Kerala Stressed MSMEs Revival & Rehabilitation Scheme — Up to ₹5 Lakh Grant — Frequently Asked Questions

A unit can receive a maximum of ₹5 lakh in total, given once. That ceiling applies to all heads of assistance taken together — margin money, interest subvention, restart expenses, statutory dues and the cost of the Revival Project Report. Within the overall cap, the individual limits are ₹2 lakh for margin money, ₹1 lakh for interest subvention, ₹1.50 lakh for plant and machinery, ₹1 lakh for repairs and maintenance, ₹40,000 for statutory dues and ₹10,000 for the project report.

No. The scheme operates on a rolling basis, so there is no fixed application window. A unit can apply as soon as it satisfies the eligibility conditions. Applications are submitted online through the official portal of the Directorate of Industries & Commerce, Government of Kerala.

A micro, small or medium manufacturing enterprise set up in Kerala. It must be an independent legal entity, hold EM Part-II or Udyam registration, be classified as a sick unit under RBI guidelines, and be assessed as potentially viable for revival by the Expert Committee. Units on the scheme's Negative List cannot apply.

Yes. Filing EM Part-II or having Udyam Registration (UAM) is one of the stated eligibility requirements, so a unit without it will not be considered for assistance.

No. This is a state government grant and reimbursement scheme, and the support is non-dilutive — no equity stake is taken in the applicant unit. What the scheme does expect in return is that the unit restarts within one month of receiving funds and continues operating for five years; if it does not, the assistance may be recovered.

Yes. A unit that has shut down qualifies if it was in commercial production for at least two years. Units that are still working need at least one year of commercial production behind them.

The scheme maintains a Negative List of ineligible units. It covers photo studios, breweries, sawmills, metal crushers, steel re-rolling mills, calcium carbide units, cashew industrial units, certain asbestos processing units and certain power-intensive units. A unit on this list cannot receive assistance.

The application calls for complete details and documentation about the unit and its stressed status, along with a Revival Project Report. Preparing that report is itself supported — the scheme reimburses its cost up to ₹10,000.

Visit the official website of the Directorate of Industries & Commerce, Government of Kerala. From the online services listed on the home page, select the Kerala Stressed MSMEs Revival & Rehabilitation Scheme and click Apply Now. New users register to create an account, while existing users log in. Then choose New Application and click Proceed, complete every section with accurate details and information about your Revival Project Report, review it, and submit online.

An Expert Committee reviews it. The committee confirms the sick-unit classification, judges whether the unit is potentially viable, studies whether the Revival Project Report is feasible, considers how committed the promoters are to implementing it, and looks at how effectively the requested funds would be used. Its recommendations determine the approval of loan restructuring, margin money grant, interest subvention and the other reliefs.

No. DPIIT (Startup India) recognition is not listed as a mandatory requirement for Kerala Stressed MSMEs Revival & Rehabilitation Scheme — Up to ₹5 Lakh Grant, though having it can strengthen your application and unlock other benefits.

Kerala Stressed MSMEs Revival & Rehabilitation Scheme — Up to ₹5 Lakh Grant is offered by Directorate of Industries and Commerce, Government of Kerala, a government body. It is provided as non-dilutive funding.