Kantedar Tarbandi Yojana 2026

This scheme provides a subsidy of 20% on plant and machinery investment, up to ₹20 Lakhs, for Read More... new IT/ITES industrial units established in Puducherry. Read less

Details

Starting a new IT or ITES business in Puducherry? The government is here to support you with a special subsidy for your capital investments. This scheme aims to boost entrepreneurship in the technology sector.

What Is This Scheme?

This is a part of the larger 'Motivation of Entrepreneurs to Start Industries and Fiscal Assistance to Industries' initiative by the Department of Industrial Development in Puducherry. It specifically helps new IT and ITES companies by providing financial assistance on the money they spend on plant and machinery.

Who Can Benefit From This Scheme?

The scheme is designed for new industrial units in the Information Technology (IT) and Information Technology Enabled Services (ITES) sectors that began their operations on or after November 6, 2002. This includes micro, small, medium, and large enterprises.

Why This Scheme Is Important

By offering a subsidy on capital investment, the scheme encourages new businesses to set up and grow in the IT/ITES sector. This not only helps entrepreneurs by reducing their initial financial burden but also contributes to the industrial development and job creation within the Union Territory of Puducherry.

Objective

This scheme provides a subsidy of 20% on plant and machinery investment, up to ₹20 Lakhs, for new IT/ITES industrial units established in Puducherry.

Benefits

Subsidy amount:

Small and marginal farmers: 60% of the total cost, capped at ₹48,000/-.
Other farmers: 50% of the total cost, capped at ₹40,000/-.
Community application (group of 10+ farmers with min. 5 hectares collectively): 70% of the total cost, capped at ₹56,000/- per farmer .

Land covered:

Up to 400 meters of fencing per farmer.

Sources and references

Guidelines

Scheme Details

Registration

Eligibility Criteria

You must be operating a new IT/ITES industrial unit.
Your unit must have started production on or after November 6, 2002.

How To Apply

Applications for this subsidy are accepted offline. You can get the prescribed application form from the Official Website of the Department of Industrial Development, Puducherry. Ensure you fill out the form completely and submit it as per the department's guidelines.

Official Link for Form: An official website link for the form is usually available on the department's portal.

Documents Required

To apply for the IT/ITES Capital Investment Subsidy, you'll need to prepare a set of documents. These are generally categorized as follows:

General Documents

Entrepreneurs Memorandum Part-2 (UAM/ PMT) Registration or Commencement of Production Certificate.
If you are an SC/ST entrepreneur, a caste certificate from the appropriate authority.
Loan Sanction Letter (if applicable).

Scheme-Specific Documents

Registered Land Document.
Plan Approval from the Pollution Control Board.
Engineer’s Certificate for Building Valuation, assessed by the Public Works Department (PWD) or Pondicherry Industrial Promotion Development and Investment Corporation (PIPDIC).
Registered Lease Agreement for the Building (if applicable).
Purchase Invoices for Plant & Machinery, Pollution Control Equipment, and Generator.
Chartered Accountant Certificate detailing the investment in Fixed Assets, Pollution Control Equipment, and Generator.
Certificate for the Installation of Pollution Control Equipment from the Directorate of Sustainable Technologies and Environmental (DSTE).
Air/Water Consent Orders from DSTE.
Notary Affidavit.

Case-Specific Documents

If you are using second-hand machinery, you must provide an affidavit stating that you have not previously received subsidy for it from the Central Government or any State or Union Territory government.

FAQ’s

What's the main requirement to be eligible for this IT/ITES subsidy?

To be eligible, your business must be a new IT or ITES industrial unit that started production on or after November 6, 2002.

If my unit is financed by a bank, can the subsidy money be used for different purposes like loans and new equipment?

Yes, for units that have bank financing, the subsidy can be used to pay off part of the loan, or you can use it to buy more fixed assets, or even for working capital needs.

How do I get the application form for this IT/ITES subsidy, and does it cost anything?

You can download the application form for free from the official website of the Directorate of Industries and Commerce in Puducherry.

For self-financed businesses, how is the subsidy amount handed over?

If your unit is self-financed, the subsidy amount will be paid directly to you, the entrepreneur.

What is the role of the PWD or PIPDIC in the application for the IT/ITES subsidy?

The Public Works Department (PWD) or Pondicherry Industrial Promotion Development and Investment Corporation (PIPDIC) plays a role in assessing your building's valuation. You'll need an engineer's certificate from them for this.

When should new IT/ITES units apply for this subsidy, and how is the deadline figured out?

New units need to submit their application within one year from the date they received their Entrepreneurs Memorandum Part-2, Permanent Registration, or the date production started.

Is there a separate application timeline for existing businesses that are expanding or modernizing?

Yes, existing units that have completed expansion, diversification, or modernization projects must apply for the subsidy within one year of project completion.

What kind of proof is needed for the investment in fixed assets and pollution control equipment?

You will need a certificate from a Chartered Accountant that verifies your investment in fixed assets, pollution control equipment, and any generators purchased.

How does the scheme ensure that environmental rules are followed, and what documents are required for this?

To ensure compliance with environmental regulations, you'll need to submit documents like air and water consent orders obtained from the Directorate of Sustainable Technologies and Environmental (DSTE).

What's the importance of the Notary Affidavit when applying with second-hand machinery?

The Notary Affidavit is very important if you're using second-hand machinery. It's a sworn statement confirming that you haven't received any similar subsidy from the Central government, any State government, or any other Union Territory for that machinery.

What is the DSTE's role in the IT/ITES subsidy application process?

The Directorate of Sustainable Technologies and Environmental (DSTE) is involved in providing essential certifications. This includes certificates for installing pollution control equipment and issuing air/water consent orders.