Infrastructure Development Subsidy (For IT/ITES) under Motivation of Entrepreneurs to Start Industries and Fiscal Assistance to Capital Intensive Industries gives a support grant to business entities in Puducherry. It offers a 30% subsidy, capped at ₹1,00,00,000, for infrastructure developers or industries that invest in buildings with a minimum of 50,000 sq.ft. of constructed area for IT or ITES activities. Applications are accepted offline through the prescribed forms on the official website of the department.
This scheme is run by the Industries and Commerce Department of Puducherry and has been in force since 1st April 2017 across the whole Union Territory. It helps developers and firms build large-scale facilities of at least 50,000 sq.ft. to lease out to IT companies or to use for their own industrial work. The subsidy amount is paid in annual installments, and the building value is assessed by the PIPDIC or the Public Works Department.
Infrastructure Development Subsidy (For IT/ITES) under Motivation of Entrepreneurs to Start Industries and Fiscal Assistance to Capital Intensive Industries - Introduction
Infrastructure Development Subsidy (For IT/ITES) under Motivation of Entrepreneurs to Start Industries and Fiscal Assistance to Capital Intensive Industries encourages growth of the IT sector in Puducherry by supporting developers who construct large facilities. The scheme provides a 30% subsidy on the investment made in a building with a minimum extent of 50,000 sq.ft. of constructed area. This support is meant for infrastructure developers and industries who lease out these facilities to IT companies or use them for their own manufacturing of computer systems, Software/ITES, BPO, or KPO.
Key Information
| Detail | Information |
|---|---|
| Scheme Name | Infrastructure Development Subsidy (For IT/ITES) under Motivation of Entrepreneurs to Start Industries and Fiscal Assistance to Capital Intensive Industries |
| Level | State |
| Scheme For | Infra |
| Beneficiary State | Puducherry |
| Category | Business & Entrepreneurship, Transport & Infrastructure |
| Target Beneficiaries | Business Entity |
| Sub Category | Setting up, start-up, entrepreneurship, Infrastructure |
| Benefit Type | Cash |
| DBT Scheme | No |
| Nodal Department | Industries and Commerce Department, Puducherry |
Benefits
This scheme provides a 30% subsidy, subject to a maximum of ₹1,00,00,000. The building value will be assessed by the PIPDIC or the Public Works Department before the amount is finalised.
Number of Installments
The government will disburse the subsidy in annual installments. Each installment should not exceed ₹25,00,000 per year until the total eligible amount is paid.
Mode of Disbursement
If the unit is financed by a bank or a financial institution such as PIPDIC, the subsidy will be sent directly to them to adjust against the loan or to help create more fixed assets. If the unit is self-financed, the authorities will disburse the subsidy directly to the entrepreneur.
Eligibility
To qualify for this support, the applicant should meet the following criteria:
- The investment must be in a building with a minimum constructed area of 50,000 sq.ft.
- The investment should be made by infrastructure developers or industrial firms.
- The premises must be leased out to IT industries or used for own manufacturing of computer systems, Software/ITES, BPO, or KPO.
- At least 60% of the staff must be residents of the Union Territory of Puducherry, and this workforce level must be maintained as per the affidavit.
- Fixed assets, including plant and machinery, must not be sold or transferred for at least 5 years after submitting the application or receiving the subsidy.
Units that set up new industries on or after 1st April 2017 are treated as new units. Units that were operational before this date are classified as existing units. For example, if Ravi starts a new IT software firm in 2018, he qualifies as a new unit and can apply for this subsidy.
Special Cases
If an entrepreneur owns multiple industrial undertakings as a proprietor or through common partners, each unit can get a separate subsidy, provided they are located in different places and hold independent registrations and clearances.
Exclusions
Buildings that were already occupied or previously used and later purchased by the entrepreneur for setting up an industry are not eligible for this subsidy.
Application Process
Offline Application
STEP 1 - Register the claim by downloading the prescribed form from the official website of the Directorate of Industries and Commerce, Puducherry.
STEP 2 - Fill in every mandatory field carefully and attach the required documents with self-attestation where necessary.
STEP 3 - Submit the signed application along with all proof to the relevant authority.
STEP 4 - Always ask for a receipt as proof of submission. This document is important as it contains the unique identification number and the submission date.
Post-Application Process
The Directorate of Industries will scrutinize the application to check for merit. After verification, the file is placed before the State Level Committee, which evaluates the proposal and recommends the final subsidy amount.
Application Deadline
For a new unit, the application should be made within one year of commencing production. Existing units should submit their claims within one year of completing expansion or modernization activities.
Documents
Keep copies of the following documents ready while applying:
- Entrepreneurs Memorandum Part-2 (UAM/PMT) or Commencement of Production Certificate.
- Caste certificate (for SC/ST entrepreneurs).
- Loan Sanction Letter.
- Registered land documents.
- Plan Approval from the Pollution Control Board (PPA).
- Engineer's Certificate for building valuation from PWD or PIPDIC.
- Registered lease agreement between the entrepreneur and the unit.
- Purchase invoices for plant, machinery, or pollution equipment.
- Chartered Accountant certificate for investments in fixed assets.
- Installation certificate for pollution control equipment from DSTE.
- Air and water consent orders.
- Notary affidavit.
References
Guidelines | Application Form & Documents | Grievance Redressal | Helpline
FAQ's
How much employment must be provided to residents of Puducherry for a unit to be eligible?
At least 60% of the total workforce must be residents of Puducherry.
What is the composition of the State Level Committee responsible for evaluating subsidy applications?
The committee includes the Secretary to Government (Industries & Commerce), the Managing Director of PIPDIC, the Deputy Secretary/Under Secretary (Finance), and the Director of Industries and Commerce.
Under what circumstances would the entire amount of subsidies need to be refunded?
If partners or shareholders are changed within 5 years of receiving the subsidy, the entire amount must be refunded plus a simple interest of 14% per annum.
Which types of investments are ineligible for the investment subsidy?
Expenses such as working capital, commissioning fees, royalties, pre-operative costs, transportation charges, office furniture, crates, and consumable stores are not eligible.
What happens if an industrial unit has already received a subsidy from another agency?
If an investment subsidy has already been availed from the Central or State Government for the same investment, the unit is not eligible to apply again under this scheme.
What is the role of the State Level Committee?
The committee reviews the application on merit and recommends whether the unit qualifies for the subsidy and the exact amount to be granted.
Who sanctions the final subsidies?
The Director of Industries and Commerce sanctions the payments after receiving recommendations from the Committee.