Entrepreneur Support Scheme(ESS)

Entrepreneur Support Scheme (ESS) is the most popular and attractive scheme operated by the
Directorate of Industries and Commerce. The scheme aims to provide financial assistance to Micro,
Small and Medium Enterprises engaged in manufacturing activities in the State, proportional to the
capital investment made. Depending upon the category of the investor, sector and the District of
investment, the unit can avail subsidy from 15% to 45% of the fixed capital investment. For this
scheme, loan from a financial institution is not mandatory.

Features of the Scheme

Provides Subsidy for the investment in Land, Building, Plant & machinery, Electrification, Essential
Office Equipments, Pollution Control Devices and other fixed assets.

For General Category, assistance is 15% of the capital investment limited to Rs 30 lakh.

For Young (18 to 45 years), Women, SC/ST and Non Resident Keralite (NRK) entrepreneurs, the
assistance is 25% limited to Rs 40 lakh.

Enterprises in priority sectors are eligible for an additional assistance of 10% limited to Rs 10 lakh.

MSMEs started in the districts of Idukki, Wayanad, Kasargode and Pathanamthitta are eligible for an
additional support of 10% limited to Rs 10 lakh.

Enterprises setup after acquiring new technology from approved research institutions are eligible
for an additional support of 10% limited to Rs 10 lakh.

The total eligible assistance for an enterprise is limited to Rs 40 lakh.

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, Pharmaceutical industries and healthcare
products manufacturing 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, Power
intensive units.

Stages in Entrepreneur Support Scheme

1. Startup Support

The Startup support is provided for those enterprises which have availed at least term loan from a
financial institution and wish to avail a part of the total eligible support prior to the commencement
of commercial production. The assistance is limited to 50% of the total eligible support limited to Rs
3 lakh on sanctioning the term loan from the bank. The unit can apply for the balance of the eligible
support once it start the commercial production. A unit which do not avail Startup Support, can
directly apply for the investment support, after the commencement of commercial production.

2. Investment Support

Investment Support is provided after the commencement of commercial production. To apply for
Investment Support, loan from a financial institution is not mandatory. The entrepreneurs shall
apply within one year from the date commencement of production. Enterprises undertaking
Expansion, Diversification or Modernization are also eligible for invest support for the additional
investment made.

3. Technology Support

Technology Support is provided after commencement of production, on acquiring new technology

from authorized institutions. The unit shall apply for technology support within 6 months from the
date of commencement after installing the new technology form authorized agencies. Assistance will
be provided for the new technology and for the plant and machinery installed in connection with the
new technology.

Application Fee

An application fee of Rs 3465/- has to be remitted per unit.

How to apply

The application can be submitted online along with the documents as per the checklist using the link
given at the bottom. The application will be processed by the Sanctioning Authority and the
assistance will be sanctioned based on merit.