Details

The “Kerala Stressed MSMEs Revival & Rehabilitation Scheme” provides financial and handholding support to stressed MSMEs to convert non-productive assets into productive ones. Max assistance: ₹5 Lakh.

Definitions:
• Stressed MSME: Payments overdue 31-91 days as per RBI.
• Sick Unit: Substandard for >6 months or 50% net worth erosion.
• Closed Unit: Closed continuously for 6 months after 2 years production.
• Potentially Viable: Able to service obligations after a relief package (max 5 years).

Negative List: Photo studios, Breweries, Sawmills, Metal crushers, Steel mills, etc.

Benefits

• Margin Money Grant: 50% of bank-insisted margin for working capital (max ₹2 lakhs).
• Interest Subvention: 6% per annum (max ₹1 lakh) for first year.
• Restart Expenses: 50% of plant/machinery cost (max ₹1.5 lakhs) or repair costs (max ₹1 lakh).
• Clearance of Statutory Dues: 50% of dues (max ₹40,000).
• Project Report Cost: 100% reimbursement (₹10,000).

Total assistance limited to ₹5 Lakhs per unit.

Eligibility

• Manufacturing MSME in Kerala.
• Not in Negative List.
• Filed EM Part-II/UAM.
• Classified as Sick and Potentially Viable.

Obligations: Must restart within one month of assistance and function for 5 years.

Exclusion

Government industries, PSUs, and units under KVIC/KVIB are ineligible.

Application Process

Online: via official website of Directorate of Industries & Commerce. New users register, log in, select the scheme, and fill the form.

Documents Required

• Copy of EM Part-II/UAM
• Revival Project Report
• Additional Loan sanction letter
• New investment proof
• Identity proof of Promoter
• Partnership deed/MOA (if applicable)
• Balance sheet (last 2 years)