Capital Investment Subsidy: Physically Handicapped Persons and Ex-Servicemen under Motivation of Entrepreneurs to Start Industries and Fiscal Assistance to Industries

What is the capital investment subsidy for physically handicapped persons and ex-servicemen?

Capital Investment Subsidy: Physically Handicapped Persons / Ex-Servicemen is a component of the "Motivation of Entrepreneurs to Start Industries and Fiscal Assistance to Industries" scheme of the Department of Industrial Development (Industries and Commerce), Union Territory of Puducherry. The component gives two groups of entrepreneurs a dedicated capital subsidy rather than leaving them to compete under the general industrial subsidy.

According to the scheme details published by the Industries and Commerce Department, Puducherry, new industrial units which started production on or after 5 August 2009 by physically handicapped entrepreneurs and ex-servicemen are eligible for a capital investment subsidy at the rate of 25% on the investments made on land, building and plant and machinery, subject to a maximum of Rs 25,00,000 for micro and small manufacturing enterprises.

Two features distinguish this component from the general capital subsidy. First, it covers the whole fixed asset block, not machinery alone. Second, it is category-based: eligibility turns on who owns the unit, not on which sector it operates in.

Applications are accepted offline only, in the prescribed common subsidy application form published on the Department's website.

Who is eligible for this subsidy?

Entrepreneurs who can claim:

• Physically handicapped entrepreneurs who suffer from not less than 40% incapacity under the relevant category. The scheme states this threshold expressly, and a certificate below 40% does not qualify.
• Ex-servicemen, on production of a discharge certificate or ex-servicemen identity card.
• Whose new industrial unit started production on or after 5 August 2009.
• Where the unit is a micro or small manufacturing enterprise, which is the category for which the 25% rate and the Rs 25,00,000 ceiling are stated.

Who is not eligible:

• Applicants with less than 40% disability. The percentage is the test, not the existence of a condition.
• Units that started production before 5 August 2009.
• Medium and large enterprises under this component. They fall under the general Capital Investment Subsidy for new and existing industries notified from 1 April 2017.
• Trading, retail and pure service businesses with no manufacturing investment, since the component is stated for micro and small manufacturing enterprises.
• Individuals seeking a personal or welfare payment. Individuals cannot apply for a personal benefit under this scheme; the subsidy attaches to a registered industrial unit and documented capital expenditure. Personal welfare support for persons with disabilities in Puducherry runs through the Department of Social Welfare instead.
• Units filing after the one-year claim window has closed, unless condoned.

What documents are required?

The unit must be owned by the eligible entrepreneur. Where the enterprise is a partnership or company, expect the Department to look at whether the eligible person actually controls it rather than merely holding a nominal share.

How to apply for the subsidy

1. Download and print the prescribed form from industry.py.gov.in/common-application-subsidies and mark the physically handicapped or ex-servicemen component clearly.
2. Complete every mandatory field. The entrepreneur's category and certificate details, the date of commencement of production, and a head-wise break-up of investment in land, building and plant and machinery.
3. Attach self-attested copies of all mandatory documents, including the disability certificate or discharge certificate, registration, production certificate, invoices and the chartered accountant's investment certificate.
4. Submit the duly filled and signed application with enclosures to the Directorate of Industries and Commerce, Industrial Estate, Thattanchavady, Puducherry 605009.
5. Request a receipt or acknowledgement carrying the date and time of submission and a unique identification number, and use that number in every follow-up.

The State Level Committee then examines the merits of each case and decides whether the unit qualifies for the grant of the subsidy.

When is the claim due?

• New units; within one year from the date of obtaining the Entrepreneurs Memorandum Part-II, permanent registration, or the commencement of production certificate.
• Existing units: within one year of completing expansion, diversification or modernisation.

Because the qualifying date for this component goes back to 5 August 2009, a long-established unit cannot revive an old claim now; the one-year window is measured from the unit's own registration or production event.

How is the subsidy disbursed?

The subsidy is disbursed in a single instalment. Where paucity of funds in a particular financial year, or another reason, makes single-instalment disbursement impossible, the scheme allows release in instalments.

• Units financed by financial institutions or banks — the subsidy is disbursed through the lender only, and is adjusted against the loan availed or used for creating additional fixed assets or working capital.
• Self-financed units. The subsidy is disbursed directly to the entrepreneur.

How to check the status of your claim

1. Keep the unique identification number from the acknowledgement to hand.
2. Contact the Directorate of Industries and Commerce, Thattanchavady, on +91-413-2248476, 2248168 or 2248320, and ask whether the file is under scrutiny, awaiting inspection, or listed before the State Level Committee.
3. Karaikal applicants can follow up on +91-4368-265438, Yanam on +91-884-2321257, and Mahe on +91-490-233235.
4. Financed units should confirm with the branch when the sanctioned subsidy is credited against the loan account.

Why these claims are rejected

• Disability below 40%, or a certificate that does not state the percentage.
• Discharge certificate not produced by an applicant claiming as an ex-serviceman.
• Production commenced before 5 August 2009.
• The enterprise is not a micro or small manufacturing unit, for example a trading firm or a service establishment with no plant and machinery.
• Assets purchased in a personal name rather than in the name of the enterprise.
• Ownership is nominal, with the eligible entrepreneur holding a token share in a firm controlled by others.
• The one-year claim window has expired, with no case made out for condonation.

If a claim is returned for a missing document, resubmit the same file with the paper added rather than starting again, so that the original date of receipt is preserved.

Grievance redressal

Grievances are taken through the Industries and Commerce Department's grievance redressal mechanism at industry.py.gov.in/grievance-redressal-mechanism. The escalation route runs to the Director of Industries and Commerce, Industrial Estate, Thattanchavady, Puducherry 605009, and then to the Secretary to Government (Industries and Commerce), Chief Secretariat, Puducherry 605001, on +91-413-2336115.

Ex-servicemen applicants may also find it useful to route queries through the Department of Sainik Welfare, Puducherry, which maintains the records the Industries Department relies on to verify service credentials.

The prescribed application form is free and no fee is payable to any agent for filing this claim.