Infrastructure Development Subsidy (For IT/ITES) is a scheme under Motivation of Entrepreneurs to Start Industries and Fiscal Assistance to Capital Intensive Industries launched by the Industries and Commerce Department, Union Territory of Puducherry. Effective from 1st April 2017, the scheme is applicable across the UT of Puducherry. It provides a 30% subsidy (subject to a ceiling of ₹1,00,00,000) on investments made in buildings (minimum 50,000 sq.ft.) by infrastructure developers or industries for IT use or leasing to IT/ITES-based industries.
Benefits
• 30% subsidy on eligible building investment
• Maximum subsidy: ₹1,00,00,000 per unit
• Value of building assessed by PIPDIC/Public Works Department
Number of Installments
• The subsidy shall be disbursed annually
• Maximum installment amount: ₹25,00,000 per annum
• Installments continue until the total eligible subsidy is paid
Mode of Disbursement
• For financed units: Subsidy is disbursed through financial institutions/banks for loan adjustment, fixed asset creation, or working capital
• For self-financed units: Subsidy is directly disbursed to the entrepreneur/unit
• Recognized financial institutions include PIPDIC, Scheduled Banks, and Co-operative Banks
Eligibility Criteria
• Investment must be made on buildings of at least 50,000 sq.ft.
• Investment must be for leasing to IT/ITES units or for own IT-based industrial use (e.g., software, BPO, KPO)
• Unit must provide 60% employment to residents of Puducherry
• Fixed assets must not be sold or transferred for at least 5 years
• Additional investments post first claim are also eligible, up to the subsidy cap
• New units: Commercial production must begin on or after 01-04-2017
• Existing units: Production before 01-04-2017
Special Cases
• Units set up by the same individual(s) can be considered separate entities if:
– Located at different places
– Have separate registrations/licenses/clearances
Exclusions
• Buildings already occupied or used and later purchased by entrepreneurs are not eligible for subsidy
Application Process
Offline Mode
• Step 1: Download the application form from the official Directorate of Industries and Commerce website
• Step 2: Fill in all mandatory fields and attach self-attested documents
• Step 3: Submit the completed form to the concerned authority
• Step 4: Collect acknowledgement/receipt with submission date and unique ID (if available)
Post-Application Process
• Step 1: Directorate of Industries will scrutinize applications and place them before the State Level Committee
• Step 2: State Level Committee evaluates and recommends eligible subsidy amount
Application Deadline
• For New Units: Apply within 1 year of production start / registration
• For Existing Units: Apply within 1 year of completing expansion/diversification/modernization
Documents Required
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Entrepreneurs Memorandum Part-2 / UAM / PMT Registration / Commencement Certificate
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Caste Certificate (for SC/ST Entrepreneurs)
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Loan Sanction Letter
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Registered Land Document
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Pollution Control Board Plan Approval
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Engineer’s Building Valuation Certificate (PWD/PIPDIC)
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Registered Lease Agreement
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Purchase Invoices (Plant & Machinery, Generator, Pollution Equipment)
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CA Certificate for Investment in Fixed Assets
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Installation Certificate for Pollution Equipment (from DSTE)
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Air/Water Consent Orders (from DSTE)
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Notary Affidavit
Frequently Asked Questions (FAQs)
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How much employment must be provided to residents of Puducherry for a unit to be eligible for incentives/subsidies/assistance?
At least 60% of total employment must be provided to residents of the UT of Puducherry. -
What is the composition of the State Level Committee responsible for evaluating subsidy applications?
The committee is formed by the Directorate of Industries and includes senior officials. Exact composition can be verified from the scheme guidelines. -
Under what circumstances would the entire amount of subsidies and incentives availed need to be refunded?
If conditions like minimum employment, asset retention, or any eligibility clause are violated, the full subsidy must be refunded. -
Which types of investments are ineligible for investment subsidy according to the provided conditions?
Investments in pre-used/occupied buildings or buildings bought second-hand are ineligible. -
Through whom is the subsidy amount disbursed if the unit is financed by financial institutions/banks?
It is disbursed through the financing bank/institution towards the loan or capital asset creation. -
How is the subsidy disbursed for self-financed units?
In such cases, the subsidy is directly credited to the entrepreneur/unit. -
What happens if an industrial unit has availed investment subsidy from the Central/State Government or another agency?
Such claims may affect eligibility. Double-dipping from multiple schemes for the same investment is usually not allowed. -
What is the condition for industrial units set up by the same person to be eligible for subsidy as separate entities?
Units must be physically located in different areas, and have separate registrations and approvals. -
How is the commencement date for regular commercial production determined?
It is verified by officials from the Industries Department based on declarations and inspections. -
What is the employment requirement for qualifying for incentives/subsidies?
The unit must provide at least 60% local employment (Puducherry residents). -
What is the role of the State Level Committee in the subsidy application process?
It evaluates, approves, and recommends subsidy amounts for eligible units. -
Who sanctions the subsidies based on the Committee’s recommendations?
The Directorate of Industries and Commerce, Puducherry, sanctions the final disbursal.
Sources And References
Guidelines
Application Form & Documents Required
Grievance Redressal
Helpline