Sarkari Yojana
“Capital Investment Subsidy (for New and Existing Industries)” under “Motivation of Entrepreneurs to Start Industries and Fiscal Assistance to Capital Intensive Industries”
About “Capital Investment Subsidy (for New and Existing Industries)” under “Motivation of Entrepreneurs to Start Industries and Fiscal Assistance to Capital Intensive Industries”
Run by Puducherry’s Industries and Commerce Department and effective from 1st April 2017 across the Union Territory, “Capital Investment Subsidy (for New and Existing Industries)” gives enterprises and entrepreneurs a subsidy of up to 45% on their investment in land, buildings, plant, and machinery. Applications go through the offline prescribed form on the Department’s official website.
Scheme Overview
State Government
Business Entity
Scheme Details
Eligibility Requirements
To qualify for "Capital Investment Subsidy (for New and Existing Industries)" under "Motivation of Entrepreneurs to Start Industries and Fiscal Assistance to Capital Intensive Industries", applicants must satisfy the following conditions:
The scheme covers Micro, Small, Medium, and Large…
The scheme covers Micro, Small, Medium, and Large Enterprises, as well as Women/SC/ST Entrepreneurs.
For the SC/ST/Women category, only investments in industrial…
For the SC/ST/Women category, only investments in industrial units fully owned by that category or by women entrepreneurs are considered.
In partnerships and private limited companies, all partners,…
In partnerships and private limited companies, all partners, shareholders, and Board of Directors must belong to the relevant category.
The unit must have invested on or after…
The unit must have invested on or after 1st April 2017.
The unit must employ Puducherry residents for at…
The unit must employ Puducherry residents for at least 60% of its total workforce, and sustain this share for the period specified in its Affidavit.
The industrial unit must not transfer or dispose…
The industrial unit must not transfer or dispose of fixed assets, including plant and machinery, until 5 years have passed from the date of application or subsidy disbursement, whichever is later.
Additional investments by new/existing industrial units after their…
Additional investments by new/existing industrial units after their first claim also qualify for subsidy, up to the ceiling limit. *The commencement date claimed by entrepreneurs is confirmed only after verification by Industries Department officials. *Units that began commercial production on or after 1-4-2017 count as new industries. *Units that began production before 1-4-2017 count as existing units. Special Cases If the same person, common partners, or a common Board of Directors/shareholders set up two or more industrial undertakings, each unit is treated as a separate entity eligible for subsidy, provided the units are located differently and hold separate licenses/clearances/registrations.
Benefits Provided
"Capital Investment Subsidy (for New and Existing Industries)" under "Motivation of Entrepreneurs to Start Industries and Fiscal Assistance to Capital Intensive Industries" provides the following benefits to eligible applicants:
Micro and Small Enterprises
Micro and Small Enterprises: a 40% subsidy on investment in land, building, plant, and machinery, capped at ₹40,00,000/-.
Medium and Large Enterprises
Medium and Large Enterprises: a 35% subsidy on investment in land, building, plant, and machinery, capped at ₹35,00,000/-.
Women/SC/ST Entrepreneurs
Women/SC/ST Entrepreneurs: a 45% subsidy on investment in land, building, plant, and machinery, capped at ₹75,00,000/-. Number of Installments Paid in a single or multiple instalments, depending on fund availability. Mode of Disbursement
If the unit is financed by a financial…
If the unit is financed by a financial institution/bank, the subsidy is disbursed only through that institution/bank—applied against the entrepreneur's loan, or used for creating additional fixed assets or working capital.
Self-financed units receive the subsidy directly
Self-financed units receive the subsidy directly. *'Financial institution' includes PIPDIC or any other Government Corporation, and Scheduled Banks including co-operative banks.
Documents Required
Applicants should keep the following documents ready before starting the application:
Registration under Entrepreneurs Memorandum Part-2 (UAM/PMT), or a…
Registration under Entrepreneurs Memorandum Part-2 (UAM/PMT), or a Commencement of Production certificate.
For Scheduled Caste/Scheduled Tribe (SC/ST) entrepreneurs, a caste…
For Scheduled Caste/Scheduled Tribe (SC/ST) entrepreneurs, a caste certificate from the competent authority.
The loan sanction letter
The loan sanction letter.
The registered land document
The registered land document.
Plan approval (PPA) from the Pollution Control Board
Plan approval (PPA) from the Pollution Control Board.
An engineer's certificate valuing the building, assessed by…
An engineer's certificate valuing the building, assessed by the PWD or PIPDIC (Pondicherry Industrial Promotion Development and Investment Corporation).
The registered lease agreement between the developer and…
The registered lease agreement between the developer and the unit, for the building.
Purchase invoices covering plant & machinery, pollution control…
Purchase invoices covering plant & machinery, pollution control equipment, or the generator.
A Chartered Accountant's certificate confirming the investment in…
A Chartered Accountant's certificate confirming the investment in fixed assets, pollution control equipment, or the generator.
A certificate from the Directorate of Sustainable Technologies…
A certificate from the Directorate of Sustainable Technologies and Environmental (DSTE) confirming installation of pollution control equipment.
Air and water consent orders issued by DSTE
Air and water consent orders issued by DSTE.
A notarized affidavit
A notarized affidavit. Every year, and whenever requested by the Industries and Commerce Department, the industrial unit must report its production, employment, and other details.
How to Apply
Offline Application
Applicants can apply for "Capital Investment Subsidy (for New and Existing Industries)" under "Motivation of Entrepreneurs to Start Industries and Fiscal Assistance to Capital Intensive Industries" through the offline application process outlined below.
The industrial unit must register its claim for…
The industrial unit must register its claim for the incentive/subsidy using the prescribed form on the Directorate of Industries and Commerce, Puducherry's official website.
Fill in all mandatory fields and attach copies…
Fill in all mandatory fields and attach copies of all mandatory documents (self-attested, if required).
Submit the completed, signed application form along with…
Submit the completed, signed application form along with the documents to the concerned authority.
Request a receipt or acknowledgement from the concerned…
Request a receipt or acknowledgement from the concerned authority, ensuring it includes essential details such as the date and time of submission and a unique identification number (if applicable). Post-Application Process
The Directorate of Industries scrutinizes applications on a…
The Directorate of Industries scrutinizes applications on a merit basis to determine the admissible incentive/subsidy/assistance amount, then places them before the State Level Committee.
The State Level Committee reviews each case's merits…
The State Level Committee reviews each case's merits to decide whether the unit qualifies, and recommends the admissible incentive/subsidy amount. Application Deadline Within one year of commencing regular commercial production. The State Level Committee may condone delays.
Official Application & Website
Verify the latest eligibility, dates and instructions before applying.