State Govt. Programmes

1. ENTREPRENEUR SUPPORT SCHEME (ESS)

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

The ESS provides

• Investment in Land, Building, Plant & machinery, Electrification, Essential Office Equipments, Pollution Control Devices and other fixed assets are eligible
• For General Category Assistance is 15% limited to Rs 20 lakhs
• For Young (18 to 45 years), Women and SC/ST entrepreneurs, the assistance is 20% limited to Rs 30 lakhs
• Enterprises in priority sector is eligible for an additional assistance of 10% limited to Rs 10 lakhs
• MSMEs started in the districts of Idukki, Wayanad, Kasargode and Pathanamthitta are eligible for an additional support of 10% limited to Rs 10 lakhs
• Industries setup after acquiring new technology from approved research institutions are eligible for an additional support of 10% limited to Rs 10 lakhs
• The total eligible assistance for an enterprise is limited to Rs 30 lakhs

2.Assistance Scheme for Handicrafts Artisans (ASHA)

The Assistance Scheme for Handicrafts Artisans( ASHA) replaced the existing Scheme “Entrepreneur Assistance Scheme in Handicrafts” and aims to bring the artisans in the handicrafts sector under the ambit of a Single Scheme for availing financial assistance in the form of grant assistance for setting up handicraft enterprises.

The Assistance Scheme for Handicraft artisans intends to

1. Provide extensive Support to Artisans in the Handicrafts Sector for setting up Handicrafts-based micro enterprises.
2. Give one time support (grant) to eligible artisans of the state as a back end assistance.

The key features of the Schemes are

• The Scheme envisages extending one-time assistance to Artisans who set up a micro enterprise in the handicrafts sector.
• The support will be extended as a back-end financial assistance in the form of grant upon commissioning of the enterprise and after filing EM Part II/ Udyog Adhar.
• 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
• The principal elements of Fixed Capital Investment include the cost of constructing work shed/workshop, essential tools, equipment, machinery and accessories and electrification. Technology transfer fees/consultancy charge/Product/Design development charges will be considered for financial assistance.
• The Artisan has to apply in the prescribed format with copies of bills/vouchers/invoice/assessments in support of the investments claimed as FCI.
• The applicant should be enrolled as an artisan/craftsman under the office of the Development Commissioner (Handicrafts) or Surabhi, HDCK Ltd., KELPALM, KSBC, KADCO.
• There is no fee charged for applying for assistance.
• General Manager, District Industries Centre will be the sanctioning authority. The amount will be disbursed through bank.

3. State Sponsored Cluster Development Programme (SS-CDP)

1. Background :

Cluster Centric approach has been recognized as an effective model for MSME Development and is spelt out in the Industrial Policy of the State Government. Currently the MSE CDP of Government of India which is being implemented in the State mostly caters to big projects involving, project cost up to 15 crore. In order to support the growth of smaller units especially in Nano Household sector, and units setup under PMEGP Scheme, a new State Sponsored Scheme is introduced. The scheme envisages setting up of CFCs for Nano Household and PMEGP unit clusters. There will be two models of cost sharing under the scheme:

• Total project cost of CFC limited to Rs.1 Crore. The beneficiary contribution is 5 %. Balance 95% of the total project cost will be shared equally by State Industries Department and LSGD.
• Project Cost of CFC limited to Rs.50.00 lakh. The beneficiary contribution is 5%. Balance 95% will be fully supported by State Government.

2. A cluster:

A cluster is a group of enterprises located within an identifiable and as far as practicable, contiguous area and producing same / similar products / services. The essential characteristics of enterprises in a cluster are

• Similarity or complementarily in the methods of production, quality control and testing, energy consumption, pollution control, etc
• Similar level of technology and marketing strategies / practices
• Similar channels for communication among the members of the cluster
• Common challenges and opportunities.

3. Objectives of the Scheme:

• To support the sustainability and growth of MSEs in nano household and PMEG units segment by addressing common issues such as improvement of technology, skills and quality, market access, access to capital, etc.
• To build capacity of MSEs for common supportive action through formation of self help groups, consortia, upgradation of associations, etc.
• To create/upgrade infrastructural facilities in the new/existing industrial areas/ clusters of MSEs, including setting up of Flatted Factory Complexes.
• To set up common facility centres (for testing, training centre, raw material depot, effluent treatment, complementing production processes, etc.)