Sarkari Yojana
Motivation of Entrepreneurs and Financial Assistance for Rehabilitation of Sick Industries
About Motivation of Entrepreneurs and Financial Assistance for Rehabilitation of Sick Industries
The Industries and Commerce Department, Union Territory of Puducherry runs the “Motivation of Entrepreneurs and Financial Assistance for Rehabilitation of Sick Industries” scheme. Sick units are reimbursed for the cost of putting into practice the suggestions made by technology, marketing and finance experts hired to advise them. A 50% subsidy is also given on the cost of a diagnostic study by technical institutions taken up through Financial Institutions/Banks/etc. Applications are taken offline on the prescribed form, which is available on the Department’s Official Website.
Scheme Overview
State Government
Business Entity
Scheme Details
Eligibility Requirements
To qualify for Motivation of Entrepreneurs and Financial Assistance for Rehabilitation of Sick Industries, applicants must satisfy the following conditions:
Only MSME units holding UAM/EM(Part-ll)/Permanent Registration can apply
Only MSME units holding UAM/EM(Part-ll)/Permanent Registration can apply.
The unit has to be a "Sick" Industrial…
The unit has to be a "Sick" Industrial Enterprise. For now, "Sickness" means the following, and the definition will be updated in line with RBI guidelines from time to time:
Gross output has fallen continuously when compared with the previous two financial years.
Repayment of a loan from institutional sources has been delayed for over 12 months.
Accumulated losses have eroded the net worth by as much as 50% of the net worth in the previous accounting year.
Firms that take over a sick unit to…
Firms that take over a sick unit to rehabilitate it are eligible as well.
Benefits Provided
Motivation of Entrepreneurs and Financial Assistance for Rehabilitation of Sick Industries provides the following benefits to eligible applicants:
A diagnostic study by technical institutions, taken up…
A diagnostic study by technical institutions, taken up through Financial Institutions/Banks/Government, attracts a 50% subsidy on its cost, capped at ₹50,000/-.
When a unit implements the advice of experts…
When a unit implements the advice of experts in technology, marketing and finance hired to guide sick units, half of the fees (up to ₹50,000/- per unit) is paid back.
On additional finance released by Banks/Financial Institutions for…
On additional finance released by Banks/Financial Institutions for Rehabilitation, an interest subsidy of 5% per annum is given for 3 years, limited to ₹3,00,000/- per year. *Payment of the interest subsidy is routed through the financial institution. *Here, financial institution covers PIPDIC or any other Government Corporation and Scheduled Banks, Co-operative Banks included.
Documents Required
Applicants should keep the following documents ready before starting the application:
The Entrepreneurs Memorandum Part-2 (UAM/ PMT) Registration/ Commencement…
The Entrepreneurs Memorandum Part-2 (UAM/ PMT) Registration/ Commencement of Production Certificate.
A certificate from the Financial Institution/Bank
A certificate from the Financial Institution/Bank.
Further documents that the Committee may ask for
Further documents that the Committee may ask for.
How to Apply
Offline Application
Applicants can apply for Motivation of Entrepreneurs and Financial Assistance for Rehabilitation of Sick Industries through the offline application process outlined below.
The sick enterprise prints out the prescribed form,…
The sick enterprise prints out the prescribed form, obtained from the Directorate of Industries and Commerce, Puducherry.
Complete every mandatory field of the form and…
Complete every mandatory field of the form and attach copies of each mandatory document.
The completed, signed form and documents are then…
The completed, signed form and documents are then sent to the Director of Industries, either by post or in person.
Ask the authority concerned at the Directorate for…
Ask the authority concerned at the Directorate for a receipt or acknowledgement. Each case is examined on its merits by the State Level Committee, which decides whether the unit qualifies for financial assistance.
Official Application & Website
Verify the latest eligibility, dates and instructions before applying.