Infrastructure Development Subsidy (For IT/ITES)" under "Motivation of Entrepreneurs to Start Industries and Fiscal Assistance to Capital Intensive Industries

Description
"Infrastructure Development Subsidy For IT/ITES " under "Motivation of Entrepreneurs to Start Industries and Fiscal Assistance to Capital Intensive Industries" is a scheme by the Industries and Commerce Department, Union Territory of Puducherry. The scheme came into force with effect from 1st April 2017 and is in operation in the whole of the UT of Puducherry. Through this scheme, 30% Subsidy subject to a maximum of ₹1,00,00,000/- will be granted on the investment made on building with a minimum extent of 50,000 sq.ft. constructed area, by the infrastructure developers/industries for leasing out to Information Technology industries or for own industrial use. The applications are accepted offline in the prescribed form available on the Official Website of the Department.

Exclusions
• Buildings which have already been occupied and used, subsequently purchased by the entrepreneurs for setting up of the industry are not eligible for subsidy.

Benefits
• 30% subsidy, subject to a maximum of ₹1,00,00,000/-.
• *The building value will be assessed by the PIPDIC/Public Works Department.
• The infrastructure subsidy shall be disbursed in annual installment not exceeding ₹25,00,000/- per annum till completion of the total eligible subsidy.
• The subsidy amount shall be disbursed through the financial institutions/banks only, if the unit is financed by them, towards the adjustment against the loan availed by the entrepreneurs or for the creation of additional fixed assets or for the working capital purposes.
• In case of self-financed units, the subsidy shall be disbursed directly to the entrepreneur/unit.
• *The financial institution shall mean and include PIPDIC or any other Government Corporation, Scheduled Banks including Co-operative Banks.

Eligibility Criteria
1. - The investment should have been made on building with a minimum extent of 50,000 sq.ft. constructed area.
2. - The investment should have been made by the infrastructure developers/industries.
3. - The investment should have been made for leasing out to IT industries or for own industrial use (for manufacturer of computer systems, Software/ITES, BPO, KPO).
4. - The unit should provide at least 60% of employment to the people of the Union territory of Puducherry of the total employment strength of the industrial units. This 60% of the local employment will have to be maintained by the industrial unit during the period specified in the Affidavit.
5. - The industrial unit shall not transfer or dispose of the fixed asset including plant and machinery in any manner till the completion of 5 years from the date of submitting the application/disbursement of the subsidy whichever is later.
6. - The additional investments made by the new/existing industrial units after availing the first claim are also eligible for subsidy up to the ceiling limit.
7. *The date of commencement as admitted by the entrepreneurs shall be reckoned after due verification by the officials of the Industries Department.
8. *The units which have commenced commercial production on or after 1-4-2017 are considered new industries.
9. *The units which have commenced production before 1-4-2017 are considered as existing units.
10. > **Special Cases**
11. If, two or more industrial undertakings are set up by the same person as proprietor, common partners, common Board of Directors/shareholders, such units are eligible for subsidy as separate entity provided the location of the unit are different and licenses /clearances/ registrations are obtained separately for the enterprises.

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
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).

Step 5: Step 1: The applications shall be scrutinized by the Directorate of the Industries on merit basis for the grant of incentives/subsidies/assistances to determine the quantum of amount admissible will be placed before the State Level Committee.
Offline
Step 1: The applications shall be scrutinized by the Directorate of the Industries on merit basis for the grant of incentives/subsidies/assistances to determine the quantum of amount admissible will be placed before the State Level Committee.

Step 6: 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.
Offline
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: How much employment must be provided to residents of Puducherry for a unit to be eligible for incentives/subsidies/assistance?
A: At least 60% of employment must be provided to the people of Puducherry out of the total employment strength of the industrial units.

Q: What is the composition of the State Level Committee responsible for evaluating subsidy applications?
A: The State Level Committee consists of the Secretary to Government (Industries & Commerce), the Managing Director of PIPDIC, the Deputy Secretary/Under Secretary (Finance), and the Director of Industries and Commerce, all from Puducherry.

Q: Under what circumstances would the entire amount of subsidies and incentives availed need to be refunded, according to the content?
A: If the unit undergoes any amendments in new partners or shareholders within five years from the date of availing the subsidy, the entire amount of subsidies and incentives availed must be refunded with a simple interest of 14% per annum.

Q: Which types of investments are ineligible for investment subsidy according to the provided conditions?
A: Working capital, commissioning fees, goodwill fees, royalty, preliminary and pre-operative expenses, capitalized interest, transportation and erection charges, goods vehicles, office equipment, furniture, crates, pallets, and consumable stores, etc., are ineligible for investment subsidy.

Q: Through whom is the subsidy amount disbursed if the unit is financed by financial institutions/banks?
A: The subsidy amount is disbursed through financial institutions/banks towards the adjustment against the loan availed by the entrepreneurs or for the creation of additional fixed assets or for working capital purposes.

Q: How is the subsidy disbursed for self-financed units?
A: For self-financed units, the subsidy is disbursed directly to the entrepreneur/unit.

Q: What happens if an industrial unit has availed investment subsidy from the Central Government/State Government or any other agency?
A: If an industrial unit has availed investment subsidy from any other agency, it is not eligible to apply for a subsidy for the same investment again under this Scheme.

Q: What is the condition for industrial units set up by the same person to be eligible for subsidy as separate entities?
A: Industrial units set up by the same person as proprietor, common partners, or common Board of Directors/shareholders are eligible for subsidy as separate entities provided the location of the units is different and licenses/clearances/registrations are obtained separately for the enterprises.

Q: How is the commencement date for regular commercial production determined?
A: The commencement date is verified by Officials of the Industries Department based on the entrepreneur's admission.

Q: What is the employment requirement for qualifying for incentives/subsidies?
A: To qualify for incentives/subsidies, the industrial unit must provide at least 60% of employment to residents of Puducherry out of the total employment strength.

Q: What is the role of the State Level Committee in the subsidy application process?
A: The State Level Committee scrutinizes applications, determines eligibility, and recommends the quantum of incentive/subsidy admissible to the unit.

Q: Who sanctions the subsidies based on the Committee's recommendations?
A: The Director of Industries and Commerce sanctions the subsidies based on the Committee's recommendations.