Long Term Loan to SC Co-op Spinning Mills — 50% of Project Cost — Frequently Asked Questions

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.