“Infrastructure Development Subsidy (For IT/ITES)” under “Motivation of Entrepreneurs to Start Industries and Fiscal Assistance to Capital Intensive Industries”
Infrastructure Development Subsidy (For IT/ITES) in Puducherry
The “Infrastructure Development Subsidy (For IT/ITES)” scheme, launched under the initiative “Motivation of Entrepreneurs to Start Industries and Fiscal Assistance to Capital Intensive Industries,” aims to bolster the industrial landscape in the Union Territory of Puducherry. This scheme provides substantial financial support to infrastructure developers who are contributing to the growth of the Information Technology (IT) sector by constructing large-scale facilities.
Overview of the Scheme
Initiated by the Industries and Commerce Department, the scheme became effective on April 1, 2017. It is applicable throughout the Union Territory of Puducherry. The scheme offers a subsidy of 30% on investments made towards the construction of buildings with a minimum area of 50,000 sq.ft.. This support is intended for infrastructure developers and industries who lease out these facilities to IT sectors or utilize them for their own industrial operations. Interested applicants can obtain the application form offline from the official website of the department.
Benefits of the Scheme
- Subsidy of 30% of the investment, capped at ₹1,00,00,000.
- The valuation of the building will be carried out by the PIPDIC or the Public Works Department.
Disbursement Details
| Aspect | Details |
|---|---|
| Number of Installments | Annual installments not exceeding ₹25,00,000 until the total eligible subsidy is disbursed. |
| Mode of Disbursement | The subsidy will be disbursed through financial institutions or banks, provided the unit is financed through them. For self-financed units, the subsidy will be paid directly to the entrepreneur. |
Eligibility Criteria
- The investment must be made in the construction of a building with a minimum area of 50,000 sq.ft..
- Only infrastructure developers and industries are eligible to apply.
- Investment should be aimed at leasing to IT sectors or for personal industrial use (including manufacturers of computer systems, Software/ITES, BPO, KPO).
- At least 60% of the employment must be provided to the residents of Puducherry, which should be maintained during the specified period in the affidavit.
- The industrial unit must retain ownership of fixed assets, including plant and machinery, for a minimum of 5 years from the application submission date or the subsidy disbursement date, whichever is later.
- Any additional investments made after the initial claim are also eligible for subsidy, up to the specified ceiling.
- Units commencing operations after April 1, 2017 are classified as new industries, while those established prior are considered existing units.
- In cases where multiple units are operated by the same individual or group, they may qualify for subsidies as separate entities if they are located at different sites and possess distinct licenses and registrations.
Application Process
Steps to Apply Offline
- Register your claim for the subsidy using the prescribed form available on the official website of the Directorate of Industries and Commerce, Puducherry.
- Complete all mandatory fields in the application form and attach the required documents (self-attested as necessary).
- Submit the filled and signed application form along with the documents to the relevant authority.
- Request a receipt or acknowledgment from the authority confirming the submission, ensuring it includes the submission date, time, and a unique identification number (if applicable).
Post-Application Steps
- The Directorate of Industries will review applications based on merit to assess the eligibility for incentives/subsidies.
- The State Level Committee will evaluate each case to determine qualification for subsidy and recommend the appropriate amount.
Application Deadline
For new units, applications must be submitted within one year from the date of obtaining the Entrepreneurs Memorandum Part-2, Permanent Registration, or Commencement of Production Certificate. Existing units must apply within one year following the completion of expansion, diversification, or modernization.
Official Source
For further details, you can visit the official page at myScheme.gov.in.
Benefits
30% subsidy, subject to a maximum of ₹1,00,00,000/-.
*The building value will be assessed by the PIPDIC/Public Works Department.
Number of Installments
The infrastructure subsidy shall be disbursed in annual installment not exceeding ₹25,00,000/- per annum till completion of the total eligible subsidy.
Mode of Disbursement
The subsidy amount shall be disbursed through the financial institutions/banks only, if the unit is financed by them, towards the adjustment against the loan availed by the entrepreneurs or for the creation of additional fixed assets or for the working capital purposes.
In case of self-financed units, the subsidy shall be disbursed directly to the entrepreneur/unit.
*The financial institution shall mean and include PIPDIC or any other Government Corporation, Scheduled Banks including Co-operative Banks.
Application Process
Apply 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).
Post-Application Process
Step 1: The applications shall be scrutinized by the Directorate of the Industries on merit basis for the grant of incentives/subsidies/assistances to determine the quantum of amount admissible will be placed before the State Level Committee.
Step 2: The State Level Committee will go into the merits of each case to decide whether the unit qualifies for the grant of incentive/subsidy and will recommend the quantum of incentive/subsidy admissible to the unit.
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.
References & Official Links
Scheme Details
| Full Name | “Infrastructure Development Subsidy (For IT/ITES)” under “Motivation of Entrepreneurs to Start Industries and Fiscal Assistance to Capital Intensive Industries” |
| Short Title | IDS-MESIFA-CII |
| Level | State |
| Scheme For | Infra |
| Categories | Business & Entrepreneurship, Transport & Infrastructure |
| States | Puducherry |
| Gender | All |
| Age Range | 60 — Any years |
| Area | Both |
| Source | www.myscheme.gov.in ↗ |
Deepika Raikwar · 📅 30 May 2026
Deepika Raikwar is an Education Analyst and scholarship researcher who focuses on public welfare and merit-based scholarships. She simplifies complex eligibility rules, deadlines, and application processes to help common people access reliable funding opportunities worldwide.
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