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

Description
The "Capital Investment Subsidy: Information Technology IT / Information Technology Enabled Services ITES Industries" is a Component of the "Motivation of Entrepreneurs to Start Industries and Fiscal Assistance to Industries" Scheme by the Department of Industrial Development Industries and Commerce , Union Territory of Puducherry. The new IT/ITES industrial unit which started production on or after 6-11-2002 are provided with 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. The applications are accepted offline in the prescribed form available on the Official Website of the Department.

Exclusions
• The second hand machinery is not eligible.

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.
• The subsidy shall be disbursed in a single instalment.
• In 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.

Eligibility Criteria
1. The applicant should be a new IT/ITES industrial unit which started production on or after 6-11-2002.

Application Process
Step 1: 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.
Offline
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: Step 2: In the application form, fill in all the mandatory fields, and attach copies of all the mandatory documents (self-attest, if required).
Offline
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: Step 3: The unit should submit the duly filled and signed application form and the documents to the concerned authority.
Offline
Step 3: The unit should submit the duly filled and signed application form and the documents to the concerned authority.

Step 4: 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 numb…
Offline
*The State Level Committee will go into the merits of each case to decide whether the unit qualifies for the grant of incentive/subsidy.
For 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.

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

Frequently Asked Questions
Q: Can the subsidy amount be utilized for both working capital and fixed assets by units financed by financial institutions/banks?
A: Yes, for units financed by financial institutions/banks, the subsidy amount can be utilized for both loan adjustment and the creation of additional fixed assets or working capital.

Q: Does the scheme encourage expansion, diversification, and modernization of existing units, and how is this reflected in the application deadline?
A: Yes, existing units are encouraged to apply within one year of completion of expansion, diversification, or modernization projects.

Q: Is there a specific location for obtaining the application form for the IT/ITES subsidy, and is there a cost associated with it?
A: The application form can be obtained free of cost from the Official Website of the Directorate of Industries and Commerce, Puducherry.

Q: What is the role of the Public Works Department (PWD) or Pondicherry Industrial Promotion Development and Investment Corporation (PIPDIC) in the IT/ITES subsidy application process?
A: An engineer's certificate for building valuation assessed by PWD/PIPDIC is required, emphasizing the importance of their role in assessing building valuations.

Q: Are there any specific requirements for valuation assessment of fixed assets or pollution control equipment in the IT/ITES subsidy application?
A: Yes, a chartered accountant certificate is necessary for assessing the investment in fixed assets, pollution control equipment, and generators.

Q: What is the significance of the Notary Affidavit in the case-specific documents for the IT/ITES subsidy application?
A: In case of second-hand machinery, the Notary Affidavit is crucial as it states that the subsidy has not been availed from the Central Government or any State or Union Territories.

Q: What role does the Directorate of Sustainable Technologies and Environmental (DSTE) play in the IT/ITES subsidy application process?
A: DSTE provides certificates for the installation of pollution control equipment, air/water consent orders, and other necessary environmental certifications.

Q: How does the scheme ensure compliance with environmental regulations, and what documents are needed for this purpose?
A: The scheme requires documents such as air/water consent orders obtained from the Directorate of Sustainable Technologies and Environmental (DSTE) to ensure compliance with environmental regulations.

Q: Is there a different application deadline for existing units, and how is it determined?
A: Existing units must apply within one year of completing Expansion/Diversification/Modernization.

Q: What is the application deadline for new units to apply for the IT/ITES subsidy, and how is it calculated?
A: New units must apply within one year from the date of obtaining the Entrepreneurs Memorandum Part-2/Permanent Registration/Commencement of Production Certificate.

Q: What is the eligibility criterion for an industrial unit to apply for the IT/ITES subsidy?
A: The applicant should be a new IT/ITES industrial unit that commenced production on or after 6-11-2002.

Q: In the case of self-financed units, how is the subsidy disbursed?
A: For self-financed units, the subsidy is disbursed directly to the entrepreneurs.