Infrastructure Development Subsidy (For IT/ITES)
By Industries and Commerce Department, Government of Puducherry
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Quick Answer
IT/ITES industries and infrastructure developers in Puducherry get a 30% subsidy on building investment, up to ₹1 crore.
- Funding amount
- Up to ₹1Cr
- Funding type
- Subsidy
- Application deadline
- Rolling
- Location
- Puducherry
About this subsidy
IT/ITES industries and infrastructure developers in Puducherry get a 30% subsidy on their eligible building investment, up to ₹1 crore. The building must have a minimum constructed area of 50,000 sq.ft. It must be for leasing to IT industries or for the applicant's own use, such as computer systems manufacturing, Software/ITES, BPO or KPO. The scheme is run by the Industries and Commerce Department of the Union Territory of Puducherry and is effective from April 1st, 2017.
The subsidy is paid in annual instalments of no more than ₹25,00,000 each until the full amount is paid. For units financed by banks or financial institutions, it goes through them to adjust existing loans, create additional fixed assets or support working capital. Self-financed units are paid directly.
The unit must give at least 60% of its jobs to residents of the Union Territory of Puducherry. It must not transfer or dispose of fixed assets for 5 years from the application or disbursement date.
Eligibility
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Subsidy providers
Benefits & Funding
- Amount
- Up to ₹1Cr
What You Get
Beneficiaries of the Infrastructure Development Subsidy will receive a substantial 30% subsidy on their eligible building investment, capped at a maximum of ₹1,00,00,000/- (Rupees One Crore). This financial assistance is critical for reducing the initial capital outlay required for constructing large-scale IT/ITES infrastructure. The subsidy is disbursed in structured annual installments, ensuring a consistent flow of support, with each installment not exceeding ₹25,00,000/- per annum until the total eligible subsidy is fully disbursed. This multi-year disbursement approach helps in managing project finances effectively. The mode of disbursement is designed for financial security and flexibility: if the unit is financed by banks or financial institutions, the subsidy will be routed through them directly towards adjusting existing loans, facilitating the creation of additional fixed assets, or supporting working capital needs. For self-financed units, the subsidy is disbursed directly to the entrepreneur or the industrial unit, providing direct liquidity. This comprehensive financial support package is intended to stimulate significant investment in IT/ITES infrastructure, ultimately enhancing the industrial landscape of Puducherry.
- Disbursement
- Tranched
- Bootstrap friendly
- Yes
Timelines & Process
Applications
Rolling basis
Selection Process
The selection process for the Infrastructure Development Subsidy is structured and merit-based. Upon submission, all applications are first scrutinized by the Directorate of Industries. This initial review assesses each application's adherence to eligibility criteria and verifies the documentation provided, including the quantum of investment made and the project's alignment with IT/ITES infrastructure development. Following this preliminary screening, eligible cases, along with the recommended quantum of admissible subsidy, are presented before the State Level Committee. This committee then conducts a comprehensive evaluation of the merits of each case, ensuring that the industrial unit fully qualifies for the incentive/subsidy as per the scheme's guidelines. The State Level Committee's recommendations are final in determining the eligibility and the specific amount of incentive/subsidy to be granted to the applicant unit.
Application Process
- 1
Obtain Form
Download the prescribed application form from the Directorate of Industries and Commerce website.
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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.
Program templates & documents
Files the program publishes for applicants — download these and apply in the prescribed format.
Frequently Asked Questions
What is the primary objective of the Infrastructure Development Subsidy scheme in Puducherry?
The scheme aims to motivate entrepreneurs and infrastructure developers to invest in building and developing infrastructure for IT/ITES industries within the Union Territory of Puducherry, thereby promoting industrial growth and employment.
What is the maximum financial assistance available under this scheme?
Eligible units can receive a subsidy of 30% on their building investment, subject to a maximum cap of ₹1,00,00,000 (Rupees One Crore).
How is the subsidy amount disbursed to the beneficiaries?
The subsidy is disbursed in annual installments, with each installment not exceeding ₹25,00,000 per annum. If the unit is bank-financed, the amount is disbursed through financial institutions to adjust loans or for fixed assets/working capital. For self-financed units, it's paid directly to the entrepreneur/unit.
What are the key eligibility requirements for the infrastructure?
The investment must be on a building with a minimum constructed area of 50,000 sq.ft., made by infrastructure developers/industries for leasing to IT/ITES industries or for their own industrial use (e.g., computer systems manufacturing, Software/ITES, BPO, KPO).
Are there any local employment criteria associated with this subsidy?
Yes, the industrial unit must ensure that at least 60% of its total employment strength comprises people from the Union Territory of Puducherry, and this ratio must be maintained for a specified period.
What is the deadline for submitting applications for new and existing units?
New units must apply within one year from the date of commencement of commercial production or obtaining Entrepreneurs Memorandum Part-2/Permanent Registration. Existing units must apply within one year of completing expansion, diversification, or modernization activities.
Can an existing industrial unit apply for subsidy on additional investments?
Yes, additional investments made by new or existing industrial units after availing the first claim are also eligible for subsidy, provided they remain within the overall ceiling limit of the scheme.
