What you get
- Entitlement in the scheme shall be limited to an amount of ₹5 lakhs per applicant unit to be availed as one-time assistance only. | - Assistance/Relief Available from Government: | a) Restructuring of existing loan account: If the bank is willing to restructure the existing loan account and extend additional term loan/working capital loan based on the Revival Project recommendations of the Expert Committee, the unit is eligible for the following one-time Assistance. These assistances are also eligible for self-financed units availing term loan/working capital loan as part of the Revival Package recommended by the Expert Committee. | - Margin Money Grant: 50% of the margin insisted by the bank/Financial Institution towards additional working capital loan and term loan, will be payable as Grant Assistance limited to ₹2 lakhs. - Interest Subvention Assistance: To provide financial assistance in the form of interest subvention on a reimbursement basis for the additional term loan and additional working capital loan availed by the units based on the Revival Project Report recommended by the expert committee. The interest subvention is 6% per annum subject to a maximum amount of ₹1 lakh. The interest subvention is limited to one (first) year on the loan sanctioned by the financial institution/bank. | b) Restart Expenses: The following one-time assistance shall be payable as restart expenses based on the Revival Project recommendations of the Expert Committee. | - In cases where no term loan is availed for the purchase of brand new additional/balancing plant & machinery, 50% of the cost of Additional/Balancing Plant and Machinery limited to ₹1.50 lakhs will be payable as one-time assistance. | - 50% of the cost incurred for the inevitable repair and maintenance of the existing Plant and Machinery and Building limited to ₹1.00 lakh will be reimbursed. | c) Clearance of Statutory Dues: If there are statutory dues existing for the unit related to the agencies like KSEB, GST/Commercial Tax, Excise, Pollution Control Board, etc. 50% of the dues limited to ₹40,000 shall be payable as one-time assistance based on the Revival Project recommendations of the Expert Committee. | d) Cost of Revival Project Report: | - Cost of preparation of RPR will be reimbursed @100%, ₹10,000/- per unit. | - The maximum assistance admissible for each unit, all reliefs and assistances put together, under the scheme will be limited to ₹5 Lakhs.
Who can apply
Required Paperwork
- Aadhaar Card
- PAN Card
- Income Certificate
- Residence Proof (Domicile)
Common Questions
What is the aim of the scheme?
The aim of the scheme is to revive micro, small and medium manufacturing enterprises in Kerala that suffer due to stressed assets.
What are the objectives of the scheme?
The objective of the scheme is to provide financial and other handholding support to the MSMEs which show signs of stress and to convert their non-productive assets into productive assets.
Which is the implementing department of this scheme?
Director of Industries & Commerce, Government of Kerala
Which types of MSME Units are eligible to get the benefits of the scheme?
An MSME unit/enterprise which satisfies the following conditions is eligible for the scheme: | (a) MSME in the manufacturing category and set up in Kerala state. | (b) Does not come under the Negative List. | (c) Must have filed EM Part-II/UAM. | (d) Must come under the definition of Sick Unit and | (e) Must be Potentially Viable to be revived or restructured based on a definite Revival Project Report.
Is it necessary to be an independent legal entity for an MSME unit?
Yes, for the purpose of this scheme, an industrial unit eligible for the assistance shall be an independent legal entity
What is the benefit of the scheme?
Under the scheme, the financial assistance of [?]5 lakhs will be given to an applicant unit.
How many times can an applicant unit avail the financial assistance under the scheme?
The applicant unit can availed of one-time assistance only.
What are activities & services included in the Negative List?
Photo Studios and Colour Processing Centres, Breweries and Distilleries of all types, Sawmills, Soap Grade Sodium Silicate, Asbestos processing except for units in respect of which the quantum of asbestos used in the production process is less than 25% and environmental and occupational health hazards have been taken care of to the satisfaction of authorities concerned, Metal Crushers including Granite Manufacturing units, All types of Steel Re-rolling mills and units manufacturing iron ingots, Calcium Carbide, Cement manufacturing except units manufacturing cement from fly ash, Potassium Chlorate, Cashew industrial units, Power-intensive units based on electro thermal/electrochemical Processor units where total power requirement exceeds 5000 KVA of contract load or where the cost of power is more than 33% of the cost of production of the items manufactured except where the units generate their power requirement in excess of 5000 KVA of contract load by own captive power.
Which type of manufacturing units cannot apply under the scheme?
The industries included in Negative list and notified as such from time to time, Government controlled industries, public sector undertakings, units started by Government controlled agencies, units financed by KVIC/KVIB etc. shall not eligible for any assistance under the scheme.
How can an applicant unit apply under the scheme?
Application can be submitted online through the Official website of the Directorate of Industries & Commerce, Government of Kerala. https://schemes.industry.kerala.gov.in/public/index.php/schemes