Long Term Loan to SC Co-op Spinning Mills — 50% of Project Cost
A Maharashtra government long-term loan covering 50% of project cost for Scheduled Caste cooperative spinning mills. Applications are accepted on a rolling basis.
- Funding amount
- Varies by program
- Funding type
- Debt / Loan
- Provider
- Department of Social Justice and Special Assistance, Government of Maharashtra (Government)
- Application deadline
- Rolling
- Eligible stage
- Any stage
- Location
- Open to startups registered in India
Overview
This is a debt scheme run by the Department of Social Justice and Special Assistance, Government of Maharashtra. It gives Scheduled Caste-owned cooperative spinning mills in the state access to long-term capital for building, upgrading or growing their operations. The money comes as a loan rather than a grant or an equity stake, so ownership of the mill stays with the cooperative and its members.
Support is capped at half the project cost — 50%. That is the single most important number for planning purposes. A mill can direct the loan towards new facilities, modernisation of existing plant, extra production capacity, machinery, technology and other operational improvements that lift output and quality.
The scheme is delivered under Maharashtra's Special Component Plan, the channel the state uses for development spending aimed at Scheduled Caste communities. Its stated goals are to strengthen the textile sector in Maharashtra while widening industrial participation, entrepreneurship and employment for that community. Applications run on a rolling basis, so there is no fixed closing date to work towards.
Because a project of this size cannot be funded by one source alone, the loan is designed to sit alongside the cooperative's own member-share contribution and any other finance the mill arranges. The state's contribution is the long-term portion that is hardest for a small cooperative to raise on its own.
Highlights
- Long-term loan covering 50% of the project cost
- Open to Scheduled Caste-owned cooperative spinning mills in Maharashtra
- Member shares of at least ₹80,00,000 or 5% of project cost required
- Project report must be enumerated by MITCON, Agriculture Financial Corporation or Dattajirao Technical Institute
- Rolling applications with no fixed deadline
- Offline application submitted through the Textile Department, Government of Maharashtra
Who can apply
Two things decide who can apply: who owns the mill, and whether the project has been independently vetted.
- Ownership: the applicant must be a cooperative spinning mill whose members belong to the Scheduled Caste community and which is based in Maharashtra.
- Member shares: the cooperative has to collect a minimum of ₹80,00,000, or at least 5% of the project cost, as shares from its members.
- Enumerated project: the project must be enumerated by a recognised financial institution or bank, which also examines the project report. The institutions named under the scheme are MITCON (Maharashtra Industrial & Technical Consultancy Organization Ltd.), the Agriculture Financial Corporation and the Dattajirao Technical Institute.
The scheme's listed criteria do not mention DPIIT recognition or MSME registration, so neither is a stated requirement. Beyond ownership and the member-share contribution, the outcome depends on the vetted project report and on the assessments carried out by the Textile Department and the district Social Welfare machinery.
Long Term Loan to SC Co-op Spinning Mills — 50% of Project Cost is open to startups at any stage. It is open to startups registered anywhere in India.
- Eligible stage
- Any stage
- Location
- Open to startups registered in India
Deadline & timing
Long Term Loan to SC Co-op Spinning Mills — 50% of Project Cost accepts applications on a rolling basis — there is no fixed cut-off date, so eligible startups can apply at any time. Because rolling programmes can pause without notice, confirm the window is still open on the official site before you start.
What the funding covers
The assistance takes the form of a long-term loan that meets 50% of the project cost. Because this is debt and not equity, the cooperative does not hand over any stake in the mill; the amount advanced has to be repaid.
What the loan can be used for:
- Setting up new spinning facilities.
- Modernising infrastructure that is already in place.
- Expanding production capacity.
- Purchasing machinery and technology.
- Other operational upgrades that improve productivity and product quality.
By covering half of the project outlay, the scheme lowers the upfront burden on the cooperative and makes the remaining portion easier to arrange. The stated outcomes are better productivity and quality, stronger competitiveness in the market, job creation within the community, and wider economic development in the region. The loan amount itself is not a fixed figure — it varies with the size of the project, since it is calculated as a share of project cost.
About the provider
Long Term Loan to SC Co-op Spinning Mills — 50% of Project Cost is offered by Department of Social Justice and Special Assistance, Government of Maharashtra, a government body. As a government-backed debt / loan, it is publicly funded and open to eligible startups across India.
How to apply
Applications are submitted on the . Confirm the current deadline and document checklist there before you start.
Selection process
Assessment happens in stages, and each stage has to be cleared before the file moves on.
- Project enumeration and vetting. The project report first goes to a recognised financial institution or bank — MITCON, the Agriculture Financial Corporation or Dattajirao Technical Institute are the named options. This step establishes whether the project is viable financially and feasible technically.
- Review by the Textile Department, Government of Maharashtra. The application, the project details and the member-share contribution are then placed before the Textile Department, which reviews them and sanctions the required share capital.
- Forwarding to the district. Once that share capital is approved, the application is passed on to the Assistant Commissioner at the District Social Welfare Office.
- Final loan sanction. The Social Welfare Department carries out the last assessment and sanctions the loan, confirming that the proposal aligns with the objectives of the Special Component Plan.
Documents you’ll need
Before you apply to Long Term Loan to SC Co-op Spinning Mills — 50% of Project Cost, keep the following documents ready:
- A pitch deck or short business plan describing the problem, product and traction
- Company registration documents and PAN
- Founder identification (PAN / Aadhaar) and brief profiles
- Recent financial statements or projections
- Product details — a demo, prototype or working link if available
Exact requirements are confirmed on the official application portal — treat this as a preparation checklist.
Frequently asked questions
How much funding does this scheme actually provide?
The scheme extends a long-term loan equal to 50% of your total project cost. There is no single fixed rupee figure, because the amount scales with the size of the project you put forward. The remaining cost has to be met from the cooperative's member shares and any other finance you arrange.
Who is eligible to apply for this loan?
Cooperative spinning mills in Maharashtra whose members belong to the Scheduled Caste community are the intended applicants. In addition to ownership, the mill has to meet the member-share requirement and have its project enumerated by a recognised financial institution or bank.
What is the minimum member-share contribution?
The cooperative must collect a minimum of ₹80,00,000, or at least 5% of the project cost, as shares from its members. This contribution is checked as part of the review by the Textile Department.
Does the scheme take equity in my spinning mill?
No. This is a debt scheme, so the government does not take any stake or ownership in the mill. The funding is a long-term loan that has to be repaid, and control of the cooperative remains with its members.
Is there an application deadline?
The scheme runs on a rolling or always-open basis, so no fixed closing date is published. The application form is, however, to be submitted within the prescribed period. It is worth confirming the current window with the Textile Department, Government of Maharashtra, before you submit.
Who vets the project report?
The project has to be enumerated by a recognised financial institution or bank, which also examines the report. The institutions named under the scheme are MITCON (Maharashtra Industrial & Technical Consultancy Organization Ltd.), the Agriculture Financial Corporation and the Dattajirao Technical Institute.
Do I need DPIIT recognition or MSME registration to apply?
Neither is listed among the scheme's stated criteria. Eligibility here turns on Scheduled Caste ownership of the cooperative spinning mill, the member-share contribution, and the enumerated project report rather than on DPIIT or MSME status.
How do I apply for the loan?
The process is offline. Collect the prescribed application form in person from the Textile Department, Government of Maharashtra, during office hours. Fill in all mandatory fields, paste a passport-sized photograph (signed across if required) and attach self-attested copies of the necessary documents. Submit the completed and signed form with the attachments, and ask for a receipt or acknowledgement showing the submission date, time and any unique identification number. Once the share capital is approved and sanctioned by the Textile Department, the application goes to the Assistant Commissioner, District Social Welfare Office, where the Social Welfare Department sanctions the loan.
How is the application assessed before the loan is sanctioned?
It clears four steps. First, the project report is enumerated and vetted by a recognised financial institution or bank. Second, the Textile Department, Government of Maharashtra, reviews the application along with the project details and member-share contribution and sanctions the share capital. Third, the file is forwarded to the Assistant Commissioner at the District Social Welfare Office. Finally, the Social Welfare Department makes its assessment and sanctions the loan under the Special Component Plan.
Who offers Long Term Loan to SC Co-op Spinning Mills — 50% of Project Cost?
Long Term Loan to SC Co-op Spinning Mills — 50% of Project Cost is offered by Department of Social Justice and Special Assistance, Government of Maharashtra, a government body. It is provided as non-dilutive funding.
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