“Generator Subsidy” under “Motivation of Entrepreneurs to Start Industries and Fiscal Assistance to Industries – Various Incentives” is a scheme by the Industries and Commerce Department, Union Territory of Puducherry. The scheme came into force on 1st April 2017 and is operational across the UT of Puducherry. Under this scheme, 50% subsidy is provided to micro, small, medium, and large industrial units for the purchase and installation of generators. Applications are accepted offline in the prescribed form available on the Department’s Official Website.
Scheme Key Highlights (Short Summary)
• Launched by: Industries and Commerce Department, UT of Puducherry
• Effective From: 1st April 2017
• Applicable For: Micro, Small, Medium & Large Industries
• Subsidy Offered: 50% of generator cost
• Maximum Limit: ₹5,00,000 per annum per unit
• Mode: Offline application only
Benefits
• Subsidy Amount: 50% of the cost
• Purpose: For purchase & installation of generators (purchased on or after 01.04.2017)
• Maximum Limit: ₹5,00,000 per annum per industrial unit
• Disbursement Mode:
- Via bank/financial institution (if financed)
- Direct to entrepreneur (if self-financed)
• Installments: Single or multiple, based on fund availability
Eligibility
• All Micro, Small, Medium, and Large Industries
• Generator purchased on or after 1st April 2017
• Must provide 60% employment to Puducherry residents
• Fixed assets should not be disposed of for 5 years
• Additional investment eligible (post first claim), up to ceiling
• Units set up by same promoter can claim separately if location and registration are different
Exclusions
• Units that availed investment subsidy from Central/State Government or any other agency for the same investment
• Second-hand/used imported or indigenous machinery
Application Process
Offline Mode Only
Step-by-Step Guide: • Step 1: Download the prescribed form from the Directorate of Industries and Commerce, Puducherry
• Step 2: Fill the form completely and attach all required documents (self-attested)
• Step 3: Submit the application to the concerned authority
• Step 4: Collect receipt/acknowledgment with date, time, and application reference
Post-Submission Process: • Scrutiny by Directorate of Industries
• Evaluation by State Level Committee
• Recommendation for admissible subsidy
Application Deadline
• New Units: Within 1 year of obtaining EM Part-2/Registration/Production Certificate
• Existing Units: Within 1 year of completion of Expansion/Diversification/Modernization
Documents Required
• Entrepreneurs Memorandum Part-2 (UAM/PMT)/Production Certificate
• Loan Sanction Letter
• Generator purchase invoices
• CA Certificate for fixed assets investment
• Interest payment statement and No-Due Certificate from bank/finance institution
• Employee PF list with salary details
• PF remittance proof
• Notarized Affidavit
• Annual production, employment & other updates as required
Frequently Asked Questions (FAQs)
Q: What is the timeline for submitting subsidy applications for capital investment?
A: Within 1 year from commencement/registration for new units or after modernization/expansion for existing units.
Q: What is required for all claims to be supported according to the provided content?
A: Relevant documents such as purchase invoices, CA certificate, and PF details.
Q: How much employment must be provided to residents of Puducherry for a unit to be eligible for incentives/subsidies/assistance?
A: At least 60% of total employment.
Q: What is the composition of the State Level Committee responsible for evaluating subsidy applications?
A: The committee comprises officials from the Industries Department and other competent authorities.
Q: Under what circumstances would the entire amount of subsidies and incentives availed need to be refunded?
A: If the unit fails to comply with conditions like employment norms or transfers assets before 5 years.
Q: Which types of investments are ineligible for investment subsidy according to the provided conditions?
A: Second-hand/used generators and those already subsidized by any government agency.
Q: Through whom is the subsidy amount disbursed if the unit is financed by financial institutions/banks?
A: Through the financing institution/bank to adjust against loans or create assets.
Q: How is the subsidy disbursed for self-financed units?
A: Directly to the entrepreneur/unit.
Q: What happens if an industrial unit has availed investment subsidy from the Central Government/State Government or any other agency?
A: It is not eligible under this scheme for the same investment.
Q: What is the condition for industrial units set up by the same person to be eligible for subsidy as separate entities?
A: Units must have different locations and separate registrations.
Q: How is the commencement date for regular commercial production determined?
A: Based on verification by Industries Department officials.
Q: What is the employment requirement for qualifying for incentives/subsidies?
A: 60% local employment from Puducherry.
Q: When is the entire amount of subsidies and incentives availed required to be refunded?
A: If eligibility conditions are violated, including asset disposal within 5 years.
Q: Which investments are ineligible for investment subsidy?
A: Second-hand or reused machinery/generators.
Q: How is the subsidy amount disbursed for units financed by financial institutions?
A: Adjusted through those institutions against loans or for asset creation.
Q: What conditions determine the instalment disbursement of subsidies?
A: Based on availability of funds and recommendation of the State Level Committee.