Capital Investment Subsidy: Information Technology (IT) / Information Technology Enabled Services (ITES) Industries” under “Motivation of Entrepreneurs to Start Industries and Fiscal Assistance to Industries scheme, administered by the Department of Industrial Development (Industries and Commerce), Union Territory of Puducherry, supports new IT/ITES industrial units. It provides a subsidy on investments made in plant and machinery at 20%, subject to a maximum of ₹20,00,000. The scheme applies to large, medium, small, and micro enterprises that commenced production on or after November 6, 2002.
Benefits
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Subsidy:
- 20% of the investment in plant and machinery is subsidized.
- Maximum subsidy is capped at ₹20,00,000.
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Disbursement:
- The subsidy is paid in a single installment.
- For units financed by financial institutions/banks, the subsidy is disbursed through the bank for adjustment against loans or creation of additional fixed assets/working capital.
- For self-financed units, the subsidy is disbursed directly to the entrepreneur.
Eligibility
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New IT/ITES Industrial Unit:
- Must have started production on or after November 6, 2002.
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Exclusions:
- Investment in second-hand machinery is not eligible for subsidy.
Application Process
Mode: Offline
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Registration & Form Submission:
- Obtain the prescribed application form from the Official Website of the Directorate of Industries and Commerce, Puducherry.
- Complete all mandatory fields and attach copies of all required documents (self-attested where specified).
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Submission:
- Submit the duly filled and signed application form along with the documents to the concerned authority.
- Request an acknowledgment/receipt that includes the submission date, time, and a unique identification number if applicable.
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Evaluation:
- A State Level Committee reviews each application on its merits to decide whether the unit qualifies for the subsidy.
Application Deadline
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For New Units:
- Within one year from the date of commencement of production (as evidenced by the Entrepreneurs Memorandum Part-2/ Permanent Registration/ Commencement of Production Certificate).
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For Existing Units (Expansion/Diversification/Modernization):
- Within one year of completion of the respective activity.
Documents Required
General Documents:
- Entrepreneurs Memorandum Part-2 (UAM/PMT), Registration/Commencement of Production Certificate.
- Caste Certificate (for SC/ST entrepreneurs, from the competent authority).
- Loan Sanction Letter.
Scheme-Specific Documents:
- Registered Land Document.
- Plan Approval from the Pollution Control Board (PPA).
- Engineer’s Certificate for Building Valuation (assessed by PWD/PIPDIC).
- Registered Lease Agreement for the Building (between the developer and the unit).
- Purchase Invoices for Plant & Machinery/ Pollution Equipment/ Generator.
- Chartered Accountant Certificate for Investment in Fixed Assets/Pollution Control Equipment/Generator.
- Certificate for Installation of Pollution Control Equipment (from the Directorate of Sustainable Technologies and Environmental (DSTE)).
- Air/Water Consent Orders from DSTE.
- Notary Affidavit.
Case-Specific Document:
- For second-hand machinery: An affidavit stating that the subsidy has not been availed from any other government source.
Frequently Asked Questions (FAQs)
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Utilization of Subsidy:
Can the subsidy be used for both working capital and fixed assets by units financed by banks?- Yes; for bank-financed units, the subsidy is adjusted against the loan or used for additional fixed assets/working capital.
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Application Deadline for Existing vs. New Units:
Does the scheme encourage expansion and modernization of existing units?- Yes; existing units must apply within one year of completion of expansion, diversification, or modernization, whereas new units have one year from the commencement of production.
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Obtaining the Application Form:
Is there a specific location for obtaining the application form?- Yes, the prescribed form is available on the Official Website of the Directorate of Industries and Commerce, Puducherry. There is no charge mentioned for the form.
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Role of PWD/PIPDIC:
What is their role in the subsidy application process?- They assess building valuation through an Engineer’s Certificate, which is required as part of the documentation.
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Valuation Assessment:
Are there specific requirements for valuation of fixed assets or pollution control equipment?- Yes; an Engineer’s Certificate (assessed by PWD/PIPDIC) and a Chartered Accountant Certificate for investments are required.
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Notary Affidavit:
What is its significance?- It serves as a legal declaration verifying the authenticity of the information provided.
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Role of DSTE:
What is the involvement of DSTE?- DSTE issues certificates for the installation of pollution control equipment and provides Air/Water Consent Orders to ensure environmental compliance.
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Environmental Compliance:
How does the scheme ensure compliance?- Applicants must submit documents like Plan Approval from the Pollution Control Board, certificates from DSTE, and relevant consent orders.
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Application Deadlines:
What is the deadline for new units?- New units must apply within one year from the commencement of production.
- Existing units must apply within one year of completion of expansion, diversification, or modernization.
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Eligibility Criterion:
What qualifies an industrial unit for this subsidy?- The unit must be a new IT/ITES industrial unit that started production on or after November 6, 2002. Second-hand machinery is not eligible.
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Disbursement for Self-Financed Units:
How is the subsidy disbursed?- Self-financed units receive the subsidy directly.