"Interest Subsidy" under "Motivation of Entrepreneurs to Start Industries and Fiscal Assistance to Industries"

What is "Interest Subsidy" under "Motivation of Entrepreneurs to Start Industries and Fiscal Assistance to Industries"?

The industrial units which have availed loans from financial institutions towards the creation of fixed assets and for working capital shall be eligible for an interest incentive to an extent of 25% of the annual interest amount paid. The applications are accepted offline.

Benefit

> **For industry set up by SC/ST/Women entrepreneurs, that commenced production on or after 2-8-2004** - An interest incentive to an extent of 25% of the annual interest amount paid for five years which shall be admissible from the date of commencement of commercial production. - The maximum amount of interest incentive admissible to each industry shall not exceed ₹75,000/- in any financial year. > **For the industry set up by SC/ST/Women/Physically Handicapped/Ex-Servicemen entrepreneurs, that commenced production on or after 24-8-2011** - 25% interest subsidy subject to a maximum of ₹5,00,000/- per annum for a period of 5 years. *The incentive will be paid through the financial institution.

Level

State — Puducherry

Ministry / Dept.

Industries and Commerce Department, Puducherry

Benefit type

cash

Key eligibility

- The industry should be set up by SC/ST/Women/ Entrepreneur OR The industry should be a "Thrust Area Industry" or an "IT Sector Industry". - The industrial unit should have availed of a loan from a financial institution towards the creation of fixed assets and working capital. - The industry should

Last verified

Recently

Benefits

> **For industry set up by SC/ST/Women entrepreneurs, that commenced production on or after 2-8-2004** - An interest incentive to an extent of 25% of the annual interest amount paid for five years which shall be admissible from the date of commencement of commercial production. - The maximum amount of interest incentive admissible to each industry shall not exceed ₹75,000/- in any financial year. > **For the industry set up by SC/ST/Women/Physically Handicapped/Ex-Servicemen entrepreneurs, that commenced production on or after 24-8-2011** - 25% interest subsidy subject to a maximum of ₹5,00,000/- per annum for a period of 5 years. *The incentive will be paid through the financial institution.

Eligibility

Documents Required

How to Apply

1. Step 1: Offline application — 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.

2. Step 2: Offline application — 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).

3. Step 3: Offline application — step 3

   Step 3: The unit should submit the duly filled and signed application form and the documents to the concerned authority.

4. Step 4: Offline application — 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 number (if applicable).

5. Step 5: Offline application — step 5

   *The applications will be processed by the Industries Department to obtain sanctions. These cases need not be placed before the said State Level Committee.

6. Step 6: Offline application — step 7

   Application Deadline

7. Step 7: Offline application — step 8

   For New Units

8. Step 8: Offline application — step 9

   Within one year from the date of commencement of obtaining the Entrepreneurs Memorandum Part-2/ Permanent Registration/ Commencement of Production Certificate.

9. Step 9: Offline application — step 10

   For Existing Units

10. Step 10: Offline application — step 11

    Within one year of completion of Expansion/ Diversification/ Modernization.

Sources & References

• Official scheme website ↗
• Source record ↗
• Information is summarised from official government sources. Verify all details on the official website before applying.