"Capital Investment Subsidy: Information Technology (IT) / Information Technology Enabled Services (ITES) Industries" under "Motivation of Entrepreneurs to Start Industries and Fiscal Assistance to Industries" 2026

The Puducherry government's "Infrastructure Subsidy" scheme provides a 25% subsidy to industrial units and developers for investing Read More... in building construction for IT and biotechnology sectors. Read less

Details

Looking to set up an IT or biotechnology business in Puducherry? The Union Territory's Department of Industries and Commerce offers the "Infrastructure Subsidy" to support entrepreneurs and developers.

What is the Infrastructure Subsidy Scheme?

This scheme is part of a larger initiative called "Motivation of Entrepreneurs to Start Industries and Fiscal Assistance to Industries." It's designed to give a financial boost to those investing in industrial buildings. Whether you're building a factory for your IT company, a lab for biotech research, or constructing space to lease out to these sectors, this subsidy can help cut down your costs.

Who Can Benefit?

The scheme targets several groups: infrastructure developers building spaces for IT firms, industrial units constructing their own IT factory buildings, and developers or units involved with biotechnology industries.

Why This Scheme is Important

By providing significant financial assistance, the scheme aims to encourage the growth of crucial sectors like IT and biotechnology in Puducherry. This helps create more job opportunities and boosts the region's economic development. It lowers the initial investment burden, making it easier for businesses to start and expand.

Objective

The Puducherry government's "Infrastructure Subsidy" scheme provides a 25% subsidy to industrial units and developers for investing in building construction for IT and biotechnology sectors.

Benefits

Subsidy on the investments made on plant and machinery @ 20% thereon subject to a maximum of ₹20,00,000/- for the large, medium, small and micro enterprises during the period of operation of the scheme.Number of InstallmentsThe subsidy shall be disbursed in a single instalment.Mode of DisbursementIn the case of Units Financed by Financial Institutions/Banks,the subsidy amount shall be disbursed through the financial institutions/banks only, towards the adjustment against the loan availed by the entrepreneurs or for the creation of additional fixed assets or working capital purposes.In the case of Self-financed Units,the subsidy shall be disbursed directly to the entrepreneurs.

Sources and references

Guidelines

Eligibility Criteria

To be eligible for this subsidy, you must meet one of the following criteria:

You are an infrastructure developer who has invested in constructing a building with a minimum area of 50,000 sq. ft. specifically for leasing out to IT industries.
You are an industrial unit investing in building a factory of at least 50,000 sq. ft. to set up your own IT industry.
You are an infrastructure developer who has invested in constructing a building with a minimum area of 50,000 sq. ft. to lease out to biotechnology industries.
You are a biotechnology industry unit investing in a building of at least 5,000 sq. ft. for your own use.

Important Conditions:

The investment for the building must have been made on or after July 31, 2006.
For this scheme, "IT industries" cover manufacturers of Computer Systems, Software/Information Technology Enabled Services (ITES), Business Process Outsourcing (BPO), and Knowledge Process Outsourcing (KPO).

How To Apply

Applications for the Infrastructure Subsidy are accepted offline. You will need to complete the prescribed application form and submit it with all the necessary documents.

The prescribed application form is available on the official website of the Department of Industries and Commerce, Puducherry.

Documents Required

Here's a list of documents typically needed for your application:

Entrepreneurs Memorandum Part-2 (UAM/ PMT) Registration or Commencement of Production Certificate.
Caste certificate (if applicable for Scheduled Caste/Scheduled Tribe entrepreneurs).
Loan Sanction Letter.
Registered Land Document.
Plan Approval from the Pollution Control Board (PPA).
Engineer’s Certificate for Building Valuation, assessed by the Public Works Department (PWD) or PIPDIC.
Registered Lease Agreement for the Building (if applicable, between developer and unit).
Purchase Invoices for Plant & Machinery, Pollution Equipment, or Generator.
Chartered Accountant Certificate detailing investment in Fixed Assets, Pollution Control Equipment, or Generator.
Certificate for the Installation of Pollution Control Equipment from the Directorate of Sustainable Technologies and Environmental (DSTE).
Air/Water Consent Orders obtained from DSTE.
Notary Affidavit.

FAQ’s

What types of companies are considered 'IT industries' for this subsidy?

For the purpose of this scheme, 'IT industries' include businesses that manufacture Computer Systems, offer Software or Information Technology Enabled Services (ITES), Business Process Outsourcing (BPO), and Knowledge Process Outsourcing (KPO).

If I'm building a factory for a biotechnology company, what are the building size requirements for me to get the subsidy?

If you're an infrastructure developer building a facility to lease out to a biotechnology industry, the building needs to be at least 50,000 sq. ft. If a biotechnology industry unit is building for its own use, the minimum size is 5,000 sq. ft.

How often will I receive the subsidy payments?

The subsidy is paid out annually. Each annual payment will not be more than ₹25,00,000/-, and this continues until the total eligible subsidy amount has been paid out.

Can I get this subsidy if I invested in my building before July 2006?

No, to be eligible for this Infrastructure Subsidy, the investment made on the building must be on or after July 31, 2006.

Where do I get the official application form for the Infrastructure Subsidy?

You can find the official prescribed application form on the Department of Industries and Commerce, Union Territory of Puducherry's website. You'll need to download it to fill out and submit offline.

What is the maximum subsidy an IT industrial unit can receive?

An IT industrial unit investing in building its own factory of at least 50,000 sq. ft. can receive a 25% subsidy, with a maximum limit of ₹1,00,00,000/-.

What is the minimum building size required for infrastructure developers leasing space to IT industries?

Infrastructure developers must have invested in constructing a building with a minimum built-up area of 50,000 sq. ft. to be eligible for leasing out to IT industries under this scheme.

How is the subsidy calculated for a biotechnology industry unit that will use the building itself?

A biotechnology industry unit that invests in a building of at least 5,000 sq. ft. for its own use is eligible for a 25% subsidy, up to a maximum of ₹50,00,000/-.

Is there a minimum building size requirement for infrastructure developers renting out to biotechnology industries?

Yes, for infrastructure developers who invest in buildings with a minimum area of 50,000 sq. ft. to lease out to biotechnology industries, they can be eligible for the subsidy.

What documentation proves the valuation of the building for subsidy claims?

You will need an Engineer’s Certificate for Building Valuation. This should be assessed by the Public Works Department (PWD) or the Puducherry Industrial Promotion Development and Investment Corporation (PIPDIC).

What happens if I'm an infrastructure developer leasing out to both IT and biotech companies? Can I claim separate subsidies?

Yes, if you meet the specific eligibility criteria for both IT and biotechnology industries, you can potentially claim separate subsidies for each category.

How should I submit my application for this scheme?

Applications for the Infrastructure Subsidy scheme must be submitted offline. You'll need to fill out the prescribed form available on the department's website and submit it with the required documents.