Priority industries set up in Karaikal district are eligible for a 25% subsidy on fixed assets, including land, building, and plant and machinery, subject to a maximum of ₹40,00,000.

The subsidy is disbursed based on the availability of funds during the financial year and may be disbursed in the next financial year, subject to fund availability.

The Directorate facilitates the application process by providing the prescribed form on its official website and serves as the channel for submitting subsidy claims by industrial units in Puducherry.

In the case of second-hand machinery, an affidavit stating that the subsidy has not been availed from the Central Government or any State or Union Territories is required.

While the scheme may not specify specific periods for submission, applicants are encouraged to adhere to the deadlines outlined for new and existing units.

The State Level Committee determines the quantum of incentive/subsidy admissible to the unit. It is authorized to sanction incentives/subsidies, not exceeding the levels prescribed in the scheme.

For new units, applications must be submitted within one year from obtaining the Entrepreneurs Memorandum Part-2 or Permanent Registration or Commencement of Production Certificate. For existing units undergoing expansion, diversification, or modernization, the deadline is within one year of completion of the said activities.

The scheme does not mention specific provisions for flexibility in application deadlines. Units facing challenges should communicate with the concerned authorities for guidance or clarification.

Units financed by financial institutions must use the subsidy amount for loan adjustment or additional fixed assets. Specific conditions may vary, and units should coordinate with the respective financial institutions for details.

The scheme is specifically designed for units in the Karaikal Region, and industrial units outside this region may need to explore other relevant schemes under the Department of Industrial Development.

SC/ST/Women Entrepreneurs in Karaikal can receive a 30% additional incentive, subject to a limit of ₹30,00,000, as part of the Capital Investment Subsidy.