Revival and Rehabilitation Scheme for Defunct MSMEs and Cashew Processing Units
By Directorate of Industries and Commerce, Government of Kerala
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Quick Answer
Kerala grants of up to ₹15 lakhs per unit, once, to revive defunct manufacturing MSMEs and cashew processing units.
- Funding amount
- ₹2L – ₹15L
- Funding type
- Grant
- Application deadline
- Rolling
- Eligible stage
- Revenue
- Location
- Kerala
- Registrations needed
- Udyam registration
About this grant
Kerala's Revival and Rehabilitation Scheme, launched in 2020-21, helps manufacturing MSMEs and cashew processing units that stopped operating because of genuine problems in their value chain but can still be revived. It combines capital grants with working capital incentives.
Many units struggle with outdated technology, marketing problems, competition from multinational corporations and global economic pressure. Cashew units also face high operating costs in the state and strong international competition. The scheme sees process mechanization as the way to revive them.
Each unit can receive up to ₹15 lakhs, once. The money supports renovating buildings, buying machinery and meeting working capital needs, so units can modernize and return to the market.
Eligibility
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Full eligibility criteria — entity type, stage, sector, founder profile and registration requirements — plus your fit for this program. Sign up to view.
Grant providers
Benefits & Funding
- Amount
- ₹2L – ₹15L
- Fund type
- Grant
- Equity
- Equity-free
- Repayment
- Non-repayable
What You Get
This scheme provides comprehensive financial assistance tailored to the revival needs of defunct units. Eligible applicants can receive a total entitlement up to ₹15 lakhs per unit, available only once. The funding is disbursed across several critical components:
- Building Renovation: Up to 25% of the total revival project cost, capped at ₹2 lakhs. This covers maintenance, repairs, new roofing, and infrastructure for waste disposal/treatment facilities.
- Plant & Machinery and Electrification: Up to 40% of the total revival project cost, capped at ₹8 lakhs. This can be utilized for purchasing new machinery, repairing existing ones, and industrial electrification.
- Working Capital (Margin): Provides 50% margin assistance for a fresh working capital loan approved by a financial institution, limited to ₹2 lakhs for defunct MSMEs and ₹5 lakhs for cashew units.
While a bank sanction for a fresh working capital loan is mandatory for availing the working capital margin assistance, bank loans are not a prerequisite for grants related to building renovation, plant, machinery, or electrification. All assistance under the scheme will be released to the eligible entrepreneur on a pro-rata basis via their bank.
- Disbursement
- Milestone Based
- Bootstrap friendly
- Yes
Timelines & Process
Applications
Rolling basis
Application Process
- 1
Visit Portal
Applicant visits the official website of the Directorate of Industries & Commerce, Government of Kerala.
You - 2
- 3
- 4
How to apply
Four steps from draft to disbursement — one action each.
- 1
Draft your application
Answer the form inside the grant tracker — AI drafts each response using your past answers, so you're not starting from a blank page.
- 2
See the questions before you start
Download every question this programme's application form asks, so you can prepare your answers offline before opening the portal.
- 3
Line up your documents
Keep every document from the checklist ready in one folder. Missing docs are the #1 reason applications get bounced.
- 4
Submit on the official portal
Use the official application link and verify all details before final submission.
- 5
Follow up
Reach out 5–7 days after submitting to confirm receipt and ask about the review timeline.
Program templates & documents
Files the program publishes for applicants — download these and apply in the prescribed format.
Frequently Asked Questions
What is the main objective of this scheme?
The scheme aims to support defunct MSMEs in the manufacturing sector, including cashew processing units, by providing financial assistance in the form of capital grants and working capital incentives to facilitate their revival and rehabilitation.
Who is considered a 'defunct MSME' under this scheme?
A defunct MSME is defined as a unit that has been non-operational for 6 months or more but is deemed revivable. This time limit does not apply to units that became defunct due to plastic bans or those wishing for diversification.
What is the maximum financial assistance available?
The entitlement under the scheme is limited to ₹15 lakhs per applicant unit. This can be availed only once, with maximum limits of ₹12 lakhs for defunct MSMEs and ₹15 lakhs for defunct cashew processing units, based on the specific components of assistance.
Does the scheme require a bank loan for all components of assistance?
No, a bank sanction for a fresh working capital loan is mandatory only for availing the Working Capital (Margin) Assistance. Bank loans are not mandatory for assistance related to building renovation, plant and machinery, or electrification.
What types of costs are covered by the capital grants?
Capital grants cover building renovation (maintenance, repairs, new roofing, waste disposal infrastructure) and plant & machinery/electrification (purchase of new machinery, repair of existing machines, industrial electrification).
What happens if an applicant fails to utilize the assistance as agreed?
If the applicant fails to utilize the amount received as per the agreed revival project or operate the unit as stipulated in the agreement, the assistance may be resumed (recovered) by restoring the provisions of the Kerala Revenue Recovery Act.
Sources
Data on this page is compiled from official program and provider references.
News
- CS directs time-bound revival action for recoverable MSMEsrisingkashmir.com · last month
- J&K Identifies 6,576 Recoverable MSMEs, Chief Secretary Orders Time-Bound Revival Plansindianmasterminds.com · last month
- 6,576 MSMEs identified for revival; Chief Secy orders time-bound actiongreaterkashmir.com · last month
Source: Google News aggregated
