Entrepreneur Support Scheme

Entrepreneur Support Scheme is a primary scheme by the Directorate of Industries and Commerce, Government of Kerala, that gives financial support to micro, small, and medium enterprises (MSMEs) engaged in manufacturing across the state. The scheme helps entrepreneurs reduce their capital burden by offering subsidies on fixed capital investments, and it continues to accept applications through the official online portal for 2026.

Since it started on 01.04.2012, the scheme has supported manufacturing units by providing financial help proportional to their capital investment. Depending on the category of the investor, the sector, and the district of investment, a unit can get a subsidy of 15% to 45% of the fixed capital investment. A bank loan is not required to take part in this scheme.

Entrepreneur Support Scheme - Introduction

Entrepreneur Support Scheme is one of the most popular and attractive avenues for business owners, run by the Directorate of Industries and Commerce, Government of Kerala. The scheme offers one-time financial help to MSMEs engaged in manufacturing, with a special focus on reserved categories so that growth stays inclusive. As of 13 August 2026, the scheme remains open and applications are being accepted online.

All micro, small, and medium enterprises engaged in manufacturing activities that have filed Udyam registration are eligible for support under this scheme. Units that receive the support must keep working continuously for five years from the date of starting production, or from restarting production after expansion, modernisation, or diversification. Out of all eligible applicants, 30% of the earmarked support is reserved for micro enterprises.

Objectives of the scheme

The scheme aims to give complete support to MSMEs and offer one-time financial help to help entrepreneurs succeed. It gives more flexibility of operation and helps with better use of funds, with special attention to women, young, SC/ST, and Non Resident Keralite (NRK) entrepreneurs.

Key stages of assistance

Support can be received in three separate stages, based on where the business is in its journey:

• Startup Support: If the unit has taken at least a term loan from a financial institution, a part of the total eligible support can be claimed before commercial production begins. This is limited to 50% of the total eligible support, capped at ₹3 lakh, on sanctioning the term loan from the bank. The balance can be applied for once commercial production starts.
• Investment Support: This is given after the start of commercial production. A bank loan is not required for this stage. The entrepreneur must apply within one year from the date of starting production. Units doing expansion, diversification, or modernisation are also eligible for this support on the additional investment made.
• Technology Support: This is given after production begins, when new technology is acquired from authorised institutions. The unit must apply within 6 months from the date of starting after installing the new technology from authorised agencies.

Sanctioning authority

Applications are handled by the General Manager (District Industries Centre) for startup support. For fixed capital investment below ₹200 lakh, the District Level Committee sanctions the support, while the State Level Committee handles fixed capital investment above ₹200 lakh. If the decision of the District Level Committee is not satisfactory, an applicant can approach the State Level Committee as the appellate authority.

Benefits

The scheme provides a strong subsidy structure covering land, buildings, plants, machinery, electrification, essential office equipment, pollution control devices, and other fixed assets. Here is the breakdown of the eligible support:

Enterprises in the districts of Idukki, Wayanad, Kasargode, and Pathanamthitta get an additional support of 10% limited to ₹10 lakh. Units set up after acquiring new technology from approved research institutions also get an additional 10% limited to ₹10 lakh. The total eligible support for any single enterprise is capped at ₹40 lakh.

Eligibility

To be eligible, the micro, small, or medium enterprise must be engaged in manufacturing and must have filed Udyam registration. The unit must operate as an independent legal entity and be registered with the respective District Industries Centre.

The enterprise should keep accurate records, pay the application fee, and allow for site inspections. Units in sectors like rubber-based industries, agro-processing, readymade garments, biotechnology, and food processing fall under the priority sector and can receive extra benefits. As per the 2026 amendment, products made from arecanut leaf sheath, banana fibre, and other similar agro-based eco-friendly materials are also now included in the priority list.

Exclusions

Certain industries are excluded from the scheme, specifically those in the 'Negative List'. This includes service enterprises, photo studios and colour processing centres, tailoring other than manufacturing of readymade garments, breweries and distilleries of all types, sawmills, metal crushers including granite manufacturing units, all types of steel re-rolling mills, asbestos processing, and power-intensive units. Units manufacturing cement (except those making cement from fly ash), calcium carbide, and potassium chlorate are also not eligible.

Application Process

The application is submitted online along with the documents as per the checklist, and it is processed by the sanctioning authority based on merit. The steps to apply are given below.

STEP 1 - Go to the official portal at ess.industry.kerala.gov.in and register as a new user if you do not already have an account.

STEP 2 - Log in with your user name and password, and select the Entrepreneur Support Scheme application form.

STEP 3 - Fill in the details of your enterprise, including the Udyam registration number, and upload the required documents as per the checklist.

STEP 4 - Remit the application fee of ₹1100 per unit and submit the application online.

STEP 5 - Take a printout of the acknowledgment receipt and present the physical documents to the recommending authority at the District Industries Centre. For startup support, keep the project report ready. For investment and technology support, apply within the timelines of one year and six months respectively after starting commercial production.

Documents

Keep the documents organised before applying. The common requirements are listed below:

• Passport-sized photograph
• Proof of age and identity (Voter ID, Passport, etc.)
• Self-attested project report
• Valid bank account details
• Acknowledgment receipt from the online application
• Caste certificate if applying under SC/ST categories

For investment support, additional documents like property deeds, building plans, invoices for machinery, and balance sheets are required. Make sure the invoices are properly stamped if the machinery is brought in from outside the state.

2026 update

The Government of Kerala issued G.O.(Rt)No.175/2026/ID dated 20-02-2026 to amend the Entrepreneur Support Scheme guidelines. Under the amendment, the value of land on lease or hire purchase from DA/DP, KSIDC, KINFRA, SIDCO, or other approved agencies for at least 10 years can now be considered as fixed capital investment. Products made from arecanut leaf, banana fibre, and other similar agro-based eco-friendly materials have also been added to the priority sector list.

References

Official Scheme Website | Detailed Guidelines | Online Application Portal | Online Services Portal | 2026 Amendment Order

FAQ's

What is the aim of this scheme?

The scheme provides financial subsidies to manufacturing MSMEs to help them grow based on their capital investment, without making a bank loan mandatory.

How much is the maximum assistance I can receive?

You can receive total assistance up to ₹40 lakh depending on your category and investment type.

Is a bank loan mandatory?

No, a bank loan is not mandatory to apply for investment support under this scheme.

Who qualifies as a young entrepreneur?

Any entrepreneur between the age of 18 and 45 is considered a young entrepreneur. If there are multiple promoters, all must fall within this age range.

What is the application fee?

The application fee is ₹1100 per unit, which has to be remitted at the time of submitting the application.

What if I have trouble with the online application?

You should contact your local District Industries Centre for guidance. They can help you rectify defects within 10 days of notification.