Revival and Rehabilitation Scheme, Kerala — ₹15L for Defunct MSMEs — Frequently Asked Questions

A unit can receive a total entitlement of up to ₹15 lakh, and it can be claimed only once. In practice the ceiling is ₹12 lakh for a defunct MSME and ₹15 lakh for a defunct cashew processing unit, because the working capital margin is higher for cashew units. The money is divided across building renovation, plant and machinery with electrification, and working capital margin assistance.

Any manufacturing MSME in Kerala qualifies, including cashew processing enterprises. The unit must have stopped operating because of genuine issues in its value chain and must be able to show a realistic chance of being revived. Units that are simply lying idle without a workable revival plan are not what the scheme is aimed at.

Six months or more of non-operation is the benchmark. Two situations are exempt from that requirement — units that went under because of the plastic ban, and units applying in order to diversify.

Only for the working capital margin component, which needs a fresh working capital loan sanctioned by a financial institution. The grants for building renovation, machinery and electrification do not depend on any loan sanction.

No. The support comes as a capital grant and a working capital margin incentive, so it is non-dilutive — the government does not take shares or ownership in the unit. It does attach conditions, though: the money has to be spent on the agreed revival project and the unit must be run as stipulated in the agreement.

There is no fixed deadline. The scheme runs on a rolling basis, so applications can be submitted at any point during the year through the Directorate's online services.

Renovation of the building — upkeep, repairs, new roofing and infrastructure for waste disposal or treatment — is covered up to 25% of the project cost, capped at ₹2 lakh. Plant and machinery, including repairs to existing machines, along with industrial electrification, is covered up to 40% of the project cost, capped at ₹8 lakh. Working capital margin is covered at 50% of a fresh loan, capped at ₹2 lakh for MSMEs and ₹5 lakh for cashew units.

Applications are made online. Go to the official website of the Directorate of Industries and Commerce, Government of Kerala, open Online Services and select the Revival and Rehabilitation Scheme for Defunct MSMEs and Cashew Processing Units, then click Apply Now. New users register with their details, while existing users log in with their credentials. After signing in, choose New Application and proceed, fill in the form with your project details and declarations, and upload the supporting documents named in the guidelines. Review every entry before submitting, since accuracy matters.

The application asks for your project details and declarations, along with the supporting documents specified in the scheme guidelines. If you are claiming the working capital margin, you will also need the sanction letter for the fresh working capital loan from your financial institution.

If the unit does not spend the amount on the agreed revival project, or does not operate the unit as the agreement requires, the assistance may be recovered by the state by invoking the provisions of the Kerala Revenue Recovery Act.

No. DPIIT (Startup India) recognition is not listed as a mandatory requirement for Revival and Rehabilitation Scheme, Kerala — ₹15L for Defunct MSMEs, though having it can strengthen your application and unlock other benefits.

Revival and Rehabilitation Scheme, Kerala — ₹15L for Defunct MSMEs is open to startups at any stage. It is open to startups registered anywhere in India.

Revival and Rehabilitation Scheme, Kerala — ₹15L for Defunct MSMEs is offered by Directorate of Industries and Commerce, Government of Kerala, a government body. It is provided as non-dilutive funding.