Sarkari Yojana
Kerala Stressed MSMEs Revival & Rehabilitation Scheme
About Kerala Stressed MSMEs Revival & Rehabilitation Scheme
Through the “Kerala Stressed MSMEs Revival & Rehabilitation Scheme”, MSMEs showing signs of stress receive financial and other handholding support so that their non-productive assets can be turned into productive ones. The scheme focuses on reviving micro, small and medium manufacturing enterprises in Kerala hit by stressed assets. Taking every relief and assistance together, no unit can receive more than ₹5 Lakh under the scheme. > Stressed MSME: Under the Reserve Bank of India Notification, an MSME is regarded as stressed when:-
a) Its account shows early signs of stress, though principal or interest has not been overdue for over 30 days. b) Principal or interest has been overdue for 31 – 60 days. c) Principal or Interest has been overdue for 61 -91 days Note: These conditions can change with guidelines that the Reserve Bank of India issues from time to time. > Sick Unit: An MSME is treated as sick when-
a) Any borrower account of the unit has stayed substandard for over six months, meaning principal or interest on any of its borrower accounts has been overdue for one year or more. This requirement of an overdue period of one year or more stays the same even if the period for classifying an account as sub-standard is shortened later; Or b) Accumulated cash losses in the previous accounting year have eroded 50% of the unit’s net worth; And c) The unit has been in commercial production for no less than two years in the case of closed units, and one year in the case of working units. > Closed Unit:
A closed unit is an MSME that was in commercial production for at least two years before shutting down and has then stayed shut for 6 months without a break. Adequate proof must back this up, for example disconnection of electricity because of closure, nil commercial tax returns for the period, or any other reason the expert committee finds acceptable. > Potentially Viable sick unit:
A sick unit is regarded as “Potentially Viable” when, after carrying out a relief package lasting no more than five years from the date banks, financial institutions, Government (Central/State) and other agencies concerned start the package, as required, it can go on meeting its agreed repayment obligations, including those under the package, without concessions once that period is over. > Negative List: Units listed below cannot receive any financial assistance/loan/exemption/subsidy from the state Government.
1. Photo Studios as well as Colour Processing Centres 2. Every type of Brewery and Distillery 3. Sawmills 4. Sodium Silicate of Soap Grade 5. Asbestos processing, except units that use asbestos for less than 25% of the production process and have addressed environmental and occupational health hazards to the satisfaction of the authorities concerned. 6. Metal Crushers, Granite Manufacturing units included. 7. Steel Re-rolling mills of all types, and units making iron ingots. 8. Calcium Carbide 9. Cement manufacturing, other than units making cement from fly ash 10. Potassium Chlorate 11. Cashew industrial units 12. Power-intensive units based on electrothermal/electrochemical Processor units whose total power requirement goes beyond 5000 KVA of contract load, or whose power cost exceeds 33% of the production cost of the items made, unless the unit meets its power requirement above 5000 KVA of contract load from its own captive power. Note: Changes may be made to the Negative list from time to time.
Scheme Overview
State Government
Directorate Of Industries And Commerce, Government Of Kerala
Business Entity
Scheme Details
Eligibility Requirements
To qualify for Kerala Stressed MSMEs Revival & Rehabilitation Scheme , applicants must satisfy the following conditions:
The scheme covers any MSME unit/enterprise that meets…
The scheme covers any MSME unit/enterprise that meets all of these conditions:
It is a manufacturing MSME established in Kerala state.
It is not on the Negative List.
It has filed EM Part-II/UAM.
It falls within the definition of a Sick Unit and
It is Potentially Viable for revival or restructuring on the basis of a definite Revival Project Report.
Under this scheme, any industrial unit receiving assistance…
Under this scheme, any industrial unit receiving assistance has to be an independent legal entity. Obligation of the applicant unit:
Every required detail must be furnished on time…
Every required detail must be furnished on time by the applicant unit, with a declaration that the information is true.
Any clarification that vyavasaya mithra asks for must…
Any clarification that vyavasaya mithra asks for must be provided by the unit.
The assistance received may be spent only in…
The assistance received may be spent only in the way agreed upon.
A revived unit has to resume operations within…
A revived unit has to resume operations within one month of getting the financial assistance and keep running without a break for another 5 years; failing this, the assistance will be recovered under the Kerala Revenue Recovery Act.
Rehabilitation will not be considered for units that…
Rehabilitation will not be considered for units that turned sick because of willful mismanagement, willful default, unauthorized diversion of funds, disputes among Partners/Promoters, etc.
Benefits Provided
Kerala Stressed MSMEs Revival & Rehabilitation Scheme provides the following benefits to eligible applicants:
Each applicant unit is entitled to no more…
Each applicant unit is entitled to no more than ₹5 lakhs under the scheme, available as one-time assistance only.
Assistance/Relief Available from Government
Assistance/Relief Available from Government:
Restructuring of existing loan account:
Where the bank agrees to restructure the current loan account and sanction an additional term loan/working capital loan in line with the Expert Committee's Revival Project recommendations, the unit qualifies for the one-time Assistance below. Self-financed units that take a term loan/working capital loan under the Revival Package recommended by the Expert Committee can also claim these.
Margin Money Grant: Half, that is 50%, of the margin the bank/Financial Institution demands for the additional working capital loan and term loan is paid as Grant Assistance, up to ₹2 lakhs.
Interest Subvention Assistance: On a reimbursement basis, units get interest subvention on the additional term loan and additional working capital loan taken under the Revival Project Report recommended by the expert committee. The rate is 6% per annum, up to a maximum of ₹1 lakh, and it covers only the one (first) year of the loan sanctioned by the financial institution/bank.
Restart Expenses:
Based on the Expert Committee's Revival Project recommendations, the one-time assistance below is paid towards restarting the unit.
If brand new additional/balancing plant & machinery is bought without a term loan, 50% of the cost of Additional/Balancing Plant and Machinery, up to ₹1.50 lakhs, is paid as one-time assistance.
For unavoidable repair and maintenance of the existing Plant and Machinery and Building, 50% of the cost, up to ₹1.00 lakh, is reimbursed.
Clearance of Statutory Dues:
Where the unit owes statutory dues to agencies such as KSEB, GST/Commercial Tax, Excise, Pollution Control Board, etc., 50% of those dues, up to ₹40,000, is paid as one-time assistance on the basis of the Expert Committee's Revival Project recommendations.
Cost of Revival Project Report:
The full cost of preparing the RPR is reimbursed @100%, at ₹10,000/- per unit.
Combining every relief and assistance, a single unit can receive at most ₹5 Lakhs under the scheme.
Documents Required
Applicants should keep the following documents ready before starting the application:
EM Part-II/UAM (copy)
EM Part-II/UAM (copy)
The Revival Project Report (copy)
The Revival Project Report (copy)
Sanction letter for any Additional Loan (copy)
Sanction letter for any Additional Loan (copy)
Evidence of any new investment
Evidence of any new investment
Photo Identity Proof of the Promoter/Promoters (copy)
Photo Identity Proof of the Promoter/Promoters (copy)
For non-proprietary units, a self-attested partnership deed/Memorandum and…
For non-proprietary units, a self-attested partnership deed/Memorandum and Articles of Association/Bylaws.
For non-proprietary units, a self-attested registration certificate issued…
For non-proprietary units, a self-attested registration certificate issued by the Registrar of Company/Firm/Society.
For non-proprietary units, a self-attested resolution to apply…
For non-proprietary units, a self-attested resolution to apply for this assistance.
Balance sheets for the last 2 years (copy)
Balance sheets for the last 2 years (copy).
Supporting details for each benefit claimed
Supporting details for each benefit claimed.
Other documents the recommending/sanctioning authority may ask for
Other documents the recommending/sanctioning authority may ask for.
How to Apply
Online Application
Applicants can apply for Kerala Stressed MSMEs Revival & Rehabilitation Scheme through the online application process outlined below.
Applications are filed online on the Official website…
Applications are filed online on the Official website of the Directorate of Industries & Commerce, Government of Kerala; go to the official website.
From the Online Services shown on the home…
From the Online Services shown on the home page, choose the scheme “Kerala Stressed MSMEs Revival & Rehabilitation Scheme” and press “Apply Now”. This opens the Login Page, where a “new user” picks the “Registration” option and an existing user picks ‘Login’.
New users enter their details to register, and…
New users enter their details to register, and can log in once registration succeeds.
Once logged in, choose “New Application” and press…
Once logged in, choose “New Application” and press ‘Proceed’.
Complete every part of the application form and…
Complete every part of the application form and submit it.
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, units financed by KVIC/KVIB etc. shall not be eligible for any assistance under the scheme.
Official Application & Website
Verify the latest eligibility, dates and instructions before applying.