The “Capital Investment Subsidy: Physically Handicapped Persons/ Ex-Servicemen” 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), Union Territory of Puducherry. This scheme is designed to promote the establishment of new industrial units owned by physically handicapped entrepreneurs and ex-servicemen. The subsidy provides financial assistance for investments made in land, building, plant, and machinery. It is applicable to micro and small manufacturing enterprises that started production on or after 5th August 2009.
Scheme Key Highlights (Short Summary)
• Support: 25% subsidy on investments made on land, building, plant, and machinery
• Maximum Benefit: ₹25,00,000 for micro and small manufacturing enterprises
• Target Groups: Physically handicapped entrepreneurs (with ≥40% disability) and ex-servicemen
• Disbursement: Single installment or multiple installments depending on available funds
Benefits
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Subsidy on Capital Investment:
• 25% subsidy on land, building, plant, and machinery investment
• Maximum subsidy of ₹25,00,000 for micro and small manufacturing enterprises -
Disbursement Mode:
• For financially assisted units: Subsidy is disbursed through financial institutions/banks, either for loan adjustment or fixed asset/working capital creation.
• For self-financed units: Subsidy is provided directly to the entrepreneur. -
Installments:
• Subsidy is generally provided in a single installment. If funds are insufficient in a particular financial year, disbursement can be made in multiple installments.
Eligibility
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Eligible Units:
• New industrial units owned by physically handicapped entrepreneurs or ex-servicemen, which started production on or after 5th August 2009
• For physically handicapped persons, the disability must be at least 40% -
Employment Requirement:
• Units must meet the employment requirement set by the government for local residents (Puducherry). -
Other Conditions:
• Investments must be in land, building, plant, and machinery.
• The applicant should submit relevant documentation and commit to 5 years of operation post-subsidy receipt.
Exclusions
• Second-hand machinery is not eligible for the subsidy, unless an affidavit is provided stating that no subsidy was availed from the Central Government or any State/Union Territory for such machinery.
• The subsidy will not be provided if the investment has already been subsidized under another Central/State Government scheme.
Application Process
Offline
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Step 1: Download and print the prescribed application form from the official website of the Directorate of Industries and Commerce.
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Step 2: Fill in the application form, attach a passport-sized photo and the necessary documents (self-attested if needed).
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Step 3: Submit the form to the concerned authority at the District Industries Centre (Thattanchavady, Puducherry).
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Step 4: Request a receipt/acknowledgment with submission details and a unique reference number.
Documents Required
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General Documents:
• Entrepreneur’s Memorandum Part-2 (UAM/PMT) Registration or Commencement of Production Certificate
• Caste Certificate (if applicable for SC/ST Entrepreneurs)
• Loan Sanction Letter (if applicable) -
Scheme-Specific Documents:
• Registered Land Document
• Approval from Pollution Control Board (for the building plan)
• Engineer’s Certificate for building valuation (assessed by PWD/PIPDIC)
• Registered Lease Agreement (if applicable)
• Purchase Invoices for plant & machinery
• Chartered Accountant Certificate for fixed assets and pollution control equipment investment
• Consent Orders from DSTE for pollution control equipment
• Notary Affidavit (for second-hand machinery, if applicable)
Frequently Asked Questions (FAQs)
Q: What is the maximum amount eligible for capital investment subsidy for micro and small manufacturing enterprises under this scheme?
A: The maximum subsidy amount is ₹25,00,000.
Q: Are there specific criteria for eligibility regarding the incapacity level for physically handicapped persons to qualify for the subsidy?
A: Yes, the physically handicapped person must have at least 40% disability as per the relevant category.
Q: How is the subsidy disbursed for units financed by financial institutions/banks, and what about self-financed units?
A: For financially assisted units, the subsidy is disbursed through the financial institution to adjust the loan or for working capital/asset creation. For self-financed units, the subsidy is directly disbursed to the entrepreneur.
Q: What specific affidavit is required for second-hand machinery in the application process?
A: An affidavit stating that no subsidy has been availed from the Central Government or any State/Union Territory for the second-hand machinery.
Q: What is the mode of disbursement for the subsidy amount, and when is it disbursed?
A: The subsidy is typically disbursed in a single installment. If funds are insufficient, it may be disbursed in multiple installments.
Q: Where can entrepreneurs find the official application form for the subsidy?
A: The application form is available on the official website of the Directorate of Industries and Commerce, Puducherry.
Q: What role does the Directorate of Industries and Commerce play in the application process?
A: The Directorate of Industries and Commerce receives and scrutinizes applications, evaluates eligibility, and recommends the subsidy amount.
Q: Is there a specific helpline available for entrepreneurs seeking assistance or clarification regarding the application process?
A: Yes, assistance can be sought via the helpline provided by the Directorate of Industries and Commerce.
Q: What benefits are provided to physically handicapped entrepreneurs under this scheme?
A: Physically handicapped entrepreneurs are eligible for 25% capital investment subsidy on investments made in land, building, plant, and machinery, up to ₹25,00,000.
Q: Is there any specific condition for the installation of pollution control equipment, and how is it documented?
A: Yes, an installation certificate from the Directorate of Sustainable Technologies and Environment (DSTE) must be provided for any pollution control equipment.
Q: What is the role of the State Level Committee in the subsidy application process?
A: The State Level Committee evaluates the applications based on merit and decides the quantum of subsidy to be granted to eligible units.
Sources and References
• Guidelines
• Application Form & Documents Required
• Grievance Redressal
• Helpline