“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 Scheme for New Industries in Puducherry
The "Interest Subsidy (For Micro, Small, Medium and Large New Industries)" under the initiative "Motivation of Entrepreneurs to Start Industries and Fiscal Assistance to Industries - Various Incentives" aims to bolster the industrial sector in Puducherry. This scheme, initiated by the Industries and Commerce Department of the Union Territory, provides significant financial benefits to new industrial units that secure loans for establishing fixed assets and working capital.
Overview of the Scheme
Launched on April 1, 2017, the Interest Subsidy Scheme is operational throughout the Union Territory of Puducherry. This program is designed to support industrial units by offering an interest subsidy of up to 25% on the annual interest amount paid on loans taken from financial institutions. To avail of this, applicants must submit their applications offline using the prescribed format available on the official website of the department.
Key Benefits
- Subsidy Amount: Up to 25% of the annual interest paid.
- Eligibility Start Date: From the initiation of commercial production.
- Annual Ceiling: ₹5,00,000.
- Duration: 5 years for Puducherry and Karaikal; 7 years for Mahe and Yanam.
- Disbursement Method: Through the financial institution in one or multiple installments based on fund availability.
Eligibility Criteria
To qualify for the interest subsidy, industrial units must meet the following criteria:
- Units must fall under the category of Micro, Small, Medium, or Large Industries.
- Investments should have been made post April 1, 2017.
- A minimum of 60% of the total employment must be provided to residents of Puducherry, which must be maintained as per the affidavit.
- The unit must secure a loan from a recognized financial institution.
- The loan should be aimed at creating fixed assets and/or obtaining working capital.
- No transfer or disposal of fixed assets, including machinery, is allowed until five years after the application submission or subsidy disbursement, whichever is later.
- Additional investments by existing or new units are eligible for subsidy up to the specified ceiling limit.
Note: The commencement date specified by the entrepreneurs will be verified by the Industries Department officials.
Special Considerations
In cases where multiple industrial units are established by an individual as a sole proprietor or through common partnerships or shareholding, each unit can qualify for the subsidy as a separate entity, provided they are located differently and possess distinct licenses, clearances, and registrations.
Application Procedure
Application for the subsidy must be completed offline by following these steps:
- Register your claim in the prescribed format available on the Directorate of Industries and Commerce, Puducherry's official website.
- Complete all mandatory fields in the application form and attach necessary documents (self-attested if required).
- Submit the filled and signed application form along with documents to the relevant authority.
- Request a receipt or acknowledgment that includes essential details like submission date, time, and a unique identification number (if applicable).
Post-Application Process
- The Directorate of Industries will review applications based on merit to determine eligibility and the amount of subsidy that can be granted.
- The State Level Committee will evaluate each case, deciding whether the unit qualifies for assistance and recommending the admissible subsidy amount.
Application Deadlines
Important deadlines for application submission are as follows:
- New Units: Must apply within one year from the commencement of obtaining the Entrepreneurs Memorandum Part-2, Permanent Registration, or Production Certificate.
- Existing Units: Should submit applications within one year after completing expansion, diversification, or modernization.
Official Source
For further details, visit the official website: myScheme.gov.in
Eligibility Criteria
All the Micro, Small, Medium and Large Industries are eligible.
The Unit should have made the investment on or after 1st April 2017.
The unit should provide at least 60% of employment to the people of the Union territory of Puducherry of the total employment strength of the industrial units. This 60% of the local employment will have to be maintained by the industrial unit during the period specified in the Affidavit.
The industrial unit should be availing of a loan from a financial institution.
The industrial unit should be availing of a loan towards the creation of fixed assets and/or for working capital.
The industrial unit shall not transfer or dispose of the fixed asset including plant and machinery in any manner till the completion of 5 years from the date of submitting the application/disbursement of the subsidy whichever is later.
The additional investments made by the new/existing industrial units after availing the first claim are also eligible for subsidy up to the ceiling limit.
*The date of commencement as admitted by the entrepreneurs shall be reckoned after due verification by the officials of the Industries Department.
Special Cases
If, two or more industrial undertakings are set up by the same person as proprietor, common partners, common Board of Directors/shareholders, such units are eligible for subsidy as separate entity provided the location of the unit are different and licenses /clearances/ registrations are obtained separately for the enterprises.
Benefits
Subsidy: Upto 25% of the annual interest amount paid.
Admissibility: From the date of commencement of commercial production.
Ceiling: ₹5,00,000/- per annum.
Period: 5 years for Puducherry and Karaikal, and for 7 years for Mahe and Yanam.
Number of Installments: In single or multiple instalments, depending on the availability of funds.
Mode of Disbursement: Through the financial institution.
Application Process
Apply OfflineStep 1: The industrial unit should register the claim for the grant of incentive/subsidy in the prescribed form
available on the Official Website of the Directorate of Industries and Commerce, Puducherry.
Step 2: In the application form, fill in all the mandatory fields, and attach copies of all the mandatory documents (self-attest, if required).
Step 3: The unit should submit the duly filled and signed application form and the documents to the concerned authority.
Step 4: Request a receipt or acknowledgement from the concerned authority to whom the application form has been submitted. Ensure that the receipt contains essential details such as the date and time of submission, and a unique identification number (if applicable).
Post-Application Process
Step 1: The applications shall be scrutinized by the Directorate of the Industries on a merit basis for the grant of incentives/subsidies/assistance to determine the quantum of amount admissible will be placed before the State Level Committee.
Step 2: The State Level Committee will go into the merits of each case to decide whether the unit qualifies for the grant of incentive/subsidy and will recommend the quantum of incentive/subsidy admissible to the unit.
Application Deadline
For New Units
Within one year from the date of commencement of obtaining the Entrepreneurs Memorandum Part-2/ Permanent Registration/ Commencement of Production Certificate.
For Existing Units
Within one year of completion of Expansion/ Diversification/ Modernization.
References & Official Links
Scheme Details
| Full Name | “Interest Subsidy (For Micro, Small, Medium and Large New Industries)” under “Motivation of Entrepreneurs to Start Industries and Fiscal Assistance to Industries – Various Incentives” |
| Short Title | IS-MESIFAI-VI |
| Level | State |
| Scheme For | Infra |
| Categories | Business & Entrepreneurship |
| States | Puducherry |
| Gender | All |
| Age Range | 60 — 25 years |
| Area | Both |
| Source | www.myscheme.gov.in ↗ |