AI SummaryScheme for Margin Money Grant to Nano Units is a government backed plan in Kerala that helps small scale manufacturing, service and job work enterprises get money support to start their own business. Under this scheme eligible nano units get a margin money grant which makes setting up a unit easier and more affordable for new entrepreneurs.
Government of Kerala has kept this loan linked scheme running through the Directorate of Industries and Commerce. It is meant for nano units within the State that are engaged in manufacturing, job work and service activities that add value to a product or service.
The scheme supports project costs up to ₹10 Lakh. Depending on the category of the applicant, the margin money grant comes to between 30% and 40% of the total project cost.
Margin Money Grant to Nano Units - Introduction
This scheme is operated as a loan linked programme by the Directorate of Industries and Commerce, Government of Kerala. It is designed to give money help to nano units engaged in manufacturing, job work and services that involve any kind of value addition.
The scheme helps deserving entrepreneurs set up their own ventures by offering margin money loans for different projects. Whether the plan is to start a small workshop or a service based business, this support is meant to give a good start.
The project cost covered under this scheme includes the following items.
| Item | Ceiling/Notes |
| Land and development | Maximum 10% of project cost |
| Building cost | Maximum 25% of project cost |
| Plant, machinery and equipment | Includes accessories, tools and generators |
| Electrification | Actual costs |
| Preliminary expenses | Maximum 10% of project cost |
| Contingencies/Escalation | Maximum 10% of the item cost |
| Working capital | Maximum 40% of project cost or one cycle |
Key Highlights
| Scheme Name | Scheme for Margin Money Grant to Nano Units |
| Level | State |
| Beneficiary State | Kerala |
| Category | Business and Entrepreneurship |
| Target Beneficiary | Business Entity |
| Benefit Type | Cash Subsidy |
| Main Department | Industries and Commerce Department |
| Department Running the Scheme | Directorate of Industries and Commerce, Government of Kerala |
Benefits
Eligible entrepreneurs can get good money support to launch their venture. The scheme covers project costs up to ₹10 Lakh. Depending on the category, the margin money grant can be between 30% and 40% of the total project cost.
For example, if a general entrepreneur sets up a unit with a ₹5 Lakh project cost, the financing can be managed through a bank loan of 40%, the promoter contribution of 30% and a 30% grant from the government, capped at ₹3 Lakh.
| Category | Loan (Min) | Contribution (Min) | Grant (Max) |
| General | 40% | 30% | 30% |
| Special | 40% | 20% | 40% |
Special categories include women, youth aged 18 to 40, differently abled persons, ex servicemen and people from the SC/ST community. These groups can get an additional 10% grant with a maximum limit of ₹4 Lakh per unit. The bank releases the support on a pro rata basis.
Eligibility
To be eligible, the applicant must operate a new nano proprietary enterprise in manufacturing, food processing, service or job work that adds value. The total project cost, including fixed and working capital, should be up to ₹10 Lakh. The applicant should not have received any earlier grant support from the Government of India or the Kerala State Government.
Priority is given to women, who make up 30% of the beneficiaries, youth entrepreneurs under age 40 and special categories like ex servicemen and SC/ST individuals. Once the grant is received, the unit should run without a break for at least three years.
The obligations of the applicant include the following.
- Provide truthful information and respond to questions asked by the authorities.
- Allow site inspections of machinery and assets by the officials.
- Submit original documents like land tax receipts, rent agreements or invoices when requested.
- Sign the legal agreement online and on hard copy.
- Run the unit as per the agreed terms to avoid recovery action under the Kerala Revenue Recovery Act.
Application Process
Application for the scheme can be submitted online or in person. Follow the steps given below.
STEP 1 - Go to the official schemes portal of the Industries and Commerce Department and open the link for the Scheme for Margin Money Grant to Nano Units.
STEP 2 - Register as a new user if needed, fill in the business details and submit the online application with the required documents.
STEP 3 - If applying offline, submit the application form to the Assistant District Industries Officer at the local Taluk Industries Office along with the bank sanction letter and a pass book copy showing the details of the beneficiary contribution.
The Assistant District Industries Officer reviews the application and forwards it for recommendation. The General Manager of the District Industries Centre is the final sanctioning authority.
Documents
Applicants need to keep the following documents ready for the application.
- Detailed project report.
- Land title deed or tax receipt.
- Building ownership certificate.
- Registered lease or rent deed.
- Proforma invoices for plant and machinery.
- Valuation reports from an approved or chartered engineer.
- Sanction letter from the bank or financial institution.
- Any other documents asked by the sanctioning authority.
References
FAQ's
What is the aim of the scheme?
Scheme for Margin Money Grant to Nano Units supports nano units in sectors like manufacturing, job work and services by giving financial grants for value adding projects.
What is the objective of the scheme?
Main goal is to promote and encourage deserving entrepreneurs to set up nano enterprises within Kerala through margin money support.
Which department runs this scheme?
Industries and Commerce Department of the Government of Kerala manages this scheme.
Which enterprises are eligible?
New nano proprietary enterprises with a total project cost up to ₹10 Lakh are eligible if they work in manufacturing, food processing or service sectors.
What is the grant amount?
Grant comes to 30% to 40% of the project cost depending on the category, with a maximum cap of ₹4 Lakh.
How is the support paid out?
Bank releases the grant on a pro rata basis once the project is approved.
Can I apply if I have received other grants?
No, the applicant is eligible only if no earlier grant support has been received from the Government of India or the Government of Kerala.
Who gets preference?
Priority is given to women, youth entrepreneurs up to age 40, ex servicemen, SC/ST individuals and differently abled persons.
How do I apply for the scheme?
Apply through the official online portal at schemes.industry.kerala.gov.in or visit the local Taluk Industries Office.