MSME Subsidy in Kerala - Schemes, Benefits and Incentives

The MSME Subsidy in Kerala provides financial assistance to promote the Micro, Small, and Medium Enterprise under the MSME Policy 2020. Businesses employ people and assist in overall beneficial growth and development of the industrial sector of the state. The MSME Subsidy in Kerala as the financial assistance, incentives and loans for a firm to boost technology, skill and infrastructure.

Several of the state’s entrepreneurs take benefit of the MSME Subsidy in Kerala which has the primary objective of enhancing the condition in the state for the development of new MSME related to different types of sectors. The MSME Subsidy in Kerala was designed to provide a measure of affirmative rates of subsidization in efforts for innovation, competitiveness and productivity drive within the Micro, Small and Medium Enterprises business environment.

The objectives of the MSME Subsidy in Kerala has various incentives for the Micro, Small, and Medium Enterprises for the development of economy in the state. Some of the benefits of MSME Subsidy in Kerala are listed below:

1. Economic Development: The MSME Subsidy in Kerala provides grants to the Micro, Small, and Medium enterprises to develop it further which in turns the business, opens up new employment opportunities and boosts the economy.
2. Financial Aid: The MSME Subsidy in Kerala reduces the cost of capital and operation among MSMEs through incentives.
3. Generate Employment: The MSME Subsidy in Kerala supports these kinds of businesses and you are able to grow and create employment in manufacturing, handicrafts and services industries.
4. Encourage Entrepreneurship: The MSME Subsidy in Kerala gives an opportunity to fund Micro, Small and Medium Enterprises and hedges start- up financial risks.
5. Regional Growth: The MSME Subsidy in Kerala is to encourage Micro, Small, and Medium Enterprises for industrialization in the less developed area to reduce the gap between economic sectors, Urban and Rural.

The MSME Subsidy in Kerala provides financial assistance and incentives to Micro, Small, and Medium Enterprises under 16 categories which are listed below:

• Loan Assistance for MSMEs

  Type	Subsidy Rate	Maximum Limit
  MSME Loan	4% interest	INR 10 Lakh (interest subvention up to 6%)

• Capital Subsidy for MSMEs

  Type of Unit	Subsidy Rate	Maximum Limit
  Micro	45%	INR 40 Lakh
  Small	45%	INR 100 Lakh
  Medium	45%	INR 100 Lakh

• Electricity Duty Exemption

  Incentive	Duration
  100% exemption for MSMEs	5 years

• Access to Finance through IPO Route

  Incentive	Maximum Limit
  50% reimbursement of expenses for public issues on NSE & BSE	INR 1 Crore

• Waiver of Stamp Duty & Registration Charges

  Incentive	Condition
  Up to 100% on lease deed/land purchase	For setting up manufacturing units in government/private industrial parks; 100% for Women, SC/ST, PH & Transgender entrepreneurs for any location in the State

• Private Industrial Estates

  Incentive	Maximum Support
  Infrastructure development	INR 3 Crore

• Trade Fair Participation

  Type	Reimbursement	Maximum Limit
  Domestic & International Fairs	100% of stall charges	INR 5 Lakh per fair

• Intellectual Property Creation

  Type	Reimbursement	Maximum Limit
  Patent, Trademark, GI Registration, etc.	50% of expenditure	INR 30 Lakh

• Quality Certification

  Certification Type	Reimbursement	Maximum Limit
  CE, FDA, ISO, BIS, etc.	50% of expenses	INR 25 Lakh per unit per annum

• Sustainability and Responsible Industrialization

  Incentive	Reimbursement	Maximum Limit
  Plant & Machinery for ETP, rainwater harvesting, etc	25% of expenses	INR 25 Lakh

• Industry 4.0 Initiatives in Manufacturing

  Incentive	Reimbursement	Maximum Limit
  Software and machinery for Industry 4.0	20% of cost	INR 25 Lakh/unit

• R&D Incentive

  Type	Funding Percentage	Maximum Limit
  R&D with State Universities	20% of R&D cost	INR 1 Crore per unit

• Scale-Up Incentive for Startups

  Type	Loan Support
  KSIDC Scale-up Loans	Up to INR 1 Crore

• Made in Kerala Certification

  Incentive	Reimbursement
  Made in Kerala’ certification	50% of certification cost

• Special Package for PLI Investors

  Incentive	Reimbursement	Maximum Limit
  Top-up incentive for PLI investors	20% of fixed capital investment	INR 1 Crore

• MSMEs Revival & Rehabilitation Scheme

  Assistance Type	Reimbursement	Maximum Limit
  Margin Money Grant	50% of bank margin	INR 2 Lakh
  Interest Subvention Assistance	6% interest on term loan	INR 1 Lakh for 1 year
  Restart Expenses	50% of machinery costs	INR 1.50 Lakh
  Repair and Maintenance	50% reimbursement	INR 1 Lakh
  Statutory Dues Clearance	50% of dues	INR 40,000r
  Revival Project Report Cost	100% reimbursement	INR 10,000
  Overall Cap	Total assistance	INR 5 Lakh per unit