Kerala Stressed MSMEs Revival & Rehabilitation Scheme

The Kerala Stressed MSMEs Revival & Rehabilitation Scheme intends to provide financial and other handholding support to the MSMEs which show signs of stress and to convert their non-productive assets into productive assets. This scheme aims to revive micro, small and medium manufacturing enterprises in Kerala that suffer due to stressed assets. The maximum assistance admissible for each unit, all reliefs and assistances put together, under the scheme will be limited to ₹5 Lakh. > Stressed MSME: As per the Notification of the Reserve Bank of India, an MSME can be treated as stressed if:- a) Principal or interest payment not overdue for more than 30 days but account showing signs of incipient stress. b) Principal or interest payment overdue between 31 - 60 days. c) Principal or Interest payment overdue between 61 -91 days Note: The above condition may vary in accordance with the guidelines issued by the Reserve Bank of India from time to time. > Sick Unit: An MSME should be considered sick if- a) Any of the borrower accounts of the unit remains substandard for more than six months i.e. principal or interest in respect of any of its borrower accounts has remained overdue for a period exceeding one year or more. The requirement of an overdue period of one year or more will remain unchanged even if the period for classification of an account as sub-standard, is reduced in due course; Or b) There is erosion in the net worth of the unit, which is to the extent of 50% of its net worth due to accumulated cash losses during the previous accounting year; And c) The unit has been in commercial production for at least two years for closed units and one year for working units. > Closed Unit: An MSME is referred to as a closed unit, if the unit has been in commercial production for at least two years before its closure, and it has remained closed continuously for a period of 6 months. This must be supported with ample proof such as electricity disconnection due to closure or the prescribed return of commercial tax for this period has been nil or any other reason as the expert committee may deem fit. > Potentially Viable sick unit: A sick unit can be considered as Potentially Viable if it is in a position, after implementing a relief package spread over a period not exceeding five years from the date of commencement of the package from banks, financial institutions, Government (Central/State) and other agencies concerned, as may be necessary, to continue to service its repayment obligations as agreed upon including those forming part of the package without the help of concessions after the aforesaid period. > Negative List: List of units which are ineligible for any financial assistance/loan/exemption/subsidy from the state Government. 1. Photo Studios and Colour Processing Centres 2. Breweries and Distilleries of all types 3. Sawmills 4. Soap Grade Sodium Silicate 5. Asbestos processing except for units in respect of which the quantum of asbestos used in the production process is less than 25% and environmental and occupational health hazards have been taken care of to the satisfaction of authorities concerned. 6. Metal Crushers including Granite Manufacturing units. 7. All types of Steel Re-rolling mills and units manufacturing iron ingots. 8. Calcium Carbide 9. Cement manufacturing except units manufacturing cement from fly ash 10. Potassium Chlorate 11. Cashew industrial units 12. Power-intensive units based on electrothermal/electrochemical Processor units where total power requirement exceeds 5000 KVA of contract load or where the cost of power is more than 33% of the cost of production of the items manufactured except where the units generate their power requirement in excess of 5000 KVA of contract load by own captive power. Note: The Negative list may be amended from time to time.