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Entrepreneur Support Scheme


Entrepreneur Support Scheme (ESS)

The Kerala Government has launched a scheme called the Entrepreneur Support Scheme (ESS) to merge and replace all the schemes that were implemented for the benefits of entrepreneurs in the State. In this article, let us take a closer look at the Entrepreneur Support Scheme.


The objectives of ESS are

  • To provide extensive support to micro, small and medium enterprises.
  • To give one-time support to entrepreneurs who belong to special categories by optimal utilisation of funds and giving more flexibility of operation at the time of implementation of the scheme.

Eligibility Criteria

The eligibility criteria to apply for the scheme is given below:

  • The applicant has to apply in the prescribed form.
  • The applicant has to furnish documentation and accounts.
  • The applicant has to execute an agreement with the notified authority to avail the assistance.

An industrial unit that is eligible for the Entrepreneur Support assistance would be an independent legal entity.

Scope of Benefits

  • Entitlement in the scheme would be limited to an amount of Rs. 30 lakhs per applicant unit that can be availed only once. The upper limit of Rs. 30 lakhs would be enhanced by 5% per annum during its operation period. The assistance fund would be limited to the fixed percentage of the composite investment upon the land, planned development costs, building and improvement charges on the existing building, essential office infrastructure, fixed cost of plant and machinery, electrification and generators and associated equipment.
  • 30% of the eligible applicants are reserved for micro-enterprises.
  • The assistance of 15% limited to Rs. 20 lakhs would be paid on the fixed capital investment of all micro, small and medium enterprises that are established in the State.
  • All micro, small and medium enterprises that are set up by women, Scheduled Castes and Scheduled Tribes entrepreneurs are eligible for assistance of 20% of the fixed capital investment that is limited to Rs. 30 lakhs.
  • An additional 10% assistance of the fixed capital investment is provided to the following sectors.
    • Rubber-based industries
    • Agro-based and food processing industries
    • Readymade Garments
    • Industries manufacturing equipment and machinery for Non-conventional energy generation
    • Bio-Technology based industries
    • 100% Export Oriented Units
    • Biodegradable plastic industries
    • Plastic waste recycling industries
    • Bio fertiliser industries
  • For all micro, small and medium enterprises that are established in Idukki, Wayanad, Kasaragod and Pathanamthitta, additional assistance of 10% of the fixed capital investment would be provided.
  • For micro, small and medium industrial units established after acquiring new technology from approves research institutions and recognised by State or Central Government, additional assistance of 10% of the fixed capital investment would be provided.


  • The applicant has to furnish all the mandatory details, with a declaration stating the detailed provided are true.
  • Application fee.
  • The applicant has to provide clarification or further details if required by the recommending/sanctioning authority.
  • The applicant permits inspection or verification of any details that are mentioned in the application.
  • The applicant has to produce the originals of the documents if required by the recommending/sanctioning authority for verification.
  • The applicant should execute legal agreement online and if required on paper.
  • The applicant has to use the money only in the agreed manner.
  • The applicant after availing the assistance has to furnish the copies of balance sheets, valid license from local body, electricity bills, performance particulars in the prescribed form every year till 31st of December of the next financial year, as proof of their functioning to the notified authority.

Startup Support

Those entrepreneurs who have been sanctioned Term Loan by any Financial Institution against a particular project report as recommended and forwarded by Industries Department and approved by the Financial Institution, for establishing an industrial unit, eligible assistance at the rates as specified for each category would be released to entrepreneurs based on the following conditions:

  • The assistance shall be limited to 50% of the eligible assistance under each category.
  • The maximum startup support would be limited to Rs. 3 lakhs.

Investment Support

All enterprises who apply for investment support within one year of commencement of commercial production. The District and State Level Committees shall, however, be competent to delays in individual cases on merits. The District Level Committee accepts delays up to two years.

Technology Support

All industrial units can apply for Technology support within six months from the date of commencement of commercial production after installation of new technology. The District Level committee accepts delays in individual cases on merits. The technology support could be claimed by new units or existing units without being a part of the diversification/expansion/modernisation programme. The assistance would be payable to acquire new technology at the given rates.

Recoveries and Penalties

All assistance provided to the above support to an individual unit has to be refunded by the unit with interest at the rate of 14% per annum from the date of receipt of issue of the registered demand notice to the unit by the recommending/sanctioning authority on grounds of obtaining assistance by misrepresentation, forgery or deception or not found working continuously for five years from its commercial production within one year after receipt of assistance.

If the concerned officer of the Recommending or Sanctioning authority delays the application deliberately, the Director of Industries and Commerce levies and reviews a fine of Rs. 500 per day for each day of such delay and to a maximum of Rs. 10,000.