:: Department of Industries & Commerce, Pondicherry ::

Department of Industries & Commerce

GOVERNMENT OF PONDICHERRY

ABSTRACT

Department of Industrial Development (Industries & Commerce) – Scheme for Motivation of Scheduled Caste/Scheduled Tribes & Women entrepreneurs to start industries – Orders – issued.

DEPARTMENT OF INDUSTRIAL DEVELOPMENT (INDUSTRIES & COMMERCE)

G.O.Ms. No.19/2001- Ind Pondicherry, dated: 27-03-2002

READ: I.D.No.J-16/57/Ind/DDE/E4. Dated 23.12.98 from the Director of

Industries & Commerce, Pondicherry.

ORDER :

In the VII Five Year Plan a scheme called "Motivation of Scheduled Caste/Scheduled Tribes & Women Entrepreneurs to start industries" has been introduced and continued during the VIII Five Year Plan in order to encourage Scheduled Caste/Scheduled Tribe and Women Entrepreneurs to start industries in the Union Territory of Pondicherry.

2. The main objective of the scheme is to provide more incentives to Scheduled Caste/Scheduled Tribes and Women Entrepreneurs to start their own industries/self employment industrial units and to empower women by encouraging them to establish their own industrial units in the Union Territory of Pondicherry. The scheme has been revised in the IX Five Year Plan and submitted to the Planning Commission for approval. The Planning Commission has approved the revised scheme with enhanced incentives in the IX Plan period.

3. Based on the above, the Director of Industries and Commerce has submitted a proposal vide reference read above and requested for approval for implementation of the scheme.

4. After careful consideration and taking into account various factors, the Lieutenant Governor, Pondicherry is pleased to accord approval for the scheme "Motivation of Scheduled Caste/Scheduled Tribe and Women Entrepreneurs to start Industries" with the three components viz. Rent Subsidy, Interest Subsidy and Special Investment Subsidy. The details of the pattern of assistance under each component of the scheme are as follows :

1. RENT SUBSIDY :

i. A Scheduled Caste/Scheduled Tribe or Woman Entrepreneur, who starts an industry in a rented building, is eligible for rent subsidy for the period of first five years from the date of commencement of commercial production on a tapering basis as below: subject to a ceiling of Rs.5000 per month

(a) for the first two years - 50% of the rent

(b) for the third year - 40% of the rent

ii. In the case of industrial units accommodated in the sheds or premises owned by Government Departments including local bodies or Government Undertakings or Government sponsored societies, the rent fixed by such organisation will be taken into account.

iii. In the case of Industries accommodated in the sheds or premises owned by private individuals or bodies, the rent actually charged or the rent as fixed by Public Works Department, whichever is less, will be taken into account for the grant of this concession.

1.The rent subsidy shall be claimed in the prescribed form as in Proforma - I.

2.Rent subsidy claims will be entertained and thereafter granted only in respect of units in operation. Rent subsidy claims should be accompanied by payment of receipts for electricity charges and receipts of sales tax returns for the previous year.

3. The Rent subsidy will be settled annually.

I. INTEREST SUBSIDY :

1. For the loans received towards creation of fixed assets and for working capital, an interest subsidy equal to the difference between the actual rate charged by the financial institution/bank and a concessional rate of interest of 5.5% per annum for five years shall be admissible from the date of Commencement of commercial production. However, the maximum amount of subsidy to each industry shall not exceed Rs.20,000/- in any financial year. The interest subsidy shall be admissible only in cases of loan availed from a financial institution which term shall mean and include PIPDIC, Pondicherry or any other Government Corporations, Scheduled Banks including Co-operative Banks, Government Sponsored Cooperative Societies, Finance or Nidhi companies approved by the Reserve Bank of India.

i. Interest subsidy claims will be entertained and thereafter granted only in respect of units in operation.

ii. Interest subsidy claims should be accompanied by payment receipts for electricity changes and sales tax returns for the previous year if applicable.

iii. Interest subsidy shall be paid on prompt payment of interest to the lending agency concerned and on the production of the required "No Due Certificate" of interest from them.

vi. The subsidy will be paid to the lending agency.

v. The interest subsidy shall be claimed in the form prescribed in Proforma – II.

III. SPECIAL INVESTMENT SUBSIDY:

A special investment subsidy at the rate of 25% on the capital investment for land, building and plant & machinery is admissible subject to a maximum of Rs.25.00 lakhs on the following conditions:

i. Special Investment subsidy shall be admissible only in the case of setting up of new industries. Subsidy is also admissible for expansion of Industries subject to aggregate subsidy of Rs.25.00 lakhs.

ii. The subsidy claims will be entertained and thereafter granted only in respect of units in operation.

iii. The subsidy claims should be accompanied by payment receipts for electricity charges and sales tax returns for the previous year if applicable.

vi. The unit should be run for a minimum period of five years. Further, either the unit or the machinery therein for which subsidy has been availed should not be shifted without the prior approval of the Director of industries & Commerce.

v. The unit and machinery for which subsidy has been availed of should not be sold within the period of five years from the date of disbursement of subsidy. In such an event the subsidy should be fully refunded with interest. Dues if any, on this account will be recovered as arrears of land revenue under the Pondicherry Revenue Recovery Act.

vi. The subsidy shall be admissible on the investments made on the land, building and plant & machinery and shall be paid directly to the financial institution from which the entrepreneur had availed loan for purchase of land building and machinery as part of the loan amount required to be repaid to the financial institution. The term "financial institution" shall have the same meaning as defined in para II(i) above.

(vii) The subsidy shall be claimed in the prescribed form as in Proforma-III

IV. GENERAL CONDITIONS:

i. The amount of subsidy payable for claims of the previous financial year will strictly be limited to the availability of funds under the relevant head of account. In the event of shortage of funds for settlement of subsidy claims under the scheme, the following will be the order of the priority for settlement of claim:

(a) SC, ST entrepreneurs.

(b) Women entrepreneurs.

(d) Subsidy claims of new units /units which have gone in for expansion.

i. In the event of shortage of funds during a financial year for settling the subsidy claims of the units already availing subsidy, rent and interest subsidies will be settled first. The special investment subsidy of such units will be settled in the order of lowest to highest amounts i.e. preference will be given to subsidy claims of lower value. In the event that subsidy claims of units already availing subsidy could not be settled during a financial year such claims will be carried forward to the next financial year. Such carried forward claims will get preference over other claims.

ii. In the event of shortage of funds to settle the new subsidy claims, the order of preference for settling claims will be the same as that for claims of entrepreneurs who are already availing subsidy. However, during any financial year, new claims will not be entertained unless all the claims of entrepreneurs who are already availing subsidy are settled. New but un-entertained claims will be carried forward to the next financial year till funds for accepting such claims are available. When funds are available for accepting the claims of new units, such claims will be accepted on the basis of their seniority, determined by the date on which subsidy claim form complete in all respects is submitted to the Industries Department. In the event of two claims having the same seniority, the claims for the lower amount will be preferred.

iii. Claims in the prescribed Proforma for the previous financial year shall be submitted by the 1st of July of the current financial year.

1. Only Scheduled Caste/Scheduled Tribes and Women entrepreneurs who have tiny/small scale manufacturing units will be eligible for subsidy under this scheme.

2. Already existing units, not availing subsidy under the scheme and going in for expansion will be eligible only for special investment subsidy. Units of this nature who intend to avail of subsidy under the scheme should inform the Director of Industries and Commerce of their intention of going in for expansion. Such entrepreneurs should also inform the Director of Industries and Commerce about the details of land, plant and machinery available in the existing units. The procedure for valuation of the assets will be the same as that prescribed for the valuation of the new units. Such entrepreneurs going in for expansion should also submit Auditor’s statement for the past two financial years. Only units which have been in operation for not less than 3 years prior to the date of intimation to the Industries Department about their intention to expand will be eligible for special investment subsidy under the scheme provided such units have registered profits during the past two consecutive years as reflected in the Auditor’s profit and loss account.

NOTE

(a) Investment on land means the value as per land documents (sale deed) or the guideline register value given by Revenue Department.

(b) Investment on building means the value assessed by a competent engineer approved by the Government for valuation.

(c) The investment on plant & machinery means the initial purchase price of the machinery and other equipment as assessed by a Government approved Engineer in annexure-IV.

(d) In the case of second hand machinery, the initial purchase value with depreciation or the second hand purchase value, whichever is less, will be taken as investment

(e) Charted Accountant should certify the investment on fixed assests in the prescribed Proforma as in Annexure V.

The subsidy amount will be disbursed directly to the financial institution/banks only, if the units is financed by them, towards the adjustment against the loan availed by the entrepreneurs.

Subsidies and investments under the scheme shall be admissible in respect of industrial units fully owned by the Scheduled Caste/ Scheduled Tribes and Women entrepreneurs. In case of partnership and Private Ltd. Companies, all the partners, share holders and Board of Directors shall belong to Scheduled Castes/ Scheduled Tribe and Women as the case may be.

The amount of subsidies and incentives availed of under the scheme shall be refunded fully with interest in case the new partners or share holders or Board of Directors belonging to other castes / men as the case may be are included in the business within five years from the date of availing of the subsidy. Dues, if any, on this account will be recovered as arrears of land revenue under the Pondicherry Revenue Recovery Act.

The Scheduled Caste/Scheduled Tribe and Women entrepreneurs shall inform the Industries Department of his/her proposal to set up his/her own industrial unit and to avail of the benefits under the scheme with the Provisional Registration Certificate, Project Report, Sources of finance etc., well in advance in the prescribed proforma IV.

The Scheduled Caste/Scheduled Tribe and Women entrepreneurs shall submit their application for the payment of subsidy within six months from the date of functioning of their unit/commencement of commercial production in the relevant proforma appended hereto. This may be relaxed up to a period of one year at the discretion of the Director of Industries & Commerce in respect of genuine cases

The beneficiary shall execute an agreement as per proforma V in respect of special investment subsidy.

5. This issues with the approval of Finance Department vide their I.D.No.11624/2002/F3 dated 08/02/2002.

// BY ORDER //

(P.M. EMMANUEL)

UNDER SECRETARY TO GOVERNMENT (IND & COM)

To

1. The Director of Industries & Commerce, Pondicherry.

2. The Director of Printing & Stationery, Pondicherry

----with a request to publish the notification in the next issue of official Gazette and supply 50 copies to this Department

Copy to:

1. All Secretaries and Head of Department / Secretary to Lt. Governor / Secretary to Hon’ble Chief Minister/ Private Secretary to Speaker / Private Secretary to all Ministers / Private Secretary to Deputy Speaker.

2. The Finance Department, Pondicherry

3. The Director of Accounts & Treasuries, Pondicherry

4. The Office of the Accountant General (Audit)-I, Tamil Nadu.

5. The Office of the Accountant General (Audit)-I, Pondicherry

6. Central Record Branch, Pondicherry.

7. G.O. files/spare.

ANNEXURE – I

Certificate from the concerned financial institution/bank in the following form duly signed by responsible officer.

Certified that M/s…………………………………………………have been disbursed on this date loan amounting to Rs…………… sanctioned under letter No………………………

Rs. P.

1) Loan amount previously disbursed upto :

Present installment disbursed on

2) Total amount disbursed upto date :

3) Value of fixed capital investment :

(i) Land (Excluding house-hold) :

(ii) Building (Excluding residential quarters) :

(iii) Plant & machinery (including (a) Expenses

regarding technical know-how; (b) Engineering fees;

and pre-operative expenses capitalised).

(iv) Other assets, Tools, Jigs, Dies and Moulds: and Goods Carriers.

Total:

Certified that the sanction of financial assistance to M/s……………………………….... for the plant at ………………………….. has been considered on the basis of the company’s assessed requirements of civil works and buildings, as shown below:

Value (Rs.)

Proposed building for factory :

The above value is considered as reasonable and in :

need for the plant.

Signature of the Agent or Manager

(Name of the Institution)

ANNEXURE –II

Details of fixed capital investment

(A). LAND:

Date of purchase(1)	Value of purchase(2)

(B). BUILDING:

Date of completion of building or part there of (1)	Value as per Engineer’s certificate (2)	Amount spent on building upto (3)

(C) . PLANT & MANCHINERY:

Sl.No.	Details of machineries	Name & Address of the supplier	Invoice/bill No. & date	Value	When installed
(1)	(2)	(3)	(4)	(5)	(6)

Signature of the applicant

Seal:

Place:

Date:

ANNEXURE-III

[see para IV (vii)(b)]

ENGINEER’S CERTIFICATE

I hereby certify that as against the estimated cost of Rs……………………………………

(Rupees……………………………………………….. only) of the building and civil works for M/s……………………………….. for their proposed project at…………………………………

The unit has so far completed the civil works as under:

1. Value of completed civil works as per the estimates :Rs.

2. Value of the materials at site :Rs.

3. Amount certified for payment to the building :Rs.

(Civil and structural Contractors).

Retention Money (from civil Contractors)

(to be certified by the P.W.D/PIODIC civil engineers)

ANNEXURE-IV

[see para IV (vii)(c)]

We hereby certify that………………………………………………………………( Name of the Industries unit) have acquired the following machineries for their unit at …………………. …………………………………………………………………………………….. (Address) for the manufacture of …………………………………………………………….. (Name of the product) by the Industrial unit.

Sl.No.	Name of the item & Manufacturing Capacity	Date of Purchase	From whom Purchased	Value Paid for	Remarks
(1)	(2)	(3)	(4)	(5)	(6)

We have checked the machineries and the invoices, etc., and certify the value of the machineries to be true.

Signature of the Engineer.

Place:

Date:

ANNEXURE-V

[see para IV (vii)(e)]

Name of the Charted Accountant(s):

We hereby certify that………………………………………………………………( Name of the Industrial unit) have acquired the following machinery for their unit at …………………. …………………………………………………………………………………….. (Address) for the manufacture of …………………………………………………………….. (Name of the product) by the Industrial unit.

Item of fixed assets Value (Rs)

a.Lease hold/free hold land :

b. Cost of development of the land :

c. Building under construction:- :
1. Amount paid to the building contractors :

2. Amount paid to for building materials :

3. Amount paid for wages and salaries etc. for the building construction :
Architect’s fee :

4. Electrical Installation :

5. Plant and Machinery.

a. Value paid for items at site (break up details to be furnished separately).
b. Advance payments to machinery suppliers (break up details to be furnished separately).

6. Loading, unloading, transportation, octroi duties, Erection expenses etc.

7. Pre-operative expenses to be capitalised. :

8. Preliminary expenses to be capitalised. :

9. Miscellaneous fixed assets :

(a)

(b)

(c)

(d)

We have checked the books of accounts of the unit, the invoices etc., and certify that the aforesaid information furnished above has been verified and found to be true. We also certify that all the aforesaid items have been paid and no credit is raised there against in the books of the unit.

CHARTERED ACCOUNTANTS

Place:

Date:

PROFORMA – I

[see para I(iv)]

APPLICATION FOR DISBURSEMENT UNDER THE RENT SUBSIDY SCHEME FOR INDUSTRIAL UNITS STARTED BY SC/ST & WOMEN ENTREPRENEURS

1. Name of the applicant :

2. Address for communication :

3. Name & address of the Industry :

4.Whether sole proprietorship/ :

Partnership/ Pvt. Ltd./ Public Ltd.

Name of the products manufactured (Approved) :
Date of commencement of production (copy of :

SSI PMT registration certificate to be enclosed)

7. Total area of land : m/2

8. Rent per month (for units located outside the :

Industrial estate copy of lease deed and rent

Reasonable certificate obtained from PWD

(Rent fixation statement to be enclosed)

9. Period for which the subsidy is claimed : Period Amount paid

AFFIDAVIT

The particulars furnished above are true and I hereby undertake to refund the entire subsidy with interest if any false claim is found subsequently.

Signature of the applicant

Place:

Date:

Note:- In the case of SC/ST entrepreneurs, caste certificate from the competent authority shall be attached while making the initial claim by the individual/Parties concerned.

PROFORMA – II

[see para II (vi)]

APPLICATION FOR DISBURSEMENT UNDER THE INTEREST SUBSIDY FOR INDUSTRIAL UNITS STARTED BY SC/ST & WOMEN ENTREPRENEURS.

1.Name of the applicant :

2. Address for communication :

3. Name & address of the industry :

Whether sole proprietorship/Partnership/ :

Pvt.Ltd.,/Public Ltd.

5. Name of the products manufactured (Approved) :

6. Date of commencement of production :

(Copy of SSI PMT registration certificate to be enclosed)

7. Name of Financial Institution/Bank which have :

financed the project
(copy of the sanction letter to be enclosed).

8. The cost of the project as approved by the above Institution/ Bank and details of fixed assets acquired and working capital :

Item Amount

Total fixed capital investment

Land
Building
Plant and Machinery
Other assets

Tools, Jigs and moulds

Goods Carriers

Other assets

Promotional and pre-operative expenses Capitalised or to be capitalised.

Working capital -------------------

Total cost---

-------------------

9. Details of Loan availed from financial Institution/Bank. (Sanction copy to be enclosed).

10. Rate of interest charged by the financial institution and bank (Copy to be enclosed)

11.Period for which the subsidy Period Amount Paid
to be Claimed.

(No due Certificate from the Financial institution/bank should be enclosed)

Signature of the applicant:

AFFIDAVIT

The particulars furnished above are true and I hereby undertake to refund the entire subsidy with interest if any false claim is found subsequently.

Signature of the applicant

Place:

Date:

Note:- In case of SC/ST entrepreneurs caste certificate from competent authority shall be attached while making a initial claim by the individual/Parties concerned.

PROFORMA –III

[ see para III (vii) ]

APPLICATION FOR DISBURSEMENT UNDER THE 25 PER CENT SPECIAL INVESTMENT SUBSIDY SCHEME FOR INDUSTRIAL UNITS STARTED

BY SC/ST & WOMEN ENTREPRENEURS.

1. Name of the applicant :

2. Address for Communication :

3. Name & Address of t he Industry :

Whether sole proprietorship/

Partnership/Pvt. Ltd /Public Ltd., :

Name of the products manufactured(Approved) :
Date of commencement of production (Copy of

SSI PMT registration certificate to be enclosed :

The Scheme for the new unit /expansion of the unit

has been approved by the following financial

institutions /Banks* Viz. :

(i)

(ii)

(iii)

The cost of the project approved by the above institution /bank and the details of fixed assets

acquired are as under.:

Cost of the Project

Self – financed As approved by financial institution

Rs. P. Rs P.

(A) Total fixed capital investment

i.Land
ii.Building
iii.Plant & Machinery
vi.Other assets

a.Tools, Jigs and moulds
b.Goods carriers
c.Other assets

(v) Promotional and Pre-operative expenses capitalised or to be Capitalised.

(B) Margin money for working capital

-------------------

Total cost---

-------------------

9. Employment proposed or likely to be created is as follows:-

a. Managerial b. Supervisory/Technicalc. Workers

Skilled

Semi-skilled

Unskilled

(d) Others

10. The following certificates have been appended :

(i) A Certificate from chartered accountant M/s …………………certifying the extent of share capital subscribed and paid up value of fixed assets, if any, acquired and paid for as stated above.

(ii) Caste certificate from competent authority in case of SC/ST entrepreneurs.

11. A copy of the latest audited accounts of the unit is also enclosed herewith.

12. I/We hereby agree that, I/We shall forthwith repay the amount disbursed to me/us under this scheme, if the amount of 25 percent investment subsidy is found to have been disbursed in excess of the amount actually admissible for whatsoever reason. Further, I/We shall also be liable to pay interest at such rate as prescribed by Government from time to time on such amount and such other charges/expenses which may be payable by me/us.

13. It is hereby further certified that I/we have not hitherto applied for or have received any amount by way of grant or subsidy in respect of this unit from any State Government

14. I/We hereby agree that I/We shall forthwith refund fully with interest in case the new partners or shareholders or Board of Directors other than SC/ST & Women are included in the business within five years from the date of availing the subsidy.

15. I/We hereby agree that I/we shall not shift the machinery /Unit for a period of five years from the date of availing subsidy. In the event shifting I/we agree to pay the subsidy amount along with penal interest at such rate as may be prescribed by the Govt. from time to time.

Signature of the applicant.

Name of the Signatory.

For and on behalf of (Name of the Unit)

PROFORMA – IV

[ see para IV (xi) ]

APPLICATION FOR REGISTRATION OF CLAIM FOR THE GRANT OF 25%SPEICAL INVESTMENT SUBSIDY FOR INDUSTRIAL UNITS STARTED

BY SC/ST & WOMEN ENTREPRENEURS.

Name of the unit :

Address for Communication :

Location of the Units :

Name of the Products(s) :

SSI PMT Registration/IEM/IL/No. and date :

Project cost (Tentative ) :

Land :

Building

Plant & machinery :

Details of Finance : PIPDIC/Financial Institution/Bank/Own

Anticipated date of commencement of production. :

I/We hereby request to register our claim for the grant of 25% investment subsidy.

Strike out whichever is not applicable. I/We here by declare that I/We belong to SC/ST communities.(Copy of original certificate to be enclosed).

Yours faithfully,

(Signature with seal)

The Director of Industries & Commerce,

Thattanchavady,

Pondicherry.