MySubsidy

Infrastructure Development Subsidy (For IT/ITES)

Industries and Commerce Department, Government of Puducherry · Central government

Puducherry's scheme funds IT/ITES industries and developers with a 30% infrastructure subsidy, capped at ₹1 crore.

Open, rolling. Applications are accepted continuously — there is no deadline.

Key facts

Subsidy amount
Up to ₹1,00,00,000
Instrument
Subsidy
Deadline
Rolling
Disbursement
Paid in tranches

About this scheme

## Infrastructure Development Subsidy (For IT/ITES)

The Industries and Commerce Department, Union Territory of Puducherry, operates the Infrastructure Development Subsidy (For IT/ITES) scheme. It is intended to support industrial growth and investment in Puducherry, with a focus on the Information Technology and IT Enabled Services (ITES) sectors. The scheme has been in effect from April 1st, 2017.

Under the scheme, fiscal assistance is extended to entrepreneurs and developers who undertake substantial infrastructure development in Puducherry. The subsidy applies to the creation of industrial spaces of a high standard, whether these are meant for use by IT/ITES companies themselves or for leasing out. The purpose is to build an ecosystem that supports technology-driven businesses.

The scheme reflects Puducherry's aim of developing as a centre for IT and ITES industries, and it takes into account the sector's capacity to diversify the economy and generate employment. By providing a subsidy on building investments, it lowers the capital burden on businesses. This is expected to draw new entrants as well as encourage existing units to expand, adding to the local economy.

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

- Investment must be in a building with a minimum constructed area of 50,000 sq.ft. - Infrastructure developers or industrial units must make the investment. - The investment must be intended either for leasing out to IT industries or for the applicant's own industrial use (for example, computer systems manufacturing, Software/ITES, BPO, KPO). - The unit must employ residents of the Union Territory of Puducherry to the extent of at least 60%, and this level must be sustained for a specified period. - The industrial unit must not transfer or dispose of fixed assets for 5 years from the date of application or disbursement. - New or existing industrial units making additional investments are also eligible for subsidy, subject to the ceiling limit. - New units are those that commence commercial production on or after April 1, 2017.

How to apply

- **Step 1: Get the Prescribed Form:** Register your claim for the incentive or subsidy on the official prescribed form to begin. The form can be downloaded from the Official Website of the Directorate of Industries and Commerce, Puducherry. - **Step 2: Fill In the Application:** Complete every section of the application form accurately and in full. Make sure all mandatory fields are covered, and attach self-attested copies of every supporting document required under the guidelines. These usually cover company registration papers, the project plan, investment particulars, and proof of building construction. - **Step 3: File the Application:** Send the completed and signed application form, together with all required documents, to the concerned authority at the Industries and Commerce Department. Check that every attachment is in order before you submit. - **Step 4: Obtain Acknowledgement:** Ask for and keep a receipt or acknowledgement from the authority receiving your application. The receipt ought to carry key particulars such as the date and time of submission and any unique identification number allotted to your application, for later reference and tracking. After submitting, new units have to apply within one year of commencing production or registration, and existing units within one year of completing expansion, diversification or modernisation.

Apply on the issuer's site

How applications are assessed

Applications are first examined by the Directorate of Industries. This scrutiny checks whether each applicant meets the eligibility criteria and confirms the supporting documents, covering both the investment amount and how far the project fits IT/ITES infrastructure development.

Cases that clear this preliminary screening then go to the State Level Committee, together with the recommended amount of admissible subsidy. The Committee assesses each case on its merits to establish that the industrial unit qualifies in full for the incentive or subsidy under the scheme guidelines. Its recommendations are final on both the applicant unit's eligibility and the incentive or subsidy amount to be granted.

Frequently asked questions

What is the primary objective of the Infrastructure Development Subsidy scheme in Puducherry?

The scheme encourages entrepreneurs and infrastructure developers to put money into building IT/ITES infrastructure in the Union Territory of Puducherry, which in turn supports industrial growth and employment.

What is the maximum financial assistance available under this scheme?

Eligible units may claim 30% of their building investment as subsidy, up to a ceiling of ₹1,00,00,000 (Rupees One Crore).

How is the subsidy amount disbursed to the beneficiaries?

The subsidy is paid in annual instalments, each capped at ₹25,00,000 per annum. For bank-financed units, disbursement is routed through financial institutions to repay loans or fund fixed assets and working capital, while self-financed units receive payment directly.

What are the key eligibility requirements for the infrastructure?

The building must have a minimum constructed area of 50,000 sq.ft. and be developed by infrastructure developers or industries, either for leasing to IT/ITES units or for their own industrial use, such as computer systems manufacturing, software/ITES, BPO or KPO.

Are there any local employment criteria associated with this subsidy?

Yes — the industrial unit has to maintain a workforce in which residents of the Union Territory of Puducherry make up no less than 60% of total employment, and this proportion must be sustained for a stipulated duration.

What is the deadline for submitting applications for new and existing units?

New units have one year from either the start of commercial production or the receipt of Entrepreneurs Memorandum Part-2/Permanent Registration to apply, while existing units must do so within one year of finishing expansion, diversification, or modernisation.

Can an existing industrial unit apply for subsidy on additional investments?

Yes — further investments by new or existing industrial units after the first claim has been availed also qualify for subsidy, so long as they stay within the scheme's overall ceiling limit.

Sectors

  • Ai Saas Enterprise
  • Deeptech Electronics Robotics
  • It Infrastructure
  • Ites
  • Puducherry
  • Capital Expenditure
  • Industrial Subsidy
  • Local Employment

Details last verified on 18 September 2026. Source: the issuer's published information.