The “Interest Subsidy” is a component of the “Motivation of Entrepreneurs to Start Industries and Fiscal Assistance to Industries” scheme launched by the Industries and Commerce Department, Union Territory of Puducherry. This component provides eligible industrial units with an interest incentive of 25% of the annual interest paid on loans taken from recognized financial institutions for fixed assets and working capital. Applications are accepted offline using the prescribed form available on the official website.
Benefits
• For industries set up by SC/ST/Women entrepreneurs (commenced production on or after 02-08-2004):
– 25% interest incentive for five years
– Maximum ₹75,000 per financial year
• For industries set up by SC/ST/Women/Physically Handicapped/Ex-Servicemen entrepreneurs (commenced production on or after 24-08-2011):
– 25% interest subsidy
– Maximum ₹5,00,000 per annum for 5 years
• The incentive is disbursed through the financial institution from which the loan was availed
Eligibility
• The industrial unit must fall under one of the following categories:
– SC/ST/Women/Physically Handicapped/Ex-Servicemen entrepreneur
– “Thrust Area Industry” or “IT Sector Industry”
• The unit must have availed of a loan from a recognized financial institution for fixed assets and working capital
• Production start date conditions:
– For old scheme: On or after 02-08-2004
– For revised scheme: On or after 24-08-2011
• Financial institutions include PIPDIC, Scheduled Banks (including Co-operative Banks), and Government Co-operative Societies
Application Process
Offline Mode
• Step 1: Download and print the prescribed form from the official website of the Directorate of Industries and Commerce, Puducherry
• Step 2: Fill in mandatory fields and attach self-attested supporting documents
• Step 3: Submit the filled form and documents to the concerned authority
• Step 4: Obtain an acknowledgment receipt with date, time, and application number (if applicable)
• Applications are processed internally by the department and do not require State Level Committee approval
Application Deadline
• For New Units: Within one year from the date of commencement of production / Permanent Registration / EM Part-2
• For Existing Units (Expansion/Diversification/Modernization): Within one year of project completion
Documents Required
• Entrepreneurs Memorandum Part-2 (UAM/PMT) / Production Commencement Certificate
• Caste Certificate (if applicable)
• Loan Sanction Letter
• Purchase Invoices (Plant & Machinery, Generator, Pollution Equipment)
• Chartered Accountant Certificate for Fixed Asset Investment
• Month-wise Interest Paid Statement & No-Due Certificate from Bank/Financial Institution
• PF Scheme Employee List and Wage/Salary Details
• PF Remittance Details
• Notary Affidavit
• ‘No Due Certificate of Interest’ from the financial institution/bank
Frequently Asked Questions (FAQs)
-
Are there any deadlines for submitting applications for the Interest Subsidy scheme?
Yes, applications must be submitted within one year from the date of production commencement or project completion. -
What is the purpose of providing a ‘No Due Certificate of Interest’ issued by the financial institution/bank?
It certifies that the interest payments are up to date and the applicant has no dues pending for the claim period. -
Why is a month-wise interest paid statement from the financial institution necessary for claiming the Interest Subsidy?
It helps verify the actual interest paid, which is used to calculate the eligible subsidy amount. -
Is a caste certificate necessary for all applicants under the Interest Subsidy scheme?
No, it is only required for applicants claiming benefits under SC/ST categories. -
Which financial institutions are considered for loan availed by industrial units under the Interest Subsidy scheme?
Loans should be from PIPDIC, Scheduled Banks (including Co-operative Banks), or Government Co-operative Societies. -
What are the conditions regarding loan availed by industrial units for eligibility for the Interest Subsidy?
The loan should be used for creating fixed assets and working capital and availed after the specified scheme dates. -
What is the maximum annual subsidy amount for industries set up by SC/ST/Women/Physically Handicapped/Ex-Servicemen entrepreneurs?
₹5,00,000 per annum for a period of five years. -
Through what mode is the subsidy disbursed for self-financed units under the Interest Subsidy scheme?
The subsidy is not disbursed to self-financed units. It is routed through the financial institutions. -
How is the interest subsidy disbursed for industrial units accommodated in sheds or premises owned by Government departments?
The unit must still fulfill all other eligibility criteria. Premises ownership does not affect disbursal if the loan and production criteria are met. -
What is the maximum amount of interest incentive admissible to an industry under the Interest Subsidy scheme?
Either ₹75,000 or ₹5,00,000 per annum, depending on the category and scheme period. -
Where can applicants find the prescribed form for applying for the Interest Subsidy scheme?
The form is available on the official website of the Directorate of Industries and Commerce, Puducherry. -
How are applications for the Interest Subsidy scheme processed?
Applications are verified by the Industries Department and approved without the need for State Level Committee clearance.
Sources And References
Citizen’s Charter
Application Form
Grievance Redressal
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