Scheme for SSI / MSI Sector (PIPDIC)

Description
The scheme "Scheme for SSI / MSI Sector" was launched by the Pondicherry Industrial Promotion Development and Investment Corporation Limited PIPDIC , Department of Industries & Commerce, Puducherry. The scheme aims to extend financial assistance for new enterprises to establish Micro, Small, or Medium units and for expansion, modernization, or diversification by existing units. The scheme provides financial assistance for acquiring fixed assets such as purchasing land, constructing buildings, and procuring machinery, equipment, electricals, and miscellaneous fixed assets. The scheme is implemented by PIPDIC, and applications for this scheme are accepted online.

Exclusions
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Benefits
• Financial assistance (Term Loan) up to a maximum of ₹10,00,00,000/- per project.
• Loan proceeds may be used for acquiring fixed assets, including the purchase of land, construction of buildings, and procurement of machinery, equipment, electricals, and miscellaneous fixed assets.
• The maximum repayment period is 8 years, which includes a maximum moratorium period of 2 years.
• The Debt Equity Ratio (DER) must be 3:1 for loans up to ₹25,00,000/-.
• The Debt Equity Ratio (DER) must be 2:1 for loans above ₹25,00,000/-.
• Collateral security in the form of immovable property must be offered as per the lending policy of the corporation.
• The valuation of properties offered as security must be assessed by engaging Chartered Engineers or valuers from the approved panel of the Corporation.
• In respect of immovable property situated in the Union Territory of Puducherry, the value of the property offered must be not less than the amount of the term loan sanctioned.
• In respect of immovable property situated outside the Union Territory of Puducherry, the value of land with building offered must be not less than 150% of the loan amount.
• If the property offered outside the Union Territory of Puducherry is only land, its value must be not less than 200% of the loan amount.
• For units promoted by Women, Scheduled Caste, Scheduled Tribe, or Differently Abled persons, the value of the property to be offered as collateral security is fixed at 50% of the loan amount.

Eligibility Criteria
1. The applicant must belong to the Small Scale or Medium Scale sector.
2. The applicant organization must be one of the following forms:
3. - Proprietary Concern
4. - Partnership Firm
5. - Co-operative Society
6. - Private Limited Company
7. - Public Limited Company
8. The loan application purpose must be for one of the following purposes:
9. - Setting-up New Small-Scale Units
10. - Setting-up New Medium Scale Units
11. - Expansion of Existing Units
12. - Modernization of Existing Units
13. - Diversification of Existing Units
14. - Any other activities eligible for assistance under the scheme.
15. The total project cost ceiling must not exceed ₹20,00,00,000/-.
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Application Process
Step 1: The applicant must access the PIPDIC website. Click "Login".
To register as a new customer, the applicant must click the “New customer” link under the “Login” menu, enter a username, email-id, password, and captcha, and then click the "Register" b…
Online

The applicant must access the PIPDIC website. Click "Login".
To register as a new customer, the applicant must click the “New customer” link under the “Login” menu, enter a username, email-id, password, and captcha, and then click the "Register" button.
Following successful registration, the applicant must use the registered email-id to log in, which initiates the process of sending an OTP to the registered email address.
The applicant is then required to enter the OTP received in the email and click the final "Login" button to gain access to the customer dashboard.
Upon successful login, the customer needs to update their profile by accessing the "Edit Profile" option, which is typically found in the top right corner of the dashboard.
The applicant must provide all required details, such as Name, Email, Contact Number, and Aadhaar Number, and conclude this step by clicking the "Submit" button located at the bottom of the page.
To initiate the loan application process, the applicant must navigate from the customer dashboard by clicking on the "Applications" tab, and then following the specific menu path corresponding to the required loan amount, such as Applications > Loan Applications > Upto 25 Lakhs Application or Above 25 Lakhs Application.
A pop-up window displaying a checklist of General Terms and Conditions, interest rate structure, investigation fees, and collateral security norms will appear for review.
The applicant must carefully read this checklist, confirm that all necessary documents have been gathered as requested, and click the “I Agree” button to proceed to the application form.
The applicant must proceed with filling the multi-step loan application form, providing appropriate details in all mandatory fields across the required steps.
This includes selecting the activity (Manufacturing, Job Work, Service) and the proposal type (New Project, Expansion, Modernisation, Diversification, Others), and clearly specifying the requested Term Loan and Working Capital assistance amounts.
The applicant must carefully read and agree to the comprehensive declaration provided within the application form (covering confirmation of true information, absence of unauthorized borrowing arrangements, and consent to verification) before finally ticking the "I agree to terms" checkbox and clicking the final "Submit" button for the main application form.
Following the submission of the main loan application, the system will redirect the applicant to enter the Biodata of the Promoter, Partner, or Director, which is typically a multi-step process.
During this stage, the necessary KYC and supporting documents, such as copies of PAN Card, Voters Identity, Ration Card, and Aadhaar Card, must be uploaded by clicking the "Choose File" button next to each field and selecting the required document from the computer's file explorer.
Once the entire application and bio-data submission is complete, the customer must pay the applicable application fee.
If selecting online payment, the system automatically redirects the applicant to the payment summary page, where they verify their details and click "Pay".
The user is then directed to the "PAYU BIZ" third-party payment gateway, where they must enter their debit card, credit card, or banking details, click "Pay Now," and confirm the transaction by entering the OTP received via SMS.
Upon successful payment, the user is redirected back to the Pondicherry Industrial Promotion Development and Investment Corporation Limited website, where a receipt for the application fee paid is generated.
The applicant can print this receipt or save it to their computer as a PDF for future reference.
The customer can monitor the status of their submitted application (which will initially show a status like 'UNDER REVIEW') by clicking the "View My application" link on the dashboard and selecting the relevant loan application in the drop-down menu.
For loans up to ₹25,00,000/-, the application fee is ₹100/-.
For loans above ₹25,00,000/-, the application fee is ₹200/-.
The applicant can contact the Managing Director, Pondicherry Industrial Promotion Development and Investment Corporation Limited at No.60, Romain Rolland Street, Puducherry 605001.
The office phone number is 0413-2334361.
The email address for contact is [email protected].
The General Manager (Administration) can be contacted via mobile at 9894653835.

Required Documents
• Copy Of Acknowledgement Of Micro, Small, And Medium Enterprise Registration Certificate Obtained From Industries Department.
• Copy Of Lease Deed For The Work Premises In ₹10.00 Rupees Stamp Paper.
• Copy Of Sale Deed For The Work Premises (In Case The Premises Is Owned By The Applicant).
• Quotation From Selected Supplier For All Machinery And Equipment Proposed With Detailed Specification And Catalogue (Original To Be Produced).
• Two Comparative Quotations From Standard Suppliers For All Machinery And Equipment Proposed (Original To Be Produced).
• Selected Machinery Supplier’s Client List With Detailed Postal Address.
• Proof For Sale Price Of End Product And Quotations For Main Raw-Materials To Be Used.
• Tie-Up Letters For Marketing The Product.
• Copy Of Partnership Deed And Acknowledgement Of Registrar Of Firm (In The Case Of Partnership Concern).
• Copies Of Pan Card, Voter’s Identity Card, Ration Card, Aadhaar Card, And Bank Pass Book.
• Profitability Statement Detailing Monthly Sales, Income, And Expenditure Details.
• Consent Letter To Offer Collateral Security To The Extent Required By Pondicherry Industrial Promotion Development And Investment Corporation Limited.
• Investigation Fee At 0.50% On The Loan Amount Applied Plus Applicable Service Tax (For Women/Scheduled Caste/Scheduled Tribe/Differently Abled Entrepreneurs, 50% Concession Has To Be Paid).
• Site And Factory Building Plan With Machinery Layout And Civil Estimate (2 Copies) (Obtained From Approved Panel Valuer Of Pondicherry Industrial Promotion Development And Investment Corporation Limited).
• Comparative Statement For Machinery With Justification For Choosing The Supplier.
• Copy Of Proof For Having Registered As An Approved Supplier With Other Financial Institutions / Banks (Along With Selected Machinery Supplier’s Client List).
• Proof For Sale Price Of End Product From The Existing Manufacturer / Dealer.
• Quotation / Bill Copies For Each Item Of Raw Materials To Be Used With Arrangements For Regular Supply.
• Manufacturing Process Details With Flow Chart.
• Statistics For Demand And Supply Position Of Product With Proof, Existing Competitions, Major Consumers Details, And Tie-Up Letters For Marketing The Product.
• Memorandum And Articles Of Association (In The Case Of Private Limited Company).
• Bio-Data Of All The Promoters (Duly Filled In All Respect As Per The Format Enclosed).
• Mandatory Furnishing Of Details Asked For In The Application At Page Numbers 12, 13, 14, And 15 To Prepare The Appraisal Report.
• Consent Letter From Bank For Sanction Of Working Capital Loan.
• Balance Sheet And Profit And Loss Account For The Last 3 Years And Banker’s Details (For Interested Concerns/Existing Unit).
• Copy Of Registered Lease Deed For The Work Premises For A Period Not Less Than 8 Years Or Consent Letter To Produce Registered Lease Deed For The Work Premises.
• Detailed Project Report On The Project.
• Track Record, Name And Address Of Concerns, And Type Of Consultancy Service Rendered By The Consultant (If Any).
• Details Of Effluent And Arrangement Proposed For Treatment And Disposal Of Effluent (If Any During Process).
• Investigation Fee At 0.75% On The Loan Amount Applied Plus Applicable Service Tax (For Women/Scheduled Caste/Scheduled Tribe/Differently Abled Entrepreneurs, 50% Concession Has To Be Paid).
• Applicable Licence Copies, Including Inspector Of Factories Approval, Municipal / Panchayat Permission, And Pollution Clearance, Etc..
• Puducherry Planning Authority Approval (For Loans Above ₹10,00,000/-).
• Original Title Deed.
• Antecedent Title Deeds.
• Encumbrance Certificate For 30 Years.
• Valuation Certificate From Approved Panel Valuer Of Pondicherry Industrial Promotion Development And Investment Corporation Limited.
• Field Measurement Book Copy (FMB Copy).
• Patta Copy.
• Legal Opinion Report For Collateral Security Property.

Frequently Asked Questions
Q: If an applicant belongs to the Small Scale Industry or Medium Scale Industry sector, what is the highest amount of financial assistance they can avail per project under this scheme?
A: The maximum term loan amount sanctioned per project under this general scheme of assistance cannot exceed ₹10,00,00,000/-.
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Q: Are business entities structured as Co-operative Societies eligible to receive financial assistance for undertaking new projects or expanding existing operations?
A: Yes, Co-operative Societies are listed as an eligible form of organization within the Small Scale Industry and Medium Scale Industry sector that can apply for financial assistance.
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Q: What is the maximum interest rate applicable per annum on term loans taken for a new project by a Medium Scale Industry unit where the sanctioned amount exceeds ₹50,00,000/-?
A: For term loans sanctioned to a Medium Scale Industry unit, or for any term loan amount exceeding ₹50,00,000/-, the interest rate applicable is 12% per annum.
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Q: Is a project structured as a Private Limited Company considered eligible to receive financial assistance for acquiring fixed assets like machinery and buildings?
A: Yes, Private Limited Companies are explicitly listed among the various forms of organizations within the Small Scale Industry and Medium Scale Industry sector that are eligible borrowers under this scheme.
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Q: What is the required maximum Debt Equity Ratio that must be maintained by an applicant if the total loan amount sought is ₹25,00,000/- or less?
A: For term loans sanctioned up to ₹25,00,000/-, the maximum Debt Equity Ratio (DER) required to be maintained by the borrower is 3:1.
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Q: If the proposed loan amount is above ₹25,00,000/-, what is the specific Debt Equity Ratio limit that the business must adhere to for sanction?
A: For term loans where the sanctioned amount is above ₹25,00,000/-, the Debt Equity Ratio (DER) that must be maintained is stipulated as 2:1.
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Q: Are existing units categorized under the Small Scale Industry or Medium Scale Industry sector permitted to apply for funding if their requirement is for modernization, expansion, or diversification purposes?
A: Yes, the scheme is specifically intended to provide financial assistance for expansion, modernization, diversification, and similar activities undertaken by existing Small Scale Industry and Medium Scale Industry units.
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Q: If an applicant is a Public Limited Company, does its organizational structure qualify it as an eligible borrower to seek credit facilities under this scheme?
A: Yes, Public Limited Companies are identified as an eligible form of organization in the Small Scale Industry and Medium Scale Industry sector for applying for financial assistance.
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Q: What is the highest ceiling placed upon the total project cost for which financial assistance may be considered by the Pondicherry Industrial Promotion Development and Investment Corporation Limited?
A: The total project cost ceiling for enterprises in the Small Scale Industry and Medium Scale Industry sectors, to be eligible for financial assistance, must not exceed ₹20,00,00,000/-.
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Q: What is the maximum tenure allowed for the repayment of the sanctioned loan amount, and does this period include any initial payment moratorium period?
A: The maximum repayment period allowed is 8 years, which includes a moratorium period that can extend up to a maximum of 2 years, depending on the project implementation schedule.
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Q: If an applicant is categorized as a Proprietary concern within the Small Scale Industry or Medium Scale Industry sector, does this structure qualify them for obtaining the financial assistance?
A: Yes, Proprietary concerns are explicitly mentioned as an eligible form of organization within the Small Scale Industry and Medium Scale Industry sector that qualifies as an eligible borrower.
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Q: What is the stipulated interest rate per annum charged on term loans and working capital loans if the total sanctioned amount falls within the range of up to ₹25,00,000/-?
A: For term loans and working capital loans where the amount is up to ₹25,00,000/-, the interest rate applicable is 10% per annum.
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Q: What specific type of collateral security, other than the mortgage or hypothecation of proposed fixed assets, must be offered to secure the term loan as per the Corporation’s policy?
A: The applicant must offer collateral security in the form of immovable property, which must conform to the specific lending policy norms established by the Pondicherry Industrial Promotion Development and Investment Corporation Limited.
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Q: Are businesses that are structured as Partnership firms considered eligible organizations for applying for term loans meant for acquiring new fixed assets?
A: Yes, Partnership firms are included in the list of eligible organizational forms in the Small Scale Industry and Medium Scale Industry sector that may apply for the financial assistance.
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