ltd. (MITCON), Pune
  • Agriculture Financial Corporation, Mumbai
  • Dattajirao Technical Institute, Ichalkaranji

• Documentation:
  All financial contributions and project details must be fully documented and verifiable. Early engagement with recognized institutions is recommended to facilitate a smooth enumeration process.

Application Process

Offline

1. Collect the Application Form:
   During office hours, visit the Textile Department, Government of Maharashtra, and request a hard copy of the prescribed application form from the concerned authority.

2. Complete the Form:
   Fill in all mandatory fields on the form, attach a passport-sized photograph (signed across, if required), and include self-attested copies of all required documents.

3. Submit the Form:
   Submit the duly filled and signed application form along with all necessary documents to the Textile Department within the prescribed period.

4. Obtain Acknowledgment:
   Request a receipt or acknowledgment from the authority. Ensure that it contains the date and time of submission, along with a unique identification number (if applicable).

5. Final Submission:
   Once share capital is approved and sanctioned, forward the application to the Assistant Commissioner, District Social Welfare Office, where the Social Welfare Department will sanction the loan.

Documents Required

• Passport-sized photograph (signed across).
• Recent financial statements of the spinning mill.
• Detailed project report enumerated by a recognized financial institution.
• Identity proof and address proof (self-attested).
• Any prior approvals from the Textile Department.
• Any additional documents as specified by the concerned authority.

Frequently Asked Questions

1. What is the objective of the scheme?
   To provide financial assistance by funding 50% of the project cost for SC co-operative spinning mills, thereby promoting industrial development among Scheduled Caste communities.

2. Who is eligible to apply?
   Spinning mills owned by Scheduled Caste members that have secured a minimum of ₹80,00,000 or at least 5% of the project cost as member shares.

3. What percentage of the project cost is funded?
   The scheme funds 50% of the project cost.

4. How much must members contribute?
   Members must contribute either a minimum of ₹80,00,000 or 5% of the project cost, whichever is higher.

5. What is the enumeration fee?
   Details regarding any enumeration fee are provided in the project guidelines by the recognized financial institutions.

6. Where do I submit the application?
   Initially, submit the application form to the Textile Department, and subsequently to the Assistant Commissioner at the District Social Welfare Office for loan sanction.

7. What documents are required for the application?
   Required documents include a passport-sized photograph, recent financial statements, a detailed project report, identity and address proofs, prior approvals (if any), and other documents as specified.

8. How do I obtain the application form?
   The application form can be obtained from the Textile Department, Government of Maharashtra.

9. What happens after my application is approved?
   Once approved and after the share capital is sanctioned, the application is forwarded to the Assistant Commissioner, District Social Welfare Office, where the loan is officially sanctioned.

10. Can non-SC individuals apply?
    No, the scheme is exclusively for spinning mills owned by Scheduled Caste members.