Entrepreneur Support Scheme (ESS)

The Entrepreneur Support Scheme (ESS), run by the Directorate of Industries and Commerce, Government of Kerala, provides financial assistance to Micro, Small, and Medium Enterprises (MSMEs) in the manufacturing sector. In operation since April 1, 2012, it offers a capital subsidy that is calculated as a percentage of the fixed capital investment made by the enterprise. The subsidy rate ranges from 15% to 45% of that investment, with the exact figure determined by the investor category, industry sector, and district of investment. A loan from a financial institution is not required to be eligible for this scheme.

The scheme's stated objectives are to support MSMEs and deliver one-time financial aid to entrepreneurs, including specific provisions for special categories. It aims to achieve this through the efficient use of funds and a flexible operational structure, so that eligible enterprises receive the support needed for growth and long-term viability within Kerala's manufacturing landscape.

Applications for assistance under ESS must be filed exclusively through the Industries Department’s designated portal at ess.kerala.gov.in/login. Following the online submission, applicants are required to present the original documents along with the acknowledgement details to the Recommending Authority.

A fee of ₹1105/- is payable for each unit applying.

For Start-up Support, the application must be submitted in duplicate, accompanied by the requisite documents and a Project Report, to the General Manager of the District Industries Centre. The General Manager prepares a Technical Feasibility Report and forwards it to the financial institution. Once the term loan is sanctioned, the institution issues its recommendation along with attested copies of the sanction letter and the Project Report.

For Investment Support, the application must be made to the relevant recommending authority within one year of the commencement of commercial production. Investments that are eligible as of the date of application may be admitted, regardless of when commercial production began.

For Technology Support, the application must be filed within six months from the date commercial production starts following the installation of new technology. The application must include invoices for the machinery, evidence of payment, valuation certificates from approved engineers, and a certificate from a research institution confirming that the technology is new.

Applicants must ensure that all required information is provided. If any details are found to be insufficient, the applicant will be notified and given 10 days to correct the submission.

Applications are assessed by the relevant Sanctioning Authority, which varies by investment size: the General Manager for Start-up Support, the District Level Committee for investments under ₹200 lakhs, and the State Level Committee for investments above ₹200 lakhs. Selection is determined by merit and compliance with the scheme’s guidelines. The recommending or sanctioning authority may verify submitted details, including plant and machinery and other assets, and shortlisted applicants might be asked to supply additional clarifications or information.

If an applicant disagrees with a decision made by the District Level Committee, they may appeal to the State Level Committee.