At least 60% of employment must be provided to the people of Puducherry out of the total employment strength of the industrial units.

The State Level Committee consists of the Secretary to Government (Industries & Commerce), the Managing Director of PIPDIC, the Deputy Secretary/Under Secretary (Finance), and the Director of Industries and Commerce, all from Puducherry.

If the unit undergoes any amendments in new partners or shareholders within five years from the date of availing the subsidy, the entire amount of subsidies and incentives availed must be refunded with a simple interest of 14% per annum.

Working capital, commissioning fees, goodwill fees, royalty, preliminary and pre-operative expenses, capitalized interest, transportation and erection charges, goods vehicles, office equipment, furniture, crates, pallets, and consumable stores, etc., are ineligible for investment subsidy.

The subsidy amount is disbursed through financial institutions/banks towards the adjustment against the loan availed by the entrepreneurs or for the creation of additional fixed assets or for working capital purposes.

For self-financed units, the subsidy is disbursed directly to the entrepreneur/unit.

If an industrial unit has availed investment subsidy from any other agency, it is not eligible to apply for a subsidy for the same investment again under this Scheme.

Industrial units set up by the same person as proprietor, common partners, or common Board of Directors/shareholders are eligible for subsidy as separate entities provided the location of the units is different and licenses/clearances/registrations are obtained separately for the enterprises.

The commencement date is verified by Officials of the Industries Department based on the entrepreneur's admission.

To qualify for incentives/subsidies, the industrial unit must provide at least 60% of employment to residents of Puducherry out of the total employment strength.

The State Level Committee scrutinizes applications, determines eligibility, and recommends the quantum of incentive/subsidy admissible to the unit.

The Director of Industries and Commerce sanctions the subsidies based on the Committee's recommendations.