What you get
Subsidy on the Investments on Plant and Machinery | - 20% subject to a maximum of ₹20,00,000/- for the large and medium enterprises. | - 35% subject to a maximum of ₹30,00,000/- for the small and micro enterprises. | Number of Installments | The subsidy shall be disbursed in a single instalment. | NOTE: Where due to paucity of funds in a particular financial year or for such other reasons as the case may be, single instalment disbursement is not possible, such disbursement will be made in instalments. | Mode of Disbursement | In the case of Units Financed by Financial Institutions/Banks, the subsidy amount shall be disbursed through the financial institutions/banks only, towards the adjustment against the loan availed by the entrepreneurs or for the creation of additional fixed assets or working capital purposes. | In the case of Self-financed Units, the subsidy shall be disbursed directly to the entrepreneurs.
Who can apply
Required Paperwork
- Aadhaar Card
- PAN Card
- Income Certificate
- Residence Proof (Domicile)
Common Questions
Can the subsidy be disbursed in the next financial year if funds are not available during the current financial year?
Yes, the subsidy may be disbursed in the next financial year, subject to the availability of funds.
Where can interested industrial units obtain the prescribed application form for the subsidy?
The application form is available on the Official Website of the Directorate of Industries and Commerce, Puducherry.
Is there a specific deadline for applying for the incentive/subsidy under this scheme?
For new units, the application must be submitted within one year from the date of obtaining Entrepreneurs Memorandum Part-2/Permanent Registration/Commencement of Production Certificate. Existing units should apply within one year of completing Expansion/Diversification/Modernization.
What is the mode of disbursement for self-financed units?
Self-financed units receive the subsidy directly from the authorities.
Who determines the quantum of incentive/subsidy admissible to a unit?
The Committee is responsible for determining the quantum of incentive/subsidy admissible to the unit.
How is the subsidy disbursed, and what is the process for units financed by financial institutions/banks?
The subsidy is disbursed in a single installment. For units financed by financial institutions/banks, it is adjusted against the loan or used for additional fixed assets or working capital.
How much subsidy is offered to small and micro enterprises, and what is the maximum limit?
Small and micro enterprises are eligible for a 35% subsidy, with a maximum limit of [?]30,00,000.
What percentage of subsidy is provided for large and medium enterprises, and what is the maximum limit?
Large and medium enterprises receive a 20% subsidy, capped at [?]20,00,000.
What types of industries are considered Thrust Area Industries eligible for the subsidy?
Thrust Area Industries include Electronic Industries, Bio-technology Industries, Food Processing Industries, Agro Processing Industries including Marine Products, Leather Products and Footwear Industries, Light Engineering Industries including Auto Components, Textiles Industries including Garments.
Which department in Puducherry oversees the implementation of this scheme?
The subsidy is a component of the "Motivation of Entrepreneurs to Start Industries and Fiscal Assistance to Industries" Scheme managed by the Department of Industrial Development (Industries and Commerce), Union Territory of Puducherry.
What purpose does the Plan Approval from the Pollution Control Board (PPA) serve in the subsidy application?
The Plan Approval from the Pollution Control Board is necessary to ensure that the industrial unit adheres to environmental regulations. It validates that the unit has received approval for its operational plans, aligning with environmental sustainability.
What role does the Loan Sanction Letter play in the subsidy application process, especially for units financed by financial institutions/banks?
The Loan Sanction Letter is essential evidence of financial support from institutions or banks. It is used to validate the financial arrangements and ensures proper utilization of the subsidy amount against the loan.