"Interest Subsidy (For Micro, Small, Medium and Large New Industries)" under "Motivation of Entrepreneurs to Start Industries and Fiscal Assistance to Industries - Various Incentives"
Through this scheme, the industrial units availing loans from financial institutions towards the creation of fixed assets and for working capital shall be eligible for an interest subsidy to an extent of 25% of the annual interest amount paid. The applications are accepted offline.
About This Scheme
Benefits
₹5.0 L · annual
- Subsidy: Upto 25% of the annual interest amount paid.
- Admissibility: From the date of commencement of commercial production.
- Ceiling: ₹5,00,000/- per annum.
- Period: 5 years for Puducherry and Karaikal, and for 7 years for Mahe and Yanam.
- Number of Installments: In single or multiple instalments, depending on the availability of funds.
- Mode of Disbursement: Through the financial institution.
Eligibility
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Required Documents
- ✦Entrepreneurs Memorandum Part-2 (UAM/ PMT) Registration/ Commencement of Production Certificate.
- ✦Caste certificate from the competent authority in the case of Scheduled Caste/Scheduled Tribe (SC/ST) Entrepreneurs.
- ✦Loan Sanction Letter.
- ✦Purchase Invoices for Plant & Machinery/ Pollution Equipment/ Generator.
- ✦Chartered Accountant Certificate for the Investment in Fixed Assets / Pollution Control Equipment / Generator.
- ✦Month-wise Interest Paid Statement from the Finance Institution/Bank Along with No-due Certificate.
- ✦List of Employees Covered Under the Provident Fund Scheme Along with Wage/Salary Payment Particulars.
- ✦Provident Fund Remittance for the Claiming Period.
- ✦Notary Affidavit.
- ✦'No Due Certificate of Interest' issued by the financial institution/bank etc.
✦ Required ◦ Optional
How to Apply
Step 1: The industrial unit should register the claim for the grant of incentive/subsidy in the prescribed form available on the Official Website of the Directorate of Industries and Commerce, Puducherry.
Step 2: In the application form, fill in all the mandatory fields, and attach copies of all the mandatory documents (self-attest, if required).
Step 3: The unit should submit the duly filled and signed application form and the documents to the concerned authority.
Step 4: Request a receipt or acknowledgement from the concerned authority to whom the application form has been submitted. Ensure that the receipt contains essential details such as the date and time of submission, and a unique identification number (if applicable).
Post-Application ProcessStep 1: The applications shall be scrutinized by the Directorate of the Industries on a merit basis for the grant of incentives/subsidies/assistance to determine the quantum of amount admissible will be placed before the State Level Committee.
Step 2: The State Level Committee will go into the merits of each case to decide whether the unit qualifies for the grant of incentive/subsidy and will recommend the quantum of incentive/subsidy admissible to the unit.
Application DeadlineFor New Units
Within one year from the date of commencement of obtaining the Entrepreneurs Memorandum Part-2/ Permanent Registration/ Commencement of Production Certificate.
For Existing Units
Within one year of completion of Expansion/ Diversification/ Modernization.
Quick Info
- Level
- Central Government
- Max benefit
- ₹5.0 L