The Capital Investment Subsidy is a targeted initiative under the broader Motivation of Entrepreneurs to Start Industries and Fiscal Assistance to Industries Scheme, implemented by the Department of Industrial Development, Union Territory of Puducherry. The component aims to financially empower Scheduled Caste (SC), Scheduled Tribe (ST), and Women Entrepreneurs by subsidizing capital investments made in land, buildings, and machinery.
Benefits
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SC/ST/Women Entrepreneurs:
• 25% subsidy on investment in land, building, plant & machinery
• Maximum limit: ₹25,00,000 -
SC/ST Entrepreneurs (Specifically):
• Cumulative subsidy limit: ₹50,00,000 -
Disbursement:
• Usually in one installment
• If insufficient funds are available, subsidy may be disbursed in multiple installments -
Mode of Disbursement:
• For bank-financed units: Subsidy goes to the financing institution for loan adjustment or asset creation
• For self-financed units: Direct transfer to the entrepreneur
Eligibility
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Must be a SC/ST/Woman Entrepreneur
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Applies to micro and small manufacturing enterprises
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Eligible if production started:
• On or after 27-03-2002 (for SC/ST/Women)
• On or after 24-08-2011 (for SC/ST only subsidy cap ₹50L) -
Indigenous second-hand machinery is eligible based on depreciated value or certified estimate
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Multiple units by the same proprietor/partners/directors are eligible if:
• Located separately
• Have different products
• Independently registered
Exclusions
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Costs not covered for subsidy:
• Working Capital, Commissioning Fees
• Goodwill/Royalty/Pre-operative Expenses
• Technical Know-how, Capitalized Interest
• Office Furniture, Consumables, Vehicles
• Transportation, Erection, Licensing charges, etc. -
Rice Mills are excluded (covered under Food Processing Ministry schemes)
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Investment already subsidized by any other Central or State scheme is ineligible
Application Process
Mode: Offline
Step 1: Download the prescribed form from the Official Website of the Directorate of Industries and Commerce, Puducherry
Step 2: Fill out the form and attach self-attested copies of all required documents
Step 3: Submit the form to the concerned authority at the Directorate
Step 4: Request an acknowledgment receipt with date, time, and application ID
Note: A State Level Committee will evaluate the merit of each application
Application Deadline
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For New Units: Apply within 1 year from obtaining:
• Entrepreneurs Memorandum Part-2
• Permanent Registration
• Commencement of Production Certificate -
For Existing Units (Expansion/Diversification/Modernization): Apply within 1 year of completion
Documents Required
General Documents
• Entrepreneurs Memorandum Part-2 (UAM/PMT)
• Caste certificate (for SC/ST)
• Loan sanction letter
Scheme-Specific Documents
• Registered land documents
• Pollution Control Board plan approval
• Engineer’s building valuation (PWD/PIPDIC)
• Registered lease agreement
• Invoices for machinery/generators
• CA certificate for investment in fixed assets
• Pollution equipment installation certificate (DSTE)
• Consent orders from DSTE
• Notary affidavit
Case-Specific Documents
• For second-hand machinery: Affidavit confirming no prior subsidy from Govt. of India or any UT
Frequently Asked Questions
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Q: Can an entrepreneur apply for both this subsidy and a central scheme?
No. You can only apply for one subsidy for the same investment. -
Q: Are second-hand machines eligible?
Yes, if imported or supported by valuation and import documents. -
Q: Can a proprietor apply for subsidy on two units?
Yes, if both are registered separately with different locations and products.