In this direction, Industries & Commerce Department, “Motivation to Entrepreneurship for starting Industries and grant for subsidy to the capital intensive Industry” Scheme is running with the name of “Infrastructure Development Subsidy (for IT/ITs/ES) supra” by the Union Territory of Puducherry. From 1st April 2017 this scheme is in operation to assist infrastructure development for IT & ITes sector in puducherry.
Benefits
- Subsidy Amount:
- 30% subsidy on the investment in the building, subject to a maximum of ₹1,00,00,000/-.
- Installment Disbursement:
- Disbursed annually in installments of up to ₹25,00,000/- until the total eligible subsidy is completed.
- Mode of Disbursement:
- Financed Units: Subsidy is disbursed through financial institutions or banks to adjust loans, create additional fixed assets, or for working capital purposes.
- Self-Financed Units: Subsidy is directly disbursed to the entrepreneur or unit.
Eligibility Criteria
- Investment Requirements:
- Building must have a minimum constructed area of 50,000 sq.ft..
- Investments must be made for leasing to IT industries or for own industrial use (e.g., manufacturing computer systems, ITES, BPO, KPO).
- Employment Obligations:
- Units must provide at least 60% employment to residents of Puducherry.
- Additional Conditions:
- The unit must maintain local employment obligations for the duration specified in the affidavit.
- Fixed assets, including plant and machinery, cannot be sold or transferred for five years after the subsidy application or disbursement.
- Eligibility for New and Existing Units:
- Units commencing production on or after April 1, 2017, are considered new units.
- Units commencing production before April 1, 2017, are considered existing units.
- Special Cases:
- Units set up by the same person can qualify as separate entities if they have different locations and separate licenses/registrations.
- Exclusions:
- Buildings purchased second-hand or already in use are not eligible.
Application Process
Offline Application:
- Step 1: First you need to Download the prescribed application form from the Official Website of the Directorate of Industries and Commerce, Puducherry.
- Step 2: After that Fill out all the mandatory fields in the application form and attach self-attested copies of the required documents.
- Step 3: Now you have to Submit the application and documents to the concerned authority.
- Step 4: finally, Obtain a receipt or acknowledgment with the date, time, and unique identification number.
Post-Application Process:
- Applications are scrutinized by the Directorate of Industries for eligibility.
- Eligible applications are placed before the State Level Committee, which evaluates and recommends the quantum of subsidy.
- Subsidies are sanctioned and disbursed based on the Committee’s recommendations.
Deadlines:
- New Units: Apply within one year of obtaining the Entrepreneurs Memorandum Part-2/Production Certificate.
- Existing Units: Apply within one year of completing expansion/diversification/modernization.
Documents Required
- Entrepreneurs Memorandum Part-2 (UAM/PMT) Registration/Commencement of Production Certificate.
- Caste Certificate (for SC/ST entrepreneurs).
- Loan Sanction Letter.
- Registered Land Document.
- Pollution Control Board Plan Approval (PPA).
- Engineer’s Certificate for Building Valuation by PWD/PIPDIC.
- Registered Lease Agreement (if applicable).
- Purchase Invoices for Plant, Machinery, Pollution Equipment, and Generators.
- Chartered Accountant Certificate for Investment in Fixed Assets.
- Air/Water Consent Orders from DSTE.
- Notary Affidavit.
Frequently Asked Questions (FAQs)
- What is the maximum subsidy under this scheme?
- ₹1,00,00,000/- or 30% of the building investment, whichever is less.
- What is the employment requirement for eligibility?
- Units must provide at least 60% employment to Puducherry residents.
- Can units set up by the same person qualify for subsidies as separate entities?
- Yes, provided they have separate locations and licenses.
- What happens if the fixed assets are sold before five years?
- The unit will need to refund the entire subsidy amount.
- Are second-hand buildings eligible?
- No, buildings purchased second-hand are not eligible.
- Who evaluates and sanctions the subsidies?
- The State Level Committee evaluates and recommends the subsidy, which is then sanctioned by the Directorate of Industries.
- How is the subsidy disbursed for financed units?
- Through the financial institution, it adjusts loans, creates fixed assets, or aids working capital.
- What is the deadline for applying?
- Within one year from the date of production commencement or completion of expansion/diversification.
Sources and References
- Guidelines and Application Form
- Official Directorate of Industries Website
- Grievance Redressal and Helpline