This scheme, launched by the Industries and Commerce Department, Puducherry, aims to rehabilitate sick industrial units by reimbursing costs incurred in implementing expert recommendations in technology, marketing, and finance. In addition, a 50% subsidy is provided on the cost of a diagnostic study conducted by technical institutions (initiated through financial institutions/banks), subject to specified limits. Applications are accepted offline using the prescribed form available on the department’s official website.
Benefits
• 50% subsidy on diagnostic study costs by technical institutions, capped at ₹50,000
• 50% reimbursement of fees (up to ₹50,000 per unit) for implementing expert suggestions in technology, marketing, and finance
• Interest subsidy at 5% per annum (capped at ₹3,00,000 per year for 3 years) on additional finance disbursed by banks/financial institutions
Note: Interest subsidy is processed through financial institutions (including PIPDIC, Government Corporations, Scheduled Banks, and Co-operative Banks).
Eligibility
• The applicant must be an MSME unit that has obtained UAM/EM (Part-II) / Permanent Registration
• The enterprise must be classified as “Sick”, defined by one or more of the following:
– Continuous decline in gross output compared to the previous two financial years
– Delay in repayment of institutional loans for more than 12 months
– Erosion in net worth by at least 50% during the previous accounting year
• Firms taking over a sick unit for rehabilitation are also eligible
Application Process
Offline
• Step 1: Print the prescribed application form from the Directorate of Industries and Commerce, Puducherry
• Step 2: Complete all mandatory fields and attach copies of all required documents
• Step 3: Submit the duly filled and signed form along with the documents to the Director of Industries either in person or by post
• Step 4: Request a receipt or acknowledgement, ensuring it includes the date, time, and a unique identification number for future reference
Note: The State Level Committee will evaluate each case to decide the grant eligibility.
Documents Required
• Entrepreneurs Memorandum Part-2 (UAM/PMT) Registration/Commencement of Production Certificate
• Certificate issued by the Financial Institution/Bank
• Any other document as required by the Committee
Frequently Asked Questions (FAQs)
Q: Who makes the final decision on rehabilitation assistance?
A: The State Level Committee evaluates the merits of each case and makes the final decision.
Q: Which institutions qualify as financial institutions for this scheme?
A: This includes PIPDIC, other Government Corporations, Scheduled Banks, and Co-operative Banks.
Q: Can firms taking over sick units for rehabilitation also receive assistance?
A: Yes, such firms are eligible for assistance.
Q: How is “sickness” defined under this scheme?
A: “Sickness” is defined by a continuous decline in output, delayed loan repayment for over 12 months, or net worth erosion of 50% or more in the previous accounting year.
Q: What is the maximum subsidy for the diagnostic study?
A: A maximum of ₹50,000 is provided at 50% of the diagnostic study cost.
Q: What interest subsidy is provided on additional finance?
A: An interest subsidy of 5% per annum is provided, capped at ₹3,00,000 per year for 3 years.
Q: What is the application process?
A: Applications must be submitted offline using the prescribed form from the Directorate of Industries and Commerce, Puducherry.
Q: Can sick enterprises outside the MSME sector apply?
A: Only MSME units are eligible under this scheme.
Q: How are funds disbursed to eligible enterprises?
A: Funds are reimbursed or provided as a subsidy through designated financial institutions after approval by the State Level Committee.