The “Grant of Margin Money for Availing Capital Loan” is a focused component under the “Development of Coir” scheme, initiated by the Department of Industries and Commerce, Union Territory of Puducherry. The scheme aims to promote entrepreneurship in the coir sector by offering financial support in the form of margin money, encouraging the establishment of new coir units or revival of existing ones within Puducherry.
Summary of Puducherry Coir Development Scheme
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Scheme Name: Grant of Margin Money for Availing Capital Loan (Under Development of Coir Scheme)
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State/UT: Union Territory of Puducherry
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Department: Department of Industries and Commerce, Puducherry
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Incentive Type: Margin Money for Capital Loan
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Margin Money Offered: 25% of the project cost
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Maximum Cap: ₹25,00,000
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Project Cost Eligibility: Projects up to ₹1,00,00,000
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Commercial Production Deadline: Within 6 months of receiving the margin money grant
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Application Mode: Offline
Key Benefits
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25% Margin Money granted against the total project cost
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Up to ₹25 lakhs financial assistance provided as a one-time grant
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Margin money is directly released to the bank on behalf of the entrepreneur
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Facilitates better access to capital loans from financial institutions
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Encourages the timely start of commercial production and long-term sustainability
Eligibility Criteria
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The coir unit must be established within the Union Territory of Puducherry
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Applicant must have received a loan sanction letter from a recognized financial institution
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The unit should commence production within 6 months of the release of margin money
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The promoter must provide an undertaking to operate the unit successfully for at least 5 years
Application Process (Offline Only)
Step-by-Step Guide
Step 1: Download and print the application form from the official website or obtain it from the District Industries Centre.
Step 2: Fill in all mandatory details, affix a passport-sized photograph (signed across, if required), and attach self-attested copies of required documents.
Step 3: Visit the District Industries Centre (DIC), Thattanchavady, Puducherry – 605 009, on any working day during office hours, and submit the completed form.
Step 4: The office will enter your application in the register and assign a unique identification number which acts as your acknowledgement number for future references.
Essential Documents
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Loan Sanction Letter from the financial institution/bank
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Undertaking Letter from the promoter ensuring at least five years of unit operation
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Proof of establishment of the coir unit in Puducherry (e.g., address proof, trade license, etc.)
Frequently Asked Questions (FAQs)
Q: What is the margin money percentage and maximum limit under this scheme?
25% of the total project cost, capped at ₹25,00,000.
Q: Where must the coir unit be established to qualify?
Within the Union Territory of Puducherry.
Q: How long do entrepreneurs have to start production after receiving margin money?
Six months from the date of grant release.
Q: What is the commitment required from the promoter?
A five-year operation assurance through an undertaking letter.
Q: What is the minimum project size required to avail of the grant?
A loan must be sanctioned for a project worth up to ₹1 crore.
Q: Where can I get the official application form?
From the District Industries Centre or the official Puducherry Industries website.
Q: Where can applicants file grievances?
Through the Grievance Redressal section available under the “Development of Coir” scheme portal or by visiting the DIC office.
Q: Is there a specific time frame to visit the DIC for submission?
Yes, working days during office hours only.
Q: Is affixing a photograph mandatory in the application form?
Yes, a passport-size photograph must be affixed and signed.
Q: What is the official address for application submission?
District Industries Centre, Thattanchavady, Puducherry – 605 009
References & Important Links
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Official Guidelines – Development of Coir Scheme, Puducherry
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Contact Us Page of Industries and Commerce Department, Puducherry
