Generator Subsidy, Puducherry: 50% Cost Cover Up to ₹5 Lakh a Year — Frequently Asked Questions

The scheme covers half of what you spend on buying and installing a power generator, and the payment to any one industrial unit is capped at ₹5,00,000 per annum. So a generator costing ₹8,00,000 would attract a ₹4,00,000 claim, while a much larger purchase would be trimmed to the ₹5,00,000 ceiling.

Any industrial unit operating in the Union Territory of Puducherry — micro, small, medium or large — can apply, whether it is newly set up or has been running for years. You must have purchased and installed the generator on or after 1 April 2017, give at least 60% of your jobs to Puducherry residents, and hold your fixed assets for five years. Neither DPIIT recognition nor MSME/Udyam registration appears among the listed criteria.

No. It is a capital subsidy, not a loan and not an equity investment. Nothing is repaid to the government, no shares or stake are taken, and no ownership or board rights change hands. The 50% share of your generator cost is simply fiscal assistance.

The scheme itself has no closing date and runs through the year. What you do have is a unit-level window. A new unit must file its application within one year of obtaining the Entrepreneurs Memorandum Part-2, Permanent Registration, or the Commencement of Production Certificate. An existing unit must file within one year of finishing its expansion, diversification or modernisation activity.

You need the prescribed application form filled in completely, plus self-attested copies of the mandatory documents named in the guidelines. These typically include incorporation documents, the generator purchase invoice, proof of installation, and employment records — along with the affidavit covering your local employment ratio. Check the guidelines for the full list before you submit.

The process is offline. Download the prescribed form from the Directorate of Industries and Commerce, Puducherry website at https://industry.py.gov.in/common-application-subsidies, fill it in, attach your self-attested documents, and submit the signed set to the concerned authority at the Directorate of Industries and Commerce, Puducherry. Ask for an acknowledgement receipt and keep it — it should carry the date and time of submission and a unique identification number where applicable.

At least 60% of your total employment strength must consist of people who are residents of Puducherry. You also have to keep that ratio intact for the period specified in an affidavit you file with your application.

Not for five years. The unit is barred from transferring or disposing of its fixed assets — plant, machinery and the subsidised generator included — for five years running from whichever is later: the date you submitted the application, or the date the subsidy was disbursed.

Yes. Additional investments made by new or existing industrial units are eligible for subsidy even after a first claim has been settled, subject to the overall ceiling limit.

Yes. Where two or more industrial undertakings are promoted by the same person — as proprietor, through common partners, or through a common board of directors or shareholders — they are treated as separate entities for subsidy purposes, as long as their locations are different and each has obtained its own licences, clearances and registrations.

No. DPIIT (Startup India) recognition is not listed as a mandatory requirement for Generator Subsidy, Puducherry: 50% Cost Cover Up to ₹5 Lakh a Year, though having it can strengthen your application and unlock other benefits.

Generator Subsidy, Puducherry: 50% Cost Cover Up to ₹5 Lakh a Year is offered by Industries and Commerce Department, Government of Puducherry, a government body. It is provided as non-dilutive funding.

Apply directly through the official application link on this page. Review the eligibility criteria and prepare your startup documents before you begin.