The “Capital Investment Subsidy: Thrust Area Industries” is a component of the “Motivation of Entrepreneurs to Start Industries and Fiscal Assistance to Industries” scheme, launched by the Department of Industrial Development (Industries and Commerce), Union Territory of Puducherry. This scheme provides capital investment subsidies on investments made in plant and machinery for Thrust Area Industries that have started production on or after 3rd April 2003. Eligible sectors under this scheme include:
• Electronic Industries
• Bio-technology Industries
• Food Processing Industries
• Agro Processing Industries (including Marine Products)
• Leather Products and Footwear Industries
• Light Engineering Industries (including Auto Components)
• Textiles Industries (including Garments)
• New Thrust Area Industries
Scheme Key Highlights (Short Summary)
• Support: Capital investment subsidy on plant and machinery investments.
• For large & medium enterprises: 20% subsidy up to ₹20,00,000.
• For small & micro enterprises: 35% subsidy up to ₹30,00,000.
• Disbursement: Single installment or multiple installments if funds are insufficient.
Benefits
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Subsidy on Capital Investment:
• Large and Medium Enterprises: 20% subsidy up to ₹20,00,000 on plant and machinery investments.
• Small and Micro Enterprises: 35% subsidy up to ₹30,00,000. -
Disbursement Mode:
• For Units Financed by Banks/Financial Institutions: Subsidy is disbursed through financial institutions/banks, either for loan adjustment or fixed asset/working capital creation.
• For Self-Financed Units: Subsidy is disbursed directly to the entrepreneur. -
Installments:
• Subsidy is generally disbursed in one installment. In case of insufficient funds, disbursement will be made in multiple installments.
Eligibility
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Eligible Units:
• Industrial units in the Thrust Area Industries (Electronic, Bio-tech, Food Processing, Agro Processing, Leather, Auto Components, Textiles, etc.).
• New units that started production on or after 3rd April 2003. -
Application Timeframe:
• New Units: Within one year of obtaining Entrepreneurs Memorandum Part-2/Commencement of Production Certificate.
• Existing Units: Within one year of completing Expansion/Diversification/Modernization. -
Additional Requirements:
• For Thrust Area Industries: Specific industries like Electronic, Bio-tech, Food Processing, Textiles, etc., must meet the criteria.
Exclusions
• Second-hand machinery is not eligible for subsidy, unless an affidavit is submitted stating no subsidy has been availed from the Central Government or any State/Union Territory for the machinery.
• Investment that has already been subsidized by another government scheme is not eligible under this scheme.
Application Process
Offline
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Step 1: Download and print the application form from the official website of the Department of Industries and Commerce, Puducherry.
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Step 2: Fill in all the mandatory fields and attach required documents (self-attested, if needed).
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Step 3: Submit the filled and signed application form along with documents to the concerned authority.
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Step 4: Request a receipt/acknowledgment from the concerned authority with submission details (date, time, and unique identification number).
Documents Required
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General Documents:
• Entrepreneurs Memorandum Part-2 (UAM/PMT) Registration or Commencement of Production Certificate.
• Caste Certificate (if applicable for SC/ST Entrepreneurs).
• Loan Sanction Letter (if applicable). -
Scheme-Specific Documents:
• Registered Land Document.
• Pollution Control Board Plan Approval.
• Engineer’s Certificate for building valuation (assessed by PWD/PIPDIC).
• Registered Lease Agreement (if applicable).
• Purchase Invoices for plant, machinery, and pollution control equipment.
• Chartered Accountant Certificate for investment in fixed assets.
• Pollution Control Equipment Certificate from DSTE.
• Affidavit (for second-hand machinery, if applicable).
Frequently Asked Questions (FAQs)
Q: What is the maximum subsidy offered for small and micro enterprises under this scheme?
A: 35% subsidy with a maximum of ₹30,00,000 for small and micro enterprises.
Q: What percentage subsidy is provided for large and medium enterprises, and what is the maximum limit?
A: 20% subsidy with a maximum of ₹20,00,000 for large and medium enterprises.
Q: What is the disbursement mode for self-financed units?
A: The subsidy for self-financed units is disbursed directly to the entrepreneur.
Q: Can the subsidy be disbursed in the next financial year if funds are unavailable during the current financial year?
A: Yes, the subsidy can be disbursed in multiple installments if funds are insufficient in a particular financial year.
Q: How long do I have to submit my application after the commencement of production?
A: For new units, applications must be submitted within one year from the commencement of production or obtaining the Entrepreneurs Memorandum Part-2.
Q: Which industries are considered Thrust Area Industries eligible for the subsidy?
A: Industries such as Electronic, Bio-tech, Food Processing, Agro Processing, Textiles, and others as outlined in the scheme.
Q: Who determines the subsidy amount and approves the application?
A: The State Level Committee reviews and approves the applications based on merit.
Q: Is there a specific requirement for second-hand machinery?
A: An affidavit stating that no subsidy was received from other government schemes is required for second-hand machinery.
Sources and References
• Guidelines
• Application Form & Documents Required
• Grievance Redressal
• Helpline