Puducherry Rehabilitation of Sick Industries Scheme — Up to ₹10L — Frequently Asked Questions

Registered MSME units that qualify as sick industrial enterprises are the core applicants. Registration has to be UAM, EM(Part-II) or Permanent Registration. In addition, a separate firm that takes over a sick unit specifically to rehabilitate it can apply on the same terms as the original promoters.

A unit counts as sick if any one of three conditions is met: gross output has fallen continuously over the previous two financial years, loan repayment has been delayed by more than 12 months, or net worth has been eroded by 50% because of accumulated losses in the previous accounting year. These benchmarks may be revised in line with RBI norms.

A unit can receive up to ₹10,00,000 (₹10 lakh) in combined benefits. That figure is made up of a ₹50,000 diagnostic study subsidy, a ₹50,000 reimbursement for expert advice, and an interest subsidy of up to ₹3,00,000 per year for three years, which alone can total ₹9,00,000.

It is structured as a subsidy and reimbursement rather than an investment. Diagnostic studies are 50% subsidised, consultant fees are 50% reimbursed, and interest on rehabilitation finance is subsidised at 5% per annum. Nothing has to be repaid, and no ownership stake is given up.

No. The scheme runs on a rolling basis and is always open, so a sick unit can submit its application at any point in the year.

MSME registration is a firm requirement — UAM, EM(Part-II) or Permanent Registration. DPIIT recognition is not listed among the conditions for this scheme.

No. The scheme is aimed at existing MSME units that already hold UAM, EM(Part-II) or Permanent Registration. Entities that have not yet been formally registered or incorporated fall outside its scope.

The process is entirely offline. Download and print the prescribed application form from the official website of the Directorate of Industries and Commerce, Puducherry. Fill in every mandatory field, attach the supporting documents, and submit the signed form to the Director of Industries — either in person at the Directorate's office or by post. It is advisable to collect a receipt or acknowledgement confirming that your application package was received.

You will need proof of MSME registration, financial statements that establish the unit's sickness, a rehabilitation proposal, and any other proofs specified in the application form. All of these must be gathered and submitted together with the completed form.

A dedicated State Level Committee reviews each application. It assesses the unit's sickness status, the merits of the proposed rehabilitation plan, and the prospects for recovery and sustained operation, then decides whether assistance should be granted.

Puducherry Rehabilitation of Sick Industries Scheme — Up to ₹10L is offered by Industries and Commerce Department, Government of Puducherry, a government body. It is provided as non-dilutive funding.