Details

The “Capital Investment Subsidy: SC/ST/Women Entrepreneurs” is a Component of the “Motivation of Entrepreneurs to Start Industries and Fiscal Assistance to Industries” Scheme by the Department of Industrial Development (Industries and Commerce), Union Territory of Puducherry. The department extends subsidies for the investments made on land, buildings, plants & machinery @ 25% by the Scheduled Caste/ Scheduled Tribe/ Women Entrepreneurs. The applications are accepted offline in the prescribed form available on the Official Website of the Department.

Benefits

For Scheduled Caste/ Scheduled Tribe/ Women Entrepreneurs

Subsidy for the investments made on land, building, plant & machinery @ 25% thereof subject to a maximum of ₹25,00,000/-.

For Scheduled Caste and Scheduled Tribe Entrepreneurs

Subsidy at the rate of 25% on the land, building and plant & machinery subject to a cumulative maximum of ₹50,00,000/-.

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.

Eligibility

The applicant should be a Scheduled Caste/ Scheduled Tribe/ Woman Entrepreneur.

In the case of indigenous second-hand machinery, the initial purchase value with depreciation, or the second-hand purchase value, or value assessed by the Chartered Engineer, whichever is less, will be taken as an investment.

If two or more industrial undertakings are set up by the same person as proprietor, common partners, or common board of directors/shareholders, such units are eligible for subsidy as separate entities provided the location, products and licences/clearances/registrations are obtained separately.

For Scheduled Caste/ Scheduled Tribe/ Women Entrepreneurs

The subsidy for the investments made on land, building, plant & machinery will be applicable for the small and micro manufacturing enterprises which started production on or after 27-3-2002.

For Scheduled Caste and Scheduled Tribe Entrepreneurs

The subsidy to Scheduled Caste and Scheduled Tribe Entrepreneurs on the land, building and plant & machinery will be applicable on the investment made on or after 24-8-2011. The unit should commence production/complete expansion as the case may be on or after 24-8-2011.

Second-hand machinery shall be eligible provided it is imported by the unit directly or through an agent, and the claim is supported with required import documents.

Exclusion

The following investments shall not be eligible for investment subsidy:

Working Capital, Commissioning Fees, Goodwill Fees, Royalty, Preliminary and Pre-operative Expenses, Capitalised Interest, Technical Know-how Fees, Transportation and Erection Charges, Goods Vehicles, Office Equipment, Furniture, Grates, Pallets and Consumable Stores, etc, Rice Mills (Excluded from the grant of capital investment subsidy as similar schemes, viz., Technology Upgradation/ Establishment/Modernization of Food Processing Industries, implemented by the Ministry of Food Processing, Government of India).

A unit which has availed of an investment subsidy from the Central Government or any other agency shall not be eligible to apply for a subsidy for the same investment again under this scheme.

Application Process

Offline

Step 1: The industrial unit should register the claim for the grant of incentive/subsidy in the prescribed form available on the Official Website of the Directorate of Industries and Commerce, Puducherry.

Step 2: In the application form, fill in all the mandatory fields, and attach copies of all the mandatory documents (self-attest, if required).

Step 3: The unit should submit the duly filled and signed application form and the documents to the concerned authority.

Step 4: Request a receipt or acknowledgement from the concerned authority to whom the application form has been submitted. Ensure that the receipt contains essential details such as the date and time of submission, and a unique identification number (if applicable).

*The State Level Committee will go into the merits of each case to decide whether the unit qualifies for the grant of incentive/subsidy.

Application Deadline

For New Units

Within one year from the date of commencement of obtaining the Entrepreneurs Memorandum Part-2/ Permanent Registration/ Commencement of Production Certificate.

For Existing Units

Within one year of completion of Expansion/ Diversification/ Modernization.

Documents Required

General Documents

Entrepreneurs Memorandum Part-2 (UAM/ PMT) Registration/ Commencement of Production Certificate.

Caste certificate from the competent authority in the case of Scheduled Caste/Scheduled Tribe (SC/ST) Entrepreneurs.

Loan Sanction Letter.

Scheme-Specific Documents

Registered Land Document.

Plan Approval from the Pollution Control Board (PPA).

Engineer’s Certificate for Building Valuation Assessed by Public Works Department (PWD)/Pondicherry Industrial Promotion Development and Investment Corporation (PIPDIC).

Registered Lease Agreement for the Building Executed Between the Developer and the Unit.

Purchase Invoices for Plant & Machinery/ Pollution Equipment/ Generator.

Chartered Accountant Certificate for the Investment in Fixed Assets / Pollution Control Equipment / Generator.

Certificate for the Installation of Pollution Control Equipment Obtained from the Directorate of Sustainable Technologies and Environmental (DSTE).

Air/Water Consent Orders Obtained from DSTE.

Notary Affidavit.

Case-Specific Documents

In the case of Second Hand Machinery, an affidavit stating that the subsidy has not been availed of from the Central Government or any State or Union Territories.