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Business & Entrepreneurship

"Generator Subsidy" under "Motivation of Entrepreneurs to Start Industries and Fiscal Assistance to Industries"

Through this scheme, the micro, small and medium industrial units (manufacturing and service sector) shall be eligible for the grant of 50% subsidy with a cap of ₹5,00,000/- per industrial unit on the investment made on or after 5-3-2009 on generator sets. The applications are accepted offline.

Authority

State/ UT

Region

Puducherry

Status

Verified 2026

Updated

March 2026

What you get

50% subsidy with a cap of ₹5,00,000/- per industrial unit.

Who can apply

The applicant should be a micro/ small/ medium industrial unit.; The unit should be from the manufacturing sector or service sector.; The unit should have made investment on generator sets.; The unit should have made investment on or after 5th March 2009.

Required Paperwork

  • Aadhaar Card
  • PAN Card
  • Income Certificate
  • Residence Proof (Domicile)

Common Questions

Are there any specific deadlines for submitting applications for new and existing industrial units?

New units must apply within one year from obtaining the Entrepreneurs Memorandum Part-2/Permanent Registration/Commencement of Production Certificate. Existing units must apply within one year of completing Expansion/Diversification/Modernization.

How are applications processed for the Generator Subsidy scheme?

The Industries Department processes applications to obtain sanctions without needing to be placed before the State Level Committee.

What are the benefits provided under the Generator Subsidy scheme?

Eligible industrial units receive a 50% subsidy, with a maximum cap of [?]5,00,000 per unit, on their investment in generator sets.

Can you provide examples of the types of investments in generator sets that are eligible for the subsidy?

Investments in generator sets for power backup during production processes, emergencies, or to ensure uninterrupted operations are typically eligible for the subsidy.

Are there any restrictions on the size or capacity of the generator sets for which the subsidy can be claimed?

The scheme does not impose specific restrictions on the size or capacity of the generator sets, but the investment made should comply with industry standards and requirements.

Can an industrial unit apply for the Generator Subsidy if it has purchased a generator set before the specified date of eligibility?

No, the scheme specifies that investments in generator sets made on or after 5th March 2009 are eligible for the subsidy. Purchases made before this date would not qualify for subsidy benefits.

How does the government verify the authenticity of the investments made in generator sets by industrial units applying for the subsidy?

The government may conduct audits or inspections, and applicants are required to submit supporting documents such as purchase invoices, chartered accountant certificates, and other relevant financial records.

Is there any provision for industrial units to claim reimbursement for expenses related to generator maintenance or fuel costs under this scheme?

The Generator Subsidy scheme primarily focuses on providing subsidies for investments in generator sets and does not typically cover ongoing maintenance or fuel costs.

Are there any specific conditions or obligations imposed on industrial units receiving the Generator Subsidy regarding the usage or disposal of the subsidized generator sets?

Industrial units may be required to adhere to usage guidelines, maintain records of generator set operations, and ensure proper disposal or decommissioning of equipment at the end of its lifecycle, in accordance with environmental regulations.

How does the government determine the subsidy amount for each industrial unit under the Generator Subsidy scheme?

The subsidy amount is typically calculated as 50% of the total investment made by the industrial unit on eligible generator sets, up to a maximum cap of [?]5,00,000 per unit, as per the scheme guidelines.

Are there any tax benefits or exemptions associated with the investments in generator sets subsidized under this scheme?

Industrial units may be eligible for tax benefits or exemptions on the investments made in generator sets, subject to applicable tax laws and regulations.