ENTREPRENEUR SUPPORT SCHEME

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The ESS aims to merge and replace all the previous schemes titled the Entrepreneur Support Scheme 2012 to be operated in the State of Kerala. All MSMEs engaged in manufacturing activities are eligible for assistance. The scheme is operational w.e.f. 01.04.2012
Objectives·         Extend support to micro, small and medium enterprises·         Give support to entrepreneurs by optimal utilization of funds and by giving more flexibility of operation
Sanctioning AuthorityAll assistances under the ESS shall be sanctioned by·         The General Manager (District Industries Centre) – For startup Support·         District Level Committee – For Fixed Capital Investment below  Rs. 200.00 lakhs·         State Level Committee – For Fixed Capital Investment above  Rs. 200.00 lakhs
District Level Committee     i.        District Collector (Chairman)    ii.        Lead District Manager   iii.        Representative of Finance Department in Government  iv.        District Manager, KFC    v.        Representative of KSSIA District Committee  vi.        General Manager, District Industries Centre (Member Secretary) State Level Committee     i.        Director of Industries & Commerce (Chairman)    ii.        Representative of Finance Department in Government   iii.        Managing Director, KSIDC  iv.        Managing Director, KFC    v.        Director –MSME (DI)  vi.        Representative of KSSIA State Committee vii.        Convenor, State Level Bankers committee or representativeviii.        Additional Director of Industries and Commerce-General (Member Secretary) 
The ESS providesØ  Investment in Land, Building, Plant & machinery, Electrification, Essential Office Equipments, Pollution Control Devices and other fixed assets are eligibleØ  For General Category Assistance is 15% limited to Rs 20 lakhsØ  For Young (18 to 45 years), Women and SC/ST entrepreneurs, the assistance is 20% limited to Rs 30 lakhsØ  Enterprises in priority sector is eligible for an additional assistance of 10% limited to Rs 10 lakhsØ  MSMEs started in the districts of Idukki, Wayanad, Kasargode and Pathanamthitta are eligible for an additional support of 10% limited to Rs 10 lakhsØ  Industries setup after acquiring new technology from approved research institutions  are eligible for an additional support of 10% limited to Rs 10 lakhsØ  The total eligible assistance for an enterprise is limited to Rs 30 lakhs
Stages in Entrepreneur Support Scheme
1st stage – Startup SupportThe Startup support is provided for enterprises prior to commencement of commercial production. The assistance is limited to 50% of the total eligible support limited to Rs 3 lakhs on sanctioning the term loan from the bank.2nd stage – Investment SupportInvestment Support is provided after the commencement of commercial production. The entrepreneurs shall apply within one year from the date commencement of production. Enterprises undertaking Expansion, Diversification and Modernization are also eligible for invest support.
3rd stage – Technology SupportTechnology Support after commencing production on acquiring new technology. Shall apply for technology support within 6 months from the date of commencement after installing the new technology form authorized agencies.ess
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 
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
·         Cashew industrial units·         Power intensive units

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