Grant of Margin Money for Availing Capital Loan Component of the Development of Coir Scheme

Grant of Margin Money for Availing Capital Loan Component of the Development of Coir Scheme offers financial support to entrepreneurs in Puducherry who want to set up or revive their coir units. Eligible business owners receive margin money after their loan is sanctioned by a financial institution, which makes it easier to start or grow the operations.

This scheme is run by the Department of Industries and Commerce under the Union Territory of Puducherry. It is an active support for business people who want to build a coir manufacturing unit, and registration and claim process is open for eligible applicants.

Grant of Margin Money for Availing Capital Loan Component of the Development of Coir Scheme - Introduction

Grant of Margin Money for Availing Capital Loan Component of the Development of Coir Scheme acts as a support tool for entrepreneurs who want to set up or upgrade coir manufacturing units. Managed by the Department of Industries and Commerce, this scheme specifically supports businesses operating within the Union Territory of Puducherry.

By providing margin money, it helps reduce the money burden on business owners once they get a formal project sanction from a financial institution. The main aim is to strengthen the local coir industry by making project funding more easy to access and encouraging industrial growth.

Once the project is approved, the grant is released directly to the bank on behalf of the entrepreneur. The unit must begin commercial production within six months of receiving the grant.

Highlights

Benefits

The scheme gives a good amount of financial help to coir entrepreneurs through the following provisions:

Once the project is approved, the grant is released directly to the bank to support the business venture. Commercial production should start within six months of receiving the grant.

Eligibility

To get the benefit of this scheme, the coir unit must stay within the legal and geographical limits of Puducherry. For example, if a person named Ramesh plans to open a new coir processing plant, he must make sure the physical unit is located in Puducherry to qualify for the margin money support.

Application Process

The application process is offline. A applicant has to follow the steps given below:

STEP 1 - Download the prescribed application form from the official application forms download page of the District Industries Centre.

STEP 2 - Fill in all the required information clearly and attach a passport sized photograph.

STEP 3 - Prepare all the required documents and self attest them where needed.

STEP 4 - Visit the District Industries Centre at Thattanchavady, Puducherry 605 009 during business hours on a working day to submit the files.

STEP 5 - Collect the unique reference number from the authority after the application is recorded in the receipt register.

Documents

Keep the following papers ready before applying:

• Formal loan sanction letter issued by the financial institution.
• A signed undertaking letter promising that the unit will run successfully for at least five years.
• Documentary proof of unit establishment confirming the business is located in Puducherry.

References

Official resources can be accessed from the links given below:

• Development of Coir scheme page
• Grant of Margin Money scheme page
• Citizen Charter PDF
• Application forms download page
• Grievance help page
• Contact us page

FAQ's

What is the amount of margin money available?

The applicant can receive 25% of the project cost as margin money, up to a maximum limit of ₹25,00,000 for projects worth ₹1,00,00,000.

Where must the unit be located?

The coir business unit must be set up within the Union Territory of Puducherry to qualify.

Is there a deadline to start production after getting the grant?

Yes, commercial production should begin within six months of the date the margin money grant is released.

What promise is required from the applicant?

A formal undertaking is needed that the unit will stay operational for at least five years after completion.

How can the application be tracked?

On submitting the forms at the District Industries Centre, a unique number is given. This number should be used for all follow up queries.