Kerala Stressed MSME Revival And Rehabilitation Scheme

Updated on Jan. 27, 2022, 6:05 a.m.

Kerala Stressed MSME Revival and Rehabilitation Scheme is the foremost scheme introduced by the Kerala Government to revive and rehabilitate the sick industries. The factors include non-availability of Manpower, Technology, Lack of Expertise, Funding, Professionalism, Bankruptcy, Marketing, Funds Diversion, Inefficient Management Issues, Corruption,Poor performance and others and must be addressed.

As per the guidelines by the government of Kerala, an MSME can be treated as stressed out if these conditions are there:

Interest payment not overdue for more than 30 days but shows signs of poor performance.
Interest or principal payment overdue between 31 to 60 days.
Interest or principal payment overdue between 61 to 90 days.

Objectives of this scheme are:

To offer financial and other handholding support to the MSME, showing signs of weakness.
To build MSME through the formation of self-help groups, associations and up gradation of associations.
Set up testing and research centers for training, raw materials, production, management, quality analysis and treatment of products.
Convert the non-productive assets to the productive assets.

Procedure to apply for Kerala Stressed MSME Revival And Rehabilitation Scheme

There is an expert committee consisting of District Collector as a Chairman, and General Manager as the Convener. The name of the district level rehabilitation committee is “Vyasayamitra” and assigned with the power to approve/ cancel the request to revive sick units in Kerala. The release of assistance will be solely based on the seniority based list.

Eligibility to apply under this scheme:

MSME not working properly in the state of Kerala.
Must come under the meaning of the sick units explained under this scheme in Kerala.
Should not come under negative list announced by the government.
Should be worthy to be reviewed and restructured based on the final project reports.
Provide all legal and financial documents of the unit from the day of formation.
Execute the agreement with General Manager of District Industries Centre to take assistance.

The units barred for financial assistance from the Kerala government under Kerala Stressed MSME Revival and Rehabilitation Schemes are:

Breweries and Distilleries.
Gyms and beauty salons.
Photo studios.
Saw Mills.
Units making iron components.
Cement Manufacturing.
Steel Plants and Iron making Units.
Power Units based on thermal and electro chemicals.
Dry fruits Units.
Asbestos processing units.

Documents required to apply under this scheme

Valuation certificate of the Civil engineer.
New Investment Proofs.
Project report attested by Gazetted officer.
Certificate of Tools, Machinery and accessories.
Valuation certificate of the Electrical Engineer.
Nativity Certificate.
Certificate showing the pollution level of the unit.
Attested copies of the property, invoices, and bills.
Balance sheet of last 2 years consisting of the profit and loss statements.

Services offered by Kerala Stressed MSME Revival and Rehabilitation Scheme:

Providing effective money grant, in which 50% of the margin maintained by the banks/financial institution towards working capitals/loans is paid as Grant Assistance limited to INR 2 Lakhs.
Restructuring the existing loan account, where the unit is eligible for one time assistances under KSMRR scheme.
Ideal for self-financed units availing term/working capital loans.
We offer the restart expenses, where 50% of the cost incurred for the repair/maintenance of the plants and machinery is limited to INR 1 Lakh.
We clear the statutory dues based on the Revival and Rehabilitation schemes. We give 50% of the dues limited to INR 40,000 shall be payable as one time support.
We give interest subvention assistance, for additional term loan used by the units based on endorsements of expert committee.

Kerala Stressed MSME Revival And Rehabilitation Scheme

Procedure to apply for Kerala Stressed MSME Revival And Rehabilitation Scheme

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