Long Term Loan to SC Co op Spinning Mills under Special Component Plan is a Maharashtra state scheme that helps scheduled caste cooperative spinning mills grow. The Social Justice and Special Assistance Department and the Cooperation and Textile Department jointly support these mills with government share capital and a long term loan covering a big part of the project cost.
For the 2026 cycle, this scheme continues to support registered scheduled caste cooperative spinning mills in the state. A spinning mill can get a loan and share capital together up to a project cost of ₹80 crore, which makes it easier for the community to build or modernize its textile units.
Long Term Loan to SC Co op Spinning Mills under Special Component Plan
The main aim of this scheme is to bring scheduled caste communities into the mainstream of development through cooperation. It also helps create self employment for unemployed scheduled caste members by supporting power looms and spinning mills.
The Director of Textile and Handloom, Maharashtra State, Nagpur sanctions an amount equal to 9 times the member share of the spinning mill as government share capital. After that, the Social Welfare Department provides a long term loan matching 50 per cent of the project cost to the mill.
Key Information
| Detail | Information |
|---|---|
| Scheme Name | Long Term Loan to SC Co op Spinning Mills under Special Component Plan |
| State | Maharashtra |
| Nodal Department | Social Justice and Special Assistance Department, Government of Maharashtra |
| Beneficiaries | Registered scheduled caste cooperative spinning mills |
| Benefit Type | Long term loan and government share capital |
| Project Cost Limit | Up to ₹80 crore |
| Application Mode | Offline through Textile Department and Social Welfare District Office |
Benefits
This scheme gives a long term loan covering 50 per cent of the total project cost of the spinning mill. On top of this, the Cooperation and Textile Department provides government share capital, so the mill does not have to arrange the whole amount on its own.
According to the official funding structure, the spinning mill has to put in only 5 per cent as its own contribution. The government share capital is 45 per cent from the Cooperation and Textile Department, and the remaining 50 per cent comes as a long term loan from the Social Justice Department. This makes the full project cost of up to ₹80 crore possible for the mill.
Eligibility
Only registered cooperative societies of scheduled castes are eligible to apply under this scheme. A few other conditions must also be met by the mill.
- The spinning mill must collect ₹80,00,000 or a minimum of 5 per cent of the project cost as shares from its members.
- The project submitted by the mill should be enumerated, or checked, by the financial institutions or banks that provide the loan to the spinning mill.
- The project report can also be checked and submitted to the government through a recognized institution such as Maharashtra Industrial and Technical Consultancy Organization Ltd. (MITCON), Pune, Agriculture Financial Corporation, Mumbai, or Dattajirao Technical Institute, Ichalkaranji.
For example, if a spinning mill runs with a total project cost of ₹2 crore, the members need to collect at least ₹10 lakh, which is 5 per cent, to stay eligible. The enumeration fee is fixed at ₹2.50 lakh, and this cost is to be borne by the spinning mill.
Application Process
Application for this scheme is offline, and a mill has to follow a clear sequence of steps. The process starts with the Textile Department and ends with the Social Welfare District Office.
STEP 1 - Visit the Textile Department, Government of Maharashtra at Textile Department, Government of Maharashtra during office hours and collect the application form.
STEP 2 - Fill in all required fields carefully, attach a passport sized photograph, and make sure all documents are self attested before submission.
STEP 3 - Submit the signed application form along with all required attachments to the Textile Department and get an acknowledgment receipt as proof of submission.
STEP 4 - Once the share capital is sanctioned by the Director of Textile and Handloom, take the documents to the Assistant Commissioner, Social Welfare District Office to complete the final loan sanction process.
Documents
Keep these documents ready while applying for the loan. Make sure every photocopy is self attested to avoid delays.
A filled application form, a passport sized photograph properly signed, the current financial statements of the spinning mill, a detailed project report verified by a recognized financial institution, identity and address proofs, and the official prior approvals from the Textile Department are required for the application.
References
Official scheme page on Social Justice and Special Assistance Department
Official guidelines on Maharashtra Social Welfare Department
FAQ's
What is the primary objective of this scheme?
The goal is to bring scheduled caste communities into the mainstream of development and create self employment opportunities by supporting cooperative spinning mills.
Who is eligible to apply?
Only registered cooperative societies of scheduled castes in Maharashtra are eligible to apply under this scheme.
What percentage of the project cost does the government fund?
The Social Justice Department gives a long term loan covering 50 per cent of the project cost, and the Cooperation and Textile Department adds 45 per cent as government share capital.
What is the maximum project cost allowed?
The project cost limit for this scheme is up to ₹80 crore.
How much capital must the members contribute?
Members must collect ₹80,00,000 or a minimum 5 per cent of the project cost as shares, whichever applies to the project valuation.
What is the cost of the enumeration process?
The enumeration fee is fixed at ₹2.50 lakh, and the spinning mill has to bear this cost.
Where should I submit my application?
The application is submitted first to the Textile Department and later to the Assistant Commissioner at the District Social Welfare Office for final loan sanction.
Which documents are required for the application?
A filled application form, photograph, updated financial statements, a verified project report, and self attested identity and address proofs are required.