Puducherry

Formerly known as Pondicherry, Puducherry is the third-most densely populated region in the country. Puducherry is known for its beautiful colonial French architecture and excellent coastal weather. Not surprisingly, tourism and fisheries form the core of the economy in this union territory of India. Given the high literacy rate and progressive outlook of its people, it’s not surprising that Puducherry is fast emerging as an important centre for IT and ITES industry.

KEY INDUSTRIES / SECTORS:

Tourism

Chemicals

Textiles

Information Technology

POTENTIAL INDUSTRIES:

Fisheries, Tourism, and IT.

Industrial Guidance Bureau: The entrepreneur desirous of setting up of an industry has to first get “Entrepreneurs Memorandum – Part I” from the Department of Industries and Commerce. On receipt of the said certificate, the promoter is guided by Industrial Guidance Bureau in District Industries Centre. Read more here >

Prime Minister’s Employment Generation Programme: Scheme of assistance for self employment generation. Read more here >

Motivation of Unemployed Persons to start Self-Employed Enterprises: This scheme aims to encourage self-employment among the youth in manufacturing and service activities largely in support of the growing economy of the Union Territory of Puducherry. 50 % subsidy of the project cost is provided excluding preliminary and pre-operative expenses for projects not exceeding Rs.10,000/- and 25% subsidy of the project cost is provided excluding preliminary and pre-operative expenses subject to a maximum of 25,000/- for project cost exceeding Rs.10,000/- but less than Rs.2,00 lakhs. Read more here >

Sales Rebate: Products manufactured by the local cottage and tiny sector units are eligible for a sales rebate of 15% on the total sales value, for the products sold through sales emporia recognized by the Government of Pondicherry

Exhibition and Participations in Trade Fairs: To attract industrialists to invest in Pondicherry, promotion campaigns, investment meets, seminars etc. are arranged both in India and abroad. Exhibition is arranged in important towns and cities to display the products of Industrial Units of this Territory (SSI products, Handicrafts and cottage industrial products) to boost the sales. Arrangements are also made to participate in the trade fairs conducted by any other agencies, by taking up a separate pavilion to display the industrial products. The cost towards arrangement of exhibition is borne by the Government. Read more here >

Capital Investment Subsidy:

(i) For SC/ST and Women Entrepreneurs: SC/ST/women entrepreneurs shall be eligible for subsidy for the investments made on land, building, plant and machinery @ 25% thereof subject to a maximum of Rs. 25.00 lakhs for the small and micro manufacturing enterprises which started production on or after 27-3-2002.

(ii) For Information Technology (IT) and Information Technology Enabled Services (ITES): New IT/ITES industrial units which started production on or after 6-11-2002, shall be eligible for subsidy on the investments made on plant and machinery @ 20% thereon subject to a maximum of Rs. 20.00 lakhs for the large, medium, small and micro enterprises during the period of operation of the scheme.

(iii) Thrust Area Industries: New thrust area industries which have started Production on or after 3-4-2003, shall be eligible for subsidy on the investments made on plant and machinery @ 20% thereon subject to a maximum of Rs. 20 lakhs for the large and medium enterprises and 35% subject to a maximum of Rs. 30 lakhs for the small and micro enterprises during the period of operation of the scheme.

Rend Subsidy: Scheduled caste/scheduled tribe or woman entrepreneur, who have started production on or after 27-3-2002 in a rented building, is eligible for rent subsidy for the period of first five years from the date of commencement of commercial production on a tapering basis as below; subject to a ceiling of Rs. 5,000 per month.

Interest Subsidy: The industrial units which have availed loan from financial institutions towards creation of fixed assets and for working capital shall be eligible for an interest incentive to an extent of 25% of the annual interest amount paid, for five years which shall be admissible from the date of commencement of commercial production. The maximum amount of interest incentive admissible to each industry shall not exceed Rs. 75,000 in any financial year.

Infrastructure Subsidy: 25% subsidy subject to a maximum of Rs. 1 crore will be granted on the investment made on building with a minimum extent of Rs. 50,000 sq. ft. constructed area, by the infrastructure developers for leasing out to IT industries (Manufacturers of Computer Systems, Software/Information Technology Enabled Services (ITES), Business Process Outsourcing (BPO) and Knowledge Process Outsourcing (KPO). This subsidy is also admissible to the industrial units, which are investing for construction of factory building of not less than 50,000 sq.ft for setting up of the above IT industries. 25% subsidy subject to a maximum of Rs. 1 crore will be granted on the investment made on building with a minimum extent of 50,000 sq. ft. constructed area by the infrastructure
developers for leasing out to the bio-technology industries. (c) 25% subsidy subject to a maximum of Rs. 50 lakhs for investment made on building with a minimum extent of 5,000 sq. ft by bio-technology industries unit for self-occupation.

Subsidy on generator: Micro, small and medium industrial units (manufacturing and service sector) shall be eligible for the grant of 50% subsidy with a cap of Rs. 5 lakhs per industrial unit on the investment made on or after 5-3-2009 on generator sets.

Employment Incentive: Wage/Employment subsidy of 20% wage/salary up to a maximum of Rs. 5 lakhs per annum, in case of such workers who are covered under Provident Fund (PF) (if applicable) will be granted. The new units which commence the production on or after 2-8-2004 would alone be eligible for this incentive for a period of 5 years from the date of commencement of production. Wage/Salary would be limited by the minimum wages prescribed by Government from time to time. The categories for which minimum wages are not prescribed by Government are not eligible for incentive.

Read more here >

Pondicherry University-MBA in Entrepreneurship: The institute offers two year regular & distance MBA in Entrepreneurship. Read more here > and here >

Pondicherry Engineering College: The institute houses an Incubator & Entrepreneurship Development Cell to provide a platform to assist and enable young entrepreneurs to initiate technology startup companies for commercial exploitation of technologies developed by them. The IEDC of Pondicherry Engineering College also enables the budding entrepreneurs to showcase and test their abilities to run a start up business. Read more here >

Princess College, Pondicherry: Offers a BBA in Entrepreneurship. Read more here >

District Industries Centre-Entrepreneurship Development Program: The programme tends to motivate the prospective entrepreneur, highlight the salient features of the project of concern and the course of actions to taken for setting up and successful running of the unit. Read more here >

In Summary – Puducherry and Entrepreneurship:

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To know more about how Puducherry is building a vibrant entrepreneurship ecosystem, click here.

Data Sources for Puducherry:

Note: Policy details provided here are for the purpose of information only. Please verify the latest information from the relevant Government or MSME website of the state. Other data and information is curated from various websites and public documents. In case you have any corrections, additions, or suggestions, please share the same with us, and we’ll be happy to incorporate them here.