Details

The “Kerala Stressed MSMEs Revival & Rehabilitation Scheme” intends to provide financial and other handholding support to the MSMEs which show signs of stress and to convert their non-productive assets into productive assets. This scheme aims to revive micro, small and medium manufacturing enterprises in Kerala that suffer due to stressed assets. The maximum assistance admissible for each unit, all reliefs and assistances put together, under the scheme will be limited to ₹5 Lakh.

Definitions:

Stressed MSME: As per RBI, treated as stressed if principal/interest is overdue for 30-91 days or showing incipient stress.
Sick Unit: Borrower accounts sub-standard for 6+ months or 50% net worth erosion due to losses; must have been in production for 1-2 years.
Closed Unit: Closed continuously for 6 months after at least 2 years of production.
Potentially Viable sick unit: A unit capable of meeting repayment obligations after a relief package within 5 years.

Negative List (Ineligible units):

1. Photo Studios and Colour Processing Centres
2. Breweries and Distilleries
3. Sawmills
4. Soap Grade Sodium Silicate
5. Asbestos processing (with certain exceptions)
6. Metal Crushers / Granite units
7. Steel Re-rolling mills
8. Calcium Carbide
9. Cement manufacturing (except from fly ash)
10. Potassium Chlorate
11. Cashew industrial units
12. Power-intensive units (>5000 KVA)

Benefits

One-time assistance limited to ₹5 lakhs per unit.

Assistance Types:

• Restructuring Assistance:
  • Margin Money Grant: 50% of bank margin for additional loans, up to ₹2 lakhs.
  • Interest Subvention: 6% per annum for the first year, up to ₹1 lakh.
• Restart Expenses:
  • 50% of cost for brand new balancing plant & machinery (no term loan), up to ₹1.50 lakhs.
  • 50% of repair/maintenance costs for existing plant/building, up to ₹1.00 lakh.
• Clearance of Statutory Dues: 50% of dues (KSEB, GST, etc.) up to ₹40,000.
• Cost of Revival Project Report: 100% reimbursement, up to ₹10,000 per unit.

Eligibility

• MSME manufacturing unit in Kerala.
• Not in the Negative List.
• Must have filed EM Part-II/UAM.
• Must be a Sick Unit and Potentially Viable.

Obligations:

• Utilize funds as agreed.
• Restart within one month of assistance.
• Function continuously for 5 years after revival.
• Units with willful default or mismanagement are ineligible.

Exclusion

Industries in the Negative List, government-controlled industries, PSUs, and units financed by KVIC/KVIB are not eligible.

Application Process

Online

Step 01: Visit the official website of the Directorate of Industries & Commerce, Government of Kerala.
Step 02: Select “Kerala Stressed MSMEs Revival & Rehabilitation Scheme” and click “Apply Now”.
Step 03: Register as a new user or login.
Step 04: Select “New Application” and click ‘Proceed’.
Step 05: Fill out and submit the application form.

Documents Required

• Copy of EM Part-II/UAM
• Copy of Revival Project Report
• Sanction letter for Additional Loan, if any
• Proof of new investment
• Identity Proof of Promoter(s)
• Partnership deed/MOA/Bylaws (if applicable)
• Registration certificate for non-proprietary units
• Resolution for applying (non-proprietary)
• Balance sheet of last 2 years
• Supporting details for benefits applied for