Capital Investment Subsidy: SC/ST/Women Entrepreneurs Component of the Motivation of Entrepreneurs to Start Industries and Fiscal Assistance to Industries Scheme
By Industries and Commerce Department, Government of Puducherry
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Quick Answer
Puducherry offers SC, ST and Women entrepreneurs a 25% capital investment subsidy on land, building, plant and machinery, up to ₹50 lakh for SC and ST entrepreneurs.
- Funding amount
- Up to ₹50L
- Funding type
- Subsidy
- Application deadline
- Rolling
- Location
- Puducherry
About this subsidy
Scheduled Caste, Scheduled Tribe and Women entrepreneurs running small and micro manufacturing enterprises in Puducherry can get a capital investment subsidy of 25% on land, building, and plant and machinery. The cap is ₹25,00,000, and up to ₹50,00,000 for SC and ST entrepreneurs. It is a component of the Motivation of Entrepreneurs to Start Industries and Fiscal Assistance to Industries Scheme, run by the Department of Industrial Development (Industries and Commerce), Union Territory of Puducherry.
Units financed by financial institutions get the subsidy through banks, for loan adjustment, additional fixed assets or working capital. Self-financed units receive it directly. Payment is generally in a single instalment, though it may be staggered if funds are limited.
For SC, ST and Women entrepreneurs, the unit must have started production on or after March 27, 2002. For SC and ST entrepreneurs, investment must be made and production or expansion started on or after August 24, 2011.
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
- Up to ₹50L
What You Get
This scheme provides a capital investment subsidy at a rate of 25% on eligible investments. For Scheduled Caste, Scheduled Tribe, and Women Entrepreneurs, the subsidy is capped at ₹25,00,000. However, for Scheduled Caste and Scheduled Tribe Entrepreneurs exclusively, the cumulative maximum subsidy can go up to ₹50,00,000. The subsidy primarily covers investments made on land, building, and plant & machinery. Disbursement is generally made in a single instalment, though it may be staggered if funds are limited. For units financed by financial institutions, the subsidy is routed through banks for loan adjustment, additional fixed assets, or working capital. Self-financed units receive the subsidy directly.
- Disbursement
- Lump Sum
- Bootstrap friendly
- Yes
Timelines & Process
Applications
Rolling basis
Selection Process
The State Level Committee is responsible for evaluating all applications. The committee will thoroughly review the merits of each case to determine whether the industrial unit meets all specified criteria and qualifies for the grant of the incentive or subsidy.
Application Process
- 1
Register Claim
Obtain and prepare the prescribed application form from the official website.
You - 2
- 3
- 4
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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 objective of this scheme?
The scheme aims to motivate entrepreneurs, particularly from Scheduled Caste, Scheduled Tribe, and women communities, to establish or expand industrial units in Puducherry by providing fiscal assistance on capital investments.
Who is eligible to apply for this subsidy?
The scheme is exclusively for Scheduled Caste, Scheduled Tribe, and Women Entrepreneurs who are setting up or expanding small and micro manufacturing enterprises in Puducherry.
What investments are covered under the subsidy?
The subsidy covers investments made on land, industrial buildings, and plant & machinery. The rate is 25% of the eligible investment.
What is the maximum subsidy amount I can receive?
For Scheduled Caste and Scheduled Tribe Entrepreneurs, the maximum cumulative subsidy is ₹50,00,000. For Women Entrepreneurs, the maximum subsidy is ₹25,00,000.
How is the subsidy disbursed?
The subsidy is generally disbursed in a single instalment. For units financed by banks, it is disbursed through the financial institution for loan adjustment or other business purposes. For self-financed units, it is disbursed directly to the entrepreneur.
Are there any conditions regarding second-hand machinery?
Yes, indigenous second-hand machinery is eligible, with its value assessed at the lowest of its initial purchase value (with depreciation), second-hand purchase value, or chartered engineer's valuation. Imported second-hand machinery is also eligible if imported directly by the unit or through an agent, with proper import documents.
