§1Who it is for

  • Micro, small, medium and large industrial units in the UT of Puducherry (Puducherry, Karaikal, Mahe, Yanam)

Useful if

New or expanding factories in Puducherry hiring mostly local people.

Do not spend time on it if

Units buying second-hand machinery or an already-used building.

§2Eligibility

  1. Investment made on or after 1 Apr 2017 (earlier investments follow the 2012 GO)
  2. At least 60% of total employment must go to people of the UT of Puducherry, maintained for the period in the affidavit
  3. Women/SC/ST rate: unit fully owned by that category; in partnerships and private limited companies all partners/shareholders/directors must belong to the category
  4. Buildings already occupied and later bought are not eligible
  5. Second-hand / used imported or indigenous machinery not eligible
  6. A unit that got investment subsidy from Central/State Government or any agency for the same investment is not eligible
  7. Must not transfer or dispose of fixed assets for 5 years from application/disbursement, whichever is later

§3Benefits

  • Micro and small: 40% of investment in land, building, plant & machinery, max ₹40 lakh
  • Medium and large: 35%, max ₹35 lakh
  • Women/SC/ST entrepreneurs: 45%, max ₹75 lakh

§4Norms — pattern of assistance

  1. Land valued at sale-deed value or guideline value, whichever is less; building as assessed by PWD/PIPDIC
  2. Plant & machinery includes electrification, testing equipment, tools, jigs and moulds
  3. Not eligible: working capital, commissioning fee, goodwill, royalty, preliminary and pre-operative expenses, capitalised interest, transport and erection, goods vehicles, office equipment, furniture, crates, pallets, consumables
  4. Paid through the lending bank/PIPDIC against the loan if financed; directly if self-financed
  5. Paid in single or multiple instalments depending on availability of funds
  6. Change of partners/directors to a non-category person within 5 years: full refund with 14% simple interest
  7. Unit not working for 5 years from receipt, or subsidy by misrepresentation: refund with 14% interest, recoverable as arrears of land revenue
  8. Additional investment after first claim also eligible up to the ceiling

§5Documents

Tick each one as you get it ready.

Registered land document

Notary affidavit

§6How to apply

  1. 1

    Submit claim in the prescribed form (offline) to the Directorate of Industries and Commerce within one year of commencement of regular commercial production; State Level Committee can condone delay

  2. 2

    Directorate scrutinises; State Level Committee (chaired by Secretary, Industries & Commerce) recommends; Director sanctions

  3. 3

    Officials inspect the unit before release

§7Pros and cons

Merits

  • Land is counted in the investment, unlike most state capital subsidies (GO 2/2017 para 3.1)
  • Open to large units and to existing units' additional investment
  • Scheme is actually paying: ₹75 lakh and ₹40 lakh sanctions in Jan 2025 (G.O.Rt. 14, 15 of 2025)

Demerits

  • Payment depends on funds; may come in instalments (GO 2/2017 para 5.6)
  • 60% local employment rule must be kept for the affidavit period
  • Gap between committee meeting (25 Oct 2024) and sanction order (9 Jan 2025) shows a multi-month wait

→Related schemes

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Sources

  1. G.O. Ms. No. 2/Ind.&Com./A6/2017 (Gazette of Puducherry, 6 Jun 2017)
  2. myScheme - Capital Investment Subsidy (MESIFA-CII), Puducherry (documents list)
  3. G.O.Rt. No. 15/DI&C dated 9 Jan 2025 - capital investment subsidy sanction, Karaikal

Checked on 18 October 2026. For information only — confirm with the department or bank. Spotted a mistake? Report it.