Revival and Rehabilitation Scheme for Defunct MSMEs and Cashew Processing Units
The Revival and Rehabilitation Scheme for Defunct MSMEs and Cashew Processing Units is a state government support scheme implemented by the Department of Industries and Commerce, Government of Kerala. The scheme has been introduced to revive closed or defunct Micro, Small and Medium Enterprises (MSMEs) and cashew processing units that have become non-operational due to financial stress, working capital issues, or operational difficulties. The objective is to bring viable but sick units back into production, protect employment, and strengthen Kerala’s traditional and MSME industrial base. The scheme is applicable across Kerala and is implemented through District Industries Centres (DICs).
Key Features
- Revival Support for Defunct Units: The scheme provides targeted financial assistance to MSMEs and cashew units that have stopped operations but are technically and economically viable. The aim is to restart production rather than support permanently unviable units.
- Special Coverage for Cashew Processing Units: Considering the importance of the cashew sector in Kerala, the scheme gives specific attention to defunct cashew processing units, helping them restart operations and protect employment.
- Viability-Based Assistance: Only units that submit a clear revival or rehabilitation plan demonstrating future viability are considered. This ensures government support is used effectively.
- Institutional Credit Linkage: Financial assistance is provided in coordination with banks and financial institutions, encouraging structured revival through formal credit mechanisms.
- District-Level Implementation: The scheme is implemented and monitored through District Industries Centres (DICs), ensuring local assessment and supervision.
Financial Assistance
Note - Exact assistance amount, ceiling, and structure depend on Government Orders and unit viability.
Eligibility Criteria
Who can apply:
- Defunct MSMEs located in Kerala
- Defunct cashew processing units in Kerala
- Units that have ceased operations but are capable of revival
- Units willing to submit a revival / rehabilitation plan
Who cannot apply:
- Units declared permanently unviable
- Enterprises with no possibility of revival
- Units closed due to legal or environmental prohibitions
Documents Required
- Proof of earlier operation and closure of the unit
- Revival project report / rehabilitation plan
- Bank loan sanction letter for revival
- MSME / Udyam registration (if applicable)
- Ownership and identity documents
- Statutory clearances (as applicable)
Application process for the scheme
Option 1: Apply with Bullit (Recommended)
Click here to start instantly with guided support. Our team evaluates revival eligibility, prepares the rehabilitation proposal, coordinates with banks, and assists with filing the scheme application. You can track progress while focusing on restarting operations, we manage the process end-to-end.
Recommended for: Entrepreneurs reviving closed units who need structured assistance.
Option 2: Through District Industries Centre (Official Route)
- Prepare a revival and rehabilitation project report.
- Approach a bank/financial institution for a revival loan.
- Submit the scheme application through the District Industries Centre (DIC).
- After inspection and approval, financial assistance is released as per scheme norms.
Power Combo with the scheme
Related Schemes
Frequently asked questions
What is considered a defunct MSME under this scheme?
A defunct MSME is a unit that was previously operational but has ceased operations due to financial or operational stress and is now proposed to be revived.
Is this scheme applicable only in Kerala?
Yes. This is a Kerala State Government scheme applicable only to units located within the state.
Are cashew processing units treated differently?
Cashew processing units receive specific focus and inclusion, considering their importance to Kerala’s industrial and employment ecosystem.
Is bank finance mandatory for availing this scheme?
Yes. Assistance is generally linked to a fresh bank loan sanctioned for revival.
Who evaluates the viability of the unit?
Viability is assessed by the bank and relevant government authorities before approval.
Can the scheme be used to start a new business?
No. The scheme is strictly for revival of defunct units, not for new enterprises.