GOVERNMENT OF KERALA Abstract Industries Department - Scheme for Providi pg
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1 a GOVERNMENT OF KERALA Abstract Industries Department - Scheme for Providi pg Start up subsidy for creation of new employment opportunities - Reimbursement of ESI & EPF contribution by the employer - Administrative sanction accorded - Orders issued. INDUSTRIES (B) DEPARTMENT Dated, Thiruvanalithapuram, 08/03/2018 XI-. I C flffl St/Tfl dated from the Director of Industries and Commerce. Read: letter No.FC3/18638/2013 Minutes of Working Group Meeting held on ORDER The Mission of the Industries Department for the 13th Plan period is economic development through enterprise creation and consequent employment generation for which Department is taking steps for developing entrepreneurial culture among educated youth by introducing a new scheme for reimbursement of ESI & EPF contribution by the employer for creating employment opportunities in Micro, Small and Medium Enterprises sector on or after 01/04/2017. Accordingly, vidë letter read as 1st paper above the Director of Industries and Commerce has submitted a proposal for Administrative Sanction for the scheme for reimbursement of ESI & EPF contribution by the employer under the scheme for providing start up subsidy for creation of employment opportunities of Micro, Small and Medium Enterprises. The Working Group Meeting held on approved and recommended the proposal subject to alteration of Plan write up. Government have examined the matter in detail and are pleased to accord Administrative Sanction for reimbursement of ES! & EPF contribution by the employer under the scheme for creation of employment opportunities in MSME5 for an amount of Rs. 100 Lath subject to the condition that the incentive amount shall be capped at Rs. 10,000/- per unit and a minimum of 5 numbers of employees per unit who are not eligible for any other subsidy or grant from Government or any other Government agencies as mentioned in Plan write up. The expenditure in this regard will be met from the head of account (P). The approved guidelines are appended herewith. By order of the Governor SANJAY KAUL Secretary to Government. To:- The Director of Industries and Commerce, ThiruvananthaPuram. The Principal Accountant General (Audit), Kerala, ThiruvananthaPuram. The Accountant General (A&E), Kerala, Thiruvananthapuram. The Managing Director, KSIDC, Thiruvananthapuram. The Managing Director, KBIP, ThiruvananthaPuram. The General Manager, All District Industries Centres (through DIC) The Finance Department The Planning and Economic Affairs Department The I & PR (Web and New Media) Department. The Industries(J)Department Stock File/Office Copy. Fo&Borr Section officer
2 APPENDIX Guidelines for the scheme for reimbursement of ESI & EPF contribution by the employer for creating employment in MSMEs Objectives: I. The scheme aims at reimbursing the PSI and EPF contributions of the employer in respect of employment created on or after for a period of three years. The scheme aims at providing assistance for the start up firms and èncouráge them to enrol the workers under PSI and PPF thus ensuring their social security. The scheme helps to create a better employer-employee relationship; Entitlement of a successful applicant: The entitlement under the scheme is the reithbursement of employer's contribution of PSI and EPF for three years from the date of commencement of the unit 75% of PSI & EPF contribution of employers in excess of the levels of employment as on shall be paid for three years under the scheme. There will be no upper limit on the number of employees getting the benefit in a unit. This is applicable only to Micro and small category units both in manufacturing and service sector who have started the unit validated by filing of Udyog Adhar on or after and who have provided employment to at least 5 persons excluding the promolers. The legal entity can be a MSME unit with any constitution carrying out an activity not in the negative list as given in the annexure. In the case of nano and household units under white category the licence from Local Self Government Department shall be exempted. Powers and Service Offered by the Sanctioning Authority. The power to sanction assistance under the scheme shall be vested with General Manager, DICs. The assistance is by way of reimbursement of PSI and EPF contributions made by the employer for a period of three years. The basic documents required for determining the assistance is PSI and EPF statements duly authenticated by competent authorities. The application for assistance duly submitted in the appended format along with all the supporting documents should be scrutinized by the Assistant District Industries Officer at the District Industries Centre and fbrther vetted and recommended by the Manager(Credit). The PSI and EPF documents should be get verified with the PSI and EPF office concerned. The leo concerned or Assistant District Industries Officer at Taluk office shall render all possible assistance in forwarding the application to the General Manager, District Industries Centre in case the applications are submitted through the leo or Assistant District Industries Officer at Taluk office. Strict timelines should be adhered to while processing and recommending the applications. In any case the applications received should be processed and sanctioned within 30 working days, the defective applications should be returned for correction within two working days of receipt of application. The application not eligible for assistance shall be rejected citing valid reasons for rejection within 10 working days of accepting the application.
3 Obligations to the Applicant Units. The applicant shall provide all the required details in the given format along with all supporting documents. The applicants shall certify that all the information given are true and in the event of false declaration the benefit shall be refunded with per annum. The applicant unit shall certify that the number of workers for whom the benefit was given will be maintained for a minimum period of five years and that the unit would make the employers contribution in respect of these employees towardçesl and EPF during this period. The applicant unit shall provide any details/documents deemed necessary to process the application at any stage of processing the application. General Provisions. I. The employees whose claims are preferred shall be working in the enterprise as on the date of application and should have completed a minimum of one year continuous service with the entity. Only those cases whose monthly salary is disbursed through Bank account transfer, DD or Cheque are eligible for assistance. The GM, DIC should satisfy himself about the fact that the salary as stated has been credited to the bank account of the employee and a certificate is obtained to that effect. Fund The funds for the scheme will be sourced from the head of Account (P) Appeals The Directorate of Industries & Commerce is competent to dispose the appeals, if any in the prescribed proforma within 30 days from the date of issue of ordes of General Manager District Industries Centre as the case may be. No appeal after this period is entertained. The decision of appellate authority shall be final. Annexure I - Application Form. Mnexure II -Recommendation /Approved statement from ESIC/EPF Authorities as the case may be. Annexure III - Appeal.
4 Annexurel Application Form for reimbursement of ESJ & EPE Contribution by the employees of MSMEs Name and address of the applicant Name and address of the unit UdyoghAadhar No. Whether manufacturing! Service a.i.1. If manufacture, production and date: a.i.2. If Service, date of service rendered: a.i.3. Production Commit date a.i.4. Annual... a.i.5. GSTNo Details of Investment 1 )Plant& Machinery 2)Other fixed asset 3) Electrification 4)including essential office equipments TOTAL Name and address of Financial Institution Details of Terth Loan Details of bank account of employee 9.Details of bank account of employer (Statement to be enclosed ESIC! EPF Authorities 10. Salary details of employee from the bank as on date: Declaration I have read the rules of the scheme and undertake to abide by all the provisions herein. Also submit that I have not availed any grant assistance from Government of Kerala, Government of India or any other Institutions earlier for the same project. I declare that the facts stated above are true to the best of my knowledge and belief Place: Date: Signature Name of the promoter/employer
5 '1 Annexure II Recommendation of the ESIC/FPF Authorities This is to certify that an amount of Rs... I- has been remitted to MIs... by... towards employer contribution to the contributory Fund of ESI/EPF for the period from to (Seal) Bank Branch Manager Name of Bank
6 ANNEXURE III FORM OFAPPEAL (Affix Court Fee Stamp worth!1 0/-) (See Para 8) Name of Applicant Name and Address of the unit Number and Date of Udyog Aadhar Memorandum Number and Date of the Order appealed against Ground of appeal (Use Separate Sheet if necessary Appellant: Signature Place Date:
7 ANNEXURE IV NEGATIVE LIST Negative list: Government. units are ineligible for any financial assistanoe/loan/exemptionlsubsidy from the state Photo Studios and Colour Processing Centres. Breweries and Distilleries of all types Sawmills Soap Grade Sodium Silicate Asbestos processing except 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 Metal Crushers including Granite Manufacturing units All types of Steel Re-rolling mills, Units manufacturing iron ingots Calcium Carbide Cement manufacturing except units manufacturing cement from fly ash Potassium Chlorate Cashew industrial units Power intensive units based on electro thermallelectro chemical Processor units where total power requirements exceeds 5000 KVA of contract load or where the cost of power is more than 33% of 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. * As amended from time to time
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