This scheme is designed to support MSME units in Kerala that are facing financial stress (or are potentially non-viable) by offering financial assistance and hand-holding support. The aim is to convert non-productive assets into productive operations and help viable units to revive and continue.
All reliefs and assistance under the scheme are limited to a maximum of ₹5 lakh per unit.

Who Can Apply (Eligibility for Business Owners)

• Manufacturing MSME units located in Kerala that are stressed or potentially viable for revival.

• A unit may be classified as “stressed” if, for example, the principal or interest payment is overdue for a certain period, or the unit is showing signs of incipient stress.

• A “closed” unit may qualify if it had been in commercial production for at least 2 years before closure and remains closed for at least 6 months.

• The unit should not fall under the “negative list” of industries excluded from the scheme.

Key Benefits & Financial Assistance (What You Get)

If your business is eligible and selected, you can access the following assistance:

• Margin Money Grant: 50% of the margin required by the bank/financial institution for the additional working capital loan or term loan sanctioned as part of the revival package. This is capped at ₹2 lakh.

• Interest Subvention: A reimbursement of 6% per annum on the additional term loan and working capital loan (for the first year), subject to a cap of ₹1 lakh.

• Restart Expenses:

  • If no term loan is availed for new/ balancing plant & machinery: 50% of the cost, up to ₹1.50 lakh.

  • For repair & maintenance of existing plant & machinery: 50% of cost, up to ₹1 lakh.

• Clearance of Statutory Dues: 50% of statutory dues owed (to agencies such as electricity board, GST/Commercial Tax, Pollution Control Board etc.), up to ₹0.40 lakh (₹40,000).

How to Apply & Process for Business Owners

• Submit your application via the prescribed form (online portal of the Industries Department, Kerala).

• Prepare a Revival Project Report (RPR) recommending the revival package (loan restructuring, additional working capital/term loan, etc.). The cost of preparing the RPR is reimbursable up to ₹10,000.

• Your proposal will be appraised by an Expert Committee, then by the appropriate District Level Committee/Authority.

• On approval, you will be eligible for the assistance as per scheme norms.

Important Considerations for Business Owners

• The maximum total assistance per unit is capped at ₹5 lakh, inclusive of all forms of relief under the scheme.

• The unit must be considered viable post revival; assistance is not for units that are irrecoverable.

• Some industries are excluded (negative list). Make sure your business is not in the excluded list.

• The scheme focuses on manufacturing MSMEs; service or trade units may not be eligible unless covered under manufacturing definitions.

• You will need to coordinate with the bank/financial institution for restructuring, additional term/working capital loan etc., as the assistance is linked to these.