[ 739 ]
GOVERNMENT OF PUDUCHERRY
DIRECTORATE OF INDUSTRIES AND COMMERCE
(SECRETARIAT WING)
(G.O. Ms. No. 2/Ind. & Com./A6/2017, Puducherry, dated 2nd May 2017)
NOTIFICATION
Whereas, after the introduction of Industrial Policy 2013, the
anticipated growth in industrial sector was not achieved due to various
factors like global economic recession, the difference in taxations,
the need arose to review the Industrial Policy 2013 taking into account,
the renewed emphasis laid by the Government of India on the manufacturing
La Gazette de L' État de Poudouchéry
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PART - II
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No. 33 Poudouchéry Mardi
6
Juin
2017
No.
Puducherry
Tuesday
6th
June
2017
( 16 Jyaistha 1939 )
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LA GAZETTE DE L'ETAT
[PART–II
sector in the economy, the announcement of the Industrial Policy
by the Hon’ble Chief Minister, Puducherry in the Assembly and to secure
additional employment opportunities to the youth.
And therefore, after due considerations the New Industrial
Policy, 2016 was formulated and the Gazette notification was issued vide
G.O. Ms. No. 7/2016/lnd.A, dated 4th October 2016. The following
Scheme is formulated to implement the incentive/subsidy components
conforming to the New Industrial Policy 2016. The Government Order
implementing the following Schemes supercedes the existing G.O. Ms.
No. 2/2012-Ind.-A, dated 7-5-2012, various incentives/subsidies provided
to the industrial units under the Scheme “Motivation of Entrepreneurs
to Start Industries and Fiscal Assistance to Industries.”
1. Short title, extent and commencement.— (i) This Scheme shall
be called as “Motivation of Entrepreneurs to Start Industries and Fiscal
Assistance to capital intensive industires”.
(ii) This Scheme shall be in operation in the whole of the
Union territory of Puducherry.
(iii) It shall come into force with effect from 1-4-2017.
2. Definitions.— (a) Land: ‘Investment on land’ means, the value
as per land document (sale deed) or the guideline register value (GLR)
of the Government whichever is less.
(b) Building: ‘Investment on building’ means, the value
assessed by Public Works Department/ Pondicherry Industrial Promotion
Development and Investment Corporation (PIPDIC).
(c) Plant and machinery: The plant and machinery including
electrification costs (such as transformer costs, control panel and costs
of industrial wiring), testing equipment, tools, jigs and moulds.
3. Subsidies.— 3.1 Capital Investment Subsidy (for new and
existing industries):
Eligibility : This Scheme shall be applicable to the following
categories :
(a) For Micro and Small Enterprises, 40% on the investments
made on land, building, plant and machinery subject to a
maximum of ` 40.00 lakhs.
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LA GAZETTE DE L'ETAT
(b) For Medium and Large Enterprises, 35% on the investments
made on land, building, plant and machinery subject to a
maximum of ` 35.00 lakhs.
(c) For Women/SC/ST Entrepreneurs, 45% on the investments
made on land, building, plant and machinery subject to a
maximum of ` 75.00 lakhs.
Conditions:
3.1.1 In case of SC/ST/Women category, the investments in
respect of industrial units fully owned by the respective category
and women entrepreneurs will alone be considered.
3.1.2 In ease of partnership and private limited companies, all
the partners, shareholders and Board of Directors shall belong to
the respective category as the case may be.
3.1.3 Buildings which have already been occupied and used,
subsequently purchased by the entrepreneurs for setting up of the
industry are not eligible for subsidy.
3.1.4 Second hand/Used imported/indigenous machineries are
not eligible.
3.1.5 Investment made on or after 1-4-2017 are eligible for
subsidy as prescribed in this Government Order.
3.2 Infrastructure Development Subsidy (For IT/ITES): 30%
Subsidy subject to a maximum of ` 1 crore will be granted on the
investment made on building with a minimum extent of 50000 sq.ft.
constructed area, by the infrastructure developers/industries for leasing
out to Information Technology industries or for own industrial use [for
manufacturer of computer systems, Software/Information Technology
Enabled Services, Business Process Outsourcing (BPO) and Knowledge
Process Outsourcing (KPO)].
Conditions:
3.2.1 The building value shall be assessed by the PIPDIC/Public
Works Department.
3.2.2 The infrastructure subsidy shall be disbursed in annual
installment not exceeding ` 25 lakhs per annum till completion of
the total eligible subsidy.
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LA GAZETTE DE L'ETAT
[PART–II
3.3 Subsidy to Pollution Control Equipment : The units which
are installing pollution control equipment will be granted subsidy
@ 25% up to a maximum of ` 5 lakhs.
Conditions :
3.3.1 The unit shall obtain a certificate [consent to operate (air/
water)] from Pondicherry Pollution Control Committee.
3.3.2 The assistance will be allowed on the basis of expenditure
incurred and eligible assets created towards installation of pollution
control equipment as specified by the Pondicherry Pollution Control
Committee.
3.4 Assistance for Technology acquisition: Assistance for
acquisition of appropriate technology in any form for specific product/
process will be provided by way of 50% grant subject to a maximum of
` 10 lakhs.
Conditions:
3.4.1 Assistance will be available to set up a new unit with new
technology. Existing units will also be eligible for new product or
for improvement of production process.
3.4.2 Assistance will not be available for purchase of any plant
and machinery or equipment, since this assistance is provided only
for acquiring technology.
4. Procedure for-claiming the subsidies.— (i) The application for
subsidy shall be submitted in the prescribed form.
(ii) The subsidy application for capital investment shall be
submitted within one year from the date of commencement of regular
commercial production. The delay can be condoned by the State Level
Committee.
(iii) The date of commencement as admitted by the entrepreneurs
shall be reckoned after due verification by the Officials of the Industries
Department.
(iv) All claims shall be supported by a certificate issued by the
Chartered Accountant.
(v) All claims shall be supported by certificate from the financial
institution if loan is availed by the unit.
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LA GAZETTE DE L'ETAT
(vi) The incentives/subsidies/assistances shall be granted if the
unit provides atleast 60% of employment to the people of Union territory
of Puducherry of the total employment strength of the industrial units.
(vii) The applications shall be scrutinized by the Directorate of
the Industries and Commerce for the grant of incentives/subsidies/
assistances and to determine the quantum of amount admissible so as to
place before the Committee.
(viii) State Level Committee will go into the merits of each case
for the grant of capital investment subsidy, infrastructure development
subsidy, pollution control equipment subsidy and assistance for
technology acquisition to decide whether the industrial unit qualifies for
the grant of incentive/subsidy and will recommend the quantum of
incentive/subsidy admissible to the unit.
(ix) Sanction shall be accorded by the Director of Industries and
Commerce based on the recommendation of the Committee
(x) The constitution of the State Level Committee shall be as
under :
(1) The Secretary to Government (Industries
. . Chairman
and Commerce), Puducherry.
(2) The Managing Director, PIPDIC,
. . Member
Puducherry.
(4) The Deputy Secretary/Under Secretary
. . Member
(Finance), Puducherry.
(5) The Director of Industries and Commerce, . . Member-
Puducherry.
Secretary.
(xi) The Chairman may co-operate the Director (DSTE), the
Director (IT), the Director (Agriculture), the Chief Engineer (Public
Works Department) or any officers when projects related to the
Infrastructure/Information Technology/Agriculture/Bio-Technology
fields are considered in the meeting.
(xii) The decisions of the State Level Committee shall be final in
deciding the eligible amount of capital investment subsidy, infrastructure
development subsidy, pollution control equipments subsidy and
assistance for technology acquisition.
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LA GAZETTE DE L'ETAT
[PART–II
(xiii) In case of any doubt/ambiguity the decision/
interpretations of the State Level Committee is final and binding on all
concerned.
5. General conditions.— 5.1 When the unit undergoes any
amendments in new partners or shareholders or Board of Directors not
belonging to the respective category (as the case may be) within five
years from the date of availing the subsidy, then the entire amount of
subsidies and incentives availed shall be refunded with simple interest
of 14% per annum.
5.2 The following investments shall not be eligible for
investment subsidy:—
(i) Working capital
(ii) Commissioning fee
(iii) Goodwill fees
(iv) Royalty
(v) Preliminary and pre-operative expenses
(vi) Capitalized interest
(vii) Transportation and erection charges
(viii) Goods vehicles
(ix) Office equipment, furniture, crates, pallets and consumable
stores, etc.
5.3 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.
5.4 The financial institution shall mean and include PIPDIC or
any other Government Corporation, Scheduled Banks including
Co-operative Banks.
5.5 In case of self-financed units, the subsidy shall be
disbursed directly to the entrepreneur/unit.
5.6 The subsidy shall be disbursed in single or multiple
installments depending on the availability of fund.
5.7 A unit which has availed investment subsidy from Central
Government/State Government or any other agency shall not be eligible
to apply for subsidy for same investment again under this Scheme.
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LA GAZETTE DE L'ETAT
5.8 If, two or more industrial undertakings are set up by the
same person as proprietor, common partners, common Board of Directors/
shareholders, such units are eligible for subsidy as separate entity
provided the location of the unit are different and licences /clearances/
registrations are obtained separately for the enterprises.
5.9 The industrial unit shall not transfer or dispose of the fixed
asset including plant and machinery in any manner till the completion of
5 years from the date of submitting the application/disbursement of the
subsidy whichever is later.
5.10 The industrial unit shall have to furnish the details of
production, employment and other information every year and from time
to time as sought by the Industries and Commerce Department.
5.11 60% of the local employment will have to be maintained by
the industrial unit during the period specified in the Affidavit.
5.12 Investment subsidy to the industrial units is liable to be
refunded by the units with interest @ 14% per annum if subsidy has
availed by misrepresentation, forgery, deception, excess payments made
or if, the unit is not found working for 5 years from the date of receipt
of subsidy.
5.13 All amount due to the Government under this provision
shall, in case of default, be recoverable as arrears of land revenue under
the provisions of the Revenue Recovery Act.
5.14 The Government is empowered and reserves the right to
withdraw all/part of the above mentioned incentives/subsidies without
assigning any reason.
5.15 The subsidy forms in respect of the said Scheme will be
prescribed by the Directorate of Industries and Commerce.
5.16 The units which have commenced commercial production
on or after 1-4-2017 are considered as new industries and the units which
have commenced production prior to 1-4-2017 are considered as existing
units. The additional investments made by the new/existing industrial
units after availing first claim is also eligible for subsidy up to the
ceiling limit.
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LA GAZETTE DE L'ETAT
[PART–II
5.17 The investments made prior to 1-4-2017 are eligible as per
the subsidy prescribed in the earlier G.O. Ms. No. 2/2012-lnd.-A,
dated 7th May 2012.
(By order)
G. MALAR KANNAN,
Additional Secretary to Government
(Industries and Commerce).
————
GOVERNMENT OF PUDUCHERRY
DIRECTORATE OF INDUSTRIES AND COMMERCE
(SECRETARIAT WING)
(G.O. Ms. No. 4/Ind. & Com./A6/2017, Puducherry, dated 2nd May 2017)
NOTIFICATION
Whereas, after the introduction of Industrial Policy 2013, the
anticipated growth in industrial sector was not achieved due to various
factors like global economic recession, the difference in taxations,
the need arose to review the Industrial Policy 2013 taking into account
the renewed emphasis laid by the Government of India on the manufacturing
sector in the economy, the announcement of the Hon’ble Chief Minister,
Puducherry in the Assembly and to secure additional employment
opportunities to the youth.
Whereas, after due considerations, the New Industrial Policy, 2016
was formulated and the Gazette notification was issued vide G.O. Ms.
No. 7/2016/lnd.A, Puducherry, dated 4th October 2016 which provided
various incentives/subsidies and accordingly, the following scheme is
formulated to implement the incentive/subsidy components conforming
to the New Industrial Policy 2016. The Government Order implementing
the following Schemes supercedes the existing G.O. Ms. No. 2/2012-Ind.-A,
dated 7-5-2012, various incentives/subsidies provided to the industrial
units under the Scheme “Motivation of Entrepreneurs to Start Industries
and Fiscal Assistance to Industries”.
1. Short title, extent and commencement.— (i) This Scheme shall
be called as “Motivation of Entrepreneurs to Start Industries and Fiscal
Assistance to Industires - Various incentives”.
(ii) This Scheme shall be in operation in the whole of the Union
territory of Puducherry.
(iii) It shall come into force with effect from 1-4-2017.
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PART–II]
LA GAZETTE DE L'ETAT
2. Subsidies.— The Scheme provides the following subsidies with
certain conditions as provided hereunder.
2.1 Interest Subsidy (For Micro, Small, Medium and Large new
Industries): The industrial units availing loan from financial institutions
towards creation of fixed assets and for working capital shall be eligible
for an interest subsidy to an extent of 25% of the annual interest amount
paid, which shall be admissible from the date of commencement of
commercial production, subject to a maximum of ` 5 lakhs per annum for
a period of 5 years for Puducherry and Karaikal regions and 7 years for
Mahe and Yanam regions.
Condition:
The interest subsidy claim should be accompanied by ‘No Due
Certificate’ issued by the financial institution/bank. The interest subsidy
will be paid through the financial institution.
2.2 Generator Subsidy: 50% Subsidy with a ceiling of ` 5 lakhs
per industrial unit for micro, small, medium and large industries for
purchase and installation of Generator.
Condition:
The Generator subsidy shall be eligible for the purchase and
installation of new Generators purchased on or after 1-4-2017. The
Generator purchased prior to 1-4-2017 are eligible as per the subsidy
prescribed in the earlier G.O. Ms. No. 2/2012- Ind.-A, dated 7th May 2012.
2.3 Employment Incentive: Wage/Employment subsidy of 20%
wage/salary up to a maximum of ` 5 lakhs per annum, in case of workers
who are covered under Provident Fund (PF) will be granted for a period
of five years for Puducherry and Karaikal regions and 7 years for Mahe
and Yanam regions. Wage/Employment subsidy would be available only
if, the units provide direct employment to at least 10 persons and at least
60% of the employment to the people of Union territory of Puducherry.
Condition:
For Employment incentive, claim shall accompany with statement
of Provident Fund remittance acknowledgment.
2.4 Subsidy for Quality Certification : Assistance will be
granted for maximum 3 quality certifications @ 50% of the cost of quality
certification with a ceiling of ` 2 lakhs per unit.
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LA GAZETTE DE L'ETAT
[PART–II
Conditions:
2.4.1 For quality certification incentive, the cost for certificate
will include fees charged by certification agency, approved by
Quality Council of India (QCI) (excluding travel, hotel and
surveillance charges).
2.4.2 Expenditure incurred for renewal of certificate shall not be
eligible for assistance under the Scheme.
2.5 Assistance for Intellectual Property Protection Support:
Assistance @ 50% subject to a maximum of ` 2 lakhs for the expenditure
for obtaining domestic patent and ` 5 lakhs for international patent.
Conditions:
2.5.1 For availing assistance under Intellectual Property
Protection Support Scheme, the fees paid to patent attorney, patent
service centre and patent registration will be eligible as cost/
expenditure (excluding travel, hotel charges) for any patent
registration.
2.5.2 Assistance will be disbursed after the publication/
notification of the patent.
2.5.3 Applicant shall have to submit application within 1 year
from the date of publication/notification of the patent.
2.5.4 Application submitted after 1 year from the date of
publication/notification will not be eligible for assistance.
2.6 Market Development Support Assistance: Assistance to
the industrial units for participation in international trade fair as an
industry association will be given @ 50% of total rent, literature and
display material subject to a maximum of ` 5 lakhs.
Conditions:
2.6.1 Market Development Support Assistance for market
development support would be reimbursed provided on the basis
of actual expenditure incurred.
2.6.2 The unit shall obtain prior approval from the Director of
Industries about the participation in exhibition.
2.7 Assistance for energy and water conservation:
Reimbursement of 50% cost of energy/water audit conducted in a unit by
a recognized institution/ consultant subject to a limit of ` 25,000.
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PART–II]
LA GAZETTE DE L'ETAT
Conditions:
2.7.1 The assistance for energy and water conservation shall be
eligible subject to condition that saving in energy/water minimum
by 10% of average monthly consumption of previous 12 months
before conduct of audit.
2.7.2 The fees paid to the recognized institution/consultant
conducting the energy/water audit shall only be reimbursed to the
unit and not for the machinery/equipment
4. Procedure for claiming the subsidies.— (i) The application for
subsidy shall be submitted in the separate prescribed Form.
(ii) 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 Committee.
(iii) Sanction shall be accorded by the Director of Industries
based on the recommendation of the Committee.
(iv) The constitution of the Committee shall be as under:
(1) The Director, Directorate of Industries and . . Chairman
Commerce, Puducherry.
(2) The Deputy Director (Technical) /
. . Member
Assistant Director, Directorate of Industries
and Commerce, Puducherry.
(3) The Deputy Director (Administration),
. . Member
Directorate of Industries and Commerce,
Puducherry.
(v) The Chairman may co-opt any officers related to the
projects/fields.
(vi) The Committee will go into the merits of each case for the
grant of Interest subsidy, Generator subsidy, Employment incentive,
Subsidy for quality certification, Assistance for Intellectual Property
Protection Support, Market Development Support Assistance, Assistance
for energy and water conservation to decide whether the industrial unit
qualifies for the grant of incentive/subsidy and will recommend the
quantum of incentive/subsidy admissible to the unit.
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LA GAZETTE DE L'ETAT
[PART–II
(vii) In case of any doubt/ambiguity the decision/
interpretations of the Committee is final and binding on all concerned.
5. General conditions.— 5.1 All claims shall be supported by a
certificate issued by the Chartered Accountant.
5.2 All claims shall be supported by certificate from the financial
institution if loan is availed by the unit.
5.3 The financial institution shall mean and include PIPDIC or
any other Government Corporation, Scheduled Banks including
Co-operative Banks.
5.4 The Government is empowered and reserves the right to
withdraw all/part of the above mentioned incentives/subsidies without
assigning any reason.
5.5 The application for the assistance will be prescribed by the
Directorate of Industries and Commerce.
5.6 The assistance/subsidy will be eligible for Micro,
Small, Medium and Large industries those who have obtained UAM/
EM (Part-II)/Permanent Registration/Commencement of production
certificate.
5.7 The date of commencement as admitted by the
entrepreneurs shall be reckoned after due verification by the officials of
the Industries Department.
5.8 The incentives/subsidies/assistances shall be granted if the
unit provides atleast 60% of employment to the people of Union territory
of Puducherry of the total employment strength of the industrial units.
5.9 Second hand/used imported/indigenous machineries are not
eligible.
(By order)
G. MALAR KANNAN,
Additional Secretary to Government
(Industries and Commerce).
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