The Interest Subsidy Scheme under the broader program “Motivation of Entrepreneurs to Start Industries and Fiscal Assistance to Industries – Various Incentives” is implemented by the Industries and Commerce Department, UT of Puducherry. Operational since 1st April 2017, the scheme supports new industrial units by providing interest subsidies on loans availed for creating fixed assets or working capital.
Benefits
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Subsidy Amount: Up to 25% of the annual interest amount paid
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Ceiling: ₹5,00,000 per annum
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Eligibility Start Date: From the date of commercial production
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Duration:
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5 years for Puducherry and Karaikal
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7 years for Mahe and Yanam
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Disbursement: In single or multiple installments through the financial institution
Eligibility
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Open to Micro, Small, Medium, and Large Industries
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Investment must be made on or after 1st April 2017
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Units must employ at least 60% local residents (Puducherry UT)
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Loans must be taken from financial institutions for fixed assets or working capital
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No disposal or transfer of fixed assets for 5 years
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Additional investment post-first claim is also eligible up to the subsidy ceiling
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Separate units with different locations and registrations owned by the same promoters are considered independent entities
Application Process
Mode: Offline
Step 1: Download the application form from the Official Website of Directorate of Industries and Commerce, Puducherry
Step 2: Fill the form with required details and attach self-attested documents
Step 3: Submit the filled form to the concerned authority
Step 4: Obtain a receipt or acknowledgment with date, time, and tracking number (if applicable)
Post-Application Process
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Scrutiny of applications by Directorate of Industries
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Evaluation by State Level Committee to determine eligibility and recommend subsidy amount
Application Deadline
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New Units: Within 1 year from the date of commencement of production or permanent registration
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Existing Units (Expansion/Modernization): Within 1 year of completion
Documents Required
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Entrepreneurs Memorandum Part-2 / UAM / PMT / Commencement Certificate
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Caste certificate (for SC/ST applicants)
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Loan sanction letter
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Purchase invoices of machinery, generator, pollution control equipment
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CA certificate for investment in fixed assets
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Interest paid statement month-wise from bank + No-due certificate
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Employee list covered under PF with wage/salary details
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PF remittance records
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Notarized Affidavit
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No Due Certificate from bank/financial institution