About this business scheme
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.
The "Interest Subsidy" is a Component of the "Motivation of Entrepreneurs to Start Industries and Fiscal Assistance to Industries" Scheme by the Industries and Commerce Department, Union Territory of Puducherry. 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 in the prescribed form available on the Official Website of the Department.
Benefits at a glance
| Scheme name | “Interest Subsidy” under “Motivation of Entrepreneurs to Start Industries and Fiscal Assistance to Industries” (IS-MESIFAI) |
|---|---|
| Launched by | Industries and Commerce Department, Puducherry |
| Benefit type | Cash (money paid to your bank account) |
| Category | Business |
| Level / State | State · Puducherry |
| Official portal | industry.py.gov.in (link at the end of this page) |
Key facts
| Scheme for | Infra |
|---|---|
| Application mode | Offline |
| Last date | Ongoing (no last date notified) |
| DBT (direct bank transfer) | No |
| Age | 18 to 80 years |
Who can apply (quick check)
- 👤All genders
- 🎂Age 18 to 80 years
- 📝Offline
Quick check from official data. Full conditions are in the Eligibility section.
What you receive
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 Rs. 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 Rs. 5,00,000/- per annum for a period of 5 years.
*The incentive will be paid through the financial institution.
Who qualifies
- 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 have commenced production on or after 2-8-2004.
OR
- The industry should be set up by SC/ST/Women/Physically Handicapped/Ex-Servicemen Entrepreneur OR The industry should be a "Thrust Area Industry" or an "IT Sector Industry".
- The industry should have availed the loan on or after 24-8-2011 from a financial institution towards the creation of fixed assets and working capital.
- The industry should have commenced production on or after 24-8-2011.
*The "Financial Institution" mean and includes PIPDIC, or any other Government Corporation, Scheduled Banks including Co-operative Banks and Government Co-operative Societies.
Papers to keep ready
0/10 documents ready
Tap a document to mark it as ready. Progress is saved on this device.
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 applications will be processed by the Industries Department to obtain sanctions. These cases need not be placed before the said State Level Committee.
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
Are there any deadlines for submitting applications for the Interest Subsidy scheme?
Yes, for new units, applications should be submitted within one year from the date of obtaining the Entrepreneurs Memorandum Part-2/Permanent Registration/Commencement of Production Certificate. For existing units, the deadline is within one year of completion of Expansion/Diversification/Modernization.
What is the purpose of providing a 'No Due Certificate of Interest' issued by the financial institution/bank?
The 'No Due Certificate of Interest' is provided to certify that the industrial unit has cleared all outstanding interest payments to the financial institution, indicating compliance with the scheme requirements.
Why is a month-wise interest paid statement from the financial institution necessary for claiming the Interest Subsidy?
This statement is necessary to provide evidence of the interest paid by the industrial unit to the financial institution, which is essential for calculating the subsidy amount.
Is a caste certificate necessary for all applicants under the Interest Subsidy scheme?
Yes, a caste certificate from the competent authority is necessary for Scheduled Caste/Scheduled Tribe (SC/ST) Entrepreneurs to avail of the benefits under the scheme.
Which financial institutions are considered for loan availed by industrial units under the Interest Subsidy scheme?
Financial institutions include PIPDIC, Scheduled Banks including Co-operative Banks, and Government-sponsored Co-operative Societies, among others.
What are the conditions regarding loan availed by industrial units for eligibility for the Interest Subsidy?
Industrial units should have availed loans from financial institutions for the creation of fixed assets and working capital.
What is the maximum annual subsidy amount for industries set up by SC/ST/Women/Physically Handicapped/Ex-Servicemen entrepreneurs?
The maximum annual subsidy amount for these industries is Rs. 5,00,000/- per annum for a period of 5 years, subject to specific conditions outlined in the scheme.
Through what mode is the subsidy disbursed for self-financed units under the Interest Subsidy scheme?
The subsidy for self-financed units is disbursed directly to the entrepreneurs, as specified in the scheme guidelines.
How is the interest subsidy disbursed for industrial units accommodated in sheds or premises owned by Government departments?
For such units, the rent fixed by the respective organization is taken into account for calculating the subsidy.
What is the maximum amount of interest incentive admissible to an industry under the Interest Subsidy scheme?
The maximum amount of interest incentive admissible to each industry is Rs. 75,000/- in any financial year, as per the scheme guidelines.
Where can applicants find the prescribed form for applying for the Interest Subsidy scheme?
Applicants can find the prescribed form for applying for the Interest Subsidy scheme on the Official Website of the Directorate of Industries and Commerce, Puducherry.
How are applications for the Interest Subsidy scheme processed?
Applications for the Interest Subsidy scheme are processed by the Industries Department to obtain sanctions, and they do not need to be placed before a State Level Committee.
Submit your application yourself on the official portal; it costs nothing. Treat anyone demanding money to "get you approved" as a scam.
- Guidelines industry.py.gov.in (PDF)
- Grievance Redressal industry.py.gov.in
- Helpline industry.py.gov.in
tsmpb.in is not affiliated with any government department. Apply only on the official portal and never pay anyone for an application.
Explore more
