Scheme for Development, Maintenance and Construction of Roads

What is the Scheme for Development, Maintenance and Construction of Roads?

The Scheme for Development, Maintenance and Construction of Roads is a sub-scheme under PIPDIC's umbrella Scheme for Infrastructure Development. It is run by 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 assists existing small scale industrial units engaged in road work with a need-based loan for the acquisition of capital goods and equipment required for the activity.

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.

The name of this scheme misleads readers more often than any other in PIPDIC's list, so it is worth stating plainly what it is not. This scheme does not build roads and does not award road contracts. It is a credit facility for a private small scale unit that already does road development, maintenance and construction work, and that needs to buy the machinery for it. The kind of equipment a road contractor uses rather than the road itself. Public road works in Puducherry are tendered by the Public Works Department and the local bodies, entirely separately from this scheme.

Headline terms

• Need-based loan for capital goods and equipment.
• Applicant must be an existing SSI unit engaged in the activity.
• Three years of operation and profit in the last two years required.
• Sits under PIPDIC's Scheme for Infrastructure Development.

Who is eligible for this scheme?

You can apply if:

• Your unit is an existing small scale industrial unit located in the Union Territory of Puducherry.
• The unit is already engaged in road development, maintenance and construction work. This is not a route into the activity, it is support for a unit already in it.
• The unit has been in operation for at least three years.
• The unit has earned profits in the last two years.
• The purpose is the acquisition of capital goods and equipment required for the activity.
• You can offer immovable property as collateral in addition to hypothecation of the equipment financed.

You cannot apply if:

• The unit has been running for less than three years.
• The unit made a loss in either of the last two years.
• You are new to road work and want finance to enter the trade.
• You are an individual seeking a personal benefit. There is no citizen application under this scheme; it is industrial credit for an enterprise.
• You are looking for a government road contract. That is awarded by tender by the relevant works department, and PIPDIC has no role in it.
• You are a defaulter to PIPDIC, a bank or any other financial institution.
• The unit operates outside Puducherry, Karaikal, Mahe or Yanam.

How much does the scheme lend?

PIPDIC describes the assistance as need-based, which means there is no fixed per-unit ceiling published for this sub-scheme. The sanction is built from three things:

1. The quoted cost of the capital goods and equipment being acquired.
2. The repayment capacity of the unit, read from its audited accounts for the three years of operation.
3. PIPDIC's general financial norms on debt-equity ratio, interest and collateral security, which apply to every scheme the corporation runs.

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 3:1 for a loan up to Rs 25,00,000 and 2:1 above that.

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 Scheme for Development, Maintenance and Construction of Roads 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.

• The unit is not actually in road work. Because eligibility rests on being engaged in the activity, a general civil contractor without road-specific work orders has a weak file.

• Three-year and two-year tests not met, which is the most common reason a newer contractor is turned away here.

• Equipment not identified. A need-based sanction still needs a quotation naming the machine, its make and its price.

Key dates

The scheme is open all year with no notified application window and no last date. Because eligibility turns on audited results for the last two years, the practical timing constraint is the audit: a unit whose most recent accounts are still provisional should complete the audit before filing, since PIPDIC assesses the profit condition from audited figures.

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.