pondy

Department of Industries & Commerce

INCENTIVES AND CONCESSIONS

AVAILABILITY OF POWER AT LESSER RATES

Power tariff is comparatively lesser when compared to neighboring states and uninterrupted power supply is available to industries.

Power TariffLT supply

Energy charges for consumption up to 1000 units per month Rs 2.30/ KWHEnergy charges in excess of 1000 units per month Rs 2.50/ KWH

HT supplyDemand charges Rs 135 per KVA per monthConsumption charges up to 1 lakh units per month Rs 2.60 per KWHConsumption charges in excess of 1 lakh units per month Rs 2.75 per KWH

EXEMPTION FROM PAYMENT OF EARNEST MONEY DEPOSIT AND SECURITY DEPOSIT

Permanently registered Small Scale Industries are exempted from payment of earnest money deposit and Security Deposit for tenders called by the Pondicherry Government Departments for the supply of registered items .

PRICE PREFERENCE

Small Scale industries are eligible for 15% price preference for the supply of finished products manufactured by them to the Puducherry Government Departments.

INCENTIVES FOR SC/ST AND WOMEN ENTREPRENEURS:

(a) Investment Subsidy : 25% Investment subsidy is granted by Industries Department for the fixed capital investment subject to a maximum of Rs.25 lakhs for the SSI units started by SC/ST and Women entrepreneurs.

(b) Interest Subsidy : The industrial units which have availed loan from financial institution towards creation of fixed assets and for working capital, an interest incentive to an extent of 25% of the annual interest amount paid, for five years shall be admissible from the date of commencement of commercial production. The maximum amount is restricted to Rs 75,000 per annum.

(c) Rent Subsidy: Rent subsidy at the following sliding percentage for a period of 5 years is granted to the SC/ST and Women entrepreneurs who start the SSI unit in rented shed owned by PIPDIC/ Industries Department.

(i) For the first two years 50% of the rent , (ii) For the third year 40% of the rent, (iii) For the fourth and fifth year 25% of the rent

Govt. Order>> Amendment on Govt. Order.>>

(D) Employment Incentive: " Wage / Employment subsidy of 20% Wage/Salary in case of such workers who are covered under Provident Fund (PF) will be granted. The new units which commence the production after the issue amendment would alone eligible for this incentive for a period of 5 years. This would be limited by the minimum wages prescribed by Government from time to time. Further the maximum amount which can be given as subsidy would be Rs 5 lakhs per annum per unit under this provision;

INCENTIVES FOR THRUST AREA INDUSTRIES

To attract more investment and to create more number of employment opportunities in the Union Territory of Puducherry, the Government is granting capital Investment subsidy/Employment & Interest subsidies to the following Thrust area industries.

1. Information Technology 5. Electronic Industries2. Bio-Technology Industries 6. Food Processing Industries3. Agro Processing including Marine products 7. Leather products and Footwear4. Light Engineering including Auto Components 8. Textiles including garments

Capital Investment Subsidy and Interest Subsidy: The Thrust area industries are eligible for the grant of subsidy at the rate of 20% of the investment made on Plant and Machinery subject to a maximum of Rs.20.00 lakhs (35% subsidy with a cap of Rs 30 lakhs available to SSI units alone). Also, interest subsidy to the extent of 25% of the annual interest amount paid subject to a maximum limit of Rs 75,000/- per unit per annum in any financial year is admissible for 5 years from the date of commencement of commercial production.

Employment subsidy: Unit which have commenced production on or after 02/08/2004 is eligible for the grant of 20% wage / Salary as employment subsidy for a period of 5 years subject to a maximum limit of Rs 5 lakhs per annum per unit.. The wage / employment subsidy is considered if the unit provides direct employment to at least 10 persons out of which 60% are local people and covered under Provident fund (PF).

INCENTIVES FOR IT INDUSTRIES

Fixed Capital investment subsidy at the rate of 20% subject to a maximum of Rs.20.00 lakhs

Grant of 25% Investment Subsidy with a cap of Rs. 1.00 Crore for the Builders with not less than 50,000 sq.ft for IT/Software Industries

Subsidy on leased line rental payable to the extent of 50% for first 3 years

Interest subsidy of maximum Rs 75,000 per annum

Employment incentive of 20% wage/salary of local youth employed in the unit suject to a maximum of Rs 5 lakhs per annum per unit.

Thrust area GO>>Amendment-IAmendment-II

IT Corridor GO >> ITsubsidy GO >> Amendment

IT software and IT industries will be extended upto 15% of the total equity

The rate of interest will be 0.5% per annum less than the prevailing rate of interest for IT industries by PIPDIC.

The container corporation of India has opened inland contrainer Depot to promote containerisation of Cargo and EXIM Trade in Puducherry

Information Technology related industrial units engaged in software development services and training are exempted from locational restrictions

Relaxation of FAR to the extent of 50% will be given to the IT units set up outside the urban areas

Software industries are exempted from obtaining NOC on pollution angle

Uninterrupted power supply, priority in sanctioning and connecting power for IT industries will be extended by Electricity Department

Permission to run 3 shift operations for the IT industries will be granted by Labour Department subject to the provision of other facilities such as one day off, facilities to women workers etc. Labour Department has already granted exemption to knowledge based industries in the Union Territory of Puducherry under the shops and Establishment Act/Rules'1964

Stamp duty exempted for the IT industries on sale/lease of property in Software Technology Park and on execution of term loan agreement on credit provided by PIPDIC.

The stretch of East Coast Road starting from Siddhanandasamy Temple Junction to Ariyankuppam is declared as an IT Corridor. The role of the Government in this regard will be to provide necessary infrastructure facilities like road, power, water supply, telecommunication, etc.

FINANCIAL ASSISTANCE

Term loan is sanctioned by Pondicherry Industrial Promotion, Development and Investment Corporation Limited (PIPDIC) under IDBI/SIDBI refinance scheme upto Rs.150 lakhs for projects whose cost is below Rs.500 lakhs.

ALLOTMENT OF PLOTS

Pondicherry Industrial Promotion, Development and Investment Corporation Limited (PIPDIC) provides developed plots to the entrepreneurs in the Industrial estates set up by the Corporation on 99 years premium lease basis.

A) General C) Foreign Technology Agreements

B) For FDI companies D) Specific Approvals

A) General

Obtaining provisional SSI registration/filing of IEM/ LOI/LOP

Approval Applicability AuthorityEntrpreneurs Memorandum Part -

In the case of Micro, Small & Medium

Directorate of Industries and

I Commerce, Puducherry.Industrial EntrepreneurMemorandum(IEM)

In the case of large delicensed industries

Secretariat for Industrial AssistanceDept. of Industrial Policy & Promotion, Ministry of Comm. & Ind., New Delhi

Letter of Indent(LOI)& Carry on Business (COB)

In the case of licensed industries Secretariat for Industrial AssistanceDept. of Industrial Policy & Promotion, Ministry of Comm. & Ind., New Delhi

Letter of Permission (LOP)

In the case of 100% EOUs

a) Items for automatic approval Development Commissioner of the EPZ,Chennai.

b) Items other than automatic approval


Constitution of business organization – Proprietorship/Partnership/Pvt Ltd/ Public Ltd companies

Form of business organization

Type of ownership Authority

Proprietorship Individual ownership No registration required from Registrar of Firms, Puducherry

Partnership Minimum 2 owners upto a maximum of 20 owners

Registrar of Firms, Puducherry

Pvt Ltd Co. Minimum 2 and maximum 50 shareholders with limited liability


Public Ltd Co. Minimum 7 and maximum unlimited numbers with limited liability


Acquisition of land – from PIPDIC / Govt authorities/private sources

Purpose AuthorityLand acquired in PIPDIC estate Pondicherry industrial Promotion, Development

and Investment Corporation(PIPDIC)PIPDIC.

Government land District Collector, Puducherry.Private land No Restriction (subject to the Approval of

Agriculture Dept., Puducherry.)

Registration for incentives available, if any

Purpose AuthoritySSI, MSI, LSI units Directorate of Industries and Commerce,

Puducherry.

Financial tie-up – Medium or long term loan/short term loan for working capital

Purpose AuthorityTerm loan for acquisition of fixed assets Pondicherry industrial Promotion, Development

and Investment Corporation(PIPDIC)PIPDIC.or Any commercial bank

Working capital Pondicherry industrial Promotion, Development and Investment Corporation(PIPDIC)PIPDIC. or Any commercial bank

Fund to be raised through public issue

Purpose AuthorityOffer of shares to the public As per the guidelines issued by RBI/SEBI

INDUSTRIAL GUIDANCE BUREAU

Procedure for Starting an Industry ProcedureIndustrial Guidance Bureau IGBTime Table of IGB Time TableContact Address of IGB Address

B) For FDI companies

Approval Applicability AuthorityAutomatic Route All items/activities produced/carried out

by new ventures, barring a few falling under automatic route for FDI/NRI/OCB investment upto 100%

Reserve Bank of India after ensuring compliance of sectoral policy and equity caps stipulated if any.

Automatic Route Existing companies proposing to raise foreign equity with an expansion programme, should fulfill (i) the increase in equity level to result from the expansion of the equity base of the company without acquisition of existing shares by NRI/OCB/foreign investors, (ii) money to be remitted in foreign currency and (iii) proposed expansion programme to be in the sectors under Automatic Route.

Reserve Bank of India after ensuring compliance of sectoral policy and equity caps stipulated if any.

Automatic Route Existing companies without an expansion program for eligibility under

Reserve Bank of India after ensuring compliance of sectoral

Automatic Route should fulfill (i) they are engaged in the industries under Automatic Route (ii) the increase in equity level will result in expansion of the equity base and (iii) the foreign equity in foreign currency.

policy and equity caps stipulated if any.

For Foreign Direct Investment under the Automatic Route, RBI has given permission to Indian companies to accept investment under this Route without obtaining prior approval from RBI. Investors are required to notify the concerned regional office of RBI of receipt of inward remittance within 30 days of such receipts and file required documentation within 30 days of issue of shares to foreign investors.

Government Approval

All proposals requiring IL under ID&R Act, 1951

Foreign Investment Promotion Board, Ministry of Industry, GOI, New Delhi

Government Approval

Foreign investment exceeding 24% in the equity capital of units manufacturing items reserved for small scale industries.


Government Approval

All items requiring IL in terms of the locational policy notified by Government under NIP, 1991.


Government Approval

All proposals in which the foreign collaborator has a previous venture/tie up in India


Government Approval

All proposals relating to acquisition of shares in an existing Indian Company in favour of foreign/NRI/OCB investor


Government Approval

All proposals falling outside notified sectoral policy/caps or under sectors in which FDI is not permitted


RBI has granted general permission under FEMA for proposals approved by the Government. Indian companies getting foreign investment approval through FIPB route do not require any further clearance from RBI for the purpose of receiving inward remittance and issue of shares to foreign investors. Such companies would notify the concerned regional office of the RBI about the receipt of inward remittance within 30 days and file the required documentation within 30 days after issue of shares to the foreign investors.

C ) Foreign Technology Agreements

Approval Applicability AuthorityAutomatic Approval for foreign technology collaboration agreements

All industries for foreign technology collaboration agreement subject to (i) lumpsum payments not exceeding US$ 2 million (ii) royalty payable limited to 5% for domestic sales and 8% for exports subject to a total payment of 8% on

Reserve Bank of India

sales over a period of 10 years and (iii) period of payment of royalty not exceeding 7 years from commencement of commercial production or 10 years from the date of agreement whichever is earlier. The limits of royalty are net of taxes.

Automatic Approval for use of foreign trade marks and brand names

Payment of royalty upto 2% for export and 1% for domestic sales is allowed on trade marks and brand name of the foreign collaborator without technology transfer. This royalty shall be paid as a percentage of net of sales .


Automatic Approval by wholly owned subsidiaries

Payment of royalty upto 8% on exports and 5% for domestic sales by wholly owned subsidiaries to offshore parent companies permitted without any restriction on the duration of royalty payments.


Government approval

For following categories, Govt approval is necessary:

(i) Proposals attracting compulsory licensing(ii) Items of manufacture reserved for SSI sector(iii) Proposals involving any previous JV or technology transfer or trade mark agreement in the same or allied field in India (iv) Extension of agreements(v) Proposals not meeting any or all the parameters for Automatic Approval.


D) Specific Approvals

Purpose Applicability Authority

Food & drug clearance

Food & Drugs, Cosmeticsmanufacturing units

Asst. Commissioner of Food & Drug Administration Puducherry.

Environmental clearance

For all manufacturing units except software units.

Dept of Science, Technology and Enveironment, Puducherry. (DSTE), Puducherry

Boiler Licence Units installed boilers except baby boiler

Chief Inspector of Factories and Boiler,Government of Puducherry

Mining of minerals Units require minerals except minor minerals.

Dept. of Industries and Commerce Government of Puducherry

Storage of Units stores explosive Additional District Magistrate,

explosives clearance

materials more than 20K Lts Government of Puducherry.

Imported machinery/raw materials

Units required to import machineries/raw materials

Joint Directorate General of Foreign Trade, Ministry of Commerce, GOI, Puducherry.

Factory licence Units covered under Factories Act

Chief Inspector of Factories, Government of Puducherry.

Site clearance certificate for LOI holders for converting into IL

For the Medium and Large Scale Industries

Dept. of Industries and Commerce Government of Puducherry.

Powerloom registration

Powerloom units DIC/Textile Commissioner

Quality Certification Those require BIS Bureau of Indian Standards, Chennai.

LOAN SCHEMESObjectiveTo encourage self-employment among unemployed youth in the Union Territory of Puducherry this organisation is implementing two schemes which provide loan through banks for setting up of manufacturing, service or business enterprises.

Subsidy is extended under these schemes as an incentive to give confidence to the otherwise first time entrepreneurs

Pradan Mantri Rozgar Yojana (PMRY)

Motivation of Unemployed Persons to start Self-Employed Enterprises

(MUPSES)PMRY is a Centrally Sponsored Scheme while MUPSES is a State Sponsored Scheme encouraging mainly manufacturing and service activities

PRIME MINISTER ROZGAR YOJNA (PMRY)The PMRY was announced by the Hon'ble Prime Minister of India on 15th August, 1993. The Yojana was formally launched on the 2nd October, 1993. PMRY aims at helping the economically weaker sections of educated unemployed persons to set up Micro-enterprises. This Centrally sponsored Scheme has been designed to set up self-employment ventures in the industry, service and business sectors by the educated unemployed persons. Government of India provides capital subsidy and a free entrepreneurship stipendiary training. A composite loan is made available by the banks.

Eligibility

1. Age: For all educated unemployed 18-35 years in general; with 10 years relaxation for SC/STs, Ex-Servicemen, Physically Handicapped and Women.

http://www.industrypuducherry.com/html/roadmap.htm#top

2. Education: Eighth Standard passed, Preference will be given to those who have been trained in any trade in Government recognized/approved Institution for a duration not less than six months.

3. Family Income: Should not exceed Rs.40,000/- per annum

4. Residence: Permanent resident of the area for at least 3 years. (In case of newly married women applicants, the resident criteria is applied to the in-laws/husband)

5. Activities Covered: All economically viable activities excluding direct agriculture operations like raising crop, purchase of manure etc.6. Quantum of Loan: Maximum of Rs.1 lakh for Business activities and Rs.2 lakhs for other activities. Two or more eligible persons can join together and avail upto Rs.10 lakhs under Partnership concern.

7. Subsidy: 15 percent of the loan amount or Rs.7,500/- whichever is less.

8. Margin Money: Bank will be allowed to take margin money from the entrepreneur varying from 5% to 16.25% of the project cost, so as to make the total of the subsidy and the margin money equal to 20% of the project cost.

9. Collateral: No collateral security for the project upto Rs.1 lakh in case of Business & Service Sectors. For Industrial sector, no collateral security is required for project upto Rs.2 lakhs.

10. Interest: Normal bank rate of interest on date shall be charged.

11. Repayment Schedule: May range between three to seven years after an initial moratorium period as may be prescribed by the bank.

12. Training: 20 days training will be provided for the Industrial activity with a stipend of Rs.300/-10 days training for Business and Service activities, with a stipend of Rs.150/-.

13. Reservation: 22.5% reservation for SC/ST27% for other Backward Classes (OBC). Preference will be given to weaker sections including women.

14. Application Form for PMRY Loan (Download)

15. Submission of filled in application: No last date has been fixed, can be submitted at any time during the office hours.

16. Conduct of Interview and forwarding of application to BankFilled in applications received by this office will be scrutinized and called for interview once in a quarter. The application of successful candidates will be forwarded to the respective banks for further action.

17. Disbursement of Loan: Sooner the beneficiary completes the formalities required by the banks in respect of his project and also completes the training conducted by DIC in coordination with Community College, Pondicherry, the disbursement of loan takes place.

Note: * A person who has already availed financial assistance under any subsidy linked scheme run by the Central or State Government cannot be considered for assistance under PMRY.

* Reserve Bank of India, Mumbai vide its letter No.RPCD. PLNFS.BC.47/09.04.01/2002 dt.21/11/2002 advised the Banks to include the parents / head of the family of the unmarried girls as a co-borrower, where loans are sanctioned under PMRY scheme.* The Government of India vide its letter No.PMRY-6(7)/2000 dt 11.04.2001 relaxed the residency criteria for newly married Women applicants under the PMRY. Instead, residency criteria will be applied to the in-Laws / Husband of the married female applicants.PMRY ACHIEVEMENT IN THE U.T.OF PONDICHERRY

Year Target (Nos) Achievement (Nos) Percentage Achievement

1993-94 200 162 81

1994-95 460 476 103

1995-96 500 513 103

1996-97 500 502 101

1997-98 500 505 101

1998-99 550 560 102

1999-2000 550 481 87

2000-01 625 419 67

2001-02 450 427 95

2002-03 550 477 87

2003-04 750 567 76

2004-05 750

2005-06 750

2006-07 750

Illustrative list of activities under PMRY

http://www.industrypuducherry.com/html/loan1.htm

MOTIVATION OF UNEMPLOYED PERSONS TO START SELF-EMPLOYED ENTERPRISES (MUPSES)The scheme was launched during the year 2006 by the State Government with a view 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.

Eligibility

1. Age: As per the existing norms of banks

2. Education: No formal education is required. However the applicant should know to read and write fluently

3. Family Income: No limit on the family income

4. Residence: Should be a permanent resident of the area for at least 3 years

5. Activities Covered: All economically viable service and industrial activities. Mechanized laundry, Beauty Parlour (Saloon), Tailoring units and Setting up of Hygienic Tea / Coffee Stalls are presently encouraged under the scheme6. Quantum of Loan: Ranging from Rs.10,000/- to Rs.2,00,000/-

7. Subsidy:a) 50 % of the project cost excluding preliminary and pre-operative expenses for projects not exceeding Rs.10,000/- b) 25% of the project cost 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 lakhs8. Interest: Normal bank rate of interest on date shall be charged.

9. Application Form for State Loan (Download)

10. Submission of filled in application: Can be submitted on any working day during office hours.

11. Conduct of Interview and forwarding of application to Bank:Filled in applications received by this office will be scrutinized and called for interview once in a quarter. The application of successful candidates will be forwarded to the respective banks for further action.

12. Disbursement of Loan: The disbursement of loan will be done no sooner the beneficiary completes the formalities required by the banks in respect of his / her project

Training Development of Handicrafts Development of Coir

http://www.industrypuducherry.com/html/loan1.htm

Loan Schemes Marketing & Publicity

ORGANIZATION CHART<<Full View

SECRETARY TO GOVT., (Industries & Commerce)

GENERAL MANAGER

PONDICHERRY KARAIKAL MAHE YANAM

CREDIT SECTIONFunctional Manager

Dy. Functional Manager

Technical Officer- 3

· Prime Minister Rozgar Yojna (PMRY)

- Processing of loan application, Selection

of beneficiaries,Training,

Follow-up with banksStatistical data,

Evaluation,Motivation Camps,

Compiling of projects, Correspondence with

G.O.I.

C.I. SECTIONProject Manager


Dev. of Handicrafts,Dev. of Coir industries,

PKVIB

--Conduct of training,Conduct of Exhibition,

Setting up of Coir Growth Centre,

Setting up of Arts and Crafts Village

Insurance to Artisans,Pension to Artisans,

State Award, National Awards,

Release of grant to PKVIB,

E.I. SECTIONDeputy Functional

Manager


Training

--Conduct of Inplant Training,

Management training,EDPs', Vocational

training,Economic

Investigation,Single window system

R.M. SECTIONDeputy Functional

Manager


Marketing & Publicity

--Marketing & Publicity, Buyer

Seller Meet, Exhibitions,

Sales RebateSingle Point

Registration-NSIC Technical Library

Functional Manager

Dy. Functional Manager

TechnicalOfficer- 1

All subjects dealt by DIC,

Pondicherry.

TECHNICAL OFFICER

All subjects dealt by DIC, Pondicherry.

TECHNICAL OFFICER

All subjects dealt by DIC,

Pondicherry.

DEVELOPMENT OF COIRObjectiveTo develop coir and coir based industry, to train rural poor in producing coir products and to generate employment thereby.

Following are the means adopted to achieve the goal

Training in Coir

Advance / High Skill Training in Coir

Exposure Tour for Coir Artisans

Conducting of Exhibitions

Grant to Coir Cluster / Society / Agency

Grant of Margin Money for availing Capital Loan

Grant of Subsidy for Raw Materials procurement

Entrepreneurship Development Programme in Coir

TRAINING

The scheme envisages imparting training in coir rope and coir mat making from coconut fibre. The objective is to develop coir and coir based industry, to train rural poor in producing coir products and to generate employment thereby.

Eligibility Criteria to Apply for Training

1. Age: Between 18 and 35 years

2. Education: No formal educational qualification is required

3. Residence: Must be native of Union Territory of Puducherry (or) continuous resident for three years.

4. Period of training: Six months

5. Time of submission of application: Month of August (Advt. will be floated in local dailies during July)

6. Commencement of training: In the month of December

Stipend to Trainees: Rs 1500/- per month

The master craftsperson will be paid an honorarium of Rs 300/- per trainee per month subject to a maximum of Rs.3000/- per month and Rs.200/- per trainee per month towards compensation for wastage of raw materials subject to a maximum of Rs.2000/- per month.

Application Form for Training (Download)

ADVANCE TRAINING

To develop the existing skill of the Coir artisans or the interested persons to acquire the latest skill & modern technologies by undergoing such Advance/High skilled training available in various places of India.


1. Age: Between 18-35 years

2. Education: As prescribed by the Training Unit / Institution


4. Period of training: As prescribed by the Training Unit / Institution

http://www.industrypuducherry.com/html/coir1.htm

Stipend to Trainees (per month): Rs 2500/- Travelling Allowances: One time to and fro expenses restricted to 2nd class train fare

Accommodation: Accommodation charges @ Rs.500/- per month will be paid to the trainees


EXPOSURE TOUR FOR COIR ARTISANS

For acquiring the latest techniques and innovative ideas in various coir units located in other states, the exposure tour will be conducted for the coir artisans.


1. Age: No age limit


3. Residence: Artisan carrying out activity in coir for at least three years

Expenses towards conveyance, accommodation, fees if any to be paid to visiting institution, etc. will be borne under the scheme

Each participant will be given Rs.150/- per day as Daily Allowance

CONDUCTING OF EXHIBITION

To create awareness among the public on the usage of variety of coir products and market promotion. To create more awareness among the public and to explain the public and friendly environment nature of the coir products.

Who can participateAny artisan who is having coir unit in the Union Territory of Puducherry

Pattern of AssistanceThe cost towards transportation of goods, stall rent, interior decoration, etc. will be paid under the scheme

During the exhibition period Daily Allowance of Rs.150/- per head and travelling expenses in 2nd sleeper class in express train will be provided to the participants.



GRANT TO COIR CLUSTER/SOCIETY/AGENCY

To develop the coir industries and encourage unemployed rural youth/artisan person to involve them in the manufacturing of coir products and its sales, the grant for administration and developmental propose will be given to the cluster/society/agency

EligibilityThe Coir Cluster / Society / Agency society should be registered either as a Co-operative society or under Society Act. The members of the society should be coir artisans The Society should deal only with the coir products produced by the artisans of the U.T. of Puducherry.

Pattern of AssistanceGrant of 2.00 lakhs/per annum is provide to the Cluster / Society / Agency towards Administrative and Marketing expenses for a period of 5 years

GRANT OF MARGIN MONEY FOR AVAILING CAPITAL LOAN

To encourage the entrepreneur to set up new coir industries or renewal of existing coir industries

Criteria to avail the assistance

The Coir unit should be set up in the Union Territory of Puducherry

The promoter should ascertain availability of loan

Loan sanction letter from the financial institution should be produced

The unit should start its commercial production within six months from the date of release of the Margin Money Grant. The promoter should produce under taking letter assuring that he will run the unit successfully for 5 years after establishment of the unit

Pattern of Assistance25% of the loan amount will be released to the bank on behalf of the entrepreneur as margin money

GRANT OF SUBSIDY FOR PROCUREMENT OF RAW MATERIALS




In order to promote Coir Industries in the U.T. of Puducherry, it is proposed to provide 15 % as subsidy for Raw Materials Procurement on the annual procurement subject to a maximum of Rs. 5.00 lakhs per annum per unit

ENTREPRENEURSHIP DEVELOPMENT PROGRAMME

To provide entrepreneurs training for promoting of new prospective entrepreneur. The awareness programme will also be arranged for existing coir industries to input both modern technology, schemes, and incentive available in State Grant, etc.

DEVELOPMENT OF HANDICRAFTSObjectiveTo revive the vanishing crafts and restore the significance of traditional crafts. To develop the skill in order to create better employment opportunities and to boost the livelihood of rural people who have contributed a significant share to the exports of the Union Territory of Puducherry. Following are the means adopted to achieve the goal

Training in Handicrafts Advance Training in Handicrafts Design Development Training for Master Crafts Persons Insurance Scheme for Artisans Exhibitions Monthly Grant to Old Crafts Persons (Pension) Grant to Handicrafts Societies

TRAINING The objective of the program is to develop the skills in handicrafts in order to create better employment opportunities and to boost the livelihood of rural poor. The Gurukulam kind of training imply learning the skill of the craft in its environment Eligibility Criteria to Apply for Training

1. Age: Between 18 and 35 years



4. Period of training: One year

5. Time of submission of application: Month of August (Advt. will be floated in local dailies during July)

6. Commencement of training: In the month of December

Stipend to Trainees (per month) Rs 1500/-

The master craftsperson will be paid an honorarium of Rs 300/- per trainee per month subject to a maximum of Rs.3000/- per month and Rs.200/- per trainee per month towards compensation for wastage

of raw materials subject to a maximum of Rs.2000/- per month. The following are the crafts practiced in this Union Territory of Pondicherry.

1. Soap stone carving. 16. Mat Weaving.

2. Pith Craft. 17. Bathik Printing

3. Tapestry. 18. Pottery/Clay toys/Ceramic

4. Wood carving. 19. Miniature painting & printing.

5. Bronze Icon. 20. Cloth & Stuffed dolls

6. Serpentine stone carving 21. Decorative wax candles

7. Terracotta. 22. Hand knitted Hammacks

8. Tanjore Painting. 23. Cane & Bamboo

9. Leather goods. 24. Semi precious stones and jewellery

10. Crochet 25. Glazed art pottery

11. Paper Machie. 26. Dry flowers

12. Hand Printed Textile. 27. Lamp shade - Jute and paper

13. Shell items. 28. Wire craft14. Palm Leaf articles. 29. Fibre craft15. Embroidery and appliqué works.


ADVANCE TRAINING Advance training is given to those who want to learn the exquisite skill of the craft. The candidates will be sponsored for training in other states where the craft is practised to its fineness Eligibility Criteria to Apply for Advance Training

1. Age: Between 18-35 years

2. Education: As prescribed by the Training Unit / Institution



Stipend to Trainees (per month): Rs 2500/- Travelling Allowances: One time to and fro expenses restricted to 2nd class train fare Accommodation: Accommodation charges @ Rs.500/- per month will be paid to the trainees Application Form for Advance Training (Download)

DESIGN DEVELOPMENT TRAINING FOR MASTER CRAFTSPERSON

http://www.industrypuducherry.com/html/handicraft1.htm


Advance training is given to those who want to learn the exquisite skill of the craft. The candidates will be sponsored for training in other states where the craft is practised to its fineness Eligibility Criteria to Apply for Training

1. Age: No age limit


3. Residence: Craftsperson / Artisan carrying out activity in the respective crafts for at least three years


Remuneration to Craftsperson: Rs 3000/- per month Travelling Allowances: One time to and fro expenses restricted to 2nd class train fare Accommodation: Accommodation charges @ Rs.1000/- per month will be paid to the trainees Course fee as prescribed will be paid to the Training Institution

INSURANCE SCHEME FOR ARTISANS An important welfare measure for the for the craft persons. The artisans are covered under Jana Shree Bima Yojana of LIC or any other suitable policy. Payment of premium towards the policy will be borne under the scheme Who can apply

Any handicrafts artisan who is a resident of the Union Territory of Puducherry The artisan should not be less than 18 years and more than 60 years The artisan should comply with the conditions stipulated under the policy Pattern of Assistance Natural death Rs.20,000/- Death due to Accident Rs.50,000/- Permanent total disability due to accident Rs.50,000/- (loss of two eyes or two limbs) Permanent partial disability Rs.25,000/- (loss of one eye or one limb due to accident) PremiumAn amount of Rs.200/- will be paid towards premium of which 50% will be shared by the Social Security Fund and the balance paid under the scheme

EXHIBITION In order to boost the marketability of handicrafts and to improve the sales of handicrafts products either exhibitions are conducted or the artisans are sponsored to attend exhibitions locally or in other states



Who can participate

Any artisan who is having handicrafts unit in the Union Territory of Puducherry Pattern of Assistance The cost towards transportation of goods, stall rent, interior decoration, etc. and travelling allowances and daily allowances will be paid under the scheme

MONTHLY GRANT TO OLD CRAFT PERSONS (AS PENSION) Pension is paid under the scheme to protect the artisans in their old age taking into account the individual's contribution towards protecting the traditional craft. Who can apply

Artisan who has attained the age of 60 years Should be a native or resident for at least 5 years in the Union Territory of Puducherry Artisan should have practised the craft for at least 5 years cin the Union Territory of Puducherry Family income from all sources should not exceed Rs.40,000/- per annum Pattern of Assistance To the Craftsperson Rs.2000/- per monthTo the living spouse in the event of the death of the craftsperson Rs.1000/- per month

GRANT TO HANDICRAFTS SOCIETIES Creation of Handicrafts Societies are encouraged in order to bring coordination and dexterity among the crafts persons. Grants are provided to such societies to enable them to organise or participate in exhibitions to develop the marketing of handicraft products Eligibility

The Handicrafts society should be registered either as a Co-operative society or under Society Act. The members of the society should be artisans approved either by the State Government or Development Commissioner (Handicrafts) The Society should deal only with the handicraft products produced by the artisans of the U.T. of Puducherry. Pattern of Assistance Grant of Rs. 10 lakhs per annum is provided to PUDUMAI Handicrafts Artisans Society, Puduchery for conduct of Exhibitions Grant of 2.00 lakhs/per annum is provide to other societies for conduct of or participating in various exhibitions in and outside India for 5 years



MARKETING AND PUBLICITY

The main objective is to promote sale of products of small scale industries, cottage and tiny sector products. Marketing is the greatest problem faced by all cottage & tiny units and small scale industries. Many units fall sick due to the difficulties faced while marketing their products. To overcome the same, DIC arranges to market the products through the following arrangements.

i)Sales Rebate The 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 recognised by the Government of Pondicherry.

ii)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 are 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. Showroom To provide permanent show-room in the midst of the city to display and promotion of SSI, cottage and tiny sector products, a double storeyed Air conditioned building was constructed at Sardar Vallabhai Patel Salai, Pondicherry. The units are given opportunity to display the products cum sales on turn basis based on the category of the products.

TECHNICAL LIBRARY

A library for the Department of Industries was set up in the office of the District Industries Centre, Pondicherry to facilitate the budding entrepreneurs to get technical information on various projects. Technical books, journals, magazines are readily available for instant reference. Also about 815 project profiles are made available. The detailed project report can be had from the Nodal Officer on request.

Project Profiles

Category: Chemical

Product Code

Product NameProduct Outlay

No. of Units Rate Per Unit

312405006CHLORINATED HEAVY NORMAL PARAFFIN

6,582,873.00 2,200.00 10,781.82

339595300 ALUMINIUM POWDER 2,297,400.00 24,000.00 200.00

314601007 HERBAL HAIR OIL 6,433,832.00 150,000.00 135.00

319213005 BUTYL TITANATE 5,204,336.00 60.00 203,000.00

319102004 CASHEWNUT SHELL LIQUID 449,697.00 45.00 12,500.00

300401000PROCURED TYRE RETREADING BY COLD PROCESS

2,637,617.00 6,950.00 950.00

NOCODE18 CHLORAMPHENICOL-PALMITATE 4,080,267.00 8,000.00 1,110.00

310119309K CHROMIC ACID 1,913,950.00 95.00 67,000.00

303999504 CO-EXTRUDED MULTILAYER FILM 6,940,570.00 200.00 74,100.00

NOCODE19 DETERGENT POWDER AND CAKE 1,886,397.00 384.00 20,500.00

363051005 DRY CELL BATTERY 710,795.00 660,000.00 4.60

315203005 FATTY ACID 11,248,867.00 1,656.00 21,000.00

311301002 MIXED FERTILIZER 17,000,120.00 15,000.00 3,500.00

311493009 NICOTINE SULPHATE 4,594,800.00 8,820.00 1,030.00

303910003 TEFLON PRODUCTS 3,348,952.00 11,950.00 1,000.00

305603002 PARTICLE BOARDS 2,382,100.00 300,000.00 10.50

30380100 X PLASTIC MOULDED LUGGAGE 7,959,747.00 93,000.00 186.00

310123208 POTTASIUM CHLORATE 6,347,124.00 300.00 16,500.00

319918009 PRINTING INK 2,941,434.00 95,000.00 91.00

305001000REFINING OF USED LUBRICATING OIL

2,587,251.00 369,000.00 18.00

303701005ROTO-MOULDED PLASTIC WATER STORAGE TANKS

3,892,456.00 3,000.00 3,495.00

319602001 SACCHARINE(SODIUM SACCHARINE) 2,052,500.00 30.00 270,000.00

312258003 SULPHUR BLACK DYE 2,524,306.00 240.00 25,500.00

NOCODE515 BRICKS 195,420.00 1.00 489,000.00

NOCODE28 ABSORBENT COTTON 2,341,570.00 162.00 20,000.00

NOCODE560 HERBAL SHAMPOO 3,117,218.00 95.00 50,000.00

NOCODE572 LIME COLOURS 954,332.00 55.00 95,000.00

NOCODE598 PLASTIC BUTTONS 331,451.00 5,200.00 250.00

NOCODE612 RED OXIDE PRIMER 824,107.50 50,000.00 70.00

NOCODE616 RUBBER BALLOONS 728,695.00 1,000,000.00 3.00

NOCODE30 ALUMINIUM HYDROXIDE GEL, 413,581.50 60.00 21,000.00

NOCODE651 WASHING SOAP 240.00 4,000.00

NOCODE653 WOOLEN TRADING 16,000.00 100.00

320202003 Magnasite Refractory Bricks 15,824,065.00 6,000.00 7,000.00

NOCODE32AMMONIA PAPER, FERROPRUSSIATE PAPER, REPRODUCTION TRACING PAPER

959,795.00 180.00 16,500.00

NOCODE595 PETROLEUM JELLY 1,233,030.00 195,000.00 32.00

NOCODE648VERMICOMPOST FROM BIODEGRADABLE WASTE

239,595.00 4,000.00 305.00

NOCODE37 COPPER SALTS 1,933,800.00 58.20 111,000.00

NOCODE38 COPPER SULPHATE 953,400.00 240.00 12,000.00

NOCODE39 CORRUGATED FIBRE BOARD 1,928,500.00 819.00 9,958.00

NOCODE41 DECOARATIVE PAPERS 469,100.00 108.00 13,300.00

NOCODE320 LAUNDRY SOAP 78,928.00 1.00 295,000.00

NOCODE323 NAIL POLISH 94,595.00 70,000.00 5.00

NOCODE31 ALKYD RESIN 1,957,800.00 300.00 22,000.00

NOCODE617 RUBBER STAMPS 367,210.00 1.00 1,610,000.00

NOCODE348AGARBATTI ROLLING AND PERFUMING

67,786.00 144,000.00 2.05

314805001BACID SLURRY (ALKYL BENZENE SULPHONATE)

2,150,995.00 150.00 38,000.00

NOCODE456 SCENTED LIME 133,660.00 325,000.00 1.42

NOCODE457 SCENTED SUPARI 83,150.00 50,000.00 4.80

NOCODE415 NICKEL ELECTROPLATING 100,760.00 15,000.00 15.50

NOCODE468 STONE POLISHING UNIT 143,300.00 95,000.00 4.00

NOCODE471 SYNTHETIC DIAMONDS 114,797.50 277,000.00 0.63

NOCODE422 OPTICAL SHOP 253,487.50 7,872.00 125.00

NOCODE423 PAN MASALA 934,730.00 1,735,000.00 2.00

District Industries CentreSINGLE WINDOW SYSTEM

For Setting up of industries in the Union Territory of Pondicherry, the entrepreneur/promoter should undergo various stages of process in the course of issue of permission/clearances/licence from the respective departments and Commune Panchayats/Municipalities before commencement of production.

The promoter desirous of setting up of an industry first get "Provisional Registration Certificate" from the Department of Industries and Commerce. On receipt of the said certificate, the promoter is guided by Technical Staff of District Industries Centre, how to apply and how many copies of applications and plans is required to be sent to Commune Panchayat/Municipality for issue of permission. The application thus received from the promoter either filing through internet or submitting directly to the office, thus received from the promoter after preliminary scrutiny by the technical staff and are subject to inspection of site. After inspection, the DIC will forward the application along with enclosures to the respective Departments and concerned Commune Panchayat/ Municipalities.

The Departments processes the cases and issue clearances, after calling for further details from the promoter if necessary. It is provided in the Act that the Counsel of the Commune Panchayat/Municipality shall grant absolute/conditional permission or refuse within 45 days after receipt of application. Similarly, if the department concerned does not communicate its approval/opinion within 30 days after receipt of applications, it shall be deemed to be cleared/approved. In District Industries Centre, without waiting for the expiry of the time limit for issue of permission/clearance, details of pending cases are collected at the end of each month, from the Commissioner, get the list compared with the file maintained at DIC. The cases for which thirty days have elapsed in the Commissioner's office are brought in the agenda paper duly noting the dates of issue of clearance by the respective Departments and those which are yet to clear.

The District Industries Centre functions like a facilitator between the promoter and the Departments concerned in the issue of clearances/permission/licence to set up industries in this Union Territory. For proper monitoring and adherance to the time limits for processing a case, a committee has been constituted by the Government called "SINGLE WINDOW COMMITTEE", consisting of various Departments from which clearances/permission/licence is required and a representative from Industrial Association. The Secretary to Govt. (Industries & Commerce), Govt. of Pondicherry is the Chairman of the Committee and the General Manager, District Industries Centre, is the Member Secretary. The Government order on the Constitution of Single Window Committee is appended.

The Committee meets on the first working day of every month at 03.00 P.M. by duly inviting the entrepreneur/promoter concerned, by sending intimation in advance informing the venue. The problems faced by the entrepreneur/promoter or by the Departments in the issue of clearances/permission/licence are sorted out across the table in a transparent manner facilitating its expeditious services. The Single Window Committee takes up all the cases in the list for deliberation and decision taken across the table are communicated in the form of Minutes of the meeting to the Departments concerned. As the meeting is convened regularly on the appointed day of each month, none of the applications is left out unprocessed. It is also put up that good number of cases are issued with permission even before the lapse of 30 days. Thus promoters

approaching District Industries Centre for local body clearances are guided properly in time and suitably attended to. The system recording the fact of disposal of each case can be readily be seen in the website of industrypondy.com

GOVERNMENT ORDER FOR SWCGOVERNMENT OF PONDICHERRY

DEPARTMENT OF INDUSTRIAL DEVELOPMENT (IND & COM) *****

No.G.25018/4/2001/Ind.C Pondicherry, the 04.01.2002

NOTIFICATION

WHEREAS a High Level Committee under the Chairmanship of the Chief Secretary to Government Pondicherry has been constituted by the Government for the purposes of ensuring speedy disposal of applications for setting up industries in this Union Territory and to expedite clearances from different departments/authorities vide G.O.Ms. No.10 dated 21-10-2000 of the Department of Industrial Development (Industries & Commerce), Pondicherry.

AND WHEREAS in the sixth para of the G.O. referred to above, it has been mentioned that instructions containing detailed procedure for dealing application for setting up industries will be issued separately;

NOW THEREFORE, after due consultations with the various departments of this Administration involved in the grant of clearances for setting up industrial units in the Union Territory, a simplified procedure to be adopted for according clearances for the setting up of Indusrial units in this Union Territory has been formulated and the same is given in the annexure to this notification:-

ANNEXURE to Notification No.Q.25018/4/2001/Ind/C dated 04.01.2002

SIMPLIFIED PROCEDURE TO ACCORD CLEARANCES FOR SETTING UP OF INDUSTRIAL UNITS IN THE U.T. OF PONDICHERRY

1.As per the Industrial Policy announced by the Government various time limits have been prescribed to speed up the procedure for issue of Industrial Licenses. In order to further simplify the procedure and to curtail avoidable delays in getting clearances/licenses, the following detailed instructions are issued. These instructions will come into force with immediate effect.

2. Small Scale Industries other than the industries identified as those of highly polluting nature by the Pondicherry Polluting Control committee will get Provisional SSI Registration from the following authorities mentioned against each region.

Region Authority

Pondicherry

Deputy Director of Industries & Commerce /Assistant Director of Industries&Commerce Directorate of Industries & Commerce,Thattanchavady, Pondicherry.

Karaikal Assistant Director of Industries, Karaikal.Mahe Technical Officer, Industries Department,Mahe.Yanam Technical Officer, Industries Department,Yanam.

Large & Medium Scale Industries who are in possession of acknowledgement for Industrial Entrepreneurs Memorandum (IEM)/ Industrial Licence (IL) from the Secretariat for Industrial Assistance, Ministry of Industry, Government of India, New Delhi for such medium and Large scale industries which are not identified as highly polluting, the Directorate of Industries & Commerce will issue NOC on submission of an application therewith a copy of IEM acknowledgement/IL.

3. Those industries identified as units of highly polluting nature by the Pondicherry Pollution Control Committee such as steel ingots, potassium chlorate, calcium carbide and ferroalloys, irrespective of the scale (small, medium or large) will have to first get a no objection certificate (NOC) from the Pondicherry Pollution Control Committee through the Directorate of Industries & Commerce and then apply to the concerned authority for issue of provisional registration/NOC as the case may be.

4. The provisional Small-Scale Industries registration or NOC will enable various Government Departments/Agencies to process applications for issuing clearances required to set up industries.

5. All proposals for setting up of H.T. Industries will be referred to the Electricity Department in the first instance for getting initial advice regarding the availability of power for the proposed unit and the Electricity Department will ensure that such initial advice is intimated to Industries Department within 15 days. In the case of such industries provisional registration NOC will be issued only after obtaining the initial from the Electricity Department.

6. After obtaining provisional Small Scale Industries registration certificate (NOC in case or large & Medium Scale Industries) the entrepreneur will approach the regional office of the District Industries Centre which will make available to other entrepreneurs/Industrialists prescribed application forms for obtaining clearances/permissions from the follow Departments (Photocopies and computerised forms in the format required by the concerned Department will also be accepted):-

(a) Municipality /Commune Panchayat, in whose jurisdiction the industry is proposed to be set up.

(b) Chief Inspector of Factories, (c) Town and Country Planning Department; (d) Pondicherry Planning Authority; (e) Pondicherry Pollution Control Committee; (Highly polluting units as identified bythe PPCC who have already obtained NOC as per procedure laid donw in para 3 need not apply for issue of NOC). (f) Revenue Department; (g) Agriculture department(h) Electricity Department.

7. Duly filled in application forms in prescribed format alongwith required copies of the site, building & machinery layout plans and other relevant documents shall be submitted to the District Industries Centre or its regional office for obtaining Clearances/Permissions from the various Departments. The District Industries Centre or its regional Office on receipt of the applications will forward the same to the concerned departments within three days of receipt of the applications.

District Industries Centre8. The Municipality/Commune Panchayat concerned on receipt of the application should send a notice for publication in the Official Gazette inviting objection from the public giving a specific time limit of 10 days without waiting for clearances from the other Departments. The Director of Stationery & Printing will give priority in publication of such notices in the Official Gazette.

9. (a). At present even though the concerned Municipality/Commune Panchayat ascertains the opinion of Inspector of Factories and the Pondicherry Planning Authority before issuing permission, the industrialist is required to apply separately to these agencies for getting their permission. It is now decided that an Industrialists application to the Inspector of Factories and the Pondicherry Planning Authority in their respective prescribed forms will be sufficient for processing the applications. These authorities need not wait to receive the applications forwarded by the concerned Municipality/Commune Panchayat. These authorities viz., the Inspector of Factories and the Pondicherry Planning Authority will send copies of approvals permissions given by them to the concerned Municipality/Commune Panchayat to be the opinion of these authorities. The concerned Municipality/Commune Panchayat need not wait for the specific opinion of the Inspector of Factories or the Pondicherry Planning Authority for processing the

application further. No further opinion need be given by these authorities to the concerned Municipality/Commune Panchayat.

(b) The Inspector of Factories and the Pondicherry Planning Authority need not wait for copies of application from Municipality .Commune Panchayat and will send copies of approvals/permissions (based on the application of the industry) to the concerned Municipality/Commune Panchayat. No further opinion need be given by these authorities to the concerned Municipality/Commune Panchayat.

(c) All necessary clearances other than the Commune Panchayat permission may be issued for green and orange categories of industries (including LSI Units) without waiting for issue of NOC from Pondicherry Pollution Control Committee. The Power feasibility certificate will also be issued for the green and orange categories of SSI industries and green category of Medium Scale Industries without insisting on an NOC from the PPCC. However, the Electricity department should ensure that all industrial units than those specifically exempted by the PPCC obtain a No Objection Certificate before energizing the electric connection to the industrial unit.

10. Meeting of the Single Window Committee will be held at 3.30PM on the first working day of every month. No specific intimation will be sent in this regard. The concerned Head of Department will attend the meeting positively. In case the Head of Department is unable to attend the meeting, he must depute an officer sufficiently senior to take decisions which will be binding on the concerned departments. Once a decision is taken in the meeting, it is obligatory on the part of the departments concerned to comply with the decision without any deviation.

11. The commissioner of the concerned Commune Panchayat/Municipality will prepare as list of pending applications as on the 25th of every month and should forward the same to the District Industries Centre on or before the 27th of every month review of the cases in the forthcoming Single Window Committee meeting.

12. As per the afore mentioned procedure, the Municipality/Commune Panchayat concerned will grant permission on receipt of the prescribed fees. It should be the endeavour of the Municipality/Commune Panchayat to issue permission/licence within 45 days from the date of receipt of a copy of the application from the District Industries Centre.

13. After obtaining requisite permissions/licences, if the entrepreneur experiences any difficulty in obtaining permanent power connection to start the Industry, he will approach the District Industries Centre which will help him to obtain the required power connection expeditiously from the Electricity Department through the services of Single Window Committee. 14. In respect of the outlying regions, the Regional Officer of the concerned region will take similar steps to ensure that permissions/Licenses are issued by the concerned departmental offices within the stipulated time. Cases which are placed in the Regional Single Window Committee meeting and not cleared within the stipulated time will be reviewed by the High Level Committee for Industrial Clearances.

15. The Director, Local Administration Department will ensure that the concerned Municipality/Commune Panchayat issues clearances within the time limits specified.

16. Feasibility certificates will be issued to eligible units by the Electricity Department as stipulated in para 10 foregoing, within one month of the receipt of application for grant of new power supply/extension of power supply and the same will be issued without insisting on clearances from other departments. In the case of units other those stipulated in para 10 foregoing (i.e orange category of MSI units and all LSI units) the Electricity department will issue Feasibility Certificate to eligible units within one month from the date of the receipt of NOC from the PPCC. LT connections will be energized within one month from the date of receipt of applications therefor. The H.T. Power connections will be energized within three months from the date of furnishing H.T. applications in full shape. Application for energisation of the electricity

connection should be complete in all respects with requisite clearances from the concerned departments.

17. When new industries are set up in premises with existing power connections, the Electricity Department will not insist on transfer of power policy and permit the Industries to utilise the existing power in starting production as is the procedure followed for domestic power consumers.

District Industries CentreTIME LIMIT FOR ISSUE OF CLEARANCES AND APPROVALS

BY VARIOUS DEPARTMENTS

S.No.

Item/Activity Dept./OrganisationTime Limit

1.

(a) Issue of Provisional SSI Regn. CertificateIssue of Provisional NOC to Medium/Large Scale Industries of Non-Chemical and Non-Polluting nature

Directorate of Industries & Commerce.

5days

7 days2.

Forwarding of application to the concerned depts. For issue of permission by Municipality/Commune panchayat under Single Window System.

District Industries & Commerce

3 days

3.

(a) Issue of acknowledgement for receipt of application for issue of NOC from pollution angle in respect of green and orange categories.

(b) Issue of NOC from Pollution angle

Pondicherry Pollution Control Committee

Pondicherry Pollution Control Committee

7 days

6 Weeks

4. Site ClearanceTown and Country Planning Dept.

1 Month

5. Approval of factory building and machinery lay outInspectorate of Factories and Boilers

1 Month

6.Permission for land use conversion/ground water clearance (outside the Industrial estate)

Agriculture Department 1 Month

7.

(a) Power Feasibility certificate.

(b) Intimation of initial to Industries & Commerce. Department in respect of High Tension industries

( c) Energisation of Low Tension connection on receipt of application

(d) Energisation of High Tension connection on receipt of application

Electricity Department




1 Month

15 days

1 Month

3 Months

8. Clearance under Revenue Acts wherever necessary Revenue Dept. 6 Weeks

9.Publication of proposals inviting objection, if any in the Official Gazette

Directorate of Stationery & Printing

15 days

10. Licence, where required Food & Drugs Admn. 1 Month11. Licence, where required Civil Supplies Dept. 1 Month

12. Statutory permission for establishment of the unitMunicipality/Commune Panchayat

45 days

13. LicenceMunicipality/Commune Panchayat

1 month

14. Running licence Inspectorate of Factories 1 month

15. Consent for operation of the unitPondicherry Pollution Control Committee.

1 month

16.

(a) Issue of permanent SSI registration

(b) Issue of Commencement of production certification in case of large/medium scale unit

Directorate of Industries & commerce.

Directorate of Industries & Commerce

1 month

1 month


INDUSTRIAL PROFILE

With a small industrial inheritance of 3 textile mills Puducherry has come a long way. Now it has 8562 industries representing a cross section of industries.

Seven well established industrial estates with comprehensive infrastructure facilities propelling the Industrial growth of Puducherry.

Spectacular performance at export front. Principal export items are Leather, Chemicals, Textiles and Metallic products.

As on 31/01/2011

Categories LSI MSI SSI TOTAL

Food Products 6 12 922 940

Cotton Products 7 10 1087 1104

Wood Products Nil Nil 490 490

Paper Products 4 7 465 476

Leather, Rubber, PlasticProducts

11 41 861 913

Chemical & Chemical Products

23 34 1637 1714

Non-Metallic Mineral Products

8 5 320 333

Metal Products 3 21 925 949

Machinery Products 11 40 665 716

Miscellaneous Products Nil Nil 384 384

Personal Services 3 14 265 282

Repairing Servicing Nil Nil 261 261

Total 76 184 8302 8562


INDUSTRIAL POLICY DownloadIndustrial Policy 1997

The policy takes note of the fact that the Union territory of Puducherry has come a long way since

its merger with the Union of India in 1954. The present status of Industrial progress is highly encouraging and the territory is poised for another phase of industrial growth.

The policy is based on the following objectives:

(i)To promote sustainable industrialisation in the territory;

(ii) To improve the standard of living and quality of life of the people of the Union territory;

(iii) To conserve the environment of Puducherry for sustained and rapid industrial growth;

(iv) To participate in the globalization of the economy with greater exports and imaginative imports;

(v) To take advantage of the special features of Puducherry including its heritage and culture; and

(vi) To ensure balanced industrial development in all the regions of the territory.

Various strategies have been identified to achieve these objectives. Certain priority industries have been listed. For their obvious compatibility with Puducherry certain "thrust areas" have been identified.

Department of Industries & CommerceEXPORTS

The export is likely to grow more steeply as new technical and financial collaborations are clinched as part of globalisation of industries. The Union Territory of Puducherry is already famous for it's leather, handicraft, textile products in the world. Avenues for increasing these exports and for exporting other commodities to various countries need to be ascertained for boosting the exports. During 2008-2009, we helped the country earn foreign exchange to the tune of Rs. 932 crores.

Major Items of Exports (Rs in Crores)

Sl.

Name of the Product 2005-06

2006-07

2007-08 2008-09

1. Chemical and Chemical Products

136.69 199.19 184.89 231.04

2. Leather Products 64.18 60.17 61.41 34.95

3. Machinery and Parts 149.02 348.21 348.48 284.27

4. Metals Products 96.79 94.27 125.61 213.78

5. Non Metallic Mineral Products

37.48 17.54 11.12 15.82

6. Cotton Textiles & Garments

76.43 48.12 60.79 13.77

7. Rubber and Plastic Products

117.37 96.02 100.54 74.46

8. IT Products 24.10 29.24 102.33 48.03

9. Paper Products 0.78 0.10 0.21 0.12

10 Food 3.78 8.16 7.33 4.69

11 Wood & Others 0.07 0.04 2.02 10.69

Total 706.69 901.06 1004.73 931.62

THRUST AREAS

Information Technology

The Knowledge based sunrise industry growing stronger with time. A large pool of IT professionals, state-of-the-art communications facilities available at Puducherry. Most comprehensive and futuristic IT policy and incentives announced for the IT industry

Textiles

The traditional business of Puducherry. Specialized skilled manpower available. Fabric produced is of the highest quality with promising demand in the overseas market.

Leather Products

Skilled craftsman manufacturing world class leather products. The largest items of exports from Puducherry.

Auto Components

With the coming up of auto giants like Ford and Hyundai in neighdouring State, there is good scope for establishing ancillary units.

Marine Products

Marine catch amounting to 40000 tonnes. Huge untapped potential for processing units. Great scope for shrimp culture and crab farming. A modern fishing harbor coming up at Thengaithittu, Puducherry. and also at Karukalacheri, Karaikal

Agro Processing

Much sought after destination for Agro Food processing, floriculture ventures like cut flowers and for cultivating medicinal and aromatic plants. Huge pool of trained manpower available at much cheaper rates than elsewhere. Good potential for Guava pulp and processing units.


INDUSTRIAL ESTATES

The Govt. of Puducherry had initially started three industrial estates in the Territory in order to motivate the industrial development. Later a Corporation for industrial development has been established in the year 1974 viz. Pondicherry Industrial Promotion, Development and Investment Corporation (PIPDIC). Then the corporation has taken over the infrastructure development for industrial promotion. Four industrial estates were developed and allotted to the needy entrepreneurs.

All the industrial estates are provided with all necessary basic infrastructure facilities.

THATTANCHAVADY

Thattanchavady Industrial Estate was established in the year 1962 over an area of 51 acres of the land. There are 60 sheds of various sizes, 39 plots of 11,200 Sq. Ft and 10 plots of 7,500 Sq.ft. 110 units are functioning in the estate. In order to encourage the industries the sheds/plots are sold under Hire-purchase Scheme and Conditional Assignment scheme.

KATTUKUPPAM

The Rural Industrial Estate, Kattukuppam, Manapet was established in the year 1969 over an area of 15.58 acres of the land. There are 13 sheds and 38 plots of 11,200 Sq. Ft. There are 19 units functioning in this estate.

KARAIKAL

The Rural Industrial Estate, Kottucherry, Karaikal was established in the year 1968 over an area of 7.66 acres of the land. There are 25 sheds and 24 plots of various sizes. There are 18 units functioning in this estate.

METTUPALAYAM

The Industrial Estate, at Metttupalayam was established in the year 1976 over an area of 167.00 acres by PIPDIC . There are 367 plots and 89 sheds of various sizes. 257 units are functioning in this Industrial Estate.

SEDARAPET

The Industrial Estate, at Sedarapet was established in the year 1982 over an area of 62.19 acres by PIPDIC . There are 191 plots of various sizes. 83 units are functioning in this PIPDIC Industrial Estate.

KIRUMAMPAKKAM

The Industrial Estate, at Kirumampakkam was established by PIPDIC over an area of 25.00 acres. 19 units are functioning in this PIPDIC Industrial Estate.

THIRUBUVANAI

An exclusive industrial for Electronic Industries was established by PIPDIC over an area of 50 acres.

NameArea in acres

No. of Units

Thattanchavady 51.22 110

Mettupalayam 167.00 257

Sedarapet 62.19 83

Kattukuppam 15.58 27

Kirumampakkam 25.00 19

Karaikal 7.66 18


INVESTMENT OPPORTUNITIES

With pro-active investment policies and industry-friendly Government, Puducherry has made rapid industrial progress in the past few decades. Vast and unlimited business exists in the Union

Territory of Puducherry which can be tapped by prospective investors. The inherent potential and the conducive atmosphere augur well for Puducherry to build a partnership of trust with the

investors by helping to realise their dreams.

Potential sectors for investments:-

1. Information Technology and software Development; 2. Electronics; 3. Agro processing including marine products; 4. Textiles including garments; 5. Leather Products and Foot wears; 6. Light Engineering including Auto Components;

Major Corporates/Groups

Lenovo, Acer, WIPRO, HCL, Thapars, Henkel, Hindustan Uni Lever, Kotharies, Sriram, L&T, Chemcrown, Foseco, Chemfab, Whirlpool, Ace Glass, MRF, Berger Paints, Sundram Fastners, Rane (Madras),Lucas TVS, Brite, Supreme, Johnson, Neycer,Regency.


FRENCH CONNECTIONS

The French first established their 'loge' in Puducherry in 1674. In 1693, it was captured by the Dutch but restored in 1699 following the Treaty of Ryswick. The Territory thus restored to the French, included Puducherry Fort and its surroundings which were taken possession of by the French after paying the Dutch a sum of 16,000 pagodas which they asserted as having spent for acquiring the areas adjacent to the town.

In 1703, the village of Kalapet was obtained by Franco is Martin from the Nawab Dawood Khan, the representative of Aurangazeb, in order to obtain timber from the forests surrounding it for construction of houses in Puducherry town. The same Nawab ceded the village group of Ozhukarai in 1706, the annual revenue of which amounted to nearly one thousand pagodas, as well as the village groups of Murungapakkam, Olandai, Pakkamudayanpet and Karuvadikuppam. The villages of Theduvanatham and Archivak ( Abhishekapakkam), Odiayambattu and Thirukkanji were given as gift to Dumas by Nawab Sardar Ali in September 1740.

In 1750 following the victory of Ambur, Musafar Jung confirmed the grant of Villiyanur and added 36 villages of Bahur so that the advance posts were brought up to the Ponnaiyar. Since then, the French territories were besieged four times by the English. The first siege, under admiral Boscawen was unsuccessful. The second in 1761, resulted in the capture of the town. Following the Treaty of Paris signed on 10 February 1763, Puducherry and its dependencies which included Ozhukarai,

Ariyankuppam, Virampattinam, Murungapakkam, Pakkamudayanpet, Olandai, Abhisekapakkam, Kommapakkam and Kalapet were restored to the French. It was again besieged and captured in 1778 and restored in 1785. It was captured a third time in 1793. Following the Treaty of Peace of 30 May 1814 the establishments were finally restored in 1816. The Treaty of 1814 provided for the restitution of all the settlements and factories which France had possessed in India as on 1 January 1792. These Possessions were determined by the Convention concluded at Versailles on 31 August 1787 and by the Treaties of Peace (Versailles) signed on 3rd September 1783 and previously on 10th February 1763. Thus by the Treaty of 1814, the French were allowed to retain only those areas which were in their possession in 1763.

Since then these establishments continued under French rule for one hundred and thirty eight years, after which the French left the shores on 31 October 1954, following de facto transfer of power. This is also briefly the explanation for the scattered nature of Puducherry and its various enclaves.

Karaikal and its surrounding areas formed part of the Mayuram Subha of Thanjavur country under the first Mahratta ruler Yekoji since 1675.

But soon after the arrival of the French in Puducherry, Francois Martin is known to have sent an envoy to the King of Thanjavur seeking permission to set up an establishment in his kingdom. This as well as the mission sent in 1688 did not bring any success.

In 1738, again Dumas negotiated with Sahuji of Thanjavur for Karaikal, the fortress of Karakalachcheri and five villages on payment of 40,000 chakras. The Conseil Superieur met on 10 July 1738 and approved the treaty. Even before the French could take possession of the town and the villages. Sahuji backed out of his promise on the convenient pretext of Dutch objection. Chanda Saheb in an attempt to demonstrate his allegiance to the French offered to march his own troops upon Karaikal. The troops led by Francisco Pereira, a Spaniard in the Service of Chanda Saheb with French interest at heart, took the town and the fort in no time. Karaikal, the fort of 'Karkalanjeri' and the adjacent territory were made over to the French.

On 14 February 1739, Gratien Golard took possession of Karaikal town, the fort of Karakalachcheri and eight dependent villages. Although Chanda Saheb's Thanjavur expedition did not achieve its purpose, he wished to confirm the grant of Karaikal to the French. This was enough for the King of Thanjavur who raised his prize for the town of Karaikal and the fort of Karakalachcheri to 50,000 chakras. He also demanded a loan of 1,50,000 chakras without interest repayable in three years against the hypothecation of Mayuram lands and an annual rent of 4,000 pagodas for five villages. The Conseil Superieur agreed to all the terms except to the payment of 1,50,000 chakras which was reduced to 10,000 chakras. The villages so received were Kilaiyur, Melaiyur, Pudutturai, Kovilpattu and Tirumalarajanpattinam. The parwana of chanda Saheb dated 1 July 1739 ceded to Dumas, the two villages of Niravi and 'Conde' situated south of Karaikal.

Troubles started again in the Kingdom of Thanjavur, and Sahuji lost his throne in a domestic revolution. Pratap Singh who succeeded to the throne renewed the demand for a loan of 1,00,000 chakras. On receipt of the first instalment of 40,000 chakras, he assigned eight more villages to the French, viz. Codague(Kondagai), Vanjiyur, Arinullimangalam, Niravi, Dharmapuram, Oozhiapattu, Mattakudi(probably Mattalangudi) and Polagam. On 5 January 1740, the village of Arinullimangalam was exchanged for Courtallam (Kutralam). On 12 February 1740 Pratap Singh sold for 60,000 Chakras these eight villages which he had assigned only the previous year for a sum of 40,000 chakras. The same year he pledged Tirunallar maganam for a sum of 55,350 chakras(equivalent to Rs.82,000). He also pledged 33 villages for a sum of 60,000 chakras. In July 1741 a parwana was received from the Mughal Emperor, confirming the right to the French over Karaikal and the five villages.

Relations with the Thanjavur Court, however, became strained shortly after. Nevertheless Febrier, successor to Gratien Golard, managed to exchange 'Codague, Thencoutralam and Mattakudi'. For

Kovilpattu, Vadamarakadu, Kilkasakkudi and Talatterevu which increased the number of villages sold from eight to nine. By a treaty signed on 12 January 1750 Pratap Singh ceded to the French 81 villages around Karaikal and cancelled the annual rent of 2,000 pogodas(Rs.7,000) payable for the villages. This was all the territory the French possessed in the Thanjavur country when they surrendered to the English in 1761. The territory then passed twice to English control in 1783 and 1797 after which it came finally restored by John Thackerey, the collector of Thanjavur to Comte de Beranger on 14 January 1817. The French held it until they left the colony in October 1954.

Mahe Region

The name of the region is derived from the regional headquarters. It consists of three entities, i.e., the town of Mahe proper, the small enclave of Kallayi and northern enclave of Naluthara.

The town proper lies south of River Mahe near its juncture with the Arabian sea. The Naluthara enclave lies between the small Ponniyam river on the north and the Kozhikode-Tellicherry road in the south. In between these two lies the small enclave of Kallayi. The entire region is treated as Commune for purpose of municipal administration.

Yanam Region

A parwana from Haji Hassan Khan authorized the French Representative Fouquet, then chief of the Company at Machilipatnam to set up a 'loge' at Yanam in the year 1731. The sovereignty of the French over the territory was confirmed by Musafar Jung, the Nizam of Hydrabad in 1750, The place was formally ceded to them only two years later. Like all other settlements Yanam too fell thrice into the hands of the British. After the Napoleonic wars, Yanam along with the factory at Machilipatnam was finally returned to the French early in 1817.

The five establishments of Puducherry, Chandranagore, Karaikal, Mahe and Yanam and the loges at Machilipattnam, Kozhikode and Surat were under French rule since 1816.

In the referendum held on 19 June 1949 the people of Chandranagore overwhelmingly voted for merger with India. On 14 August 1949 on the eve of the second anniversay of India's independence, France agreed to transfer Chandranagore to the Indian Union. The de facto transfer of Chandranagore to the Indian Union took place on 2 May 1950. On 2 February 1951, the Indo-French Treaty for the cession of Chandranagore to India was signed in Paris and an Indian Administrator was appointed to take charge of the town on 2 February 1951.

After almost 300 years of foreign occupation, Puducherry, Karaikal, Mahe and Yanam were united with the rest of the country following an agreement reached on 21 October 1954 between the Governments of India and France. The year 1962 was a landmark in the history of this territory. On 16 August 1962, Pandit Jawaharlal Nehru, Prime Minister of India and Mr Jean Paul Garnier, French Ambassador in India exchanged the Instruments of Ratification under which France ceded to India full sovereignty over the territory.

The year 1963 witnessed important changes in the Administrative set-up in the Territory, following the enactment by Parliament of the Govt. of Union Territories Act, 1963 which provided for Legislative Assemblies and Council of Ministers in the Union Territories. The territory, however, continued to be under the direct control of the Government of India in the Ministry of External Affairs until 31 August 1964 after which it came under the control of Ministry of Home Affairs. At present, Puducherry is the only Union Territory having Legislative Assembly and Council of Ministers. This Union Territory is legally administered by the President of India acting through an Administrator called the Lieutenant-Governor.

Lycee Francais

A school for French national is functioning at Puducherry called Lycee Francais, "Le Lycae francais

de Puducherry" is the progency of 'College Royal' which was started as early as in 1826. It will suffice to add here that at present classes are conducted from kinder garden level upto Baccalaurcat. English is taught here as second language and Tamil is an optional language. This institute is affiliated to the University of Rennes in France.

Alliance Francaise

Alliance Francaise is an institution devoted to the spread of French language and culture. The Puducherry Branch of Alliance Francaise appears to have been registered in 1894. It is however of some interest to note that when Capitaine E. Martinet came to Puducherry in 1888 to carry out the printing of his dictionary, he was requested by the authorities of Alliance Francaise in France to be its delegate in Puducherry . By the time he left Puducherry in August 1890, there were as many as 370 members with two branches Karaikal and Mahe.

In Puducherry, courses for adults were arranged. Coaching were also available for girls. The first prize-distribution function was held in the presence of the Governor. As students, the institution then counted about hundred adults, forty-five girls from St. Joseph de Cluny and one hundred and fifty girls from the school created by Mme. Martinet.

The institution now arranges regular refresher as well as short term courses for the benefit of children and adults. Students even from far away places come to Puducherry to study the language, as here alone they have the facility to get familiar with the spoken language.


STATISTICS

POPULATION 9.74 Lakhs (2001 Census)

AREA 495 Sq. Kms

LITERACY RATE Fully Literate (90%)

INFRASTRUCTURES

PHYSICAL

RAILWAYS

Pondicherry connected with Villupuram junction by a broad gauge railway line (39Kms).

ROADS

Total Road Length 2552 kms

Road Length per 1000Sq.Km.

PondicherryTamil Nadu

India

4575 1572 663

Total number of Motor Vehicles

251183

Vehicle density per Sq. Km. 507

TELECOMMUNICATIONS

Number of Telephone Lines 92730

Number of telephone exchanges

31

Pondicherry India

Lines per 1000 persons 48.7 18.1POWER

Power Requirement 175MWPower Availability 229MWPower Generation

32.50MW Gas based power project has been commissioned

Pondicherry IndiaPer Capita Electricity Consumption

1161 KWH 320.1 KWH

Percentage of Transmission & Distribution Loss

13.79% 21.1%

Power Tariff

L.T supplyUp to 1000 units Rs. 2.30/unit

Above 1000 units Rs 2.50/unit

H.T. supply

Rs 135/KVA - Demand charges

Rs 2.60/KWH- Up to 1 lakh Units

Rs 2.75/KWH - above 1 lakh units

PORTMajor Port Accessible to Major ports like Chennai, Tuticorin, Cochin

and Vishagapattinam.Minor Port Pondicherry port being modernised

AIRPORTS

Domestic A Medium size airport available

International Chennai; 2 hours drive

SOCIAL

EDUCATION Schools 863

University 1

No. of Post Graduate and Graduate Colleges

8

No. of Professional colleges 18

No.of students, passing out every year in the above courses

2095

RENOWNED EDUCATIONAL INSTITUTIONS Pondicherry Central University

Pondicherry Engineering College

Jawaharlal Nehru Institute of Post Graduate Medical Education & Research (JIPMER) Mahatma Gandhi Dental College

Rajiv Gandhi College of Veterinary and Animal Sciences

Dr. Ambedkar Govt. Law College

Dr. Ambedkar Govt. Law College

Pandit Jawaharral Nehru College Of Agriculture And Research Institute Pondicherry Institute of Hospitality Crafts

Govt. Polytechnic in all regions

Alliance Francaise

BANKINGTotal No. of Branches 84

Credit Rs.56991 lakhs (2001)

Deposit Rs.176279 lakhs (2001)

Per Capita Deposit Rs.18098 (2001)

Per Capita credit Rs. 5851 (2001)

HEALTH CARETotal No. of hospitals (including Private)

20

Primary Health Centres 43

E.S.I. Dispensaries 12

No. of Doctors in Pondicherry

475

No. of doctors per 100000 persons

Pondicherry India

59 45

ECONOMYNet State Domestic Product 327670 lakhs (2001)

Per captia Income Pondicherry India Rs. 33910 Rs.10771

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