Sarkari Yojana
“Interest Subsidy (For Micro, Small, Medium and Large New Industries)” under “Motivation of Entrepreneurs to Start Industries and Fiscal Assistance to Industries – Various Incentives”
About “Interest Subsidy (For Micro, Small, Medium and Large New Industries)” under “Motivation of Entrepreneurs to Start Industries and Fiscal Assistance to Industries – Various Incentives”
“Interest Subsidy (For Micro, Small, Medium and Large New Industries)” comes under “Motivation of Entrepreneurs to Start Industries and Fiscal Assistance to Industries – Various Incentives,” a scheme of the Industries and Commerce Department, Union Territory of Puducherry, in force across the UT since 1st April 2017. It lets industrial units that have taken loans from financial institutions for fixed assets or working capital claim an interest subsidy equal to 25% of the yearly interest paid. Applications go offline via the prescribed form on the department’s official website.
Scheme Overview
State Government
Business Entity
Scheme Details
Eligibility Requirements
To qualify for "Interest Subsidy (For Micro, Small, Medium and Large New Industries)" under "Motivation of Entrepreneurs to Start Industries and Fiscal Assistance to Industries - Various Incentives", applicants must satisfy the following conditions:
Micro, Small, Medium, and Large industries are all…
Micro, Small, Medium, and Large industries are all eligible.
Investment must date from 1st April 2017 or…
Investment must date from 1st April 2017 or later.
At least 60% of the unit's total workforce…
At least 60% of the unit's total workforce must be Puducherry residents, a share that must hold for the period fixed in the affidavit.
The unit must have taken a loan from…
The unit must have taken a loan from a financial institution.
That loan must be for creating fixed assets…
That loan must be for creating fixed assets and/or for working capital.
The unit must retain its fixed assets, including…
The unit must retain its fixed assets, including plant and machinery, for 5 years from the date of application or subsidy disbursement, whichever is later, without selling or transferring them.
Additional investment made after the first claim, by…
Additional investment made after the first claim, by new or existing units, also qualifies for subsidy up to the ceiling. The commencement date declared by entrepreneurs will be verified and confirmed by Industries Department officials. Special Cases Where the same individual — as proprietor, or through shared partners or a shared Board of Directors/shareholders — sets up multiple industrial undertakings, each is eligible for subsidy separately, provided the units sit at different locations and hold independent licenses, clearances, and registrations.
Benefits Provided
"Interest Subsidy (For Micro, Small, Medium and Large New Industries)" under "Motivation of Entrepreneurs to Start Industries and Fiscal Assistance to Industries - Various Incentives" provides the following benefits to eligible applicants:
Subsidy:
Up to 25% of the annual interest paid.
Eligible from:
The date commercial production begins.
Ceiling:
₹5,00,000/- per year.
Duration:
5 years for Puducherry and Karaikal; 7 years for Mahe and Yanam.
Installments:
Paid as a lump sum or in multiple installments, depending on fund availability.
Disbursement:
Routed 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, for SC/ST…
Caste certificate from the competent authority, for SC/ST entrepreneurs.
Loan Sanction Letter
Loan Sanction Letter.
Purchase invoices for plant & machinery/pollution control equipment/generator
Purchase invoices for plant & machinery/pollution control equipment/generator.
Chartered Accountant's certificate for investment in fixed assets/pollution…
Chartered Accountant's certificate for investment in fixed assets/pollution control equipment/generator.
Month-wise interest-paid statement from the bank/financial institution, with…
Month-wise interest-paid statement from the bank/financial institution, with no-dues certificate.
List of employees covered under the Provident Fund…
List of employees covered under the Provident Fund scheme, with wage/salary details.
Provident Fund remittance proof for the claim period
Provident Fund remittance proof for the claim period.
Notarized affidavit
Notarized affidavit.
'No Due Certificate of Interest' from the financial…
'No Due Certificate of Interest' from the financial institution/bank.
How to Apply
Offline Application
Applicants can apply for "Interest Subsidy (For Micro, Small, Medium and Large New Industries)" under "Motivation of Entrepreneurs to Start Industries and Fiscal Assistance to Industries - Various Incentives" through the offline application process outlined below.
File the claim for the incentive/subsidy through the…
File the claim for the incentive/subsidy through the prescribed form on the official website of the Directorate of Industries and Commerce, Puducherry.
Complete every mandatory field on the form and…
Complete every mandatory field on the form and attach self-attested copies of the necessary documents.
Submit the signed, completed application along with the…
Submit the signed, completed application along with the documents to the concerned authority.
Collect a receipt or acknowledgment from the office…
Collect a receipt or acknowledgment from the office where the form was submitted, confirming the submission date, time, and a unique reference number where applicable. Post-Application Process
The Directorate of Industries reviews applications on merit…
The Directorate of Industries reviews applications on merit to determine the eligible subsidy amount, which then goes before the State Level Committee.
The State Level Committee examines each case to…
The State Level Committee examines each case to decide the unit's eligibility for the incentive/subsidy and recommends the payable amount. Application Deadline For New Units The claim must be filed within one year of obtaining the Entrepreneurs Memorandum Part-2, Permanent Registration, or Commencement of Production Certificate. For Existing Units The claim must be filed within one year of completing the expansion, diversification, or modernization.
Official Application & Website
Verify the latest eligibility, dates and instructions before applying.