The “Capital Investment Subsidy: Thrust Area Industries” 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 Thrust Area Industries are provided Subsidy on the Investments on Plant and Machinery. The applications are accepted offline in the prescribed form available on the Official Website of the Department.

Benefits

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.

Eligibility

• The applicant should be a Thrust Area Industry (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, New thrust area industries which have started production on or after 3rd April 2003).

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.