Scheme Name: Kerala stressed MSMEs Revival & Rehabilitation Scheme

State: Kerala

Description of the Scheme: Launched sick unit revival programme

Target group :

Sector of the Scheme:

Eligibility Criteria:

Nature & Mode of Assistance:

Entitlement shall be limited to an amount of Rs.5 lakhs per applicant unit to be availed as one time assistance only. Industries included in negative list, Government controlled industries, public sector undertakings, units started by Government controlled agencies, units financed by KVIC/KVIB, etc., shall not eligible for any assistance.
Assistance/Relief available from Government
1)    Restructuring of existing loan account
If bank is willing to restructure the existing loan account and extent additional term loan/working capital loan based on the revival project report recommendations of expert committee, unit is eligible for one time assistances. These assistances are also eligible for self financed units availing term loan/working capital loan as part of revival package recommended by the expert committee.
a)    Margin money grant
50% of margin insisted by bank/financial institution towards additional working capital loan and term loan, will be payable as grant assistance limited to Rs.2 lakhs.
b)    Interest subvention assistance
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 revival project report recommended by expert committee. Interest subvention is 6% per annum subject to a maximum
amount of Rs.1 lakh. Interest subvention is limited for one (first) year on loan sanctioned by financial institution/bank.
Component of interest to be reimbursed shall be projected by financial institution/bank to the committee, Vyvasyamithra. 50% of the 6% interest subsidy shall be released within 60 days from the date of release of loan from financial institution/bank. Second installment i.e., balance 50% of interest subsidy eligible for the 1st year shall be paid after the completion of 12 months period of successful running of the unit and shall be based on a report from the concerned financial institution/bank with regard to the performance of unit. Interest subvention amount shall be released to the loan account of unit.
2)    Restart expenses
a)        In cases where no term loan is availed for purchase of brand new additional/balancing plant & machinery, 50% of the cost of additional/balancing plant and machinery limited to Rs.1.50 lakhs will be payable as one time assistance.
b)    50% of cost incurred for inevitable repair and maintenance of existing plant and machinery and building limited to Rs.1 lakh will be reimbursed.
3)    Clearance of statutory dues
If there is statutory dues existing for the unit related to agencies like KSEB, GST/Commercial Tax, Excise, Pollution Control Board, etc., 50% of the dues limited to Rs.40,000 shall be payable as one time assistance.
4)    Cost of revival project report
Cost of preparation of RPR will be reimbursed at 100%, Rs.10,000 per unit.
5)    Maximum assistance admissible for each unit, all reliefs and assistances put together, will be limited to Rs.5 lakhs

"Financial Information (Subsidy, low interest rate, etc.)":

"Other Assistance (Procurement of machinery, Technology /Marketing, International Cooperation, etc.)":

How to apply: Revival & Rehabilitation Scheme Guidelines

Whom to Contact: Website of Department of Industries, Government of Kerala