Scheme to Award Scholarship to Young Artists 2026

The Puducherry government offers up to 45% subsidy on capital investment for new and existing industries, covering Read More... land, buildings, plants, and machinery. Applications are accepted offline. Read less

Details

Starting or expanding an industry in Puducherry just got more attractive! The Union Territory's Industries and Commerce Department has a scheme designed to boost entrepreneurs and support capital-intensive businesses. It’s called the Capital Investment Subsidy, and it’s here to help you invest in your venture.

What Is This Scheme?

This scheme, part of a larger initiative to motivate entrepreneurs and provide fiscal help to capital-intensive industries, provides a subsidy on the money you invest in your business. Whether you're setting up a new unit or expanding an existing one, this scheme can significantly reduce your upfront costs.

Who Can Benefit From This Scheme?

The scheme is open to various types of businesses: Micro, Small, Medium, and Large Enterprises. It's especially beneficial for entrepreneurs from Women, Scheduled Caste (SC), and Scheduled Tribe (ST) categories, offering them higher subsidy percentages. The scheme is operational across the entire Union Territory of Puducherry for investments made on or after April 1, 2017.

Why This Scheme Is Important

By providing financial assistance for capital investments, this scheme aims to encourage industrial development, create employment opportunities, and foster economic growth in Puducherry. It helps entrepreneurs overcome financial hurdles, making it easier to invest in essential assets like land, buildings, and machinery, thereby promoting a more robust industrial ecosystem.

Objective

The Puducherry government offers up to 45% subsidy on capital investment for new and existing industries, covering land, buildings, plants, and machinery. Applications are accepted offline.

Benefits

Government College of Fine Arts, Chennai

Scholarship of ₹3,000/- to 10 outstanding students studying in final year B.F.A. (Bachelor of Fine Arts).

Scholarship of ₹5,000/- to 4 outstanding students studying in final year M.F.A. (Master of Fine Arts).

Government College of Fine Arts, Kumbakonam

Scholarship of ₹3,000/- to 10 outstanding students studying in final year B.F.A. (Bachelor of Fine Arts).

Scholarship of ₹5,000/- to 2 outstanding students studying in final year M.F.A. (Master of Fine Arts).

Sources and references

Guidelines

Eligibility Criteria

To be eligible for this scheme, your industrial unit needs to meet the following conditions:

The scheme is applicable to Micro, Small, Medium, and Large Enterprises, as well as Women/SC/ST Entrepreneurs.
For SC/ST/Women categories, the unit must be fully owned by individuals from these categories.
In partnership firms and private limited companies, all partners, shareholders, and board members must belong to the specified category (Women/SC/ST) if availing benefits under that category.
Investments made on or after April 1, 2017, are eligible.
At least 60% of the total employment in your unit must be provided to residents of Puducherry. This local employment percentage must be maintained for a specified period.
You cannot transfer or sell any fixed assets, including plant and machinery, for 5 years from the application date or subsidy disbursement date (whichever is later).
Additional investments made by new or existing units after their first claim are also eligible for subsidy, up to the ceiling limit.

Definitions:

New Industries: Units that started commercial production on or after April 1, 2017.
Existing Units: Units that started commercial production before April 1, 2017.
The commencement date is verified by officials from the Industries Department based on the entrepreneur's declaration.

Special Cases:

If the same person owns multiple industrial units (as proprietor, partner, or shareholder), these units can be considered separate entities for subsidy, provided they are located differently and have separate licenses, clearances, and registrations.

How To Apply

Applications for the Capital Investment Subsidy are accepted offline. Here’s how you can proceed:

Obtain the prescribed application form. This form is available on the Official Website of the Industries and Commerce Department, Puducherry.
Fill out the form accurately with all the required details.
Submit the completed application form offline to the relevant office of the Industries and Commerce Department.

Official Address for Submission (as per scheme details):

Applications are to be submitted offline in the prescribed form available on the Official Website of the Department.

Documents Required

To apply for the Capital Investment Subsidy, ensure you have the following documents ready:

Entrepreneurs Memorandum Part-2 (UAM/ PMT) Registration or Commencement of Production Certificate.
Caste Certificate (if applicable) from the competent authority for SC/ST entrepreneurs.
Loan Sanction Letter (if the unit is financed by a bank).
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), executed between the developer and the unit.
Purchase Invoices for Plant & Machinery, Pollution Control Equipment, and Generator.
Chartered Accountant Certificate confirming investment in Fixed Assets, Pollution Control Equipment, and Generator.
Certificate for the Installation of Pollution Control Equipment from the Directorate of Sustainable Technologies and Environment (DSTE).
Air/Water Consent Orders obtained from DSTE.
A Notary Affidavit.

Additionally, industrial units will need to submit annual reports on production, employment, and other information as requested by the Industries and Commerce Department.

FAQ’s

What percentage of employees must be from Puducherry for a unit to get the subsidy?

Your industrial unit must provide jobs to at least 60% of Puducherry residents out of its total workforce to be eligible.

What happens if my unit gets a subsidy from another government source for the same investment?

If you've already received an investment subsidy from the Central Government, State Government, or any other agency for the same investment, you cannot apply for it again under this scheme.

If a unit is financed by a bank, how is the subsidy paid out?

If your unit has a loan from a financial institution or bank, the subsidy will be disbursed through that institution. It can be used to reduce your loan amount, buy more fixed assets, or cover working capital needs.

What if the same person runs multiple businesses? Can they all get the subsidy?

Yes, if one person owns multiple industrial units (as proprietor, partner, or shareholder), each unit can be eligible for subsidy separately. This is allowed as long as the units are in different locations and have their own separate licenses, clearances, and registrations.

Which types of expenses do NOT qualify for this investment subsidy?

The scheme does not cover investments in working capital, commissioning fees, goodwill fees, royalty, preliminary and pre-operative expenses. Expenses like capitalized interest, transportation and erection charges, goods vehicles, office equipment, furniture, crates, pallets, and consumable stores are also ineligible.

Can I get the subsidy if I'm a woman or from an SC/ST background?

Absolutely! Women, SC, and ST entrepreneurs get a higher subsidy of 45% on their investment, with a maximum limit of ₹75,00,000/-.

How is the date when my business started considered for the scheme?

The date of commencement for regular commercial production is verified by officials from the Industries Department based on what the entrepreneur declares.

What's the maximum subsidy I can receive as a Micro or Small Enterprise?

As a Micro or Small Enterprise, you can receive a subsidy of 40% on your investment, capped at a maximum of ₹40,00,000/-.

If my unit is self-financed, how do I receive the subsidy?

For units that are self-financed, the subsidy amount is paid directly to the entrepreneur or the unit itself.

Are there any restrictions on selling my business assets after getting the subsidy?

Yes, you must not transfer or sell any fixed assets, including plant and machinery, for a period of 5 years starting from the date you applied or received the subsidy, whichever is later.

What if my unit has owners who are not from Puducherry? Does that affect eligibility?

The scheme requires that at least 60% of your unit’s total employment must be provided to residents of Puducherry. This local employment quota needs to be maintained as per the affidavit submitted.

What happens if there are changes in partners or shareholders within 5 years of receiving the subsidy?

If your unit undergoes any changes in new partners or shareholders within five years from the date you received the subsidy, you will have to refund the entire subsidy amount along with simple interest at 14% per annum.