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“Capital Investment Subsidy: Physically Handicapped Persons/ Ex-Servicemen” under “Motivation of Entrepreneurs to Start Industries and Fiscal Assistance to Industries”

CIS:PHPES-MESIFAI

Published: Oct 2026

6 min read

Reviewed by Navin, Editor · First published: 9 Oct 2026

โ€œCapital Investment Subsidy: Physically Handicapped Persons/ Ex-Servicemenโ€ under โ€œMotivation of Entrepreneurs to Start Industries and Fiscal Assistance to Industriesโ€
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Written by Navin · Editor, tsmpb.inUpdated: 17 Oct 2026 · How we verify scheme facts

About this business scheme

Through this scheme, the new industrial units which started production on or after 5th August 2009 by physically handicapped entrepreneurs and Ex-Servicemen for the investments made on land, building and plant and machinery are eligible for capital investment subsidy at the rate of 25%.

The "Capital Investment Subsidy: Physically Handicapped Persons/ Ex-Servicemen" is a Component of the "Motivation of Entrepreneurs to Start Industries and Fiscal Assistance to Industries" Scheme by the Department of Industrial Development (Industries and Commerce), Union Territory of Puducherry. Through this scheme, the new industrial units which started production on or after 5th August 2009 by physically handicapped entrepreneurs and Ex-Servicemen for the investments made on land, building and plant and machinery are eligible for capital investment subsidy at the rate of 25% thereon subject to a maximum of Rs. 25,00,000/- for the micro and small manufacturing enterprises.

Benefits at a glance

Scheme name“Capital Investment Subsidy: Physically Handicapped Persons/ Ex-Servicemen” under “Motivation of Entrepreneurs to Start Industries and Fiscal Assistance to Industries” (CIS:PHPES-MESIFAI)
Launched byIndustries and Commerce Department, Puducherry
Benefit typeCash (money paid to your bank account)
CategoryBusiness
Level / StateState ยท Puducherry
Official portalindustry.py.gov.in (link at the end of this page)

Key facts

Scheme forInfra
Application modeOffline
Last dateOngoing (no last date notified)
DBT (direct bank transfer)No
Age18 to 80 years

Who can apply (quick check)

  • ๐Ÿ‘คAll genders
  • ๐ŸŽ‚Age 18 to 80 years
  • โ™ฟDivyang (PwD)
  • โ™ฟ40%+ disability
  • ๐Ÿ“Offline

Quick check from official data. Full conditions are in the Eligibility section.

What you receive

A capital investment subsidy at the rate of 25% thereon subject to a maximum of Rs. 25,00,000/- for the micro and small manufacturing enterprises for the investments made on land, building and plant and machinery.

Number of Installments

The subsidy shall be disbursed in a single instalment.

NOTE: Where due to paucity of funds in a particular financial year or for such other reasons as the case may be, single instalment disbursement is not possible, such disbursement will be made in instalments.

Mode of Disbursement

In the case of Units Financed by Financial Institutions/Banks, the subsidy amount shall be disbursed through the financial institutions/banks only, towards the adjustment against the loan availed by the entrepreneurs or for the creation of additional fixed assets or working capital purposes.

In the case of Self-financed Units, the subsidy shall be disbursed directly to the entrepreneurs.

Who qualifies

  • The scheme is applicable to the new industrial units which started production on or after 5th August 2009 by physically handicapped entrepreneurs and Ex-Servicemen.
  • The subsidy for Physically Handicapped (PH) persons will be admissible only for those who suffer from not less than 40% incapacity under relevant category.

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General Documents

Scheme-Specific Documents

Case-Specific Documents

In the case of Second Hand Machinery, an affidavit stating that the subsidy has not been availed of from the Central Government or any State or Union Territories.

Registration walkthrough

Offline

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.

Step 2: In the application form, fill in all the mandatory fields, and attach copies of all the mandatory documents (self-attest, if required).

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

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).

*The State Level Committee will go into the merits of each case to decide whether the unit qualifies for the grant of incentive/subsidy.

Application Deadline

For New Units

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

For Existing Units

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

Frequently asked questions

What is the maximum amount eligible for capital investment subsidy for micro and small manufacturing enterprises under this scheme?

Micro and small manufacturing enterprises can avail a maximum capital investment subsidy of Rs. 25,00,000 or 25% of the total investment in land, building, and plant and machinery, whichever is lower.

Are there specific criteria for eligibility regarding the incapacity level for physically handicapped persons to qualify for the subsidy?

Physically handicapped persons must have a minimum of 40% incapacity under the relevant category to qualify for the subsidy.

How is the subsidy disbursed for units financed by financial institutions/banks, and what about self-financed units?

For units financed by financial institutions/banks, the subsidy is disbursed through them. In the case of self-financed units, the subsidy is directly disbursed to the entrepreneurs.

In case of second-hand machinery, what specific affidavit is required for the application process?

An affidavit stating that the subsidy has not been availed of from the Central Government or any State or Union Territories is required in the case of second-hand machinery.

What is the mode of disbursement for the subsidy amount, and when is it disbursed?

The subsidy amount is disbursed in a single installment either through financial institutions/banks or directly to the entrepreneurs, depending on the financing method. Disbursement is subject to fund availability during the financial year.

Where can entrepreneurs find the official application form for the subsidy, and is there a cost associated with obtaining it?

The prescribed application form is available on the Official Website of the Directorate of Industries and Commerce, Puducherry. Details regarding any associated costs can be found on the official website.

What role does the Directorate of Industries and Commerce play in the application process?

The Directorate of Industries and Commerce oversees the application process, and entrepreneurs should submit their application forms and documents to the concerned authority within the Directorate.

Is there a specific helpline available for entrepreneurs seeking assistance or clarification regarding the application process?

Entrepreneurs can find assistance or clarification by contacting the State Helpline provided at https://industry.py.gov.in/state-helpline.

What specific benefits are provided to physically handicapped entrepreneurs under this scheme?

Physically handicapped entrepreneurs can avail a capital investment subsidy for their industrial units, supporting their entrepreneurial endeavors in Puducherry.

Are there any specific conditions for the installation of pollution control equipment, and how is it documented?

A certificate for the installation of pollution control equipment obtained from the Directorate of Sustainable Technologies and Environmental (DSTE) is required, along with air/water consent orders obtained from DSTE.

Is there a specific committee responsible for sanctioning incentives/subsidies under the scheme?

The State Level Committee is authorized to sanction incentives/subsidies, ensuring they do not exceed the levels prescribed in the scheme.

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