Capital Investment Subsidy: Physically Handicapped Persons/ Ex-Servicemen

Key facts

Benefit	25% of investment, capped at ₹25,00,000
Who	Physically handicapped entrepreneurs, Ex-Servicemen
How paid	Single instalment or through financial institutions
Implemented by	Department of Industrial Development, Puducherry
Official portal	http://www.dic.puducherry.gov.in
Application window	Apply within one year of production start date

Benefits

Beneficiaries can receive a one-time subsidy of 25% of their investment in land, building, and machinery, capped at ₹25,00,000. This subsidy is intended for micro and small manufacturing enterprises.

Who can apply

For: entrepreneur
not income tax payer
no government employee in family
poor household

Eligible applicants include physically handicapped individuals with at least 40% incapacity and ex-servicemen who are not income tax payers and do not have government employees in their family. The scheme is targeted at new industrial units that commenced production after August 5, 2009.

How to apply

Applications must be submitted offline to the relevant authority in Puducherry.

Register the claim for the subsidy in the prescribed form available on the Directorate of Industries and Commerce, Puducherry website.
Complete the application form, ensuring all mandatory fields are filled and required documents are attached.
Submit the signed application form and documents to the concerned authority.
Request a receipt or acknowledgment upon submission, including date, time, and a unique identification number.

Apply on the official website ↗

Documents required

Entrepreneurs Memorandum Part-2 (UAM/ PMT) Registration/ Commencement of Production Certificate
Caste certificate from the competent authority (if applicable)
Loan Sanction Letter
Registered Land Document
Plan Approval from the Pollution Control Board (PPA)
Engineer’s Certificate for Building Valuation
Registered Lease Agreement for the Building
Purchase Invoices for Plant & Machinery
Chartered Accountant Certificate for Investment in Fixed Assets
Certificate for Installation of Pollution Control Equipment
Air/Water Consent Orders from DSTE
Notary Affidavit
Affidavit for Second Hand Machinery (if applicable)

Common problems and how to fix them

Problem	What to do
Application rejected	Ensure all mandatory documents are attached and the application form is filled correctly before submission.
Payment not received	Check with the concerned authority for the status of the application and ensure that the claim was registered within the stipulated time.

Frequently asked questions

What is the maximum subsidy amount available under this scheme?

The maximum capital investment subsidy is ₹25,00,000 or 25% of the total investment in land, building, and machinery, whichever is lower.

What is the minimum incapacity level required for physically handicapped applicants?

Applicants must have a minimum of 40% incapacity to qualify for the subsidy.

How is the subsidy disbursed for different types of units?

For units financed by banks, the subsidy is disbursed through the financial institution. For self-financed units, the subsidy is paid directly to the entrepreneurs.

What documents are needed for the application?

Required documents include the Entrepreneurs Memorandum Part-2, caste certificate (if applicable), loan sanction letter, and various scheme-specific documents related to land and machinery.

Is there a deadline for applying for the subsidy?

New units must apply within one year of obtaining the Entrepreneurs Memorandum, while existing units must apply within one year of completing expansion or modernization.

Always confirm the latest details on the official portal before applying.