Assistance for Technology Acquisition under Motivation of Entrepreneurs to Start Industries and Fiscal Assistance to Capital Intensive Industries in Gandhinagar
ATA-MESIFA-CII
Directorate of Industries and Commerce, Government of Puducherry
Guidance for businesses in Gandhinagar
Through "Assistance for Technology Acquisition", assistance for acquisition of appropriate technology in any form for a specific product/process is provided by way of a 50% grant subject to a maximum of ₹10,00,000/-. The applications are accepted offline in the prescribed form available.
At a glance
- Scheme Name
- Assistance for Technology Acquisition (MESIFA-CII)
- Implementing Body
- Directorate of Industries & Commerce, Puducherry
- Grant
- 50%
- Ceiling
- ₹10,00,000
- Purpose
- Acquisition of appropriate technology for product/process
- Local Employment
- At least 60% Puducherry residents
Benefits
Assistance: 50%. Ceiling: ₹10,00,000/-. Purpose: Acquisition of Appropriate Technology in Any Form for a Specific Product/Process.
Number of Installments: In single or multiple installments, depending on the availability of fund.
Mode of Disbursement: Disbursed through financial institutions/banks (if the unit is financed by them) towards adjustment against the loan or creation of additional fixed assets/working capital; for self-financed units, disbursed directly to the entrepreneur/unit. (Financial institution includes PIPDIC, any Government Corporation, Scheduled Banks including Co-operative Banks.) Note: Assistance is not available for purchase of any plant and machinery or equipment.
Eligibility
- The assistance should have been sought to set up a new unit with new technology.
- Existing units will also be eligible for a new product or for improvement of the production process.
- The unit should provide at least 60% of employment to the people of the Union territory of Puducherry of the total employment strength (to be maintained during the period specified in the Affidavit).
- The industrial unit shall not transfer or dispose of the fixed asset including plant and machinery till the completion of 5 years from the date of submitting the application/disbursement of the subsidy, whichever is later.
- Additional investments made by new/existing industrial units after availing the first claim are also eligible for subsidy up to the ceiling limit. Units commencing commercial production on or after 1-4-2017 are considered new industries; those before are existing units. Special Cases: two or more industrial undertakings set up by the same person are eligible as separate entities provided the locations differ and licenses/clearances/registrations are obtained separately.
Documents required
- Entrepreneurs Memorandum Part-2 (UAM/PMT) Registration / Commencement of Production Certificate.
- Loan Sanction Letter.
- Receipt for the Payment to the Technology-Providing Institution/Agency.
- Chartered Accountant Certificate for the Payment Made to the Quality Certifying Agency / Patent Attorney / Technical Providing Institution & Agency.
- Approval Copy Obtained from the Director of Industries after Signing the Memorandum of Understanding (MOU) with the Technology-Providing Institution/Agency.
- The industrial unit shall furnish details of production, employment and other information every year as sought by the Industries and Commerce Department.
How to apply
- 1
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.
- 2
Fill in all mandatory fields and attach copies of all mandatory documents (self-attest, if required).
- 3
4:
- Submit the duly filled and signed application form and documents to the concerned authority, and request a receipt/acknowledgement (with date, time, and unique identification number if applicable).
- 4
Post-Application:
- Applications are scrutinized by the Directorate of Industries on merit and placed before the State Level Committee, which decides eligibility and recommends the admissible quantum. Deadline: New Units — within one year of obtaining EM Part-2/Permanent Registration/Commencement of Production Certificate; Existing Units — within one year of completing Expansion/Diversification/Modernization.
About the scheme
This Puducherry industrial-incentive scheme (under "Motivation of Entrepreneurs to Start Industries and Fiscal Assistance to Capital Intensive Industries") provides a 50% grant, up to ₹10,00,000, for the acquisition of appropriate technology (in any form) for a specific product/process — supporting new units with new technology and existing units for new products or process improvement.
Why it matters
- Technology Grant:
- 50% grant (up to ₹10,00,000).
- New & Existing Units:
- For new tech or product/process improvement.
- Innovation:
- Supports appropriate technology acquisition.
- Local Jobs:
- Requires 60% local employment.
Focus areas
- Technology Acquisition:
- Grant for appropriate technology.
- Product/Process:
- New products and process improvement.
- Industries:
- Support for Puducherry units.
Is this scheme right for you?
This scheme helps Puducherry's industries acquire appropriate technology for new products or process improvement with a 50% grant (up to ₹10 lakh). If your unit is adopting new technology and meets the local-employment norm, this scheme can fund a significant share of your technology cost.
Frequently asked questions
How much employment must be provided to residents of Puducherry for a unit to be eligible for incentives/subsidies/assistance?
At least 60% of employment must be provided to the people of Puducherry out of the total employment strength of the industrial units.
What is the composition of the State Level Committee responsible for evaluating subsidy applications?
The State Level Committee consists of the Secretary to Government (Industries & Commerce), the Managing Director of PIPDIC, the Deputy Secretary/Under Secretary (Finance), and the Director of Industries and Commerce, all from Puducherry.
Under what circumstances would the entire amount of subsidies and incentives availed need to be refunded, according to the content?
If the unit undergoes any amendments in new partners or shareholders within five years from the date of availing the subsidy, the entire amount of subsidies and incentives availed must be refunded with a simple interest of 14% per annum.
Which types of investments are ineligible for investment subsidy according to the provided conditions?
Working capital, commissioning fees, goodwill fees, royalty, preliminary and pre-operative expenses, capitalized interest, transportation and erection charges, goods vehicles, office equipment, furniture, crates, pallets, and consumable stores, etc., are ineligible for investment subsidy.
Through whom is the subsidy amount disbursed if the unit is financed by financial institutions/banks?
The subsidy amount is disbursed through financial institutions/banks towards the adjustment against the loan availed by the entrepreneurs or for the creation of additional fixed assets or for working capital purposes.
How is the subsidy disbursed for self-financed units?
For self-financed units, the subsidy is disbursed directly to the entrepreneur/unit.
What happens if an industrial unit has availed investment subsidy from the Central Government/State Government or any other agency?
If an industrial unit has availed investment subsidy from any other agency, it is not eligible to apply for a subsidy for the same investment again under this Scheme.
What is the condition for industrial units set up by the same person to be eligible for subsidy as separate entities?
Industrial units set up by the same person as proprietor, common partners, or common Board of Directors/shareholders are eligible for subsidy as separate entities provided the location of the units is different and licenses/clearances/registrations are obtained separately for the enterprises.
How is the commencement date for regular commercial production determined?
The commencement date is verified by Officials of the Industries Department based on the entrepreneur's admission.
What is the employment requirement for qualifying for incentives/subsidies?
To qualify for incentives/subsidies, the industrial unit must provide at least 60% of employment to residents of Puducherry out of the total employment strength.
What is the role of the State Level Committee in the subsidy application process?
The State Level Committee scrutinizes applications, determines eligibility, and recommends the quantum of incentive/subsidy admissible to the unit.
Who sanctions the subsidies based on the Committee's recommendations?
The Director of Industries and Commerce sanctions the subsidies based on the Committee's recommendations.
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