Revival and Rehabilitation scheme for Defunct MSMEs and Cashew processing


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



All MSMEs in manufacturing sector which are defunct due to genuine issues including cashew processing enterprises who have potential capacity to be revived and rehabilitated, are eligible for assistance under the scheme if:

a.      The applicant should apply in the prescribed Performa.

b.      Provide necessary documents and accounts, revival project proposals, etc.

c.       Execute an agreement with the notified authority to avail the assistance.


 Financial Assistance


 Financial assistance under the scheme are provided for the following components

a.      Building Renovation          - 25 % of Total revival Project Cost limited to Rs. 2 Lakhs

b.      Plant & Machinery and Electrification - 40% of Total revival Project Cost limited to 8 Lakhs

c.       Working Capital (Margin) – 50% margin of working capital loan approved by financial institution subject to

a.      Assistance limited to Rs 2 lakhs for defunct MSMEs

b.      Assistance limited to Rs 5 lakhs for Cashew units

d.      Maximum limit is Rs 12 lakhs for defunct MSMEs per unit

e.      Maximum limit is Rs 15 lakhs for defunct Cashew processing per unit.


Recommending Authority

The Assistant District Industries Officers, Taluk Industries Officers concerned shall be the recommending authority for assistance under this scheme. The Assistant District Industries Officers shall ensure the scope of revival and genuineness of the requirement of each unit which apply for assistance under this scheme. Proper Verification of documents should also be done at Taluk Industries Office Level.

Sanctioning Authority

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


For Detailed Guidelines of the scheme click here

For Application Form Click here




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