Interest Subsidy (Puducherry Industries & Commerce Department)
By Industries and Commerce Department, Government of Puducherry
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Quick Answer
Industrial units in Puducherry can claim an interest subsidy of 25% on annual interest paid on loans for fixed assets and working capital, with a maximum limit, especially for specific entrepreneur categories.
- Funding amount
- ₹3.75L – ₹25L
- Funding type
- Subsidy
- Application deadline
- Rolling
- Location
- Puducherry
About this subsidy
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. This scheme aims to provide fiscal assistance to industrial units. Eligible units that have availed loans from financial institutions for creating fixed assets and working capital can receive an interest incentive of 25% of the annual interest amount paid. The scheme has different maximum subsidy limits depending on the commencement date of production and the category of entrepreneurs, specifically targeting SC/ST/Women/Physically Handicapped/Ex-Servicemen and "Thrust Area" or "IT Sector" industries. Applications are accepted offline in a prescribed form available on the department's official website. The program is designed to support industrial growth and reduce the financial burden on entrepreneurs in the Union Territory, encouraging both new ventures and the expansion of existing units.
Eligibility
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Full eligibility criteria — entity type, stage, sector, founder profile and registration requirements — plus your fit for this program. Sign up to view.
Subsidy providers
Benefits & Funding
- Amount
- ₹3.75L – ₹25L
What You Get
- 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 ₹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: A 25% interest subsidy subject to a maximum of ₹5,00,000/- per annum for a period of 5 years. The incentive will be paid through the financial institution, directly benefiting the industrial unit by reducing its interest burden.
- Disbursement
- Reimbursement
- Bootstrap friendly
- Yes
Timelines & Process
Applications
Rolling basis
Selection Process
Applications will be processed and scrutinized by the Industries Department to verify eligibility and obtain the necessary sanctions for the grant of incentive/subsidy. These cases are directly handled by the department and do not need to be placed before a State Level Committee for approval.
Application Process
- 1
Obtain Application Form
Download the prescribed application form from the official website of the Directorate of Industries and Commerce, Puducherry.
You - 2
- 3
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- 5
How to apply
Four steps from draft to disbursement — one action each.
- 1
See the questions before you start
Download every question this programme's application form asks, so you can prepare your answers offline before opening the portal.
- 2
Line up your documents
Keep every document from the checklist ready in one folder. Missing docs are the #1 reason applications get bounced.
- 3
Submit on the official portal
Use the official application link and verify all details before final submission.
- 4
Follow up
Reach out 5–7 days after submitting to confirm receipt and ask about the review timeline.
Frequently Asked Questions
What is the primary benefit of this scheme?
The scheme provides an interest subsidy of 25% on the annual interest amount paid by eligible industrial units on loans taken for fixed assets and working capital.
What is the maximum subsidy amount available?
The maximum annual interest subsidy is ₹75,000 for units started by SC/ST/Women entrepreneurs (commenced production on/after 2-8-2004), and ₹5,00,000 for units started by SC/ST/Women/Physically Handicapped/Ex-Servicemen entrepreneurs (commenced production on/after 24-8-2011). Both tiers provide support for a period of 5 years.
How is the subsidy disbursed?
The incentive will be paid through the financial institution from which the industrial unit availed the loan, directly offsetting a portion of the interest paid by the entrepreneur.
Who is eligible to apply for this scheme?
Industrial units set up by SC/ST/Women/Physically Handicapped/Ex-Servicemen entrepreneurs, or "Thrust Area" or "IT Sector Industries," are eligible. They must have availed a loan from a financial institution and meet specific production commencement dates (on or after 2-8-2004 or 24-8-2011).
What is the application process?
Applications are submitted offline using a prescribed form available on the Directorate of Industries and Commerce, Puducherry website. Applicants must fill the form, attach mandatory documents, and submit it to the concerned authority, requesting an acknowledgement receipt.
Is there a specific deadline to apply?
The deadline is unit-specific: within one year from the date of commencement of production/registration for new units, or within one year of completion of expansion/diversification/modernization for existing units. There is no single fixed deadline for all applicants.
