Assistance for Technology Acquisition under Motivation of Entrepreneurs to Start Industries and Fiscal Assistance to Capital Intensive Industries

Assistance for Technology Acquisition under Motivation of Entrepreneurs to Start Industries and Fiscal Assistance to Capital Intensive Industries offers a 50% grant for technology acquisition in Puducherry. The scheme provides up to ₹10,00,000 in support to help new and existing local businesses adopt modern production methods. Managed by the Industries and Commerce Department, this support has been available across the Union Territory since 1st April 2017.

Applications are accepted offline through the District Industries Centre using the prescribed form. This scheme remains open for eligible industrial units in Puducherry during 2026-27, so businesses planning to upgrade their technology can still apply.

Assistance for Technology Acquisition under Motivation of Entrepreneurs to Start Industries and Fiscal Assistance to Capital Intensive Industries - Introduction

This scheme encourages local businesses to adopt better production methods by covering part of the cost of suitable technology. A 50% grant up to ₹10,00,000 is available for acquiring technology that fits your specific products or processes. You should submit your application offline using the official form available from the District Industries Centre.

The support is meant for units that either start fresh with modern technology or upgrade an existing setup. Payments may be released in one or more installments depending on available funds, and the whole process is handled by the Directorate of Industries and the State Level Committee.

Benefits

This scheme covers 50% of your technology acquisition costs, capped at ₹10,00,000. You can use these funds to acquire appropriate technology that improves your specific products or manufacturing processes. Payments may be issued in one or multiple installments depending on available funds.

If your unit has a bank loan, the subsidy will be routed through your financial institution to adjust against the loan, build fixed assets, or support working capital. If you are running a self-financed unit, the government will pay the subsidy directly to you.

Eligibility

To qualify for this support, you should launch a new unit with updated technology or upgrade your existing unit for better processes. For example, an entrepreneur who sets up a new textile unit in Puducherry with modern looms fits the criteria, and a factory owner who upgrades an existing plastics plant with more energy-efficient machinery is also eligible.

You should make sure that at least 60% of your employees are residents of Puducherry and keep this ratio for the whole period. You must also avoid selling or transferring your plant and machinery for at least 5 years from your application date. Units starting production on or after 1st April 2017 are treated as new, while others are considered existing units.

If you own multiple units, you can claim the subsidy for each as a separate entity, provided they have different locations and distinct government registrations.

Exclusions

This support does not cover the purchase of general plant, machinery, or equipment. It is strictly aimed at the acquisition of specialized technology for your industrial process. Office equipment, furniture, and preliminary operating costs are also not eligible.

Application Process

STEP 1 - Download the prescribed form from the District Industries Centre or the official Puducherry government website. Fill in all required information carefully and attach your supporting documents.

STEP 2 - Sign the application and submit it to the appropriate local authority. Collect a stamped receipt with your unique submission ID so you can track your application later.

STEP 3 - The Directorate of Industries reviews your application on its merits and forwards it to the State Level Committee. The committee checks whether your unit meets the requirements and recommends the final grant amount.

You should apply within one year of your commencement of production for new units, or within one year of completing your expansion or modernization for existing units.

Documents

To complete your required documents list, please prepare the following:

• Proof of registration such as Entrepreneurs Memorandum Part-2 or UAM/PMT.
• Official loan sanction documents from your bank.
• Expenditure receipts for payments made to your technology provider.
• A certificate from a Chartered Accountant verifying your payments to agencies or patent attorneys.
• An approved copy of the Memorandum of Understanding (MOU) signed with your technology provider.

You should update the department on your production and employment status annually.

References

GOs and Notifications | Official Government Order

FAQ's

How much local employment is mandatory?

You must make sure that at least 60% of your total workforce are residents of Puducherry to remain eligible.

Who sits on the State Level Committee?

The committee includes the Secretary (Industries and Commerce), the Managing Director of PIPDIC, a Finance Department representative, and the Director of Industries and Commerce.

What if I change my partnership structure?

If you add or change partners within 5 years of receiving the subsidy, you should refund the entire grant amount plus 14% simple interest per year.

Are my office expenses covered?

No, expenses like office equipment, furniture, or preliminary operating costs are not eligible for subsidy support.

Can I apply if I received a subsidy from another agency?

If you have already received an investment subsidy for the same project from any other government agency, you are not eligible for this scheme.

How is the commencement date confirmed?

The officials from the Industries Department verify your self-declared production commencement date through official site visits.