The “Employment Incentive” is a component of the “Motivation of Entrepreneurs to Start Industries and Fiscal Assistance to Industries” scheme by the Industries and Commerce Department, Puducherry. It offers a wage/employment subsidy of 20% of wage/salary (up to a maximum of ₹5,00,000 per annum) for workers covered under the Provident Fund (PF). This incentive is available only to new units that commence production on or after 2-8-2004 for a period of 5 years from the commencement of production. Additionally, the incentive is granted only if the unit provides at least 60% of its employment to residents of the Union Territory of Puducherry. Applications are accepted offline using the prescribed form available on the official website.
Benefits
• 20% wage/salary subsidy up to a maximum of ₹5,00,000 per annum for workers under PF
• Applicable only if the unit employs at least 60% local residents
• Wage/salary subsidy is subject to the minimum wages prescribed by the government
Eligibility
• New units commencing production on or after 2-8-2004 are eligible for a 5-year incentive
• The unit must provide direct employment to at least 10 persons
• At least 60% of the employment must be provided to residents of the UT of Puducherry
Application Process
Offline
• Step 1: Register the claim for the incentive by obtaining the prescribed application form from the official website of the Directorate of Industries and Commerce, Puducherry
• Step 2: Complete all mandatory fields in the form and attach self-attested copies of all required documents
• Step 3: Submit the duly filled and signed application form along with the documents to the concerned authority
• Step 4: Request a receipt or acknowledgement, ensuring it includes the submission date, time, and a unique identification number for future reference
Application Deadline:
– For New Units: Within one year from the commencement of production or obtaining the Entrepreneurs Memorandum Part-2/Permanent Registration/Commencement of Production Certificate
– For Existing Units: Within one year of completion of expansion/diversification/modernization
Documents Required
• Entrepreneurs Memorandum Part-2 (UAM/PMT) Registration/Commencement of Production Certificate
• Caste Certificate (if applicable for SC/ST entrepreneurs)
• Loan Sanction Letter from the financial institution
• Purchase Invoices for plant & machinery/pollution equipment/generator
• Chartered Accountant Certificate for investment in fixed assets/pollution control equipment/generator
• Month-wise Interest Paid Statement from the finance institution along with a No-due Certificate
• List of Employees Covered Under PF along with wage/salary payment particulars
• Provident Fund Remittance details for the claiming period
• Notary Affidavit
Frequently Asked Questions (FAQs)
Q: Which categories of workers are excluded from availing the incentive due to the absence of prescribed minimum wages?
A: Workers whose wages do not meet the minimum wage standards prescribed by the government are excluded.
Q: What is the specific local employment requirement for eligibility?
A: The unit must provide at least 60% of its employment to residents of the UT of Puducherry.
Q: How many persons must a unit employ to qualify for the incentive?
A: The unit must provide direct employment to at least 10 persons.
Q: From which date are new units eligible, and for how long?
A: New units commencing production on or after 2-8-2004 are eligible for the incentive for 5 years from the commencement of production.
Q: Are there restrictions on the type of employment covered under the subsidy?
A: Yes, only workers covered under the Provident Fund (PF) are eligible for the subsidy.
Q: How is the subsidy amount calculated?
A: The subsidy is 20% of the wage/salary, capped at ₹5,00,000 per annum.
Q: Is the incentive conditional upon local employment?
A: Yes, at least 60% of the employment must be provided to local residents of Puducherry.
Q: Where can applicants find the prescribed application form?
A: The application form is available on the official website of the Directorate of Industries and Commerce, Puducherry.
Q: What is the duration for which new units are eligible for the incentive?
A: New units are eligible for the incentive for 5 years from the date of production commencement.
Q: How can an entrepreneur escalate a grievance if not satisfied with the scheme’s services?
A: Grievances can be escalated through the Grievance Redressal mechanism provided by the department.
Q: Which department administers this scheme?
A: The scheme is administered by the Industries and Commerce Department, Puducherry.