Assistance for Energy and Water Conservation
Industries and Commerce Department, Government of Puducherry · Central government
Puducherry reimburses 50% of energy and water audit fees, up to ₹25,000, for industrial units that achieve at least 10% savings.
Open, rolling. Applications are accepted continuously — there is no deadline.
Key facts
- Subsidy amount
- Up to ₹25,000
- Instrument
- Subsidy
- Deadline
- Rolling
- Disbursement
- Reimbursed after spend
About this scheme
The Industries and Commerce Department of the Union Territory of Puducherry operates the Assistance for Energy and Water Conservation scheme. It came into force on 1 April 2017 and covers the whole of the UT. Its central purpose is to improve how efficiently industrial units use energy and water.
Under the scheme, entrepreneurs who commission professional energy and water audits can have part of that cost met by the government. The intention is to draw industries towards managing resources better, which in turn lowers their running costs and lessens environmental impact.
By extending fiscal assistance for these audits, the UT administration looks to build efficiency and sustainability into the way its industrial sector functions, backing both new and established units as they expand and take on environmental responsibility.
The scheme sits within the wider programme titled Motivation of Entrepreneurs to Start Industries and Fiscal Assistance to Industries - Various Incentives, and functions as a targeted intervention for particular operational improvements.
Who can apply
- Eligible business forms
- Private limited company, Limited liability partnership, One person company, Partnership firm, Sole proprietorship
- Udyam registration
- Not specified
- MSME registration
- Not specified
- DPIIT startup recognition
- Not specified
- GST registration
- Not specified
- Where the business may be based
- Puducherry
- Any Micro, Small, Medium or Large Industry may apply. - Investment must have been made on or after April 1, 2017. - A minimum of 60% of employment has to be given to residents of Puducherry, and this level must be sustained for a stipulated duration. - The unit must have recorded a saving of at least 10% in energy/water consumption during the 12 months preceding the audit. - The energy/water audit has to be carried out by a recognised institution or consultant. - No fixed assets, including plant and machinery, may be transferred or disposed of by the industrial unit for 5 years counted from submission of the application or from disbursement of the subsidy. - Fresh investments made by new or existing units after the first claim also qualify for subsidy, subject to the ceiling limit. - Industrial undertakings that are separate but belong to the same person or group are treated as distinct entities, provided their locations differ and their registrations are separate.
How to apply
- Using the prescribed form provided on the Official Website of the Directorate of Industries and Commerce, Puducherry, the industrial unit ought to register its claim for the incentive/subsidy. - Complete every mandatory field in the application form, and enclose copies of all documents that are mandatory, self-attesting them where required. - Hand over the completed and signed application form, together with all supporting documents, to the concerned authority. - Ask the concerned authority for a receipt or acknowledgement, and make sure it carries the necessary particulars such as the date and time of submission and a unique identification number (where applicable).
How applications are assessed
The Directorate of Industries carries out an initial merit-based scrutiny of each application to establish how much assistance can be allowed. The case is then put before the State Level Committee, which examines its merits to determine the unit's eligibility for the incentive or subsidy and puts forward the recommended amount of assistance.
Frequently asked questions
What is the maximum reimbursement amount available under this scheme?
Energy and water audit fees are reimbursed at 50%, capped at ₹25,000.
Which types of industrial units are eligible for this assistance?
Any industry — micro, small, medium or large — can apply, as long as it satisfies the remaining conditions, including those covering the investment date and local employment.
What is the primary condition for a unit to be eligible for reimbursement?
To qualify, a unit must demonstrate at least a 10% reduction in energy or water use, measured against its average monthly consumption over the 12 months preceding the audit.
How is the subsidy disbursed?
Subsidy funds are routed through the financing bank or financial institution where the unit has taken a loan, whether by adjusting the amount against the outstanding loan or by applying it to new fixed assets or working capital. Units that are self-financed receive the subsidy amount directly.
Are new and existing units equally eligible?
Both new units that invested after 1 April 2017 and existing units undertaking further investment through expansion, diversification or modernisation qualify.
Is there a restriction on disposing of fixed assets after availing the subsidy?
No. The industrial unit is barred from transferring or disposing of fixed assets, plant and machinery included, for five years counted from whichever is later — the date the application was submitted or the date the subsidy was disbursed.
Sectors
- Energy Conservation
- Water Conservation
- Audit Fees
- Reimbursement
- Puducherry
- Industrial Units
Details last verified on 18 September 2026. Source: the issuer's published information.