Sarkari Yojana
“Interest Subsidy” under “Motivation of Entrepreneurs to Start Industries and Fiscal Assistance to Industries”
About “Interest Subsidy” under “Motivation of Entrepreneurs to Start Industries and Fiscal Assistance to Industries”
The “Interest Subsidy” component of the “Motivation of Entrepreneurs to Start Industries and Fiscal Assistance to Industries” Scheme, run by the Industries and Commerce Department, Union Territory of Puducherry, lets industrial units that have taken loans from financial institutions for fixed assets and working capital claim an interest incentive of 25% of the annual interest paid. Applications are accepted offline through the prescribed form on the department’s official website.
Scheme Overview
State Government
Business Entity
Scheme Details
Eligibility Requirements
To qualify for "Interest Subsidy" under "Motivation of Entrepreneurs to Start Industries and Fiscal Assistance to Industries", applicants must satisfy the following conditions:
The industry must have been set up by…
The industry must have been set up by an SC/ST/Women entrepreneur, OR it must qualify as a "Thrust Area Industry" or an "IT Sector Industry."
The unit must have taken a loan from…
The unit must have taken a loan from a financial institution to create fixed assets and working capital.
Production must have started on or after 2-8-2004
Production must have started on or after 2-8-2004. OR
The industry must have been set up by…
The industry must have been set up by an SC/ST/Women/Physically Handicapped/Ex-Servicemen entrepreneur, OR it must qualify as a "Thrust Area Industry" or an "IT Sector Industry."
The loan for fixed assets and working capital…
The loan for fixed assets and working capital must have been taken on or after 24-8-2011 from a financial institution.
Production must have started on or after 24-8-2011
Production must have started on or after 24-8-2011. *"Financial Institution" here covers PIPDIC, other Government corporations, Scheduled Banks including Co-operative Banks, and Government Co-operative Societies.
Benefits Provided
"Interest Subsidy" under "Motivation of Entrepreneurs to Start Industries and Fiscal Assistance to Industries" provides the following benefits to eligible applicants:
For industries set up by SC/ST/Women entrepreneurs, with production starting on or after 2-8-2004
An interest incentive of 25% of the annual…
An interest incentive of 25% of the annual interest paid, available for five years starting from the date commercial production begins.
The maximum interest incentive payable to any industry…
The maximum interest incentive payable to any industry is ₹75,000/- in a financial year. For industries set up by SC/ST/Women/Physically Handicapped/Ex-Servicemen entrepreneurs, with production starting on or after 24-8-2011
A 25% interest subsidy, capped at ₹5,00,000/- per…
A 25% interest subsidy, capped at ₹5,00,000/- per year, for a period of 5 years. *The incentive is paid through the financial institution.
Documents Required
Applicants should keep the following documents ready before starting the application:
Entrepreneurs Memorandum Part-2 (UAM/ PMT) Registration or Commencement…
Entrepreneurs Memorandum Part-2 (UAM/ PMT) Registration or Commencement of Production Certificate.
Caste certificate from the competent authority, applicable to…
Caste certificate from the competent authority, applicable to SC/ST entrepreneurs.
Sanction letter for the loan
Sanction letter for the loan.
Invoices for purchase of plant & machinery/pollution control…
Invoices for purchase of plant & machinery/pollution control equipment/generator.
Certificate from a Chartered Accountant confirming investment in…
Certificate from a Chartered Accountant confirming investment in fixed assets/pollution control equipment/generator.
Month-wise statement of interest paid, obtained from the…
Month-wise statement of interest paid, obtained from the bank/financial institution, along with a no-dues certificate.
List of employees enrolled under the Provident Fund…
List of employees enrolled under the Provident Fund scheme, along with wage/salary details.
Proof of Provident Fund remittance for the claim…
Proof of Provident Fund remittance for the claim period.
Affidavit notarized by a notary
Affidavit notarized by a notary.
Certificate of 'No Due of Interest' from the…
Certificate of 'No Due of Interest' from the bank/financial institution.
How to Apply
Offline Application
Applicants can apply for "Interest Subsidy" under "Motivation of Entrepreneurs to Start Industries and Fiscal Assistance to Industries" through the offline application process outlined below.
Register the claim for the incentive/subsidy through the…
Register the claim for the incentive/subsidy through the prescribed form on the official website of the Directorate of Industries and Commerce, Puducherry.
Complete all mandatory fields and attach self-attested copies…
Complete all mandatory fields and attach self-attested copies of the required documents where necessary.
Submit the completed, signed application form and the…
Submit the completed, signed application form and the documents to the concerned authority.
Obtain a receipt or acknowledgment from the office…
Obtain a receipt or acknowledgment from the office that received the application, confirming the submission date, time, and a unique identification number, if applicable. *The Industries Department processes such applications directly for sanction; they do not need to be placed before the State Level Committee. Application Deadline For New Units The application must be submitted within one year of obtaining the Entrepreneurs Memorandum Part-2, Permanent Registration, or Commencement of Production Certificate. For Existing Units The application must be submitted within one year of completing the expansion, diversification, or modernization.
Official Application & Website
Verify the latest eligibility, dates and instructions before applying.