The “Subsidy for Quality Certification” scheme, under the “Motivation of Entrepreneurs to Start Industries and Fiscal Assistance to Industries”, was introduced by the Department of Industries and Commerce, Union Territory of Puducherry, effective from April 1, 2017. This scheme offers financial assistance to industries in Puducherry for obtaining quality certifications. The assistance is provided for up to 3 certifications for each unit, with a maximum subsidy of 50% of the cost of quality certification, subject to a ceiling of ₹2,00,000 per unit.
Scheme Objective: To assist industries in obtaining recognized quality certifications, enabling them to enhance their market competitiveness.
Scheme Key Highlights (Short Summary)
• Support: 50% subsidy on the cost of quality certification
• Maximum Benefit: ₹2,00,000 per unit
• Eligibility: Micro, Small, Medium, and Large Industries
• Expenditure Covered: Certification fees approved by the Quality Council of India (QCI)
Benefits
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Quality Certification Support:
• Assistance for obtaining up to 3 quality certifications
• 50% subsidy on certification costs, capped at ₹2,00,000 per unit -
Disbursement Mode:
• The subsidy is disbursed through financial institutions/banks if the unit is financed by them
• For self-financed units, the subsidy is disbursed directly to the unit -
Number of Installments:
• Disbursed in single or multiple installments based on available funds
Eligibility
• Units Eligible: All Micro, Small, Medium, and Large industries
• The unit must have made an investment on or after April 1, 2017
• The unit must provide at least 60% of employment to the people of Puducherry
• The certification fee should be for quality certifications approved by QCI
• The unit should not transfer or dispose of its fixed assets (plant/machinery) for at least 5 years
Exclusions
• Renewal costs for quality certifications are not eligible for assistance
• Second-hand or used machinery is not eligible
• Units that have already availed investment subsidy from other government agencies cannot apply for the same investment
Application Process
Offline
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Step 1: Download and print the prescribed application form from the official website of the Directorate of Industries and Commerce.
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Step 2: Fill in the mandatory fields, attach passport-sized photo and required documents (self-attested if necessary).
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Step 3: Submit the completed form and documents to the concerned authority.
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Step 4: Request an acknowledgment receipt from the authority, containing the submission details and unique identification number.
Documents Required
• Entrepreneur’s Memorandum Part-2 (UAM/PMT) Registration/Commencement of Production Certificate
• Caste certificate (if applicable)
• Loan sanction letter
• Chartered Accountant Certificate for payments to quality certifying agencies
• Approval copy obtained from the Director of Industries for MOU with the technology-providing agency
• Month-wise interest paid statement from the financial institution
• Provident Fund Remittance for the claiming period
• Quality certificates and receipt for payment to certifying agencies
• Approval from the Quality Council of India for the certifying agency
Frequently Asked Questions (FAQs)
Q: What is the timeline for submitting subsidy applications for capital investment?
A: Applications should be submitted within one year from the date of commencement of production for new units or within one year of completion of expansion/diversification/modernization for existing units.
Q: How much employment must be provided to residents of Puducherry for a unit to be eligible for incentives/subsidies?
A: The unit should provide at least 60% of its total employment to Puducherry residents.
Q: What is the composition of the State Level Committee responsible for evaluating subsidy applications?
A: The State Level Committee includes officials from the Department of Industries, who evaluate each application on its merits.
Q: Under what circumstances would the entire amount of subsidies and incentives availed need to be refunded?
A: If the unit goes out of production within 5 years or has provided false information for the application, the subsidy must be refunded with applicable interest.
Q: Which types of investments are ineligible for investment subsidy according to the provided conditions?
A: Second-hand or used machinery is not eligible for subsidy.
Q: Through whom is the subsidy amount disbursed if the unit is financed by financial institutions/banks?
A: The subsidy is disbursed through the financial institution/bank directly to adjust the loan or for working capital needs.
Q: What happens if an industrial unit has availed investment subsidy from the Central Government/State Government or any other agency?
A: The unit cannot reapply for subsidy for the same investment under this scheme.
Q: What is the condition for industrial units set up by the same person to be eligible for subsidy as separate entities?
A: The units must be separate entities with different locations and must have separate licenses/registrations for each unit.
Q: How is the commencement date for regular commercial production determined?
A: The commencement date is confirmed after verification by the Industries Department.
Q: What is the employment requirement for qualifying for incentives/subsidies?
A: The unit must provide at least 60% of employment to the people of Puducherry.
Q: What is the role of the State Level Committee in the subsidy application process?
A: The State Level Committee evaluates the merit of the applications and recommends the quantum of subsidy to be provided.
Sources and References
• Guidelines
• Application Form & Documents Required
• Grievance Redressal
• Helpline