Capital Investment Subsidy: SC/ST/Women Entrepreneurs" Component of the "Motivation of Entrepreneurs to Start Industries and Fiscal Assistance to Industries" Scheme

Description
The "Capital Investment Subsidy: SC/ST/Women Entrepreneurs" 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 department extends subsidies for the investments made on land, buildings, plants & machinery @ 25% by the Scheduled Caste/ Scheduled Tribe/ Women Entrepreneurs. The applications are accepted offline in the prescribed form available on the Official Website of the Department.

Exclusions
• The following investments shall not be eligible for investment subsidy:
• A unit which has availed of an investment subsidy from the Central Government or any other agency shall not be eligible to apply for a subsidy for the same investment again under this scheme.

Benefits
• Subsidy for the investments made on land, building, plant & machinery @ 25% thereof subject to a maximum of ₹25,00,000/-.
• Subsidy at the rate of 25% on the land, building and plant & machinery subject to a cumulative maximum of ₹50,00,000/-.
• The subsidy shall be disbursed in a single instalment.
• NOTE: Where due to paucity of funds in a particular financial year or for such other reasons as the case may be, single instalment disbursement is not possible, such disbursement will be made in instalments.
• 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 Scheduled Caste/ Scheduled Tribe/ Woman Entrepreneur.
2. - In the case of indigenous second-hand machinery, the initial purchase value with depreciation, or the second-hand purchase value, or value assessed by the Chartered Engineer, whichever is less, will be taken as an investment.
3. - If two or more industrial undertakings are set up by the same person as proprietor, common partners, or common board of directors/shareholders, such units are eligible for subsidy as separate entities provided the location, products and licences/clearances/registrations are obtained separately.
4. > **For Scheduled Caste/ Scheduled Tribe/ Women Entrepreneurs**
5. - The subsidy for the investments made on land, building, plant & machinery will be applicable for the small and micro manufacturing enterprises which started production on or after 27-3-2002.
6. > **For Scheduled Caste and Scheduled Tribe Entrepreneurs**
7. - The subsidy to Scheduled Caste and Scheduled Tribe Entrepreneurs on the land, building and plant & machinery will be applicable on the investment made on or after 24-8-2011. The unit should commence production/complete expansion as the case may be on or after 24-8-2011.
8. - Second-hand machinery shall be eligible provided it is imported by the unit directly or through an agent, and the claim is supported with required import documents.

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: What measures are in place to address challenges related to fund availability for single installment disbursement?
A: In case single installment disbursement is not possible due to fund constraints, disbursement may be made in installments, addressing challenges related to fund availability.

Q: Can units expect timely disbursement of subsidies, or is it subject to the availability of funds?
A: The subsidy is disbursed upon the availability of funds during the financial year, and if funds are insufficient, disbursement may be made in the next financial year.

Q: Are there any specific criteria for units set up by the same person or group to be considered as separate entities for subsidy eligibility?
A: For units set up by the same person or group to be considered as separate entities, they must have distinct locations, products, and obtain licenses or clearances separately.

Q: How does the scheme contribute to the creation of additional fixed assets or working capital for industrial units?
A: The subsidy amount, when disbursed through financial institutions/banks, is adjusted against the loan availed by entrepreneurs, facilitating the creation of additional fixed assets or supporting working capital requirements.

Q: Can units apply for subsidies for activities beyond land, building, and machinery investments?
A: No, the scheme specifies exclusions, and investments in working capital, commissioning fees, goodwill fees, and other specified categories are not eligible for subsidies.

Q: How does the scheme encourage the use of second-hand machinery, and what documentation is required for units opting for this?
A: Units can use second-hand machinery, and the investment is considered based on the initial purchase value with depreciation or the assessed value by a Chartered Engineer. An affidavit stating that the subsidy hasn't been availed from other sources is required.

Q: What role does the State Level Committee play in the processing of applications for various subsidies?
A: The State Level Committee evaluates each case to determine whether the unit qualifies for the grant of incentive/subsidy, specifically for Capital Investment Subsidy and Infrastructure Subsidy.

Q: Can units apply for multiple subsidies under different schemes simultaneously?
A: A unit that has availed investment subsidy from Central Government or any other agency is not eligible to apply for the same investment subsidy under this scheme.

Q: How does the scheme contribute to the overall economic development of Scheduled Caste, Scheduled Tribe, and Women Entrepreneurs?
A: By providing subsidies for investments in key areas, the scheme promotes economic development, entrepreneurship, and empowerment among Scheduled Caste, Scheduled Tribe, and Women Entrepreneurs.

Q: What is the refund process for the subsidy, and when does it become applicable?
A: The subsidy is refundable with interest if obtained through misrepresentation, forgery, or if the unit remains non-operational for five years from the subsidy receipt. The Director of Industries and Commerce issues a registered demand notice for refund.

Q: Who determines the quantum of incentive/subsidy admissible to the unit, and when is it disbursed?
A: The Committee decides the quantum of incentive/subsidy, and disbursal occurs upon the availability of funds during the financial year.

Q: Is there a specific deadline for submitting applications, and does it vary for new and existing units?
A: For new units, applications should be submitted within one year from the date of obtaining relevant certificates. Existing units should apply within one year of completion of expansion, diversification, or modernization.