INCENTIVES AND  CONCESSIONS

AVAILABILITY OF POWER AT LESSER RATES

Power tariff is comparatively lesser when compared to neighboring states and uninterrupted power supply is available to industries.

EXEMPTION FROM PAYMENT OF EARNEST MONEY DEPOSIT AND SECURITY DEPOSIT

Permanently registered Small Scale Industries are exempted from payment of earnest money deposit and Security Deposit for tenders called by the Pondicherry Government Departments for the supply of registered items .

PRICE PREFERENCE

Small Scale industries are eligible for 15% price preference for the supply of finished products manufactured by them to the Puducherry Government Departments.

INCENTIVES FOR SC/ST AND WOMEN ENTREPRENEURS:

(a) Investment Subsidy : 25% Investment subsidy is granted by Industries Department for the fixed capital investment subject to a maximum of Rs.25 lakhs for the SSI units started by SC/ST and Women entrepreneurs.

(b) Interest Subsidy : The industrial units which have availed loan from financial institution towards creation of fixed assets and for working capital, an interest incentive to an extent of 25% of the annual interest amount paid, for five years shall be admissible from the date of commencement of commercial production. The maximum amount is restricted to Rs 75,000 per annum.

(c) Rent Subsidy: Rent subsidy at the following sliding percentage for a period of 5 years is granted to the SC/ST and Women entrepreneurs who start the SSI unit in rented shed owned by PIPDIC/ Industries Department.

(i) For the first two years 50% of the rent ,
(ii) For the third year 40% of the rent,
(iii) For the fourth and fifth year 25% of the rent

(D) Employment Incentive: " Wage / Employment subsidy of 20% Wage/Salary in case of such workers who are covered under Provident Fund (PF) will be granted. The new units which commence the production after the issue amendment would alone eligible for this incentive for a period of 5 years. This would be limited by the minimum wages prescribed by Government from time to time. Further the maximum amount which can be given as subsidy would be Rs 5 lakhs per annum per unit under this provision;

INCENTIVES FOR THRUST AREA INDUSTRIES

To attract more investment and to create more number of employment opportunities in the Union Territory of Puducherry, the Government is granting capital Investment subsidy/Employment & Interest subsidies to the following Thrust area industries.

1. Information Technology 5. Electronic Industries
2. Bio-Technology Industries 6. Food Processing Industries
3. Agro Processing including Marine products 7. Leather products and Footwear
4. Light Engineering including Auto Components 8. Textiles including garments

Capital Investment Subsidy and Interest Subsidy: The Thrust area industries are eligible for the grant of subsidy at the rate of 20% of the investment made on Plant and Machinery subject to a maximum of Rs.20.00 lakhs (35% subsidy with a cap of Rs 30 lakhs available to SSI units alone). Also, interest subsidy to the extent of 25% of the annual interest amount paid subject to a maximum limit of Rs 75,000/- per unit per annum in any financial year is admissible for 5 years from the date of commencement of commercial production.

Employment subsidy: Unit which have commenced production on or after 02/08/2004 is eligible for the grant of 20% wage / Salary as employment subsidy for a period of 5 years subject to a maximum limit of Rs 5 lakhs per annum per unit.. The wage / employment subsidy is considered if the unit provides direct employment to at least 10 persons out of which 60% are local people and covered under Provident fund (PF).

INCENTIVES FOR IT INDUSTRIES

Fixed Capital investment subsidy at the rate of 20% subject to a maximum of Rs.20.00 lakhs

Subsidy on leased line rental payable to the extent of 50% for first 3 years

Interest subsidy of maximum Rs 75,000 per annum

Employment incentive of 20% wage/salary of local youth employed in the unit suject to a maximum of Rs 5 lakhs per annum per unit.

IT software and IT industries will be extended upto 15% of the total equity

The rate of interest will be 0.5% per annum less than the prevailing rate of interest for IT industries by PIPDIC.

The container corporation of India has opened inland contrainer Depot to promote containerisation of Cargo and EXIM Trade in Puducherry

Sales Tax is exempted for the sale of goods manufactured by the IT industries located in U.T of Puducherry for a period of 10 years

Information Technology related industrial units engaged in software development services and training are exempted from locational restrictions

Relaxation of FAR to the extent of 50% will be given to the IT units set up outside the urban areas

Software industries are exempted from obtaining NOC on pollution angle

Uninterrupted power supply, priority in sanctioning and connecting power for IT industries will be extended by Electricity Department

Permission to run 3 shift operations for the IT industries will be granted by Labour Department subject to the provision of other facilities such as one day off, facilities to women workers etc. Labour Department has already granted exemption to knowledge based industries in the Union Territory of Puducherry under the shops and Establishment Act/Rules'1964

Commercial buildings which are fully dedicated to IT Industries will be exempted from land & buildings tax for a period of 5 years

Stamp duty exempted for the IT industries on sale/lease of property in Software Technology Park and on execution of term loan agreement on credit provided by PIPDIC.

The stretch of East Coast Road starting from Siddhanandasamy Temple Junction to Ariyankuppam is declared as an IT Corridor. The role of the Government in this regard will be to provide necessary infrastructure facilities like road, power, water supply, telecommunication, etc.

FINANCIAL ASSISTANCE

Term loan is sanctioned by Pondicherry Industrial Promotion, Development and Investment Corporation Limited (PIPDIC) under IDBI/SIDBI refinance scheme upto Rs.150 lakhs for projects whose cost is below Rs.500 lakhs.

ALLOTMENT OF PLOTS

Pondicherry Industrial Promotion, Development and Investment Corporation Limited (PIPDIC) provides developed plots to the entrepreneurs in the Industrial estates set up by the Corporation on 99 years premium lease basis.