"Interest Subsidy (For Micro, Small, Medium and Large New Industries)" under "Motivation of Entrepreneurs to Start Industries and Fiscal Assistance to Industries - Various Incentives"

DETAILS "Interest Subsidy (For Micro, Small, Medium and Large New Industries)" under "Motivation of Entrepreneurs to Start Industries and Fiscal Assistance to Industries - Various Incentives" 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, 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 in the prescribed form available on the Official Website of the Department. BENEFITS 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 All the Micro, Small, Medium and Large Industries are eligible. The Unit should have made the investment on or after 1st April 2017. 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. The industrial unit should be availing of a loan from a financial institution. The industrial unit should be availing of a loan towards the creation of fixed assets and/or for working capital. 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. 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. *The date of commencement as admitted by the entrepreneurs shall be reckoned after due verification by the officials of the Industries Department. Special Cases 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.