Entrepreneur Support Scheme Kerala

The Government of Kerala has launched Entrepreneur Support Scheme to support the micro, small and medium enterprises by helping them operate flexibly and utilise funds optimally.

Eligibility Criteria

All Micro, Small and Medium Enterprises engaged in manufacturing activities and set up in the State, which had filed Entrepreneurs Memorandum Part I/II with the respective General Manager, District Industries Centre shall be eligible for this assistance. The applicant has to 

• apply in the prescribed Proforma,

• provide necessary documentation and accounts and

• execute an agreement with the notified authority to avail the assistance.

Exclusions

The industries included in the 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 be eligible for any assistance under these rules

Assistance to any unit which has already received any subsidy or grant earlier under other schemes, from other Government Agencies, any State owned financial institution shall be limited to the balance remaining eligible assistance payable under the Entrepreneur Support Scheme. For eg. any unit which has availed assistance from such agencies or statutory Boards like MPEDA, Spices Board, Rubber Board, local bodies, etc. will be eligible for assistance limited to the balance remaining eligible assistance payable under the Entrepreneur Support Scheme. However an industrial unit which availed Margin Money Loan from Industries Department is eligible for assistance under Entrepreneur Support Scheme. In case the unit had availed start up support earlier, only the balance remaining eligible assistance will be admitted to the unit.

Benefits

• Entitlement in the scheme shall be limited to an amount of Rs. 30 lakhs per applicant unit to be availed only once. The upper limit of Rs. 30 lakhs shall be enhanced by 5% per annum during the period of operation of the scheme to address the escalation of costs. Subject to this maximum limit the assistance shall be limited to the fixed percentage of the composite investment upon

  • land,

  • land development costs,

  • building and improvement charges on existing building,

  • essential office infrastructure,

  • fixed cost of plant and machinery,

  • electrification,

  • generators and associated equipment e.g. invertors

  • All testing and pollution control equipments shall also be eligible for computing the composite investment cost. Working capital and recurring costs shall not be eligible.

• Out of all eligible applicants, 30% of the earmarked assistance shall be reserved for micro enterprises. Only in case of insufficiency of qualified applicants in the micro category, small and medium enterprises shall be considered.

• An assistance of 15% limited to Rs. 20.00 (Twenty) lakhs will be payable on the fixed capital investment of all micro, small and medium enterprises set up in the State

• All micro, small and medium enterprises established by entrepreneurs belonging to Women, Scheduled Castes and Scheduled Tribes and Young entrepreneurs shall be eligible for an assistance of 20% of the fixed capital investment limited to Rs. 30.00 (Thirty) lakhs.\

• The following have been declared as priority industries and all units, micro, small, medium enterprises included under priority sector shall be eligible for an additional assistance of 10% of the fixed capital investment subject to a ceiling of Rs. 10 lakhs or as notified in the specific incentives announced for the sector from time to time.

  • Rubber based industries

  • Agro based and food processing industries

  • Readymade Garments

  • Industries manufacturing equipments and machinery for Non-conventional energy generation

  • Bio Technology based industries

  • 100% Export Oriented Units

  • Bio degradable plastic industries

  • Plastic waste recycling industries

  • Bio fertiliser industries

• In the case of all micro, small and medium enterprises set up in the districts of Idukki, Wayanad, Kasaragode and Pathanamthitta, there shall be an additional assistance of 10% of the fixed capital investment subject to a ceiling of Rs. 10 lakhs.

• In the case of micro, small and medium industrial units set up after acquiring new technology from approved research institutions, recognized as such by State or Central Government, there shall be an additional assistance of 10% of the fixed capital investment subject to a ceiling of Rs. 10 lakhs. 

Documents Required

1. Common to all assistances viz. Startup, Investment and Technology Support

   1. Application (Annexure - III) duly signed by the applicant (in case of partnership firm, all partners shall sign)

   2. Acknowledgement receipt during filing the application on line

   3. Self attested copy of Challan/receipt towards payment of fees

   4. Copy of Voters ID/Passport/Ration Card/Driving license of the promoter/ promoters (attested by Gazetted officer) (in case applying for assistance under young entrepreneurs the document furnished shall show the Date of birth of the applicant)

   5. Self attested copy of resolution towards applying for this assistance in case of units other than proprietory

   6. Self attested copy of Acknowledgement of EM (EM part I in case of application for Startup support and part II for other assistances)

   7. Copy of Caste Certificate (attested by Gazetted officer) (in case applying for assistance under SC/ST entrepreneurs)

   8. Copy of the Project Report (Self attested) (NB:- ii & iii not required during online filing but to be submitted along with the original application)

2. For Startup Support {in addition to (i) – (viii) under (a)} (to be furnished after the Term Loan is sanctioned by the Financial Institution)

   1. Copy of Project Report (attested by Financial Institution)

   2. Recommendation letter of the financial institution (Annexure - IV) in original

   3. Copy of Term Loan sanction letter of the Financial Institution (attested by financial institution)

3. For Investment Support {in addition to (i) – (viii) under (a)}

   1. In case of belated application, request for condonation for delay in filing application 35

   2. Self attested copy of the partnership deed/Memorandum and Articles of Association/Bye-laws in case of units other than proprietory

   3. Self attested copy of the registration certificate from Registrar of Company/Firm/Society of units other than proprietory

   4. Self attested copy of audited balanced sheet with trade & profit loss statement and details of FCI

   5. Self attested copy of valid licence from local body

   6. Self attested copies of sales bills

   7. Self attested copy of consumer card of KSEB showing Contract demand and date of power connection with a copy of the last electricity bill

Interest and Penalty

All assistance provided to the above support to an individual unit has to be refunded by the unit with interest at the rate of 14% per annum from the date of receipt of issue of the registered demand notice to the unit by the recommending/sanctioning authority on grounds of obtaining assistance by misrepresentation, forgery or deception or not found working continuously for five years from its commercial production within one year after receipt of assistance.

If the concerned officer of the Recommending/Sanctioning authority delays the application deliberately, the Director of Industries and Commerce levies and reviews a fine of Rs. 500 per day for each day of such delay and to a maximum of Rs. 10,000.

Application Forms

• Check List for applying for Entrepreneur Support Scheme

• Application for assistance under Entrepreneur Support Scheme

• Annexures IV - XVII