Scheme Sponsor: Directorate of industries and Commerce
Mode of Assistance: Financial Assistance
Target Group: All MSMEs in manufacturing sector which are defunct for at least 6 months
due to genuine issues including cashew processing enterprises that have potential to be
revived and rehabilitated.
About the Scheme:
The program aims to provide capital grants and working capital incentives to failed MSMEs
in the manufacturing sector, especially cashew processing facilities. Assistance under the
initiative is available to all MSMEs in the manufacturing sector that have been inactive for at
least six months owing to legitimate problems, including cashew processing businesses with
the potential to be rehabilitated and restarted.
Under the program, funding was available for the following elements.
Building Renovation: up to a maximum of Rs. 2 lakh, or 25% of the total project cost for
revival: – Building renovation comprises installing new roofs in the manufacturing shed,
maintaining and repairing the current factory building, and setting up infrastructure for waste
disposal and treatment facilities, among other things.
Plant and machinery as well as electrification: 40% of the overall revival project budget, up
to Rs. 8 lakh, would go toward buying new machinery, maintaining and repairing existing
equipment, and electrifying industrial spaces, among other things. Working Capital (Margin):
Subject to financial institution approval, a 50% margin on working capital loans.
Assistance for defunct MSMEs is capped at Rs. 2 lakhs.
Assistance for Cashew Units is restricted to Rs. 5 lakhs.
Obtaining Working Capital (Margin) aid requires the bank to sanction a new working capital
loan; however, aid for building renovation, plant and machinery, electricity, etc., does not
require a bank loan.
Assistance Pattern :
- Entitlement in the scheme shall be limited to ₹15 Lakhs per applicant unit and it can avail
only once. - Financial Assistance under the scheme provided for the following components-
a) Building Renovation – 25% of the total revival project cost limited to ₹2 lakh:
i) Building Renovation includes maintenance and repair of existing factory buildings,
construction of fresh
roofing in the factory shed, infrastructure for Waste Disposal / Treatment facilities etc.
b) Plant & Machinery and Electrification – 40% of the total revival project cot limited to ₹8
lakh:
i) It will be available for the purchase of new machinery, Repair and Maintenance of Existing
machines,
industrial electrification etc.
c) Working Capital (Margin) – 50% margin of working Capital loan approved by financial
institution subject to
i) Assistance is limited to ₹2 lakhs for defunct MSMEs.
ii) Assistance is limited to ₹5 lakhs for Cashew Units.
d) Maximum Limit ₹12 lakhs for defunct MSMEs per unit.
e) Maximum Limit ₹15 lakhs for defunct cashew processing per unit.
Requirements for Application:
- The applicant shall provide all required details and declare such information as to be true.
- The applicant shall provide clarifications or further details sought by the recommending/ sanctioning authority.
- The applicant shall allow inspection or verification of any details mentioned in the application including plant and machinery and all other assets if so required by recommending/ sanctioning authority.
- The applicant shall produce originals of any important documents if so required by the recommending/ sanctioning authority for verification.
- The applicant shall execute the requisite legal agreement on Stamp paper worth ₹200 as and when the proposal is approved for implementation and furnishes the signed hard copy to General Manager, District Industries Centre.
- The applicant shall utilize the amount received only in the manner agreed upon as per the revival project submitted.
- The applicant shall operate the unit as stipulated in the agreement in which the quantum of support received, failing which the assistance shall be resumed by restoring the provisions of the Kerala Revenue Recovery Act
More Information on : https://industry.kerala.gov.in/index.php/schemes-mainmenu/revival-
and-rehabilitation-scheme-fzor-defunct-msmes-and-cashew-processing-units-schemes
Apply on: https://schemes.industry.kerala.gov.in/public/index.php/schemes