Revival and Rehabilitation Scheme for Defunct MSMEs and Cashew Processing Units provides financial support through capital grants and working capital incentives to help manufacturing MSMEs and cashew processing units in Kerala that have stopped operations get back on their feet. Government of Kerala launched this scheme during 2020-21 and applications remain open through the Directorate of Industries and Commerce.
The scheme targets units that have been non-operational for at least six months but still hold a real chance of restarting. By covering building renovation, plant and machinery, electrification and working capital margin, it helps entrepreneurs modernise their processes and return to the state economy.
Revival and Rehabilitation Scheme for Defunct MSMEs and Cashew Processing Units - Introduction
Many manufacturing units in Kerala struggle due to global competition, high processing costs or outdated technology. This scheme is made for such units that have gone defunct but can still be revived. The main aim is to give capital grants and working capital incentives so that shuttered businesses can restart and stay viable over the long term.
The scheme is open to general manufacturing MSMEs as well as specific cashew processing enterprises. A unit that has remained non-operational for six months or more and shows clear signs of being revivable can apply. For units that closed because of the plastic ban, this time limit does not apply.
Key Information
| Scheme Name | Revival and Rehabilitation Scheme for Defunct MSMEs and Cashew Processing Units |
|---|---|
| Level | State |
| Scheme For | Infra |
| Beneficiary State | Kerala |
| Category | Business & Entrepreneurship |
| Target Beneficiaries | Business Entity, Industries |
| Benefit Type | Cash |
| DBT Scheme | No |
| Nodal Department | Industries and Commerce Department |
| Implementing Agency | Directorate of Industries and Commerce, Government of Kerala |
Benefits
An eligible unit can receive a maximum financial entitlement of ₹15 Lakhs, which can be availed only once. The support covers specific operational needs as given below.
| Component | Details | Grant Limit |
|---|---|---|
| Building Renovation | Maintenance, repair, roofing, and waste disposal infrastructure | 25% of cost up to ₹2 Lakhs |
| Plant and Machinery and Electrification | New machinery, repairs, and industrial electrification | 40% of cost up to ₹8 Lakhs |
| Working Capital (Margin) | Margin support for sanctioned bank loans | Up to ₹2 Lakhs (MSMEs) or ₹5 Lakhs (Cashew Units) |
While a bank sanction is required for Working Capital (Margin) support, it is not needed for building or machinery grants. Banks release the approved funds on a pro-rata basis.
Eligibility
To be eligible, a manufacturing MSME must have been non-operational for at least six months due to genuine issues and must show real potential for a successful revival. This applies to both general manufacturing MSMEs and cashew processing enterprises.
Applicants need to meet a few obligations to keep their application valid.
- Provide accurate details and declare all information truthfully.
- Give prompt clarifications or additional documents when asked by the authorities.
- Allow physical verification and inspection of machinery, plant and assets.
- Produce original documents for verification whenever requested.
- Sign a legal agreement on ₹200 stamp paper upon approval and submit it to the General Manager of the District Industries Centre.
- Use the grant funds strictly for the revival project as submitted.
- Operate the unit as per the agreement, otherwise the government may recover the support under the Kerala Revenue Recovery Act.
Application Process
Applications for this scheme are submitted online through the Directorate of Industries and Commerce portal. The steps are simple and can be completed from home.
STEP 1 - Visit the official website of the Directorate of Industries and Commerce, Government of Kerala.
STEP 2 - Locate this scheme in the Online Services list and click on Apply Now.
STEP 3 - If you are a new user, complete the registration process first. Existing users can simply log in with their credentials.
STEP 4 - Once logged in, select New Application and proceed.
STEP 5 - Fill in all required fields accurately, upload the necessary supporting documents, and submit your application.
Documents
Keep the following documents ready before starting the application so the process goes smoothly.
- Copy of identity proof
- Udyog Aadhar or Udyam Registration certificate
- Detailed Revival Project Report
- Land title deed or current land tax receipt
- Building Ownership Certificate
- Registered lease or rental deed
- Invoices and bills for plant, machinery and electrification
- Valuation report from an approved Civil or Chartered engineer
- Bank sanction order for Working Capital Loan
- Audited Balance Sheet from the year before the unit became defunct
References
Official Website | Application Portal
FAQ's
What are the primary objectives of this scheme?
The scheme aims to revive shuttered manufacturing MSMEs and cashew processing units in Kerala by providing capital grants and working capital incentives to restore their productivity.
When was this initiative launched?
Government of Kerala introduced this revival program during the 2020-21 period.
Which department oversees this scheme?
Directorate of Industries and Commerce, Government of Kerala, is the implementing agency.
How is a Defunct MSME defined?
It is a manufacturing unit that has been non-operational for at least six months. This time rule is relaxed for units affected by the plastic ban or those planning diversification.
What defines a Defunct Cashew Processing Unit?
These are cashew processing units that have been inactive for at least six months and are currently starting a structured revival plan, regardless of previous government or bank support.
Who is eligible to apply?
All manufacturing MSMEs that have been inactive for six months due to genuine issues, provided they have a viable plan for rehabilitation, are eligible.
What is the total financial limit per unit?
Eligible applicants can receive total financial support of up to ₹15 Lakhs per unit.
Can I apply for this assistance more than once?
No, you can only avail of the benefits under this scheme once for your unit.
How will the funds be disbursed to me?
The bank will release the approved financial support to you on a pro-rata basis.
What is the online application process for this scheme?
You can submit your application through the official Directorate of Industries and Commerce website at https://schemes.industry.kerala.gov.in/public/index.php/rrsd.