Empowering Entrepreneurs in Kerala: Entrepreneur Support Scheme (ESS)

Empowering Entrepreneurs in Kerala: Entrepreneur Support Scheme (ESS)

The Entrepreneur Support Scheme (ESS) is a government initiative to strengthen MSMEs in Kerala by offering financial assistance and subsidies.

Key Highlights of ESS

1. Launch Date: April 1, 2012.
2. Objective: To support MSMEs with subsidies on fixed capital investment and foster entrepreneurship in Kerala.
3. Loan Requirement: No financial institution loan is mandatory to avail of this scheme.

Objectives of ESS

• Provide extensive financial assistance to MSMEs.
• Offer one-time support, especially to special category entrepreneurs (women, SC/ST, NRKs).
• Ensure optimal fund utilization and operational flexibility.

Stages of Support

1. Start-Up Support
   • Available for enterprises with a term loan from a financial institution.
   • Covers up to 50% of eligible support, capped at ₹3 lakh.
   • Remaining support can be claimed after starting commercial production.
2. Investment Support
   • Offered post-commercial production, even without a financial institution loan.
   • Entrepreneurs must apply within a year of starting production.
   • Eligible for enterprises undergoing expansion, diversification, or modernization.
3. Technology Support
   • Assists in acquiring new technology after production begins.
   • Application required within six months of technology installation.

Sanctioning and Appellate Authorities

1. Start-Up Support: Approved by the General Manager (District Industries Centre).
2. Investment Support:
   • Investments below ₹200 lakh: District Level Committee.
   • Investments above ₹200 lakh: State Level Committee.
3. Appeals: Decisions of the District Level Committee can be appealed to the State Level Committee.

Benefits and Subsidy Rates

1. General Entrepreneurs:
   • Assistance of 15%, capped at ₹30 lakh.
2. Special Categories (Young, Women, SC/ST, NRKs):
   • Assistance of 25%, capped at ₹40 lakh.
3. Additional Support: For priority sectors and enterprises in specific districts.
4. Coverage: Subsidies for investments in land, buildings, machinery, and other fixed assets.

Eligibility Criteria

1. Enterprises must be independent legal entities engaged in manufacturing activities.
2. Businesses should be registered with the District Industries Centre.

Priority Sectors for ESS

1. Rubber-based industries.
2. Agro-based and food processing units.
3. Readymade garments manufacturing.
4. Non-conventional energy equipment.
5. Biotechnology and pharmaceuticals.
6. Export-oriented units.
7. Plastic waste recycling and biodegradable plastics.
8. Biofertilizers and healthcare products.

Conclusion

The Entrepreneur Support Scheme (ESS) empowers Kerala’s entrepreneurs by providing vital financial aid, fostering innovation, and encouraging sustainable practices. It ensures a strong foundation for startups and SMEs to thrive in the state’s growing economy.