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Marketing scheme /Incentive for Marketing.
The scheme is called Marketing Scheme / Incentive for Marketing. Two types of assistances are contemplated under this scheme. 15% Margin Money loan on working capital and 15% Investment subsidy on fixed investment.

The scheme is intended to provide finance to organisations for marketing SSI products of the State particularly in the area of setting up of show rooms, expenditure towards installing improved packaging machineries, quality certification expenditure (HACCP etc.), expenditure towards marketing consultancy services etc., NGOs, Industrial cluster Consortiums, Co-operative Societies (especially those managed by women) and individuals.
Eligibility criteria
a)      Non Governmental Organisations (NGOs)
 i)   Should be registered under Society Registration Act 1860 / Indian Trust Act 1883 / Charitable and religious Act 1920 or Travancore Kochi Literary Scientific Charitable Society registration Act 1955.  NGOs should have its registered office in Kerala.
ii)    Should have worked at least 3 years preceding the date of application.
iii)  Should have proven track record in business transactions, marketing, industrial retail business
iv) Should have audited financial accounts for the preceding 3 years.  Financial soundness to be proved to the satisfaction of the sanctioning authority.
v)    Marketing activity should be one of the clauses incorporated in the bye-law of the NGO.
vi)         The products to be marketed shall be procured from SSI units of Kerala.
b)      Co-operative Societies
i)   preference will be given to Industrial Cooperative Societies registered under Industries Department owned and managed by women.
ii)    Should have worked at least 3 years preceding the date of application.
iii)    Should have proven track record in business transactions, marketing, industrial retail business Marketing activity should be one of the clauses incorporated in the bye-law of the Society.
iv)    The products to be marketed shall be procured from SSI units of Kerala.

      c)      Individuals
i)    Should have proven track record in business transactions, marketing, industrial retail business.
ii)  Shall be financially sound.
iii) Shall be credit worthy.
1.      Rules for providing Investment Subsidy on Marketing Outlet
 
1.1 An investment Subsidy of 15% limited to Rs. 10 Lakhs will be payable on the fixed capital Investment of all Marketing Outlets set up in the State for the Marketing of SSI products.
 
1.2 The Principal elements of Fixed Capital Investment eligible for Investment Subsidy are:- Land, Building, Marketing Infrastructure, improved packing machine, quality certification expenses, market consultancy expenses, electrification costs, equipments, etc. on actual basis.
2.      Land
 
2.1 Land, evidenced by title deeds and possession certificate from the Village Officer of the village where the land is situated and considered essential to the running of the Marketing outlet by the General Manager of the District Industries Centre / Director of Industries and Commerce. A valuation Certificate from the Tahsildar of the Taluk where the land is situated for the purpose of financing the Marketing outlet shall be produced in all cases in addition to the copy of the Purchase Deed. In the case of land as a gift only the actual cash out go from the entity will be considered for Investment subsidy.
      3.   Building including Godown
Building actually required for marketing out let is eligible for Investment Subsidy subject to a cost ceiling of Rs. 5000/- per square metre of plinth area.  Any other Civil structure not essentially related to Marketing process shall not be eligible for Investment subsidy.
4.      Investment on improved packaging machines, expenses towards quality certification fee such as HACCP certification etc., expenses towards market consultancy fee including export are eligible for investment subsidy
5.      Equipments
All brand new identifiable items of furnishing, furniture, fitting and Equipments shall be eligible for Investment Subsidy.  Second Hand Equipments are not eligible for subsidy.
6.      Apart from land, building, and other related investments only electrification costs will be eligible for subsidy.  Own your electric connections (OYEC) costs to KSEB, transformers costs and costs of wiring will not be eligible for investment subsidy.
7.      The application for Investment Subsidy shall be submitted within 1 month from the date of opening of the Marketing outlet.  Delayed applications will not be considered.
8.      The expenses on Salary to staff and production are not eligible for subsidy.
9.      Certificate form Chartered Accountant shall be produced for subsidy claims exceeding Rs. 25,000/-
10.  Application shall be submitted to the General Manager, District Industries Centre in the prescribed format.
11.  Cases involving subsidy upto Rs. 2 lakhs will be sanctioned by the General Manager of the concerned District Industries Centre and more than 2 lakhs will be sanctioned by the Director of Industries and Commerce.
12.  Investment subsidy shall be disbursed to the Marketing Outlet through the commercial Bank / Financing Institution from which the Marketing outlet has availed the finance.  An agreement shall be executed in Rs. 50/- stamp paper in the prescribed form.  Self-financing entities are also eligible for investment subsidy under this scheme.

13.  Marketing Outlets receiving investment subsidy will be under obligation to remain working for minimum 5 years from the date of receipt of the subsidy and shall submit quarterly sales report to GM, DIC.

14.  The organisation / NGO/ Individual /Co-ops/ Industrial Cluster Consortiums, is liable to refund the Investment subsidy to Government with interest @ 14 % per annum on instances of misappropriation, forgery or deception or ceases to exist within 5 years after receipt of subsidy.  The amount due to Government shall be recoverable as if they are arrears of land revenue under the provision of the Revenue Recovery Act.

15.  The Industries Department resumes the right to adjust the amount sanctioned towards subsidy to any Marketing outlet against their dues to Government.

<click here for application formats>
Rules for providing Margin Money Loan for setting up Marketing Outlets for SSI Products.
The scheme intended to provide Margin Money assistance to organisations marketing SSI products of the State, who availed term loan and working capital for financial institutions. NGOs, Co-operatives (especially managed by women) Industrial clusters and individuals are eligible for assistance under this scheme.
Rules and Conditions for providing assistance under Margin Money Loan.

1. All new institutions / individuals / Organisations approved by DI&C shall be eligible for Margin Money Loan (MML) from Government under this scheme.

2. Margin Money Loan will be given to working capital loan availed form Financial Institution. 15% of Margin Money Loan on total working capital with a ceiling of Rs.5 Lakhs will be admissible based on the project report approved by the Financial Institutions.

Cost of the Project will include 

(i) 

Cost of Land

(ii)          

Building

(iii) 

Interior decoration expenses

(iv)    

Electrification

(v)  

Preliminary and pre-operative expenses which shall include Registration charges of the firm,      engineering drawings, cost of project report.  Technical know-how,  cost of technical supervision during the implementation period.  However this preliminary and pre-operative expenses shall not exceed 10% of the cost of Project.

(vi) 

Allowance for cost escalation (contingencies) The contingency for escalation allowable shall not exceed 10% of the cost of the item for which it is meant i.e. Estimated cost of the building / quoted price of the Plant and Machinery.
3. The promoter however will have to take a minimum of 10% of the working Capital.
4. (1)  The application along with the required fee Chelan (in original) shall be submitted to GM, District Industries Centre concerned duly completed with all enclosures in appendix – I
    (2)     The General Manager, District Industries Centre, shall forward the completed application with due recommendation to the Directorate within 7 days of the receipt of completed application in all respect.

5. (1)

The General Manager, District Industries Centre, shall have sanctioning powers for Margin Money Loans upto Rs. 2 lakhs to any entity including Margin Money Loan for working Capital and MML above Rs. 2 lakhs shall be sanctioned by DI&C.  The completed application shall be sanctioned within 1 month from the date of receipt

    (2)

An agreement in the prescribed form (Appendix IV) shall be got executed on Stamp Paper worth Rs. 50/-

6.      MML shall be disbursed trough the financing institutions concerned.

7.      The financing agency shall advice the General Manager, District Industries Centre / Director of Industries and Commerce along with its recommendation of the schedule of repayment.

8.      The MML sanctioned under the scheme shall carry an interest of 9% per annum. Penal interest in defaulted payment will be charged as provided in Para II.  All payments made by the loanee will first adjusted against penal interest of defaulted principal and / or interest, if any, and then against Principal.

9.(1)  

Margin Money Loan granted under this scheme is to be repaid by the loanee in 16 equal         quarterly installments.  The first installment shall fall due 3 months after the date in which the first installment of the working capital loan is released.

   (2)

  Interest in the above cases will be paid in a quarterly basis from the 90th day of the disbursement of MML by the General Manager DIC & DI&C. 

10.  There will be a penal interest of 3% for any defaulted payment of either Principal or interest.  Any payment not made within 7 days from the date it fell due will attract the penal interest of 3% per annum for the entire arrears.

11.  The General Manager, DIC / DI&C will advice the loanees in writing while sanctioning the Margin Money Loan on the repayment schedule for the MML and this will also from part of the agreement.

12.  No collateral Security or charge on assets of the entity during the pendency of loan by the entity to financial institutions or banks is required for the MML.  But the Government shall have a charge on the assets.

13.  In case of default of the dues under MML the entire amount outstanding shall be liable to be recovered as if it were arrears of land revenue under the provision of the Kerala Revenue Recovery Act 1968 form the assets of the entity and its promoters and in such other manner as Government may deem fit.
Authority :  G.O. Rt. No. 395/2003/ID ,  Dated Thiruvananthapuram 8-4-2003