Interest Subsidy (For Micro, Small, Medium and Large New Industries)

Key facts

Benefit	Up to ₹1.25 lakh yearly
Who	Entrepreneurs in Puducherry
How paid	Through financial institutions
Implemented by	Industries and Commerce Department, Puducherry
Official portal	http://dico.puducherry.gov.in
Application window	Open all year for eligible entrepreneurs in Puducherry.

Benefits

Beneficiaries can receive a subsidy of up to 25% on the annual interest paid on loans, with a maximum limit of ₹125,000 per year for five to seven years, depending on the location.

Who can apply

For: entrepreneur
Resident of Puducherry
poor household

Entrepreneurs operating in Puducherry can apply for this scheme, provided they belong to a poor household. The scheme is open to all new micro, small, medium, and large industries that have made investments after April 1, 2017.

How to apply

Applications must be submitted offline using the prescribed form available on the official website of the Directorate of Industries and Commerce, Puducherry.

Register the claim for the subsidy in the prescribed form available online.
Complete all mandatory fields in the application form and attach required documents.
Submit the filled application form and documents to the relevant authority.
Request a receipt or acknowledgment of submission from the authority.

Apply on the official website ↗

Documents required

Entrepreneurs Memorandum Part-2 (UAM/ PMT) Registration/ Commencement of Production Certificate
Caste certificate from the competent authority in the case of SC/ST Entrepreneurs
Loan Sanction Letter
Purchase Invoices for Plant & Machinery/ Pollution Equipment/ Generator
Chartered Accountant Certificate for the Investment in Fixed Assets / Pollution Control Equipment / Generator
Month-wise Interest Paid Statement from the Finance Institution/Bank Along with No-due Certificate
List of Employees Covered Under the Provident Fund Scheme Along with Wage/Salary Payment Particulars
Provident Fund Remittance for the Claiming Period
Notary Affidavit
'No Due Certificate of Interest' issued by the financial institution/bank etc.

Common problems and how to fix them

Problem	What to do
Application rejected	Ensure all mandatory documents are submitted and the application form is filled correctly before resubmission.
Payment not received	Check with the financial institution regarding the status of the subsidy disbursement and ensure all eligibility criteria were met.

Frequently asked questions

What is the deadline for submitting applications?

New units must submit their applications within one year from the date of commencement of production.

What documents are required for the application?

Required documents include the Entrepreneurs Memorandum, loan sanction letter, purchase invoices, and a Chartered Accountant certificate, among others.

Is there a specific employment requirement for eligibility?

Yes, the unit must provide at least 60% of its total employment to residents of Puducherry.

Can multiple units by the same owner apply separately?

Yes, if the units are located differently and have separate licenses and registrations, they can apply as separate entities.

What is the maximum subsidy amount available?

The maximum subsidy amount is ₹125,000 per year, which is 25% of the annual interest paid.

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