Entrepreneur support scheme

Entrepreneur Support Scheme – ESS

A scheme named the Entrepreneur Support Scheme (ESS) was initiated by the Government of Kerala. To combine and replace all the schemes implemented for the benefit of entrepreneurs in the state. So, let us take a closer look at the Entrepreneur Support Scheme in the following paragraphs.

Introduction to Entrepreneur Support Scheme (ESS)

The ESS intends to join and substitute all the previous schemes titled the Entrepreneur Support Scheme 2012. To operate in the State of Kerala with the following objectives from 01.04.2012. Also, the ess scheme offers various types of services to avail. Investments in land, construction, industry, machinery, electrical installation, key office equipment, waste management equipment, and other planned assets are worth investing in.

Also, the General Phase Assistance limits to 15% and 20 lakh. Moreover, for young women (18 to 45 years), women, and SC / ST entrepreneurs, assistance limits to 20% and Rs. 30 lakhs. Also, the Businesses in the priority sector are entitled to 10% additional assistance, limited to 10 lakh. Even the MSMEs started in the Idukki, Wayanad, Kasaragod, and Pathanamthitta districts eligible for an additional 10% support. The industrial setup limits to 10 lakh after acquiring new technology from well-known research institutes and eligible for an additional 10% support. The total business-specific assistance limits to 30 lakh.

Objectives of ESS Schemes

Objectives of ESS Schemes

The new Entrepreneur Support Scheme aims to :

  •  Give huge help to micro, small and medium enterprises (MSMEs).
  • Deliver one-time assistance to entrepreneurs, with due respect to special classes by optimal utilization of funds. Also, providing more flexibility of operation while performing the Scheme. These guidelines, are adopted by the Government of Kerala. Moreover, aims to ease and define the modalities of filing the Entrepreneur Support Scheme in the next modality. 
Eligibility Criteria Entrepreneur support scheme

Eligibility Criteria

 All Micro, Small, and Medium Enterprises (MSMEs) engage in manufacturing activities including setting up in the State. That had registered Entrepreneurs Memorandum Part 1/II with the respective General Manager, District Industries Centre stays eligible for this support. 

  • The candidate must apply in the prescribed Proforma.
  • Also, the candidate must give the necessary documentation and accounts.
  • Moreover, the candidate must complete an agreement with the notified authority to get help. For this scheme, an industrial unit eligible for the Entrepreneur Support help must be a self-governing legal entity. 
Requirements of the ESS scheme
  • Firstly the candidate must provide all the mandatory details, with a declaration affirming the details provided to be true.
  • Secondly, paying the Application fee.
  • After that, the candidate must give an explanation or further details if required by the recommending or sanctioning power.
  • Also, the candidate allows examination or confirmation of any details that are mentioned in the application.
  • Moreover, the candidate needs to provide the originals of the documents if needed by the recommending/sanctioning authority for verification.
  • Importantly the candidate must execute the legal agreement online and if needed on paper.
  • Then the candidate must use the money only in the accepted manner.
  • At last, the candidate after availing the help must provide copies of balance sheets. Also, the Valid license from the local body, electricity bills, and performance particulars. That too in the precise form every year till 31st of December of the next financial year. As proof of their work to the notified authority.
Benefits of Entrepreneur Support Scheme (ESS)

Permission in the scheme is limited to an amount of Rs. 30 lakhs per candidate unit that is available to avail at once only. Also, the upper limit of Rs. 30 lakhs can be enhanced up to 5% per annum during its operation period. The assistance fund can limit the set percentage of the composite investment upon the land, planned development costs, building and development charges on the existing building, basic office infrastructure, fixed cost of plant and machinery, electrification and generators, or associated equipment.

Also, 30% of the eligible candidates reserve for micro-enterprises.

The support of 15% limits to Rs.20 lakhs needs to be paid on the fixed capital investment of all micro, small, and also medium enterprises that are established in the State.

However, every micro, small and medium enterprise set up by women, Scheduled Castes, and Scheduled Tribes entrepreneurs are eligible for the help of 20%. That is the fixed capital investment limits to Rs.30 lakhs.

Moreover, an additional 10% support of the fixed capital investment is provided to the following sectors.

  1. Industries based on rubber 
  2. Industries in agro-based and food processing
  3. Garments Readymade 
  4. Industries that produce non-conventional energy generation equipment and machinery 
  5. Industries focused on Bio-Technology 
  6. 100% Export Driven Units 
  7. Biodegradable Industries with Plastics
  8. Industries that recycle plastic waste 
  9. Sectors of biofertilizer

Furthermore, for all micro, small and medium enterprises that are established in Idukki, Wayanad, Kasaragod, and Pathanamthitta, extra support of 10% of the set capital investment is also provided to candidates of the scheme.

Besides this, micro, small, and medium industrial units were established after getting new technology from approved research institutions. Also, known by the State or Central Government, extra support of 10% of the set capital investment is provided under the scheme.

Document for Entrepreneurship Support Scheme

The following documents must be submitted for the registration process to be completed under the Entrepreneurship Support Program:

  • MSME Data Bank Login Notice
  • Certified copy of PAN Card.
  • Udyam Registration Required for Registration.
  • Proof of Ownership of Planting Equipment & Equipment / Equipment also with immature equipment showing the date/year of purchase and the initial purchase price of the equipment.
  • Statement of Performance as Performa Annexure-F of Application Made.
  • Certified Copy of Real Estate Documents or Any Copy of Lease Agreement.
  • Certificate From Property Owner To Verify That There Is No Link To A Large Scale Unit.

In addition, various other documents are required depending on the type of company.

Steps in the ESS Scheme
Steps in the ESS Scheme

Apply online only  http://www.industry.kerala.gov.in/. You can reach the ESS online application site by the Apply for ESS link on the official website portal. Also, the new applications must be registered before submitting them.

The first step – startup support

Startups provide support to businesses before they start commercial production. Moreover, this service limits to 50% of the total eligibility limit for Rs.3 lakhs will be penalized from Term Loan Bank.

The second step – Investment Support

Investment Support Provides investment support after the start of a commercial product. Therefore, entrepreneurs must apply within one year from the date of commencement of the product. Also, the incentives for growth, diversity, and innovation are also well worth investment support.

The third step – Technical Support 

After the start of production to acquire new technology. Thereafter, technical support agencies will apply for technical support within 6 months from the date of commencement of implementation.

Support to the Startup 

Such entrepreneurs receive a term loan from any financial institution against a specific project report. That was also recommended and arrived by the Department of Industries and supported by the Financial Institution. For the establishment of an industrial unit, eligible to receive tariff help set for each group, based on the following conditions: 

  • Assistance limits to 50% of eligible assistance under each category.
  • Maximum start-up support limits to Rs. 3 lakhs.
Financial Support

All businesses apply for an investment subsidy within one year of the commencement of the commercial product. Regional and National Level Committees must, however, be competent in the appropriate delay of individual cases. The Regional Level Committee accepts the delay of up to two years.

Technical Support

However, all industrial units may apply for technical support within six months of the start of commercial production after the new technology is installed. Also, in individual cases on merit the District Level Committee acknowledges delays. Therefore, without being part of the diversification, expansion, or modernization plan, the technology support can be claimed by new units or existing units. Assistance is payable at the specific rates to obtain new technologies.

Refunds and Penalties

All assistance provided above in support of each unit must be reimbursed by the unit at an interest rate of 14% per annum from the date of receipt of the notice of required notice registered to the unit by the official recommending/authorizing one got help.

If the relevant authority of the Recommendation or Selection Authority deliberately delays the application, then the Director of Industry and Trade pays and reviews the fine of Rs.500 per day delay and up to a maximum of Rs.10,000.

Frequently Asked Questions – FAQ

What is the Entrepreneur Support Scheme ( ESS)?

The ESS intends to consolidate and replace all the earlier schemes titled the Entrepreneur Support Scheme 2012 that operates in the State of Kerala. All MSMEs involved in manufacturing activities are also eligible for support. 

Who can also apply for the Entrepreneur support scheme?

All Micro, Small, and Medium Enterprises are involved in manufacturing activities. The candidate has to 

  • Apply in the prescribed Proforma
  • Give necessary documentation and accounts and
  • Execute an agreement with the stated authority to avail of the assistance.

What is the purpose of the Entrepreneur Support Scheme ( ESS)?

The purpose of the Entrepreneur Support Scheme ( Ess) is to Expand micro, small, and medium enterprise funding. Also,  Assist entrepreneurs by allowing efficient use of funds and by offering more organizational flexibility.

How to apply for the ESS Scheme?

Visit the website of the Directorate of Industry and Commerce of the Kerala Government. You can reach the ESS online application site. New applications need to be registered before submitting them.

Which documents are required for applying under the Entrepreneur support scheme?

The main and important documents for applying under the Entrepreneur support scheme are a Printout of the application and a D.D. of the application fee.

Who will be the Sanctioning Authority under the ESS scheme?

All assistance under the ESS must be approved by

  • The General Manager (District Industries Centre) – As startup Support
  •  District Level Committee – For Fixed Capital Investment less than Rs. 200 lakhs
  • State Level Committee – For Fixed Capital Investment more than. 200 lakhs

Why the Entrepreneur Support Scheme is introduced?

The Government of Kerala launched an Entrepreneur Support Scheme to help micro, small, and also for medium enterprises by supporting them to work flexibly and utilize funds optimally.

Leave a Reply

Your email address will not be published. Required fields are marked *