Sarkari Yojana
“Employment Incentive” under “Motivation of Entrepreneurs to Start Industries and Fiscal Assistance to Industries – Various Incentives”
About “Employment Incentive” under “Motivation of Entrepreneurs to Start Industries and Fiscal Assistance to Industries – Various Incentives”
Run by Puducherry’s Industries and Commerce Department and effective from 1st April 2017 across the Union Territory, this “Employment Incentive” grants a wage/employment subsidy of 20% of wages/salary, capped at ₹5,00,000 per annum, for workers covered under the Provident Fund (PF). 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 "Employment Incentive" under "Motivation of Entrepreneurs to Start Industries and Fiscal Assistance to Industries - Various Incentives", applicants must satisfy the following conditions:
All Micro, Small, Medium, and Large Industries are…
All Micro, Small, Medium, and Large Industries are eligible.
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 unit must directly employ at least 10…
The unit must directly employ at least 10 people.
The workers must be covered under the Provident…
The workers must be covered under the Provident Fund (PF).
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 first claim also qualify for subsidy, up to the ceiling limit. 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
"Employment Incentive" under "Motivation of Entrepreneurs to Start Industries and Fiscal Assistance to Industries - Various Incentives" provides the following benefits to eligible applicants:
Subsidy
Subsidy: Wage/Employment Subsidy of 20% of wage/salary.- Ceiling: ₹5,00,000/- per annum.- Number of Installments: Single or multiple instalments, depending on fund availability.- Period: 5 years for Puducherry and Karaikal regions; 7 years for Mahe and Yanam regions. - Mode of Disbursement: 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. *'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:
Entrepreneurs Memorandum Part-2 (UAM/ PMT) Registration/ Commencement of…
Entrepreneurs Memorandum Part-2 (UAM/ PMT) Registration/ Commencement of Production Certificate.
Loan Sanction Letter
Loan Sanction Letter.
Purchase Invoices for Plant & Machinery/ Pollution Equipment/…
Purchase Invoices for Plant & Machinery/ Pollution Equipment/ Generator.
Chartered Accountant Certificate for the Investment in Fixed…
Chartered Accountant Certificate for the Investment in Fixed Assets / Pollution Control Equipment / Generator.
Month-wise Interest Paid Statement from the Finance Institution/Bank…
Month-wise Interest Paid Statement from the Finance Institution/Bank Along with No-due Certificate.
List of Employees Covered Under the Provident Fund…
List of Employees Covered Under the Provident Fund Scheme Along with Wage/Salary Payment Particulars.
Provident Fund Remittance for the Claiming Period
Provident Fund Remittance for the Claiming Period.
Notary Affidavit
Notary Affidavit. *The industrial unit must submit production, employment, and other details annually and whenever the Industries and Commerce Department requests them.
How to Apply
Offline Application
Applicants can apply for "Employment Incentive" under "Motivation of Entrepreneurs to Start Industries and Fiscal Assistance to Industries - Various Incentives" 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 merit…
The Directorate of Industries scrutinizes applications on merit to determine the admissible incentive/subsidy 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 For New Units Within one year of obtaining the Entrepreneurs Memorandum Part-2/Permanent Registration/Commencement of Production Certificate. For Existing Units Within one year of completing Expansion/Diversification/Modernization.
Exclusions / Who Is Not Eligible
- A unit which has availed investment subsidy from Central Government/State Government or any other agency shall not be eligible to apply for subsidy for same investment again under this Scheme.
- Second-hand/used imported/indigenous machinery is not eligible.
Official Application & Website
Verify the latest eligibility, dates and instructions before applying.