Sarkari Yojana
Entrepreneur Support Scheme
About Entrepreneur Support Scheme
Run by the Directorate of Industries and Commerce, Government of Kerala, the Entrepreneur Support Scheme (ESS) ranks as one of the state’s most sought-after and appealing support programmes. It has been in force w.e.f. 01.04.2012. Under ESS, Micro, Small, and Medium Enterprises carrying out manufacturing activities within the State receive financial help in proportion to the capital they invest. A unit may claim a subsidy ranging from 15% to 45% of its fixed capital investment, with the exact rate decided by the investor’s category, the sector involved, and the District where the investment is made. Borrowing from a financial institution is not a precondition for this scheme. > Objectives: Through the new Entrepreneur Support Scheme, the government seeks to
extend wide-ranging backing to micro, small and medium enterprises, and • offer entrepreneurs one-time assistance, giving special attention to special categories, making the best use of available funds and allowing greater operational flexibility during implementation of the Scheme. > Stages in Entrepreneur Support Scheme: Eligible entrepreneur (s)/unit receive assistance under the Entrepreneur Support Scheme in 3 stages.
1. Start-up Support This component is meant for enterprises that have obtained at least a term loan from a financial institution and would like to draw part of their total eligible support before commercial production begins. Once the bank sanctions the term loan, up to 50% of the total eligible support can be released, capped at ₹3 lakh. The remaining eligible support may be claimed after the unit begins commercial production. Units that skip Start-up Support are free to apply straight for investment support once commercial production has commenced. 2. Investment Support This support becomes available once commercial production has begun, and a loan from a financial institution is not required to claim it. Entrepreneurs must submit their application within one year of the date production starts. Units taking up Expansion, Diversification, or Modernization can also claim investment support on the additional investment they make. 3. Technology Support Units that obtain new technology from authorized institutions after production has begun can seek Technology Support. The application has to be made within 6 months from the date of commencement, following installation of the new technology from authorized agencies. Help is given both for the new technology itself and for plant and machinery set up in connection with it. > Sanctioning Authority: Sanction for every form of assistance under the ESS rests with
The General Manager (District Industries Centre) – in the case of start-up Support • District Level Committee – where Fixed Capital Investment is below ₹200.00 lakhs • State Level Committee – where Fixed Capital Investment is above ₹200.00 lakhs > Appellate Authority: An applicant dissatisfied with a District Level Committee decision may appeal to the State Level Committee, whose Members are:
- Director of Industries & Commerce (Chairman)
- A Finance Department representative of the Government
- Managing Director, KSIDC
- Managing Director, KFC
- Director –MSME (DI)
- A representative of the KSSIA State Committee
Scheme Overview
State Government
Directorate Of Industries And Commerce, Government Of Kerala
Business Entity, Individual
01 Apr 2012
Scheme Details
Eligibility Requirements
To qualify for Entrepreneur Support Scheme, applicants must satisfy the following conditions:
Assistance is open to every Micro, Small, and…
Assistance is open to every Micro, Small, and Medium Enterprise set up in the State and engaged in manufacturing activities that has filed Entrepreneurs Memorandum Part I/II with the concerned General Manager, District Industries Centre.
To qualify for Entrepreneur Support assistance under this…
To qualify for Entrepreneur Support assistance under this scheme, the industrial unit must exist as an independent legal entity. Obligations of the applicant entrepreneurs:
Every applicant must furnish all the details asked…
Every applicant must furnish all the details asked for and declare that the information given is true.
The prescribed application fee must be paid by…
The prescribed application fee must be paid by the applicant.
Any clarification or additional information requested by the…
Any clarification or additional information requested by the recommending/sanctioning authority must be supplied by the applicant.
The applicant must permit the recommending/sanctioning authority to…
The applicant must permit the recommending/sanctioning authority to inspect or verify any detail stated in the application, including plant and machinery and all other assets, whenever required.
Where the recommending/sanctioning authority asks for it, the…
Where the recommending/sanctioning authority asks for it, the applicant must present original copies of key documents for verification.
Once the proposal is cleared for implementation, the…
Once the proposal is cleared for implementation, the applicant must sign the required legal agreement online (and on paper where needed) and later send the signed hard copy by post or another means.
Funds received must be used by the applicant…
Funds received must be used by the applicant strictly in the manner agreed.
The applicant must run the unit as laid…
The applicant must run the unit as laid down in the agreement under which support was received; otherwise the assistance will be recovered by invoking the provisions of the Kerala Revenue Recovery Act.
After receiving assistance, the unit must submit, each…
After receiving assistance, the unit must submit, each year until the stipulated period ends and before the 31st December of the following financial year, copies of balance sheets, a valid local body license, electricity bills, performance details in the prescribed proforma, etc. to the notified authority as evidence that it is operating. Enterprises under Priority Sector: The priority sector covers Rubber-based industries, Agro based and Food processing industries, Readymade Garments, industries producing equipment and machinery for non-conventional energy generation, Biotechnology industries, 100% export-oriented units, Biodegradable plastic industries, Plastic waste recycling industries, Biofertilizer industries, and Pharmaceutical industries as well as healthcare products manufacturing industries.
Benefits Provided
Entrepreneur Support Scheme provides the following benefits to eligible applicants:
A subsidy is granted on investment made in…
A subsidy is granted on investment made in Land, Building, Plant and machinery, Electrification, Essential Office Equipment, Pollution Control Devices, and other fixed assets.
General Category units receive 15% of their capital…
General Category units receive 15% of their capital investment, up to a ceiling of ₹30 lakh.
Entrepreneurs who are Young (18 to 45 years),…
Entrepreneurs who are Young (18 to 45 years), Women, SC/ST, or Non-Resident Keralite (NRK) get 25%, capped at ₹40 lakh.
Units in priority sectors can claim a further…
Units in priority sectors can claim a further 10%, subject to a limit of ₹10 lakh.
An extra 10% support, up to ₹10 lakh,…
An extra 10% support, up to ₹10 lakh, is available to MSMEs established in the districts of Idukki, Wayanad, Kasargode and Pathanamthitta.
Units launched after obtaining new technology from approved…
Units launched after obtaining new technology from approved research institutions qualify for an added 10%, up to ₹10 lakh.
Overall, no enterprise can receive more than ₹40…
Overall, no enterprise can receive more than ₹40 lakh in total eligible assistance.
Documents Required
Applicants should keep the following documents ready before starting the application:
(a) Common to all assistances viz. Startup, Investment and Technology Support:
A recent passport-size photograph
A recent passport-size photograph
Evidence of age backed by any valid proof,…
Evidence of age backed by any valid proof, required only when seeking assistance meant for young entrepreneurs
The acknowledgement receipt generated while filing the online…
The acknowledgement receipt generated while filing the online application
A self-attested copy of the Challan/receipt showing the…
A self-attested copy of the Challan/receipt showing the fee was paid
A copy of the promoter's/promoters' Voters ID, Passport,…
A copy of the promoter's/promoters' Voters ID, Passport, Ration Card or Driving license, attested by a Gazetted officer (for young-entrepreneur assistance, the document must display the applicant's Date of birth)
For units that are not proprietary concerns, a…
For units that are not proprietary concerns, a self-attested copy of the resolution authorising the application for this assistance
A self-attested copy of the EM Acknowledgement (EM…
A self-attested copy of the EM Acknowledgement (EM part I when applying for Start-up support, and part II for all other assistance)
A copy of the Caste Certificate attested by…
A copy of the Caste Certificate attested by a Gazetted officer (when applying for assistance meant for SC/ST entrepreneurs)
A self-attested copy of the Project Report
A self-attested copy of the Project Report
Details of the bank account (b) For Start-up…
Details of the bank account (b) For Start-up Support {in addition to 1-10 above (a)} (to be furnished after the Term Loan is sanctioned by the Financial Institution)
The Project Report copy bearing the Financial Institution's…
The Project Report copy bearing the Financial Institution's attestation The original recommendation letter issued by the financial institution ( Annexure - IV ) The Term Loan sanction letter copy issued and attested by the financial institution (c) For Investment Support {in addition to 1-10 above (a) }
Where the application is late, a request seeking…
Where the application is late, a request seeking condonation of the delay in filing
For non-proprietary units, a self-attested copy of the…
For non-proprietary units, a self-attested copy of the partnership deed, Memorandum and Articles of Association, or Bye-laws
For non-proprietary units, a self-attested copy of the…
For non-proprietary units, a self-attested copy of the registration certificate issued by the Registrar of Company/Firm/Society
A self-attested copy of the audited balance sheet…
A self-attested copy of the audited balance sheet along with the trading and profit & loss statement and FCI details
A self-attested copy of the current licence issued…
A self-attested copy of the current licence issued by the local body
Self-attested copies of the sales bills
Self-attested copies of the sales bills
A self-attested copy of the KSEB consumer card…
A self-attested copy of the KSEB consumer card indicating Contract demand and the date of power connection, together with the most recent electricity bill
Land
Land: A copy of the title deed, lease deed or Allotment order plus remittance details for DA, DP etc., and the fair value of the land certified by the relevant revenue authority.
Land Development costs
Land Development costs: A certificate from a Civil Engineer ( Annexure – VII ) holding a rank no lower than Assistant Executive Engineer in a Government Department (Industries, PWD, LSGD, Irrigation, etc.), or from a Chartered Engineer, Institution of Engineers India/Approved Valuer of Institution of Valuers, India.
Building
Building: A copy of the land title deed/lease deed (only where land is not being claimed), the approved plan, the estimate, and a valuation certificate from a Civil Engineer ( Annexure – VII ) holding a rank no lower than Assistant Executive Engineer in a Government Department (Industries, PWD, LSGD, Irrigation, etc.), or from a Chartered Engineer, Institution of Engineers India/Approved Valuer of Institution of Valuers, India.
Plant & Machinery
Plant & Machinery: Copies of invoices/bills with evidence of payment (cash receipt/certificate from the financial institution; where machinery is bought from outside the state, the invoice copy must carry the stamp of the relevant taxes check post), the Bill of entry for any imported machinery, and for fabricated machinery a certificate of a Mechanical Engineer ( Annexure –VIII ) holding a rank no lower than Assistant Executive Engineer in a Government Department (Industries, PWD, LSGD, Irrigation, etc.), or of a Chartered Engineer, Institution of Engineers India/Approved Valuer of Institution of Valuers, India covering material costs and labour costs.
Electrification costs
Electrification costs: Copies of invoices/bills (covering power connection charges, transformer costs etc.) with evidence of payment (cash receipt/certificate from the financial institution), and where electrification costs exceed ₹50,000/-, a valuation Certificate of an Electrical Engineer ( Annexure – IX ) holding a rank no lower than Assistant Executive Engineer, Electrical Inspectorate/Kerala State Electricity Board, or of a Chartered Engineer, Institution of Engineers India / Approved Valuer of Institution of Valuers, India
Generator Set/Other energy generating Equipment
Generator Set/Other energy generating Equipment: Copies of invoices/bills with evidence of payment (cash receipt/certificate from the financial institution), a valuation certificate of an Electrical Engineer ( Annexure – IX ) holding a rank no lower than Assistant Executive Engineer of Electrical Inspectorate/Kerala State Electricity Board, or of a Chartered Engineer, Institution of Engineers India/Approved Valuer of Institution of Valuers, India, and a copy of the Installation permit/Energization order issued by the Electrical Inspectorate for the Generator set
Testing Equipment
Testing Equipment: Copies of invoices/bills with evidence of payment (cash receipt/certificate from the financial institution) and a valuation certificate of a Mechanical Engineer ( Annexure – VIII ) holding a rank no lower than Assistant Executive Engineer in a Government Department (Industries, PWD, LSGD, Irrigation, etc.), or of a Chartered Engineer, Institution of Engineers India/Approved Valuer of Institution of Valuers, India.
Pollution Control Devices
Pollution Control Devices: Copies of invoices/bills with evidence of payment (cash receipt/certificate from the financial institution), a valuation certificate of a Mechanical Engineer ( Annexure – VIII ) holding a rank no lower than Assistant Executive Engineer in a Government Department (Industries, PWD, LSGD, Irrigation, etc.), or of a Chartered Engineer, Institution of Engineers India/Approved Valuer of Institution of Valuers, India, and a self-attested copy of the consent letter from the Kerala State Pollution Control Board.
Essential Office/Water & waste recycling/rain harvesting equipment
Essential Office/Water & waste recycling/rain harvesting equipment: Copies of invoices/bills with evidence of payment (cash receipt/certificate from the financial institution) and a valuation certificate of a Mechanical Engineer ( Annexure – VIII ) holding a rank no lower than Assistant Executive Engineer in a Government Department (Industries, PWD, LSGD, Irrigation, etc), or of a Chartered Engineer, Institution of Engineers India/Approved Valuer of Institution of Valuers, India. (d) For Technology Support {in addition to 1 – 8 under (a) plus 1 to 4 under (c)}
A self-attested copy of the order along with…
A self-attested copy of the order along with proof that consultancy/technology transfer costs were paid
Self-attested copies of invoices/bills for the new Plant…
Self-attested copies of invoices/bills for the new Plant & machinery, with proof of payment
A valuation certificate of a Mechanical Engineer (…
A valuation certificate of a Mechanical Engineer ( Annexure – VIII ) holding a rank no lower than Assistant Executive Engineer in a Government Department (Industries, PWD, LSGD, Irrigation, etc.), or of a Chartered Engineer, Institution of Engineers India/Approved Valuer of Institution of Valuers, India.
A certificate issued by the research institution confirming…
A certificate issued by the research institution confirming that the technology is new. Note: Any document relating to a particular detail that has already been submitted with one of the applications viz. Part B/C/D need not be submitted again.
2012-04-01
How to Apply
Online Application
Applicants can apply for Entrepreneur Support Scheme through the online application process outlined below.
Every application for assistance under the "Entrepreneur Support…
Every application for assistance under the "Entrepreneur Support Scheme" must be filed online by the applicant on the Industries Department's official ESS portal, after which the originals, together with the acknowledgment details obtained during online filing, must be presented before the Recommending Authority.
The Sanctioning Authority examines the application and sanctions…
The Sanctioning Authority examines the application and sanctions assistance on merit
A fee of ₹1105/- per unit must be…
A fee of ₹1105/- per unit must be paid with the application. Start-up Support:
Entrepreneurs seeking startup support must submit the prescribed…
Entrepreneurs seeking startup support must submit the prescribed application form in duplicate to the General Manager, District Industries Centre, together with the required documents and a copy of the Project Report.
Within 15 working days, the General Manager drafts…
Within 15 working days, the General Manager drafts a Technical Feasibility Report on the Project and sends it to the relevant financial institution for sanction of the eligible Term Loan.
Once the Term Loan is sanctioned, the financial…
Once the Term Loan is sanctioned, the financial institution may send its recommendation in the prescribed format, along with attested copies of the Term Loan Sanction Letter and the Project Report Investment Support:
Every enterprise must seek investment support within one…
Every enterprise must seek investment support within one year of starting commercial production. Both the District Level Committee and the State Level Committee may, however, condone delays in individual cases on merit, although the District Level Committee can condone a delay of only up to two years.
Applications may be lodged with the respective recommending…
Applications may be lodged with the respective recommending authority only once commercial production has begun. All eligible investments existing on the date of the assistance application can be considered for investment support, provided they were envisaged in the original Detailed Project Report, regardless of when commercial production commenced. Technology Support:
Every industrial unit must apply for Technology support…
Every industrial unit must apply for Technology support within six months of the date commercial production begins, after installing the new technology.
The District Level committee nevertheless has the power…
The District Level committee nevertheless has the power to condone delays in individual cases on merit. Technology support may be claimed by new or existing units even if they are not part of a diversification/expansion/modernization programme.
The technology support application must be lodged with…
The technology support application must be lodged with the Recommending Authority together with copies of invoices for the machinery acquired and proof of payment to research institutions owned or controlled by Government such as CFTRI, CSIR, DFRL, DRDO, Rubber Board, CTCRI, ICAR, KVK etc., backed by proof of payment of consultancy charges, a valuation certificate of a Mechanical Engineer not below the rank of an Assistant Executive Engineer of a Government Department (Industries, PWD, LSGD, Irrigation, etc.) or a Chartered Engineer, Institution of Engineers India/Approved Valuer of Institution of Valuers, India, and a certificate from the research institution confirming the technology is new. For Technology Support purposes, Government Engineering Colleges approved by AICTE, institutions under the Council of Science & Technology, universities, etc. that possess Research and development facilities and create technologies for industry will also be treated as research institutions. Note 01: When receiving an application form, the Officer must check that every necessary detail has been provided. Where information is lacking, the applicant unit must be informed both electronically and by other means and allowed 10 days’ time to correct the shortcomings. Note 02: Every Recommending Authority office will set up a Committee to monitor all units receiving assistance under this Scheme and confirm that they comply with this Manual. Checks on how the assistance was used may preferably be carried out through the financial institution that financed the unit. Each assisted unit is also bound to submit, every year until the stipulated period ends and before the 31st December of the following financial year, copies of balance sheets, valid local body licenses, electricity bills, performance particulars in the prescribed proforma, etc. as evidence that it is functioning.
Objectives
** The new Entrepreneur Support Scheme intends to
Exclusions / Who Is Not Eligible
1. 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, and units financed by KVIC/KVIB, etc. shall not be eligible for any assistance under these rules.
> **Enterprises under Negative List:**
Service Enterprises, Photo Studios and Colour Processing Centres, Tailoring other than manufacturing of readymade garments, Breweries and Distilleries of all types, Sawmills, Soap Grade Sodium Silicate, Asbestos processing, Metal Crushers including Granite Manufacturing units, All types of Steel Re-rolling Mills, Units manufacturing iron ingots, Calcium Carbide, Cement manufacturing except units manufacturing cement from fly ash, Potassium Chlorate, Power intensive units.
Official Application & Website
Verify the latest eligibility, dates and instructions before applying.