Infrastructure Development Subsidy for IT/ITES — Up to ₹1 Crore in Puducherry — Frequently Asked Questions

You receive 30% of your eligible building investment, capped at ₹1,00,00,000 (₹1 crore). The amount is not handed over in one go — it comes in annual instalments, and no single instalment can exceed ₹25,00,000.

Infrastructure developers and industrial units can apply, provided the investment is made in a building with a constructed area of at least 50,000 sq.ft. The space must either be leased out to IT industries or used by the applicant itself for computer systems manufacturing, software/ITES, BPO or KPO operations.

Yes. The constructed area has to be 50,000 sq.ft. or more. Projects below that threshold do not qualify for the subsidy.

No. This is a subsidy, not an equity investment. The department takes no ownership or stake in your unit in return for the money — it is a cash incentive released against your eligible building investment.

If your unit is financed by a bank or financial institution, the subsidy is routed through that lender and used to adjust existing loans, create additional fixed assets or support working capital. If you have self-financed the project, the money is paid directly to you or to the industrial unit. In both cases payments arrive annually, capped at ₹25,00,000 per year.

There is no fixed deadline — the scheme runs on a rolling, always-open basis. However, there is a filing window measured from your own project milestones. New units must apply within one year of commencing commercial production or obtaining Entrepreneurs Memorandum Part-2/Permanent Registration. Existing units must apply within one year of completing expansion, diversification or modernisation.

Yes. At least 60% of the unit's total employment strength has to be made up of residents of the Union Territory of Puducherry, and that ratio must be maintained for the period specified in the scheme guidelines. This is one of the conditions the Directorate of Industries checks during scrutiny.

Yes. Additional investments made by new or existing industrial units after the first claim are eligible, as long as the total subsidy stays within the overall ceiling limit of the scheme.

Not immediately. The industrial unit is barred from transferring or disposing of its fixed assets for 5 years from the date of application or disbursement, whichever applies to your case.

You file the prescribed application form with self-attested copies of all supporting documents listed in the guidelines. In practice this covers documents relating to your company registration, the project plan, investment details and proof of building construction. Ensure every mandatory field in the form is filled and all attachments are in order before you submit.

Download the prescribed form from the official website of the Directorate of Industries and Commerce, Puducherry, complete it and submit it with the required documents to the concerned authority at the Industries and Commerce Department. Ask for a receipt or acknowledgement and keep it safe — it should carry the date and time of submission along with the unique identification number assigned to your application, which you will need for follow-up.

No. DPIIT (Startup India) recognition is not listed as a mandatory requirement for Infrastructure Development Subsidy for IT/ITES — Up to ₹1 Crore in Puducherry, though having it can strengthen your application and unlock other benefits.

Infrastructure Development Subsidy for IT/ITES — Up to ₹1 Crore in Puducherry is open to startups at any stage. It is open to startups registered anywhere in India.

Infrastructure Development Subsidy for IT/ITES — Up to ₹1 Crore in Puducherry is offered by Industries and Commerce Department, Government of Puducherry, a government body. It is provided as non-dilutive funding.