Entrepreneur Support Scheme

Entrepreneur Support Scheme(ESS)

Entrepreneur Support Scheme (ESS) is the most popular and attractive scheme operated by the Directorate of Industries and Commerce. The scheme aims to provide financial assistance to Micro, Small and Medium Enterprises engaged in manufacturing activities in the State, proportional to the capital investment made. Depending upon the category of the investor, sector and the District of investment, the unit can avail subsidy from 15% to 45% of the fixed capital investment. For this scheme, loan from a financial institution is not mandatory.

Features of the Scheme

• Provides Subsidy for the investment in Land, Building, Plant & machinery, Electrification, Essential Office Equipments, Pollution Control Devices and other fixed assets.
• For General Category, assistance is 15% of the capital investment limited to Rs 30 lakh.
• For Young (18 to 45 years), Women, SC/ST and Non Resident Keralite (NRK) entrepreneurs, the assistance is 25% limited to Rs 40 lakh.
• Enterprises in priority sectors are eligible for an additional assistance of 10% limited to Rs 10 lakh.
• MSMEs started in the districts of Idukki, Wayanad, Kasargode and Pathanamthitta are eligible for an additional support of 10% limited to Rs 10 lakh.
• Enterprises setup after acquiring new technology from approved research institutions are eligible for an additional support of 10% limited to Rs 10 lakh.
• The total eligible assistance for an enterprise is limited to Rs 40 lakh.

Enterprises under Priority Sector

Rubber-based industries, Agro based and Food processing industries, Readymade Garments, Industries manufacturing equipment and machinery for non conventional energy generation, Biotechnology based industries, 100% export oriented units, Biodegradable plastic industries, Plastic waste recycling industries, Bio fertilizer industries, Pharmaceutical industries and healthcare products manufacturing industries.

Enterprises under Negative List

Service Enterprises, Photo Studios and Colour Processing Centres, Tailoring other than manufacturing of readymade garments, Breweries and Distilleries of all types, Saw mills, Soap Grade Sodium Silicate, Asbestos processing, Metal Crushers including Granite Manufacturing units, All types of Steel Re rolling Mills, Units manufacturing iron ingots, Calcium Carbide, Cement manufacturing except units manufacturing cement from fly ash, Potassium Chlorate, Power intensive units.

Stages in Entrepreneur Support Scheme

1. Startup Support

The Startup support is provided for those enterprises which have availed at least term loan from a financial institution and wish to avail a part of the total eligible support prior to the commencement of commercial production. The assistance is limited to 50% of the total eligible support limited to Rs 3 lakh on sanctioning the term loan from the bank. The unit can apply for the balance of the eligible support once it start the commercial production. A unit which do not avail Startup Support, can directly apply for the investment support, after the commencement of commercial production.

2. Investment Support

Investment Support is provided after the commencement of commercial production. To apply for Investment Support, loan from a financial institution is not mandatory. The entrepreneurs shall apply within one year from the date commencement of production. Enterprises undertaking Expansion, Diversification or Modernization are also eligible for invest support for the additional investment made.

3. Technology Support

Technology Support is provided after commencement of production, on acquiring new technology from authorized institutions. The unit shall apply for technology support within 6 months from the date of commencement after installing the new technology form authorized agencies. Assistance will be provided for the new technology and for the plant and machinery installed in connection with the new technology.

Application Fee

An application fee of Rs 1105/- has to be remitted per unit.

How to apply

The application can be submitted online along with the documents as per the checklist using the link given at the bottom. The application will be processed by the Sanctioning Authority and the assistance will be sanctioned based on merit.

 Sanctioning Authority

• For Startup Support – General Manager, District Industries Centre
• For Investment Support – District Level Committee consisting of the following Members;

• District Collector (Chairman)
• Lead District Manager
• Representative of Finance Department in Government
• District Manager, KFC
• Representative of KSSIA District Committee
• General Manager, District Industries Centre (Member Secretary)

Appellate Authority

If the decision of the District Level Committee is not satisfactory, an applicant can approach the State Level Committee, consisting of the following Members,

• Director of Industries & Commerce (Chairman)
• Representative of Finance Department in Government
• Managing Director, KSIDC
• Managing Director, KFC
• Director –MSME (DI)
• Representative of KSSIA State Committee

ESS Guidelines Click Here

Apply here for ESS

The district industries centre could be contacted for more details and hand holding support for submitting the application for support.