LIDCOM 50% Subsidy Scheme

What is the LIDCOM 50% Subsidy Scheme?

LIDCOM 50% Subsidy Scheme is a self-employment financing scheme run by the Sant Rohidas Leather Industries and Charmakar Development Corporation Limited, a Government of Maharashtra undertaking that most people simply call LIDCOM. The corporation was set up on 1 May 1974 and works under the Social Justice and Special Assistance Department of the state government.

According to lidcom.in, the corporation exists for two linked purposes: to give growth impetus to the leather industry in Maharashtra, and to create income opportunities for the Scheduled Caste Charmakar community, the traditional leather-working community that includes the Chambhar, Dhor, Holar and Mochi sub-castes. The 50% Subsidy Scheme is the corporation's smallest and most widely used state-funded product, meant for a person who wants to start or expand a very small trade and cannot raise the money on their own.

The structure of the scheme is easy to state and easy to get wrong. LIDCOM funds a project costing up to Rs 50,000. Of that project cost, 50% is given as a subsidy, subject to a maximum of Rs 10,000. The rest of the project cost is raised as a term loan from a nationalised bank, on which the bank charges its own prevailing rate of interest. So the practical outcome for a beneficiary with a Rs 50,000 project is Rs 10,000 that never has to be repaid, and roughly Rs 40,000 of bank credit that does.

Key features of the scheme

• 100% state-funded subsidy component, released by LIDCOM to the loan account.
• Ceiling project cost of Rs 50,000 per beneficiary.
• Subsidy ceiling of Rs 10,000 per beneficiary, whichever is lower than 50%.
• Loan component sanctioned and recovered by the partner bank, not by LIDCOM.
• One benefit per eligible person; the scheme is not repeated year after year.

LIDCOM runs the 50% Subsidy Scheme alongside two other state schemes. The Margin Money Scheme handles bigger projects between Rs 50,001 and Rs 5,00,000, where the corporation puts in seed capital equal to 20% of project cost at 4% annual interest and adds a subsidy of up to Rs 10,000. The Gattai Stall scheme gives roadside cobblers in gram panchayat areas a 4 ft x 5 ft x 6.5 ft tin stall costing Rs 16,367 on a 100% subsidy basis, with Rs 500 provided for erecting it. Applicants often confuse these three, and district offices routinely redirect a person from one to another depending on project size.

Who is eligible for the LIDCOM 50% Subsidy Scheme?

You can apply if:

• You belong to the Scheduled Caste Charmakar community of Maharashtra; Chambhar, Dhor, Holar or Mochi, and hold a caste certificate from a competent government officer.
• You are a permanent resident of Maharashtra.
• Your age is between 18 and 50 years on the date of application.
• Your family income is within the limit notified for the scheme. LIDCOM's own description of the 50% Subsidy Scheme and the Margin Money Scheme refers to applicants below the poverty line, and district material has also quoted an annual income ceiling of Rs 1,00,000. Because the two figures differ, ask your district office for the exact ceiling in force before you fill the form.
• You have practical knowledge of the trade you propose to run. LIDCOM lists business knowledge of the chosen sector as a condition.
• You hold an income certificate and a caste certificate issued by an authorised government officer.

You cannot apply if:

• You do not belong to the Charmakar community, the scheme is restricted to this Scheduled Caste group and no other category is eligible.
• You are under 18 or over 50 years of age.
• You are not a resident of Maharashtra.
• Your family income is above the notified ceiling.
• You or another member of your household has already taken the benefit of the same LIDCOM subsidy scheme.
• You are a loan defaulter with LIDCOM or with the partner bank. A defaulter case is not eligible for a fresh sanction.
• Your project cost is above Rs 50,000: in that case you are not eligible under this scheme and should apply under the Margin Money Scheme instead.

What documents are required for the LIDCOM 50% Subsidy Scheme?

How to apply for the LIDCOM 50% Subsidy Scheme

1. Visit the LIDCOM district office in your district. LIDCOM states plainly that the application form for the 50% Subsidy Scheme is available at the district office, and that the completed form must be submitted at the same office. There is no self-service online form for this scheme.
2. Collect the application form and ask the district manager which trades are currently being sanctioned and what the income ceiling in force is. Note the current application window — LIDCOM announces fresh windows on lidcom.in and through district offices rather than accepting forms continuously in every district.
3. Prepare your project proposal. Write down the trade you want to run, the equipment or stock you need, and attach written quotations. Keep the total within Rs 50,000, because a higher figure moves your case to the Margin Money Scheme.
4. Attach the documents listed above, caste certificate, income certificate, age proof, residence proof, Aadhaar, bank passbook and photographs, and submit the complete set at the district office. Ask for an acknowledgement.
5. Wait for district scrutiny. The district office verifies your caste and income certificates, checks the age condition, and confirms that you have not already drawn the benefit.
6. Attend the bank appraisal. LIDCOM forwards the recommended case to a nationalised bank. The bank appraises the project and issues its own sanction letter for the loan portion.
7. Complete the bank formalities, open or update the loan account, sign the documents, and buy the equipment against the sanctioned amount. LIDCOM releases the subsidy of up to Rs 10,000 into that account.

How do I check the status of my LIDCOM application?

LIDCOM does not publish a public online status tracker for the 50% Subsidy Scheme. Follow up in this order:

1. The LIDCOM district office where you filed the form, quote the acknowledgement number and the date of submission.
2. The financing bank branch, once your case has been forwarded. Delays at this stage are usually about the bank's own appraisal, not about LIDCOM.
3. The LIDCOM helpline on 022-69068583, listed on lidcom.in, or the contact form at lidcom.in/contact-us.

Keep a photocopy of the full application set. A rejected or misplaced file is far easier to re-submit when you still hold the certificates and quotations.

Why LIDCOM applications get rejected

• Caste certificate does not name the Charmakar community or has been issued by an officer who is not competent to issue it.
• Income certificate above the ceiling, or an expired certificate. Income certificates in Maharashtra are generally treated as valid for a limited period, so an old one is a common reason for return.
• Age outside 18 to 50 years on the date of application.
• Project cost above Rs 50,000, which makes the case ineligible under this scheme.
• Existing default on an earlier LIDCOM or bank loan by the applicant or the family.
• Bank refuses the loan portion after appraisal. LIDCOM's recommendation is not a bank sanction, and this is the single most common point at which cases stall.
• Duplicate benefit already drawn by the applicant or another household member.

Where do I complain about a LIDCOM case?

• LIDCOM helpline: 022-69068583, listed on lidcom.in.
• Contact form and RTI / grievance links on lidcom.in.
• LIDCOM head office, Bombay Life Building, 5th Floor, 45 Veer Nariman Road, Mumbai 400001.
• Social Justice and Special Assistance Department, Government of Maharashtra, at sjsa.maharashtra.gov.in, which is LIDCOM's administrative department.

Applications to LIDCOM are free. No official or agent may charge a fee to hand you a form, to recommend your case, or to "arrange" a bank sanction.