The “5% Additional Capital Investment Subsidy to Karaikal Region” 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), Government of Puducherry. It offers additional incentives over existing subsidies to encourage industrial investments in the Karaikal Region.
Benefits
• 5% Additional Incentive on existing subsidy schemes for units in Karaikal Region:
• SC/ST/Women Entrepreneurs: 30% subsidy up to ₹30,00,000
• IT Industries: 25% subsidy up to ₹25,00,000
• Small and Micro Thrust Area Enterprises: 40% subsidy up to ₹35,00,000
• Medium and Large Thrust Area Enterprises: 25% subsidy up to ₹25,00,000
• Priority Industries set up in Karaikal: 25% subsidy on fixed assets (land, building, plant & machinery) up to ₹40,00,000
Eligibility
• Industrial unit must be located in Karaikal Region of Puducherry
• Unit must be in the priority industry category announced by the Government
• Units must have commenced production or expansion in the specified timeline
Application Process
Offline
• Step 1: Download the prescribed application form from the official DIC Puducherry Website
• Step 2: Fill in all required details and attach the self-attested mandatory documents
• Step 3: Submit the application to the Directorate of Industries and Commerce
• Step 4: Collect acknowledgement receipt with submission details and unique reference number
Note: Applications are assessed by a State Level Committee based on merit for sanction of subsidy.
Application Deadline
• New Units: Within 1 year from the date of commencement of production/EM Part-2/PMT
• Existing Units: Within 1 year of completion of Expansion/Diversification/Modernization
Documents Required
General Documents
• Entrepreneurs Memorandum Part-2 (UAM/PMT)/Commencement of Production Certificate
• SC/ST Certificate (if applicable)
• Loan Sanction Letter
Scheme-Specific Documents
• Registered Land Document
• Plan Approval from Pollution Control Board (PPA)
• Engineer’s Valuation Certificate (PWD/PIPDIC)
• Lease Agreement (if applicable)
• Invoices of Plant & Machinery, Pollution Equipment, Generator
• Chartered Accountant’s Certificate for fixed asset investment
• DSTE Certificate of Equipment Installation
• DSTE Air/Water Consent Orders
• Notary Affidavit
Case-Specific Documents
• Affidavit for Second-Hand Machinery (no subsidy claimed from Centre/State/UT)
Frequently Asked Questions (FAQs)
Q: Are subsidies available for land, building, and machinery in Karaikal?
Yes, priority industries set up in Karaikal can receive up to 25% subsidy on fixed assets up to ₹40,00,000.
Q: Can subsidy amounts vary based on available government funds?
Yes, subsidy disbursements are subject to budgetary allocations.
Q: What is the role of the Directorate of Industries and Commerce in this scheme?
They manage application submissions, verification, and forwarding to the State Level Committee for approval.
Q: What if the unit uses second-hand machinery?
An affidavit must be provided confirming no other subsidy was availed for that machinery.
Q: Are there specific timeframes to apply?
Yes, new units must apply within 1 year of production start; existing units within 1 year of expansion/modernization completion.
Q: What is the function of the State Level Committee?
They evaluate each application on merit and sanction eligible incentives.
Q: Can units outside Karaikal apply for this subsidy?
No, this component is specific to the Karaikal Region. Units elsewhere may apply under other Puducherry schemes.
Q: Are there additional benefits for women and SC/ST entrepreneurs?
Yes, they receive a higher subsidy rate of 30% up to ₹30,00,000.
Sources and References
• Guidelines
• Application Form & Documents Required
• Grievance Redressal
• Helpline