Infrastructure Development Subsidy (For IT/ITES)
Industries and Commerce Department, Government of Puducherry · Central government
The Puducherry government offers IT/ITES industries and developers a 30% subsidy, up to ₹1 crore, for infrastructure investment.
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
The Infrastructure Development Subsidy (For IT/ITES) scheme, introduced by the Industries and Commerce Department of the Union Territory of Puducherry, provides fiscal support to entrepreneurs and developers investing in infrastructure within the IT and ITES sectors. Effective from April 1st, 2017, the programme offers financial assistance for the creation of industrial spaces, whether for direct use by IT/ITES companies or for leasing. The objective is to reduce the capital burden on businesses and encourage the establishment of technology-driven enterprises in the region.
The scheme supports both new entrants and existing units seeking to expand their operations. It is designed to promote economic diversification and job creation by fostering a conducive environment for IT and ITES industries in Puducherry.
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 target a building with a minimum constructed area of 50,000 sq.ft. - Eligible investors include infrastructure developers or industrial units. - Investment must be for leasing to IT industries or for the applicant's own industrial use (e.g., computer systems manufacturing, Software/ITES, BPO, KPO). - The unit must provide at least 60% employment to residents of the Union Territory of Puducherry, maintained for a specified period. - The industrial unit shall not transfer or dispose of fixed assets for 5 years from application/disbursement date. - Additional investments by new or existing industrial units are eligible for subsidy up to the ceiling limit. - New units are those commencing commercial production on or after April 1, 2017.
How to apply
- **Step 1: Obtain the Prescribed Form:** Download the official claim form for the incentive/subsidy from the Official Website of the Directorate of Industries and Commerce, Puducherry. - **Step 2: Complete the Application:** Fill in every section of the form accurately and completely. Address all mandatory fields and attach self-attested copies of each required supporting document listed in the guidelines. These generally include papers on company registration, the project plan, investment particulars, and proof of building construction. - **Step 3: Submit the Application:** Hand over the signed, fully completed form and all accompanying documents to the designated officer at the Industries and Commerce Department. Verify that every attachment is in proper order prior to submission. - **Step 4: Acknowledge Submission:** Obtain and keep a receipt or acknowledgement from the receiving authority. This document should carry the date and time of submission and any unique identification number assigned to your application for tracking. After submission, new units must file within one year of commencing production/registration, and existing units within one year of completing expansion/diversification/modernisation.
How applications are assessed
The Directorate of Industries first examines every submitted application for the Infrastructure Development Subsidy. This initial check confirms that the applicant meets the eligibility criteria and that the documentation, including the investment amount and the project's fit with IT/ITES infrastructure development, is in order. Eligible applications, together with the suggested subsidy amount, are then put before the State Level Committee.
The State Level Committee carries out a detailed review of each case to verify that the industrial unit qualifies for the incentive or subsidy under the scheme's provisions. The committee's decisions on eligibility and the final subsidy amount are conclusive.
Frequently asked questions
What is the primary objective of the Infrastructure Development Subsidy scheme in Puducherry?
The scheme encourages entrepreneurs and infrastructure developers to invest in IT/ITES infrastructure within the Union Territory of Puducherry, supporting industrial growth and job creation.
What is the maximum financial assistance available under this scheme?
Eligible units may claim a 30% subsidy on building investment, capped at ₹1,00,00,000 (Rupees One Crore).
How is the subsidy amount disbursed to the beneficiaries?
The subsidy is paid out in yearly instalments, each capped at ₹25,00,000 per annum. For bank-financed units, the amount is routed through financial institutions to adjust loans or fund fixed assets/working capital, while self-financed units receive it directly from the entrepreneur or unit.
What are the key eligibility requirements for the infrastructure?
The investment must be made by infrastructure developers or industries in a building with a minimum constructed area of 50,000 sq.ft., for leasing to IT/ITES industries or for their own industrial use (e.g., computer systems manufacturing, Software/ITES, BPO, KPO).
Are there any local employment criteria associated with this subsidy?
Yes, the industrial unit must maintain a workforce in which at least 60% of total employees are residents of the Union Territory of Puducherry, and this proportion must be upheld for a defined duration.
What is the deadline for submitting applications for new and existing units?
New units must submit their application within one year of starting commercial production or securing Entrepreneurs Memorandum Part-2/Permanent Registration. Existing units have a one-year window from the completion of expansion, diversification, or modernisation activities to apply.
Can an existing industrial unit apply for subsidy on additional investments?
Yes, additional investments made by new or existing industrial units after the first claim are also eligible for subsidy, provided 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 3 August 2026. Source: the issuer's published information.