Subsidy to Pollution Control Equipment under Motivation of Entrepreneurs to Start Industries and Fiscal Assistance to Capital Intensive Industries
Industries and Commerce Department, Government of Puducherry · Central government
The Puducherry Industries and Commerce Department scheme funds industrial units a 25% subsidy, up to ₹5 lakh, for installing pollution control equipment.
Open, rolling. Applications are accepted continuously — there is no deadline.
Key facts
- Subsidy amount
- Up to ₹5,00,000
- Instrument
- Subsidy
- Deadline
- Rolling
- Disbursement
- Released against milestones
About this scheme
The Industries and Commerce Department of the Union Territory of Puducherry launched this scheme on April 1st, 2017. It applies throughout the Union Territory and is designed to encourage industrial units to adopt environmentally sound practices. The primary aim is to offer financial support to both new and existing industries that invest in pollution control equipment, thereby fostering sustainable industrial growth and compliance with environmental regulations.
The scheme provides a substantial subsidy to reduce the capital expenditure associated with installing such equipment, making it easier for units to meet environmental standards. It covers both self-financed units and those that have taken loans from financial institutions, ensuring wide-ranging eligibility.
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
- Pollution control equipment must be installed as specified by the Pondicherry Pollution Control Committee. - Assistance is calculated on expenditure incurred and eligible assets created for installing such equipment. - Industrial units must employ at least 60% of their total workforce from Puducherry residents, maintained for 5 years. - Fixed assets, including plant and machinery, must not be transferred or disposed of for 5 years from application or disbursement. - Additional investments by new or existing units after the first claim are eligible for subsidy up to the ceiling limit. - New industries are those that commenced commercial production on or after April 1, 2017. - Existing units are those that commenced production before April 1, 2017. - Multiple undertakings by the same person or partners are treated as separate entities if locations and registrations are distinct.
How to apply
- **Step 1:** Download the prescribed application form from the official website of the Directorate of Industries and Commerce, Puducherry. - **Step 2:** Complete every mandatory field in the form and enclose self-attested copies of each required document. - **Step 3:** Submit the signed and fully completed application, together with all supporting papers, to the designated authority. - **Step 4:** Ask for and retain an acknowledgement or receipt from the authority at the time of submission. Verify that the receipt records the date and time of submission, along with any unique identification number. - **Post-Application Process:** The Directorate of Industries will evaluate applications on merit to decide the admissible amount, and its assessment will be submitted to the State Level Committee for examination and recommendation.
How applications are assessed
The Directorate of Industries conducts the initial review of applications, assessing each submission on its merits to establish eligibility and the extent of assistance payable. This stage verifies that all required documentation is in order and that the applicant meets the prescribed conditions. Following this, the directorate’s findings and recommendations are forwarded to the State Level Committee. The committee then examines every case in detail, weighing the merits and compliance with the scheme’s provisions, before arriving at a final determination on the unit’s qualification for the incentive or subsidy and proposing the exact subsidy amount to be released.
Frequently asked questions
What is the maximum subsidy amount available?
The scheme provides a maximum subsidy of ₹5,00,000 (Five Lakhs Indian Rupees) for eligible pollution control equipment.
What percentage of the equipment cost is subsidized?
Eligible units may claim a subsidy of 25% of the cost incurred on installing pollution control equipment, subject to a maximum cap.
Who is eligible to apply for this subsidy?
New and existing industrial units in Puducherry qualify if they install the specified pollution control equipment, employ at least 60% of their workforce from among Puducherry residents, and satisfy other conditions on asset retention and investment.
How is the subsidy disbursed?
The subsidy is paid either in one lump sum or in instalments. For bank- or institution-financed units, it is usually channelled through the lender, while self-financed units receive it directly.
What is considered a 'new industry' for this scheme?
New industries are units that began commercial production on or after April 1, 2017, while existing units are those that started production before that date.
Is there a deadline to apply?
New units must submit their application within one year of obtaining their Entrepreneurs Memorandum Part-2, Permanent Registration, or Commencement of Production Certificate. For existing units, the application deadline is one year from the completion of expansion, diversification, or modernisation activities.
Sectors
- Pollution Control
- Puducherry
- Manufacturing
- Environment
- Industrial Subsidy
Details last verified on 3 August 2026. Source: the issuer's published information.