Entrepreneur Support Scheme (ESS) is implemented by the Directorate of Industries and Commerce, Government of Kerala. Operational from 01.04.2012, it provides financial assistance to Micro, Small, and Medium Enterprises (MSMEs) in the manufacturing sector. The subsidy ranges from 15% to 45% of the fixed capital investment based on category, sector, and district of investment. A loan from a financial institution is not mandatory.
Scheme Key Highlights (Short Summary)
- Financial support based on fixed capital investment
- Assistance available in three stages: Start-up, Investment, and Technology Support
- Subsidy ranges from 15% to 45% depending on eligibility
- Special support for women, youth, SC/ST, NRKs, and priority sectors
- Support available even without a bank loan
Benefits
• 15% subsidy up to ₹30 lakh for general category entrepreneurs
• 25% subsidy up to ₹40 lakh for youth (18-45), women, SC/ST, and NRKs
• Additional 10% (up to ₹10 lakh) for units in priority sectors
• Additional 10% (up to ₹10 lakh) for MSMEs in Idukki, Wayanad, Kasargod, Pathanamthitta
• Additional 10% (up to ₹10 lakh) for new technology adoption
• Maximum total subsidy per enterprise limited to ₹40 lakh
Eligibility
• MSMEs in manufacturing sector with Entrepreneur Memorandum Part I/II filed with DIC
• Independent legal entities only
• Enterprises under priority sectors (rubber, agro, garments, biofertilizers, pharma, etc.)
• Compliance with document verification, agreement terms, and operational obligations is required
Exclusions
• Enterprises in the negative list or receiving support from KVIC/KVIB
• Government-controlled industries, PSUs, and their subsidiaries
• Negative List includes: Tailoring, Breweries, Distilleries, Sawmills, Asbestos units, Crushers, Steel re-rolling, Soap Grade Sodium Silicate, etc.
Application Process
Online: • Visit the Industries Department website and register/login
• Submit application with acknowledgment receipt and documents
• Pay application fee of ₹1105/-
Start-up Support: • Apply with project report and documents before commercial production
• DIC prepares technical feasibility report and forwards to financial institution
• After loan sanction, bank submits recommendation and project documents
Investment Support: • Apply within one year of starting commercial production
• Delay up to 2 years can be condoned
• Investments must be part of original DPR
Technology Support: • Apply within 6 months from production start
• Include invoices, proof of payment, and certificate from approved research institution
• Technology must be certified as new by an authorized agency
Documents Required
Common (All Stages):
• Passport photo
• Age proof (for youth category)
• ID proof (Voter ID/Passport/Driving License)
• Fee receipt and EM acknowledgment
• Caste certificate (if applicable)
• Project report
• Bank account details
Start-up Support:
• Attested project report by financial institution
• Recommendation letter and term loan sanction letter
Investment Support:
• Partnership deed/MoA/Bye-laws
• Registration certificate
• Audited balance sheet and profit-loss statement
• Local body license, electricity bills
• Title/lease deed, land valuation, and development cost certificate
• Machinery/equipment invoices and valuation by certified engineers
Technology Support:
• Order and proof of consultancy/tech transfer
• Invoices of new plant/machinery
• Certificate from institution confirming technology is new
Frequently Asked Questions (FAQs)
Q: What is the aim of the scheme?
To financially assist MSMEs in Kerala based on their capital investment.
Q: Who implements the scheme?
Directorate of Industries and Commerce, Kerala Government.
Q: What is the maximum subsidy?
Up to ₹40 lakh depending on eligibility.
Q: Who is eligible?
MSMEs in manufacturing with valid EM Part I/II and fulfilling scheme obligations.
Q: Are enterprises in the service sector eligible?
No, enterprises in the negative list or service sectors are excluded.
Sources and References
• Official Website
• Guidelines
• K-Swift Portal
• Application Portal