“Motivation of Entrepreneurs and Financial Assistance for Rehabilitation of Sick Industries” is a scheme by the Industries and Commerce Department, Union Territory of Puducherry. Through this scheme, the cost of implementing suggestions given by experts engaged to advise sick units is reimbursed. Also, a 50% subsidy is provided towards the cost of diagnostic study initiated through Financial Institutions/Banks.

Benefits

• Subsidy @ 50% on diagnostic study cost (max ₹50,000/-).
• 50% fee reimbursement (max ₹50,000/-) for implementing expert suggestions in technology, marketing, and finance.
• Interest subsidy @ 5% p.a. limited to ₹3,00,000/- per year for 3 years on additional rehabilitation finance.

Eligibility

• MSME units with UAM/EM(Part-ll)/Permanent Registration.
• Must be a “Sick” Industrial Enterprise (defined by declining output, loan repayment delay >12 months, or 50% net worth erosion).
• Firms taking over sick units for rehabilitation are also eligible.

Application Process

Offline

Step 1: Obtain the prescribed form from the Directorate of Industries and Commerce.

Step 2: Fill mandatory fields and attach documents.

Step 3: Submit the form to the Director of Industries.

Step 4: A State Level Committee decides on the qualification for assistance.

Documents Required

• Entrepreneurs Memorandum Part-2 (UAM/ PMT) Registration.
• Commencement of Production Certificate.
• Certificate issued by the Financial Institution/Bank.
• Any other document required by the Committee.