The Infrastructure Subsidy is the financial assistance initiatives launched to incentivize investment in industrial infrastructure building. It is the “Entrepreneurs Motivation to set up Industries and Fisc dilution on Industries” Programme launched by Government of Puducherry. The total subsidy package is 25%, which is on the investment in constructing buildings the scheme makes for IT and biotechnology based investments.
This scheme promotes entrepreneurship, drives industrialization and creates legibility to back emerging sectors such as IT and biotechnology.
Key Features
- Subsidy Amount:
- 25% subsidy on investment in building infrastructure.
- Maximum subsidy capped at ₹1 crore for IT and biotechnology infrastructure developers.
- Maximum subsidy capped at ₹50 lakhs for biotechnology industry units constructing buildings of at least 5,000 sq. ft for self-use.
- Eligibility for Installments:
- Subsidy disbursed in annual installments not exceeding ₹25 lakhs per year until the total subsidy is fully paid.
- Eligible Industries:
- IT industries, including manufacturers of computer systems, software, IT-enabled services (ITES), BPOs, and KPOs.
- Biotechnology industries.
Eligibility Criteria
- For Infrastructure Developers:
- Must invest in a building with a minimum constructed area of 50,000 sq. ft for leasing to:
- IT industries.
- Biotechnology industries.
- Must invest in a building with a minimum constructed area of 50,000 sq. ft for leasing to:
- For Industrial Units:
- Must invest in constructing a factory building with a minimum constructed area of 50,000 sq. ft for setting up IT industries.
- For Biotechnology Units:
- Must construct a building with a minimum area of 5,000 sq. ft for self-use.
- Investment Timeline:
- Eligible investments should be made on or after July 31, 2006.
Application Process
Offline Steps:
- Access the Application Form:
Download the prescribed form from the Official Website of the Directorate of Industries and Commerce. - Fill in Details:
Complete the form, providing details about the unit, investment, and infrastructure. - Attach Documents:
Attach self-attested copies of the required documents (see the list below). - Submit the Application:
Submit the application form and documents to the concerned authority in the Directorate of Industries and Commerce. Request a receipt or acknowledgment containing details like submission date, time, and unique identification number. - Evaluation and Approval:
- Applications are reviewed by the State Level Committee, which decides the subsidy eligibility.
- Approved subsidies are disbursed in installments.
Documents Required
- Entrepreneurs Memorandum Part-2 (UAM/PMT) Registration/Production Certificate.
- Caste Certificate (for SC/ST entrepreneurs).
- Loan Sanction Letter.
- Registered Land Document.
- Plan Approval from the Pollution Control Board (PPA).
- Engineer’s Building Valuation Certificate (from PWD or PIPDIC).
- Registered Lease Agreement for the building (if applicable).
- Purchase Invoices for Plant & Machinery, Pollution Control Equipment, or Generators.
- Chartered Accountant’s Certificate for investment in fixed assets.
- Certificate of Pollution Control Equipment installation (from DSTE).
- Air/Water Consent Orders from DSTE.
- Notary Affidavit.
Benefits
- Encourages Infrastructure Development: Promotes construction of large-scale industrial spaces for IT and biotechnology sectors.
- Financial Assistance: Reduces the financial burden on developers and industrial units by providing a 25% subsidy.
- Flexible Disbursement: Subsidy disbursed in annual installments, ensuring ease of cash flow management for applicants.
Frequently Asked Questions (FAQs)
- When must the investment in the building be made to qualify for the subsidy?
Eligible investments must be made on or after July 31, 2006. - What industries qualify as “IT industries”?
IT industries include manufacturers of computer systems, software, IT-enabled services (ITES), business process outsourcing (BPO), and knowledge process outsourcing (KPO). - What is the subsidy amount for biotechnology industry units?
Biotechnology units constructing buildings of at least 5,000 sq. ft for self-use are eligible for a maximum subsidy of ₹50 lakhs. - How many installments are allowed under the scheme?
The subsidy is disbursed in annual installments of up to ₹25 lakhs per year. - What is the mode of application submission?
Applications are submitted offline to the Directorate of Industries and Commerce, Puducherry. - Can infrastructure developers lease buildings to both IT and biotechnology industries?
Yes, separate subsidies can be availed for leasing out to IT and biotechnology industries, provided eligibility criteria are met. - Can industrial units constructing buildings for purposes other than IT or biotechnology avail this subsidy?
No, the subsidy is specifically for IT and biotechnology industries.
Sources and References
- Official Guidelines
- Application Form and Documents Required
- Grievance Redressal and Helpline