Assistance to Skilled Entrepreneurs Development Centres

Objectives

With the objectives of providing better employment opportunities to the skilled workers working in the unorganized sector in Kerala, transforming the unskilled workers into experts in the relevant field through skill development training, providing the required work tools to the workers and providing a better work-friendly environment to the society, the Government of Kerala aims to form one or more Industrial Co-operative Societies within the territorial boundaries of each Local Self Government Institution in the State and accordingly those working in different occupations has come forward to achieve the target. The Government has formulated a financial assistance scheme under the Department of Industries to promote such Industrial Co-operative Societies providing service of skilled and unskilled workers identified in various sectors to the needy people.

Beneficiaries:

Industrial co-operative societies formed to implement the objectives to find better employment opportunities for workers engaged in various types of employment in the unorganized sector and to bring skilled workers into the mainstream through skill development training are eligible for the benefit of this scheme. Moreover, the members of the Skill Enterprise Development Co-operative Societies should be from the technical, semi-skilled / unskilled workforce who has obtained technical skills certificates working in the unorganized sector.

Eligibility

• Industrial Co-operative Societies formed to implement the objectives of providing better employment opportunities to workers engaged in various types of employment in the unorganized sector and bringing unskilled workers to the mainstream through skill development training are eligible for the benefit of this scheme.
• Societies registered during or after the financial year 2019-2020.
• Societies have at least 50 members. In that, at least 25 members should be skilled workers and the remaining 25 members should be semi-skilled / unskilled workers. Nominal number of members is not taken into account for financial assistance.
• The societies applied for assistance under scheme should have a elected board of Directors and paid secretary.
• Each member should have been given at least 5 average working days in 3 months before date of application for financial assistance. At the same time, societies formed within 6 months are not eligible under this scheme.
• Only societies which maintain proper records as prescribed by the Registrar are eligible for financial assistance.
• There should be 100 active members to be eligible for the maximum benefit of Rs.2 lakh.

Financial Assistance under the scheme:

• The maximum benefit per society under this scheme will be Rs.2 lakhs. However, the amount of financial assistance will be determined only subject to the submitted documents, information and other terms and conditions of guidelines. 78% of the total allocation will be for fixed asset creation, 20% for working capital and 2% for training.
• The number of members in the group will also be taken into account to calculate the financial benefit to the group. There should be 100 active members to be eligible for the maximum benefit of Rs.2 lakh. Financial assistance will be decrease in proportion to the decrease in membership.
• Societies which do not receive maximum benefit due to less membership will be entitled to the remaining amount of financial assistance as long as the scheme exists, if the membership rises above the prescribed criteria. But in any case, it will not allow more than two times.
• The societies which availed the assistance for raising fixed capital assets should be calculated as 80% of the amount and balance amount other than grant amount may be arranged by the society. The amount received by the group for raising fixed capital assets should be calculated as 80% of the amount and the remaining 20% should be found on its own. The societies have to find its own amount equivalent to the amount received as working capital assistance. Expenditure incurred for the purpose of land and building is not taken into account for financial assistance of fixed assets. Tools, furniture, electrical and electronics equipment and essential machinery will be considered. The cost of fixed assets acquired prior to the commencement of the scheme, will be considered for financial assistance and the amount spent will be refunded. However, the documents should be produced properly.
• Working capital will be sanctioned at the rate of Rs.1000 / - per number of active members.
• The grant sanctioned to the society shall be released through the bank A/C jointly by the society & General Manager, District Industrial Centre and will be withdrawn only with the permission of the General Manager, DIC.

Check List:

• Copy of previous year Audit certificate/Financial statement
• List of work days of each member in previous year(monthly)
• Details of required components for financial assistance 

Scheme Related GO's and Guidlines

• G.O.(Rt)No.821/2021/ID Dated:09.08.2021
• G.O.(Rt)No.373/2020/ID Dated:04.06.2020
• GuideLines

How to apply

Apply online: https://schemes.industry.kerala.gov.in .

Scheme for Interest Subvention on Term Loan and Working Capital Loan

The scheme has been introduced to assist the MSME units which were badly affected due to the economic crisis in the wake of COVID-19 pandemic. The scheme intends to give financial assistance in the form of interest subvention for 12 months for the new/ additional term loan and/or working capital loan availed by the units from 1st April 2019 to 31st December 2021.

Eligibility for applicant units

• Should be an MSME in the manufacturing or job work category established in the state.
• Should have filed Udyam with the competent authority, after commencing the commercial production. .
• The unit should have been operational at least for a period of 3 months within a period of 6 months prior to the date of sanction of bank loan. .

Benefit under the scheme

• The total assistance under the scheme shall be limited to an amount of Rs.1,20,000/- per applicant unit including assistance for term loan and/ or working capital loan and it can be availed only once.
• All MSMEs in the manufacturing/ job work category functioning in Kerala will be eligible to avail interest subvention on fresh/ additional working capital loan up to a maximum of Rs.60,000/- per unit.
• All MSMEs in the manufacturing/ job work category functioning in Kerala will be eligible to avail interest subvention on fresh/ additional term loan up to a maximum of Rs.60,000/- per unit.
• The assistance shall be limited to 50% of the interest paid by the unit to the bank/ financial institution, up to a period of 12 months from the date of disbursement of 1st installment to the loan.
• The period of availing of fresh/ additional term loan and/ or working capital loan should be in between 01.04.2019 to 31.12.2021.
• The assistance shall be released to the loan account of the applicant unit through the financial institution concerned on quarterly reimbursement basis.

How to apply

Application can be submitted online or in person to the Assistant District Industries Officer, Taluk Industries Office concerned with all supporting documents.

Scheme Related GO's

• G.O.(RT)No.1200/2021/ID dated 30.10.2021
• G.O.(RT)No.362/2020/ID dated 02.06.2020
• G.O.(Ms)No.56/2020/ID dated 20.05.2020

Apply Online Click Here

Revival and Rehabilitation scheme for Defunct MSMEs and Cashew processing units

Objectives

The scheme envisages supporting defunct MSMEs in the manufacturing sector including cashew processing units through assistance in the form of capital grants and working capital incentives.

Definitions:

• Defunct MSMEs – MSMEs which are non operational for 6 months or more but can be revivable. In the case of units which become defunct due to plastic ban and those wish for diversification, the above time limit is not applicable.
  
  
• Defunct Cashew Processing Units – The Cashew Processing Units which were defunct at least for six months/ and no matter whether they have received any Government assistance or bank loan within six months and in the process of revival.

Beneficiaries:

All MSMEs in manufacturing sector which are defunct for at least 6 months due to genuine issues including cashew processing enterprises that have potential to be revived and rehabilitated, are eligible for assistance under the scheme.

Financial Assistance

All MSMEs in manufacturing sector which are defunct for at least 6 months due to genuine issues including cashew processing enterprises that have potential to be revived and rehabilitated, are eligible for assistance under the scheme.

Financial Assistance under the scheme provided for the following components. 

• Building Renovation- 25% of the total revival project cost limited to Rs.2 lakh: - Building Renovation includes maintenance and repair of existing factory building, construction of fresh roofing in factory shed, infrastructure for Waste Disposal / Treatment facilities etc.
• Plant & Machinery and Electrification-40% of the total revival project cot limited to Rs.8 lakh:- It will be available for purchase of new machinery, Repair and Maintenance of Existing machines, industrial electrification etc. .
• Working Capital (Margin)- 50% margin of working Capital loan approved by Financial institution subject to.
• Assistance limited to Rs.2 lakhs for defunct MSMEs.
• Assistance limited to Rs.5 lakhs for Cashew Units.

Bank Sanction of fresh working capital loan is mandatory for availing Working Capital (Margin) Assistance, but bank loan is not mandatory for assistance for building renovation, plant and machinery, electrification etc.

How to Apply:

• The applicant should apply in the prescribed proforma
• Provide necessary documents and accounts, revival project proposal etc.
• Execute an agreement with the notified authority to avail the assistance.

Recommending Authority

The Assistant District Industries Officers, Taluk Industries Officers concerned shall be the recommending authority for assistance under this scheme.

Sanctioning Authority:

District Level Committee (DLC) under the chairmanship of District Collector and General Manager, District Industries Centre concerned as convener and lead district Manger and Manger (credit) shall be the Sanctioning Authority.

Apply Online: To submit application to avail the assistance under the scheme and status check click here

For more details : Government Orders & Guidelines
The District Industries Centre could be contacted for more details and hand holding support for submitting the application to avail the assistances.
Contact Details of District Level Officers for the Scheme- Revival and Rehabilitation scheme for Defunct MSMEs and Cashew processing units

Checklist:

• Application in the prescribed format
• Udyog Aadhar/Udyam Registration
• Revival Project Report
• Title deed of land/land tax receipt if applicable
• Ownership Certificate of building if applicable
• Registered Lease deed or rent deed in such cases
• Invoice/bill/Proof of payment of Plant, machinery and electrification
• Valuation of Approved Civil Engineer/ chartered Engineer for civil construction
• Sanction order of Bank for Working Capital Loan if any
• Audited balance Sheet for the year before being defunct
• Any other document as demanded by the recommending/sanctioning authority.