• Extend support to micro, small and medium enterprises
• Given in 3 Stages

                 1st stage – Startup Support

                 2nd stage - Investment Support  

                 3rd stage - Technology Support

• The Start-up support is provided for enterprises prior to commencement of commercial production.
• Investment Support after the commencement of commercial production.
• Technology Support after commencing production on acquiring new technology.
• Financial Support up to 15-45% of the fixed capital investment, limited to 30 lakhs
• Industries in priority sector are given 10% additional support
• Industries established in Backward districts ( Pathanamthitta,Idukki,Wayanad & Kasarkod) are given 10% additional support

6% -8 % Interest subvention on term loan is provided to nano & house hold units for three years on reimbursement basis. Women & SC/ST enterprises will get 8% while for general interest subvention is limited to 6%.  

Under this scheme, Margin Money Grant is provided to Nano Proprietary units as follows.

Loan given by FI/KFC/Co-operative bank       -           40% of the Total Project Cost

Promoter’s contribution                     -           Minimum 30% of the total project cost

Margin money Grant provided by Industries Department- 30% of the total project cost for general category subject to a maximum of 3.00 lakhs. In the case of special categories Margin Money Grant shall be 40 % of the Total Project Cost and promoter’s contribution shall be minimum 20 %.

The scheme envisages supporting defunct MSME units including cashew processing units through assistance in the form of capital grants and working capital incentives. Financial assistance under the scheme is provided for the following components

1. Building Renovation          - 25 % of Total revival Project Cost limited to Rs. 2 Lakhs
2. Plant & Machinery and Electrification - 40% of Total revival Project Cost limited to 8 Lakhs
3. Working Capital (Margin) – 50% margin of working capital loan approved by financial institution subject to
4. Assistance limited to Rs 2 lakhs for defunct MSMEs
5. Assistance limited to Rs 5 lakhs for Cashew units
6. Maximum limit is Rs 12 lakhs for defunct MSMEs per unit
7. Maximum limit is Rs 15 lakhs for defunct Cashew processing per unit.

• This scheme is a centrally sponsored scheme to address the challenges faced by the micro food processing enterprises and to tap the potential of groups and cooperatives in supporting the up gradation and formalization of these enterprises.
• The expenditure under the scheme would to be shared in 60:40 ratio between Central and State Governments.
• Industries Dept is the nodal department and K-Bip is the nodal agency
• Kerala Agricultural University is the state level technical institution
• The Scheme adopts One District One Product (ODOP) approach
• Support includes
• For Individual Micro Enterprises - Credit-linked capital subsidy @35% of the eligible fixed capital with a maximum ceiling of Rs.10.0 lakh per unit
• For Farmer Producer Organizations (FPOs)/Producer Cooperatives - Credit linked Grant @35% of the fixed capital
• For Self Help Groups (SHGs) – a) Seed capital @ Rs40,000/- per member of SHG for working capital and purchase of small tools b) Credit linked grant @35% with maximum amount being Rs 10 lakh to individual SHG member and Support for capital investment at federation of SHG level
• Support for Common Infrastructure - Credit linked grant would be available @ 35% for SHGs/FPOs/Co-operatives, any Government agency or private enterprises.
• Branding and Marketing Support – Support would be limited to 50% of the total expenditure for SHGs/FPOs/Co-operatives or an SPV of micro food processing enterprises
• Capacity Building & Research - Support to National Institutions, Support to State Level technical Institutions, Training support to individuals/groups and Handholding Support

• PMEGP is a credit linked Scheme of Govt. of India.
• Implemented in the Financial Year 2008-09
• The Scheme is implemented through KVIC and State/UT Khadi & V.I. Boards in Rural areas and through District Industries Centres in Urban and Rural areas in ratio of 25:25:50 between KVIC / KVIB / DIC respectively.
• Assistance under the Scheme is available only to new units to be established.
• Per capita investment should not exceed Rs. 1.00 lakhs in plain areas and Rs. 1.50 lakhs in Hilly areas.
• The rate of subsidy is 15% - 35% of project cost which would be paid to the loan account.
• Maximum project cost of Rs. 25.00 lakhs in manufacturing sector and Rs. 10.00 lakhs in Service Sector

• Entrepreneurship Awareness Programme in block/Municipality/Corporation area
• Entrepreneurship Awareness Programmein educational institutions
• Entrepreneurship Development Programme (EDP) for 15 Days for 30 participants
• Technology clinic - 2 dayprogramme in 14 districts
• Investors meet – Taluk level and District level
• Technology Management Development Programme in collaboration with ILO and conducted Generate Your Business (GYB) and Start and Improve Your Business (SIYB) modules for new entrepreneurs

• Business and Technology Incubation Centres were set up in all the District Industries Centres
• They would facilitate all required help be it finance (based on feasibility), training, networking, provide project ideas, Mentor & hand-hold
• There is a technology incubation centre at CFSC Changanassery for plastics.

• Best Entrepreneurial award is being given in every year to the entrepreneurs who have shown outstanding performance in running MSME units in the State.

• Best Entrepreneurial award is being given in every year to the entrepreneurs who have shown outstanding performance in running MSME units in the State.

• MSME Products expo in 14 districts as part of helping MSME units for marketing
• Kerala State Machinery Expo for sourcing new machinery and Technology for MSME units
• State level Agro Food Pro
• Helping MSME units to participate in IITF
• Craft Mela
• Participation in National & International events
• Exposure visits for new market explorations
• Export promotion efforts
• Commerce Mission

• Provide extensive Support to Artisans in the Handicrafts Sector for setting up Handicrafts-based micro enterprises.
• Give one time support (grant) to eligible artisans of the state as a back end assistance.
• 40% of the expenditure on Fixed Capital Investments (FCI) subject to a ceiling of Rs.2 lakhs and 50% of the expenditure on fixed capital Investment for women, SC/ST and young artisans subject to a ceiling of Rs.3 lakhs will be given as assistance.

• A Business Incubator is a coordinating mechanism for Enterprise and Employment Generation which provides Technology & Infrastructure support, Skill & capacity building with market requirements, Business Planning, mentoring support, Financial & Market linkages, hand holding and Intensive technology infusion etc. for new entrepreneurs who have innovative ideas but are unable to invest heavily at the initial stage. Business Incubation Centres were established in all District Industries Centres. 

1. KIED as Centre of Excellence in entrepreneurship development
   

   Kerala Institute for Entrepreneurship Development (KIED) is an autonomous State- level institute promoted by the Government of Kerala. The main objective of the Institute is to provide services in Human Resources Development (HRD) particularly in the field of entrepreneurship development with a view to enlarge the spirit of entrepreneurship among the people which will lead to more self-employment. The institute should render assistance and facilitate the process of enterprise formation as well as function as a nodal knowledge centre to entrepreneurs and investors in identifying suitable projects and establishing industrial units in the State.

2. Enterprise Development Centres (EDC)
   

   To focus on knowledge lead and technology driven entrepreneur development, DIC envisages to set up Enterprise Development Centres (EDCs) in Ernakulam, Palakkad and Kozhikode under the aegis of KIED with the following objectives.

• Create value added jobs and services Facilitate transfer of technology
• Foster entrepreneur spirit
• Speedy commercialization of R&D outputs Training/ skill development
• Specialized services to new /existing entrepreneurs Linkage with host institutes and start up space
• Credit facilitation, export promotion and supplier inclusion
• Handholding support to aspiring entrepreneurs including mentoring service, marketing linkages, project report preparation

Enterprise Development Centres at Ernakulum, Palakkad and Kozhikode can function under the guidance and support of KIED.

The Ministry of Micro, Small and Medium Enterprises (MSME), Government of India (GoI) has adopted the cluster development approach as a key strategy for enhancing the productivity and competitiveness as well as capacity building of Micro and Small Enterprises (MSEs) and their collectives in the country. Clustering of units also enables the providers of various services - including banks and credit agencies, to provide their services more economically, thus reducing costs and improving the availability of services for these enterprises.

• There are 38 DA/DPs in the state which were set up decades back.
• The infrastructure facilities such as internal roads, drains, effluent treatment plants, power, water, signage, street lights, compound wall/security gates, common amenities such as cafeteria, bank ATM, post office, conference room etc. are totally missing in most of the DA/DPs.
• Infrastructure up gradation of the above estates is being implemented in stages under two schemes.
• Infrastructure up gradation under MSE CDP is 60:40 cost sharing scheme between Govt. Of India and Govt. Of Kerala.
• Under the 100% state funded scheme infrastructure up gradation is taken up in three models

• Enterprises can avail finance from banks under various schemes like MUDRA scheme, Standup India etc.
• Technical Feasibility Reports are being forwarded to banks and Financial Institutions for availing credit to MSMEs

• MSME unit can approach Micro and Small Enterprise Facilitation Council (MSEFC) in their State to redress their delayed payment grievance
• The government has launched an online delayed payment monitoring system called the MSME Samadhaan (https://samadhaan.msme.gov.in) Any MSME, having a valid Udyog Aadhaar Memorandum (UAM) can make an application via this portal. After an application is made by the MSME, the MSEFC shall examine the case and then issue directions to the buyer unit for payment of the due amount along with the interest.