The Kerala Stressed MSMEs Revival & Rehabilitation Scheme is designed to assist Micro, Small, and Medium Enterprises (MSMEs) in Kerala that are facing financial stress. It aims to revive these enterprises by offering financial and handholding support, converting non-productive assets into productive ones. The scheme is intended for sick units and stressed MSMEs, ensuring that they can recover and continue operations.
Stressed MSME Definition:
An MSME unit is considered stressed if:
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Principal or interest payment is overdue between 31 – 60 days.
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Principal or interest payment overdue between 61 – 91 days.
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Signs of incipient stress, even if overdue is less than 30 days.
Sick Unit Criteria:
An MSME is considered sick if:
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Any borrower account remains substandard for over 6 months.
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50% erosion in net worth due to accumulated cash losses.
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The unit must have been in commercial production for at least 2 years (for closed units) or 1 year (for working units).
Closed Unit:
An MSME is closed if:
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It was in production for at least 2 years before closure.
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The unit has been closed for 6 months with proof (e.g., electricity disconnection, nil commercial tax returns).
Potentially Viable Sick Unit:
If a sick unit can recover and continue operations after implementing a revival package, it can be considered potentially viable.
Negative List (Exclusions from the Scheme):
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Photo studios, breweries, soap grade sodium silicate, cement manufacturing (except from fly ash), sawmills, and other specific industries as listed by the state.
Benefits
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One-time Financial Assistance:
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Maximum Amount: ₹5 Lakh per applicant.
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Assistance Options:
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Loan Restructuring: Assistance in restructuring loans and availing additional working capital/term loans based on the Revival Project Report by the Expert Committee.
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Margin Money Grant: 50% of margin required by the bank/financial institution (maximum ₹2 lakh).
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Interest Subvention: 6% per annum, maximum ₹1 lakh, for additional loans for 1 year.
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Restart Expenses:
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50% of the cost for new plant and machinery (up to ₹1.5 lakh).
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50% of the cost for repairs and maintenance of existing plant (up to ₹1 lakh).
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Clearance of Statutory Dues:
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50% reimbursement of dues (up to ₹40,000) for KSEB, GST, Pollution Control, etc.
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Cost of Revival Project Report:
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Full reimbursement of ₹10,000 for the preparation of the Revival Project Report.
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Eligibility
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MSMEs in the manufacturing sector within Kerala.
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The enterprise must be recognized as a sick unit or stressed MSME.
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The enterprise should be potentially viable after implementing the Revival Project.
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Must have filed EM Part-II or UAM.
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Independent legal entity for eligible industrial units.
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The unit must not be on the Negative List.
Exclusions
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Industries listed in the Negative List (e.g., photo studios, breweries, sawmills, etc.).
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Government-controlled units or public sector undertakings.
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Units financed by KVIC/KVIB or government-controlled agencies.
Application Process
Online
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Step 1: Visit the Directorate of Industries & Commerce, Government of Kerala official website.
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Step 2: Select the Kerala Stressed MSMEs Revival & Rehabilitation Scheme from the list of services.
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Step 3: Register or login to the portal to submit the application.
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Step 4: Complete the application form and submit required documents.
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Step 5: The application will be reviewed, and the applicant will be notified of the approval or rejection within 45 days.
Documents Required
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Copy of EM Part-II/UAM.
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Revival Project Report.
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Sanction letter for additional loan.
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Proof of new investment (if applicable).
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Identity proof of promoter(s).
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Partnership deed/Articles of Association for non-proprietary units.
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Balance sheet of last 2 years.
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Details in support of benefits applied for.
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Any other document requested by the sanctioning authority.
Frequently Asked Questions (FAQs)
Q: What is the objective of this scheme?
A: The objective is to revive and rehabilitate stressed MSMEs by providing financial assistance and support for restructuring loans and clearing dues.
Q: Who can apply for this scheme?
A: Any MSME in the manufacturing sector that is recognized as sick or stressed and is potentially viable for revival.
Q: What is the maximum financial assistance available?
A: ₹5 lakh per applicant unit, including all forms of relief and assistance.
Q: How is the interest subvention provided?
A: The scheme provides an interest subvention of 6% per annum, limited to ₹1 lakh for the first year of the loan.
Q: What are the exclusions from the scheme?
A: Units in the Negative List, government-controlled industries, and units financed by KVIC/KVIB are not eligible.
Q: Can I apply for this scheme if I have already received financial assistance from another scheme?
A: No, units that have already availed financial assistance under other schemes are not eligible for this scheme.