Assistance for Energy and Water Conservation is a scheme under Motivation of Entrepreneurs to Start Industries and Fiscal Assistance to Industries – Various Incentives, launched by the Industries and Commerce Department, Union Territory of Puducherry. The scheme has been in effect since 1st April 2017 and aims to promote efficient use of energy and water in industries. It offers a 50% reimbursement of audit fees (up to ₹25,000) paid to recognized institutions or consultants, provided that the unit achieves minimum 10% savings in energy or water based on average consumption over the previous 12 months.
Benefits
• 50% reimbursement of audit fees
• Maximum reimbursement limit: ₹25,000
• Audit must be conducted by a recognized institution/consultant
• Minimum 10% savings in energy/water required for eligibility
Number of Installments
• Subsidy may be disbursed in single or multiple installments, based on fund availability
Mode of Disbursement
• For financed units: Disbursed through financial institutions/banks towards loan adjustment, fixed asset creation, or working capital
• For self-financed units: Subsidy is disbursed directly to the entrepreneur/unit
• Financial institutions include PIPDIC, Scheduled Banks, and Co-operative Banks
Eligibility Criteria
• Open to all Micro, Small, Medium, and Large Industries
• Investment and audit should be made on or after 1st April 2017
• Must provide 60% employment to residents of Puducherry
• At least 10% savings in energy/water consumption based on past 12 months’ average
• Audit must be done by a recognized institution/consultant
• No transfer/disposal of fixed assets within 5 years from application or subsidy disbursement
• Additional investments post first claim are also eligible up to the limit
• The commencement date is verified by the Industries Department
• Units set up after 01-04-2017 are new; before that, they are existing
Special Cases
• Units set up by the same person or group (proprietor, partners, or directors) can claim separately if:
– Located at different sites
– Have separate registrations/licenses
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 supporting documents
• Step 3: Submit the completed application to the concerned authority
• Step 4: Collect acknowledgement with submission date and unique ID (if applicable)
Post-Application Process
• Step 1: Directorate of Industries evaluates applications on merit
• Step 2: Qualified cases are placed before the State Level Committee for approval and subsidy recommendation
Application Deadline
• For New Units: Apply within 1 year of obtaining registration or production start
• For Existing Units: Apply within 1 year of completing modernization/expansion/diversification
Documents Required
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Entrepreneurs Memorandum Part-2 / UAM / PMT Registration / Commencement Certificate
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Chartered Accountant Certificate (payments to audit agency/technical agency)
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Approval from Quality Council of India (certifying agency)
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Quality Certificates
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Receipts for payments to audit/patent/quality agencies
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Patent (if applicable)
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FIEO or Export Promotion Council membership certificate
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Prior approval from Directorate for event participation (if applicable)
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Invoices and bills for printing/literature and exhibition charges
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CA Certificate for exhibition-related payments
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Original copy of printed material (catalogues, brochures)
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Photographs of exhibition stall (if applicable)
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Accreditation of Energy/Water Auditing Institution
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Energy/Water Audit Report
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CA Certificate and receipt for audit payment
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Annual compliance documents: Employment, production, and other details as required
Frequently Asked Questions (FAQs)
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What is required for all claims to be supported according to the provided content?
All claims must be supported by documents, CA certifications, and official audit reports. -
How much employment must be provided to residents of Puducherry for a unit to be eligible for incentives/subsidies/assistance?
At least 60% of the total employment must be from residents of the UT of Puducherry. -
What is the composition of the State Level Committee responsible for evaluating subsidy applications?
The committee comprises officials from the Industries Department, with roles in evaluating, approving, and recommending subsidy disbursals. -
Under what circumstances would the entire amount of subsidies and incentives availed need to be refunded?
If the unit fails to meet the employment, asset retention, or eligibility criteria, the subsidy must be refunded in full. -
Which types of investments are ineligible for investment subsidy according to the provided conditions?
Investments in non-audited activities, or those that do not achieve 10% energy/water savings, are not eligible. -
Through whom is the subsidy amount disbursed if the unit is financed by financial institutions/banks?
It is disbursed via the respective bank or financial institution toward eligible financial purposes. -
How is the subsidy disbursed for self-financed units?
For self-financed units, the subsidy is paid directly to the entrepreneur or industrial unit. -
What happens if an industrial unit has availed investment subsidy from the Central Government/State Government or any other agency?
Double benefits may not be allowed; the unit must declare and comply with conditions to avoid overlap. -
What is the condition for industrial units set up by the same person to be eligible for subsidy as separate entities?
They must be separately registered, licensed, and located at distinct locations. -
How is the commencement date for regular commercial production determined?
It is verified by Industries Department officials based on declarations and inspections. -
What is the employment requirement for qualifying for incentives/subsidies?
Units must employ at least 60% local workforce from Puducherry. -
What is the role of the State Level Committee in the subsidy application process?
The Committee evaluates the merits of each case and recommends the eligible subsidy amount.
Sources And References
Guidelines
Application Form & Documents Required
Grievance Redressal
Helpline