Assistance for Energy and Water Conservation
Industries and Commerce Department, Government of Puducherry · Central government
Puducherry reimburses 50% of energy/water audit fees, up to ₹25,000, for industrial units achieving 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 administers the "Assistance for Energy and Water Conservation" scheme. Effective from April 1, 2017, the programme operates across the entire UT and seeks to improve energy and water efficiency in industrial units. It provides financial support to offset the expenses of professional energy and water audits, thereby encouraging entrepreneurs to adopt sustainable practices.
The scheme is designed to promote better resource management, which supports both environmental conservation and lower operational costs. By subsidising these audits, Puducherry aims to cultivate a culture of efficiency and sustainability in its industrial sector, benefiting new and existing units alike. This initiative forms part of the larger "Motivation of Entrepreneurs to Start Industries and Fiscal Assistance to Industries - Various Incentives" programme, offering focused assistance for specific 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
- All Micro, Small, Medium and Large Industries qualify. - Investment must have been made on or after April 1, 2017. - At least 60% of employment must be provided to Puducherry residents and maintained for a specified period. - A minimum of 10% saving in energy/water consumption must be achieved in the 12 months prior to the audit. - The energy/water audit must be conducted by a recognised institution or consultant. - Fixed assets (including plant and machinery) shall not be transferred or disposed of for 5 years from application submission or subsidy disbursement. - Additional investments by new/existing units after the first claim are eligible for subsidy up to the ceiling limit. - Separate industrial undertakings by the same person/group are eligible as separate entities if locations are different and registrations are separate.
How to apply
- The industrial unit must submit its claim for the incentive or subsidy through the designated form, which is accessible on the Official Website of the Directorate of Industries and Commerce, Puducherry. - Complete every compulsory section of the application form, and enclose copies of all requisite documents, self-certifying them where needed. - Deliver the completed and signed application, together with all accompanying paperwork, to the relevant authority. - Ask for and secure a receipt or acknowledgement from that authority, confirming that it records key particulars such as the date and time of submission and a unique identification number, where one is issued.
How applications are assessed
The Directorate of Industries carries out the initial review of applications, ranking them on merit to establish the eligible amount. These findings are then submitted to the State Level Committee, which examines each case to determine whether the unit meets the criteria for the incentive or subsidy and proposes the level of support to be extended.
Frequently asked questions
What is the maximum reimbursement amount available under this scheme?
The scheme reimburses 50% of the fees paid for energy or water audits, up to a maximum of ₹25,000.
Which types of industrial units are eligible for this assistance?
All Micro, Small, Medium, and Large Industries can apply, provided they satisfy the remaining conditions, including the investment date and local employment requirements.
What is the primary condition for a unit to be eligible for reimbursement?
The unit must have achieved at least a 10% reduction in energy or water use, calculated against the average monthly consumption over the 12 months preceding the audit.
How is the subsidy disbursed?
The subsidy is paid through the financing bank or financial institution if the unit is financed by them, and may be adjusted against the loan or used for additional fixed assets or working capital. For self-financed units, the amount is released directly to the entrepreneur or the unit.
Are new and existing units equally eligible?
Yes, both new units that invested after April 1, 2017, and existing units that made additional investments through expansion, diversification, or modernisation are eligible.
Is there a restriction on disposing of fixed assets after availing the subsidy?
The industrial unit must not transfer or dispose of fixed assets, including plant and machinery, for five years from the later of the application submission date or the subsidy disbursement date.
Sectors
- Energy Conservation
- Water Conservation
- Audit Fees
- Reimbursement
- Puducherry
- Industrial Units
Details last verified on 3 August 2026. Source: the issuer's published information.