On the basis of the High Power Committee recommendations, from 1995-96 in case of Village Industries Margin Money scheme has been introduced. It envisages providing 25% margin money for projects upto Rs.10 lakhs and for projects above Rs.10 lakhs it will be 25% of Rs.10 lakhs plus 10% of the balance project cost upto Rs.25 lakhs. The margin money will be treated as loan for 2 years after which it will be treated as grant.