Refinance Scheme for Technology Development and Modernization

What is the Refinance Scheme for Technology Development and Modernization?

The Refinance Scheme for Technology Development and Modernization, often shortened to RTDM, is a lending scheme of the Pondicherry Industrial Promotion Development and Investment Corporation Limited (PIPDIC) under the Department of Industries and Commerce, Government of Puducherry. According to the PIPDIC schemes page, the scheme meets the expenditure a unit incurs when it moves to better technology; buying capital equipment, buying know-how, and upgrading the process and the product itself.

PIPDIC. The Pondicherry Industrial Promotion Development and Investment Corporation Limited: was set up by the Government of Puducherry in 1974 with an authorised share capital of Rs 45 crore. PIPDIC works under the Department of Industries and Commerce and does two things: it develops industrial estates, growth centres and IT parks in the Union Territory, and it lends to entrepreneurs through a published set of loan schemes.

RTDM is aimed at a specific problem. A small unit in Puducherry can usually finance a machine, but it struggles to finance the intangible half of a modernisation project: the licence fee for a process, the drawings, the design work, the trial runs needed to bring output up to a recognised standard. RTDM treats those as fundable project costs rather than as overheads.

What the scheme funds

• Purchase of capital equipment, along with need-based civil works and the acquisition of additional land.
• Acquisition of technical know-how, design, drawing and fashion forecast, where relevant to a specific product group.
• Upgradation of process technology and products, with the stated thrust on quality improvement comparable with accepted domestic and international standards.

What the scheme does not fund

• Preliminary and pre-operative expenses, which PIPDIC excludes from the cost of the project under this scheme.

Who is eligible for RTDM?

You can apply if:

• Your enterprise is a sole proprietorship, a partnership, a co-operative society, a private limited company or a public limited company.
• The unit is located in the Union Territory of Puducherry, covering the Puducherry, Karaikal, Mahe and Yanam regions.
• The total project outlay does not exceed Rs 1,00,00,000.
• The expenditure falls under capital equipment, know-how, or process and product upgradation as described above.
• You can offer immovable property as collateral in addition to the mortgage or hypothecation of the assets financed.

You cannot apply if:

• The project outlay crosses Rs 1,00,00,000. A larger modernisation has to be restructured or taken to PIPDIC's general scheme for the SSI and MSI sector.
• The requirement is only for preliminary and pre-operative expenses, which are expressly excluded.
• You are an individual seeking a personal loan. RTDM finances an enterprise's technology project; individuals cannot apply for a personal benefit under it.
• You are a defaulter to PIPDIC, a bank or any other financial institution.
• The unit will operate outside Puducherry.

How much does RTDM provide?

PIPDIC states the ceiling as a project outlay figure rather than a loan figure. That matters, because the promoter's own contribution counts inside the Rs 1,00,00,000, and the loan itself is set by the applicable debt-equity ratio.

What are the interest rate and financial norms?

PIPDIC publishes a single rate card that applies across its lending schemes:

Units promoted by women, Scheduled Caste, Scheduled Tribe or differently abled entrepreneurs get a concession of 0.5% below the normal rate.

The investigation fee is 0.50% of the term loan applied for, plus service tax, where the loan is up to Rs 25,00,000, and 0.75% plus service tax above that. Scheduled Caste and Scheduled Tribe entrepreneurs pay half the investigation fee.

The debt-equity ratio expected is 2:1 for a loan above Rs 25,00,000, and 3:1 up to Rs 25,00,000.

Collateral security is required in the form of immovable property, over and above the mortgage or hypothecation of the assets being financed. Property inside the Union Territory of Puducherry must be worth at least the sanctioned loan amount. Property outside Puducherry must be worth at least 150% of the loan if it is land with a building, and at least 200% if it is bare land. For units promoted by women, SC, ST or differently abled persons the requirement is reduced to 50% of the loan amount. Valuation is done by chartered engineers and valuers on PIPDIC's approved panel, not by a valuer of the borrower's choosing.

What documents are required?

How to apply for the Refinance Scheme for Technology Development and Modernization online

PIPDIC accepts applications only through its own portal at pipdic.in. There is no paper counter for fresh loan applications, and no agent is authorised to file on your behalf.

1. Open pipdic.in and click Login, then choose the New customer link. Enter a username, an email ID, a password and the captcha, and click Register.
2. Log in with the registered email ID. PIPDIC sends a one-time password to that email address; enter the OTP and click Login to reach the customer dashboard.
3. Open Edit Profile from the top right corner of the dashboard, complete every required field about yourself and the enterprise, and click Submit. An incomplete profile blocks the application form.
4. Click the Applications tab. A pop-up shows the checklist of general terms and conditions, the interest rate structure, the investigation fee and the collateral security norms. Read it, gather the listed papers, and click I Agree.
5. Choose the correct application form. PIPDIC publishes four forms: Up to 25 Lakhs, Above 25 Lakhs, Transport, and the Merit Loan Letter — and fill the multi-step form, completing every mandatory field.
6. Read the declaration, which covers the truth of the information, the absence of any unauthorised borrowing arrangement and consent to verification. Tick I agree to terms and click Submit.
7. Enter the bio-data of the promoter, partner or director on the screen that follows, and upload each KYC and supporting document using the Choose File button beside the field.
8. Pay the application fee; Rs 100 for a loan up to Rs 25,00,000 and Rs 200 for a loan above Rs 25,00,000. Online payment redirects you to a summary page before the debit.
9. Save or print the fee receipt generated after payment. Keep it, because it carries the reference PIPDIC uses when you call about the file.

How to check the status of a PIPDIC application

1. Log in to pipdic.in with the registered email ID and the OTP sent to it.
2. Click View My application on the dashboard.
3. Select the relevant loan application from the drop-down menu.

A freshly filed application shows as UNDER REVIEW. The status moves on as PIPDIC completes the technical appraisal, the site inspection and the valuation of the property offered as collateral. If the status has not changed for several weeks, call the corporation on 0413-2334361 quoting the application number on your fee receipt rather than filing a second application, since a duplicate file attracts a second application fee.

Why PIPDIC applications get rejected or delayed

• Profile not completed on the portal, so the application form never opens.

• Collateral property falls short of the prescribed value once PIPDIC's panel valuer files the report. A borrower who relies on a private valuation from outside the panel is the most common casualty here.

• Title defects; property that is jointly held without every co-owner joining the mortgage, or property with an unreleased earlier charge.

• Default with another lender. PIPDIC checks credit records, and an outstanding default against the promoter or a group concern stops the file.

• Missing or unreadable uploads of KYC and financial documents.

• Application fee unpaid. The file is not taken into appraisal until the Rs 100 or Rs 200 fee is received and the receipt generated.

• Activity outside Puducherry. PIPDIC finances units located in the Union Territory of Puducherry, covering the Puducherry, Karaikal, Mahe and Yanam regions.

• Preliminary and pre-operative expenses loaded into the project cost, which PIPDIC strips out and which can push a project below the viability the applicant claimed.

• Know-how cost not evidenced. A licence fee or design charge without an agreement or an invoice from the technology provider is difficult for PIPDIC to appraise.

Key dates

RTDM is open through the year, with no notified application window and no last date. The applicant's own timeline usually turns on the technology supplier: PIPDIC appraises against quotations and agreements, so a project whose know-how agreement is still under negotiation will sit at UNDER REVIEW until that document arrives.

Whom to contact for help or a grievance

• Managing Director, PIPDIC, No. 60, Romain Rolland Street, Puducherry 605001 to phone 0413-2334361, email info@pipdic.com.
• General Manager (Administration), mobile 9894653835.
• Online grievance form at pipdic.in/grievance_form, which is the route that creates a written record.
• PIPDIC also holds virtual open house hearings for public grievances, notified on the portal.
• Department of Industries and Commerce, Government of Puducherry, is the administrative department above PIPDIC if a grievance is not settled by the corporation.

Filing an application on pipdic.in costs only the notified application fee. No official or intermediary is authorised to collect anything else for processing a file, and PIPDIC never asks for the OTP sent to your registered email.