Incentives and Concessions for IT Industries

Introduction

Information Technology Industry is one of the fastest growing industries. It has been identified as one of the thrust areas for the industrial growth of Pondicherry. The Information Technology Policy announced by the Government of Pondicherry has emphasized the need to accelerate the development of IT industries in this Union Territory. Suitable infrastructure such as Software Technology Park, Earth Station and Electronic Industrial Estate are set up to enable growth of the IT industry in Pondicherry.

In order to accelerate the growth of IT industries in this Union Territory the following incentives/concessions to new IT industries and for expansion of existing IT industries are provided.

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1. Industries & Commerce Department

a) Fixed investment subsidy on plant and machinery at the rate of 20% subject to a maximum of Rs.20-00 lakhs.

b) Subsidy on Captive power generation sets to the extent of 50% of the cost subject to a maximum of Rs.5-00 lakhs, for new IT units which are located in authorized industrial areas but are unable to get reliable power supply.

c) Subsidy on leased line rental payable to the extent of 50% for first 3 years; 20% for fourth year and 10% for fifth year.

d) IT Software and IT Service Companies are exempted from routine inspection.

2. Pondicherry Industrial Promotion Development and Investment Corporation Limited (PIPDIC)

Incentives Offered by PIPDIC

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a) Equity Contribution for IT Related Industries

PIPDIC may participate in the equity of the company to the extent of 15% of the total equity up from the existing level of 10% of total equity or the amount of promoter's contribution whichever is less.

b) Reduction in Margin Money

IT will be able to avail loans with reduced margin money due to modification of the existing policy relating to debt equity ratio. The debt equity ratio of 3:1 will be applicable to loans upto Rs.20-00 lakhs instead of the present level of Rs.10-00 lakhs. In respect of loans above Rs.20-00 lakhs, the debt equity ratio will be 2:1 instead of 1.5:1.

c) Reduction of Interest Rate

For the loans extended to IT industries there will be a reduction in the interest rate by 0.5% per annum from the normal rate applicable.

d) Venture Capital/Seed Capital Assistance

The Corporation will formulate and implement a venture capital/seed capital assistance scheme.

3. Commercial Taxes Department

Sales Tax is exempted for the sale of goods manufactured by all the IT industries located in the U.T. of Pondicherry for a period of 10 years vide G.O.Ms.No.78/99/F2 dated 31-12-1999 of Finance Department, Government of Pondicherry.

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4. Town and Country Planning Department & Pondicherry Planning Authority

a) Relaxation of Locational Restrictions

Information Technology and related industrial units engaged in software services and training are exempted from locational restrictions (Orders issued by Chief Secretariat (Environment) vide G.O.Ms.No.24/2000-Envt dated 30-10-2000 od Chief Secretariat (Environment).

b) Relaxation of Floor Space Index (FSI)

Relaxation of Floor Area Ratio to the extent of 50% will be given to the units setup outside the urban areas. Orders will be issued separately giving details of the areas in which the above concession would be available.

5. Department of Science, Technology and Environment

Software Industries are exempted from obtaining NOC from pollution angle as per orders issued by the Chief Secretariat (Environment Department), Government of Pondicherry vide G.O.Ms.No.24/2000-Envt., dated 30-10-2000 of the Chief Secretariat (Environment)

6. Labour Department

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Permission to run 3 shift operations for the IT Industries will be granted by the Labour Department subject to the provision for other facilities such as one day off, facilities to women workers, etc. Knowledge based industries in the U.T. of Pondicherry have been exempted from the relevant provisions of the Shops and Establishment Act and Rules, 1964 as contained in Labour Department G.O.Ms.No.6 dated 03-02-2001.

7. Local Administration Department

Commercial buildings which are fully dedicated to IT industries will be exempted from land and building Tax for a period of 5 years.

8. Revenue Department

Stamp Duty on

i) Sale/lease of property in the Software Technology Park (STP) leased by the PIPDIC; and

ii) Agreement made for availing term loans sanctioned by the PIPDIC for units located in the STP will be exempted.

9. Electricity Department

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Power supply and priority in sanctioning and connecting power for It industries will be extended by the Electricity Department in the IT corridor and other selected areas identified from time to time for locating IT industries.

10. Establishment of IT Corridor

The stretch of East Coast Road starting from Siddhanandasamy Temple Junction to Ariyankuppam will be declared as an IT Corridor. The concerned departments will take necessary steps to provide necessary infrastructure facilities like road, power, water supply, telecommunications, etc. at this location.

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11. Eligibility Criteria

For the purpose of the incentives offered, under this notification IT industries will mean and include those industries producing IT software products or products mentioned in the Annexure. New industries will mean and include those industries which apply for Provisional Registration/No Objection Certificate from the Industries Department, Government of Pondicherry after the issue of this notification.

These incentives/concessions will be available to new IT industries and to existing IT going in for substantial expansion.

The terms and conditions governing the extent of concessions/incentives and the procedure to be followed for extending the concessions/incentives by the various departments/organizations concerned.

The decision of the Secretary to Government of Pondicherry for the Industries & Commerce Department as to the eligibility of any unit for the concessions/incentives outlined herein and the extent thereof shall be final.

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ANNEXURE

1. Chemical elements doped for use in electronics, in form of discs, wafers or similar forms; chemical compounds doped for use in electronics.

2. Word processing machines.

3. Calculating machines and pocket-size data recording, reproducing and displaying machines with a calculating function; accounting machines, postage franking machines, ticket-issuing machines and similar machines, incorporating a calculating devices; cash registers.

4. Electronic calculators capable of operating without an external source of electric power and pocket size data recording, reproducing and displaying machines with calculating functions.

5. Other electronic calculating machines incorporating a printing device.

6. Other calculating machines.

7. Accounting machines.

8. Cash registers.

9. Automatic data processing machines and units thereof; magnetic or optical readers, machines for transcribing data onto data media in coded form and machines for processing such data, not else where specified or included.

10. Analogue or hybrid automatic data processing machines.

11. Portable digital automatic data processing machines, weighing no more than 10 kg, consisting of at least a central processing unit, a keyboard and a display.

12. Other digital automatic data processing machines comprising in the same housing at least a central processing unit and an input and output unit, whether or not combined.

13. Other digital automatic data processing machines comprising in the same housing at least a central processing unit and an input and output unit, whether or not combined.

14. Digital processing units, whether or not in the same housing one or two of the following types of units: storage units, input units, output units.

15. Input or output units, whether or not containing storage units in the same housing.

16. Storage units, including central storage units, optical disk storage units, hard disk drives and magnetic tape storage units.

17. Other units of automatic data processing machines.

18. Automatic teller machines.

19. Static converters for automatic data processing machines and units thereof, and telecommunication apparatus.

20. Other inductors for power supplies for automatic data processing machines and units thereof, and telecommunication apparatus.

21. Electrical apparatus for line telephony or line telegraphy, including line telephone sets with cordless handsets and telecommunication apparatus for carrier-current line systems or for digital line systems; videophones.

22. Line telephone sets with cordless handsets.

23. Other telephone sets and Videophones.

24. Fascimile machines

25. Teleprinters.

26. Telephonic or telegraphic switching apparatus.

27. Other apparatus, for carrier-current line systems or for digital line systems.

28. Other apparatus including entry-phone systems.

29. Microphones having a frequency range of 300 Hz to 3.4 Khz with a diameter of not exceeding 10mm and a height not exceeding 3 mm, for telecommunication use.

30. Line telephone handsets.

31. Loudspeakers, without housing, having a frequency range of 300 Hz. to 3.4 KHz. with a diameter of not exceeding 50mm, for telecommunication use.

32. Telephone answering machines.

33. Magnetic tapes of a width not exceeding 4 mm.

34. Magnetic tapes of a width exceeding 4 mm but not exceeding 6.5 mm.

35. Magnetic tapes of a width exceeding 6.5 mm.

36. Magnetic discs.

37. Discs for laser reading systems for reproducing phenomena other than sound or image for reproducing representations of instructions, data, sound, and image, recorder machine readable binary form, and capable of being manipulated or providing interactivity to a near user, by means of an automatic data processing machine.

38. Magnetic tapes for reproducing phenomena other than sound or image.

39. Media for reproducing phenomena other than sound or image for reproducing representations of instructions, data, sound, and image, recorded in a machine readable binary form, and capable of being manipulated or providing interactivity to a user, by means of an automatic data processing machine.

40. Transmission apparatus other than apparatus for radio-broadcasting or television.

41. Transmission apparatus incorporating reception apparatus.

42. Digital still image video cameras.

43. Portable receivers for calling, alerting or paging.

44. Aerials or antennae of a kind used with apparatus for radio-telephony and radio-telegraphy.

45. Parts of :

a) Transmission apparatus other than apparatus for radio broadcasting or television.

b) Transmission apparatus incorporating reception apparatus.

c) Digital still image video cameras.

d) Portable receivers for calling, alerting or paging.

46. Indicator panels incorporating liquid crystal devices (LCD) or light emitting diodes (LED).

47. Electrical capacitors, fixed, variable or adjustable (per-set).

48. Fixed capacitors designed for use in 50/60 Hz circuits and having a reactive power handling capacity of not less than 0.5 kva (power capacitors).

49. Tantalum fixed capacitors.

50. Aluminium electrolytic fixed capacitors.

51. Ceramic dielectric, single layer fixed capacitors.

52. Ceramic dielectric, multiplayer fixed capacitors.

53. Dielectric fixed capacitors of paper or plastics.

54. Other fixed capacitors.

55. Variable or adjustable (pre-set) capacitors.

56. Electrical resistors (including rheostats and potentiometers), other than heating resistors.

57. Fixed carbon resistors, composition or film types.

58. Other fixed resistors for a power handling capacity not exceeding 20 W.

59. Other fixed resistors for a power handling capacity of 20 W or more.

60. Wirewound variable resistors, including rheostats and potentiometers, for a power handling capacity not exceeding 20 W or more.

61. Wirewound variable resistors, including rheostats and potentiometers, for a power handling capacity not exceeding 20 W or more.

62. Other variable resistors, including rheostats and potentiometers.

63. Printed circuit Boards.

64. Electronic AC switches consisting of optically coupled input and output circuits (Insulate thyristor AC switches).

65. Electronic switches, including temperature and a logic chip (chip-on-chip technology) for a voltage not exceeding 1000 volts.

66. Electromechanical snap-axial switches for a current not exciding 11 amps.

67. Plugs and sockets for co-axial cables and printed circuits.

68. Connection and contact elements for wires and cables.

69. Diodes, transistors and similar semiconductor devices; photosensitive semiconductor devices including photovoltaic cells whether or not assembled in modules or made up into panels light-emitting diodes; mounted piezo-electric crystals.

70. Diodes, other than photosensitive or light-emitting diodes.

71. Transistors, other than photosensitive transistors, with a dissipation rate of less than 1W.

72. Transistors, other than photosensitive transistors, with a dissipation rate of 1W or more.

73. Thyristors, diacs and triacs, other than photosensitive devices.

74. Photosensitive semiconductor devices, including photovoltaic cells whether or not assembled modules or made up into panels; light emitting diodes.

75. Other semiconductor devices.

76. Mounted piezo-electric crystals.

77. Electronic integrated circuits and microassemblies.

78. Cards incorporating an electronic integrated circuit ('smart' cards).

79. Metal oxide semiconductors (MOS technology).

80. Circuits obtained by bipolar technology.

81. Other monolithic digital integrated circuits, including circuits obtained by a combination of bipolar and MOS technologies (BIMOS technology).

82. Other monolithic integrated circuits.

83. Hybrid integrated circuits.

84. Electronic micro assembles.

85. Proximity cards and tags.

86. Electrical machines with translation or dictionary functions.

87. Other electric conductors, for a voltage not exceeding 80 V, fitted with connectors, of a kind used for telecommunications.

88. Other electric conductors, for a voltage not exceeding 80V, not fitted with connectors, of a kind used for telecommunications.

89. Other electric conductors, for a voltage exceeding 80V but no exceeding 1000V, fitted with connector, of a kind used for telecommunications.

90. Optical fibre cables, UTP cables.

91. Electrostatic photocopying apparatus, operating by reproducing the original image directly onto the copy (direct process).

92. Other photocopying apparatus, incorporating an optical system.

93. Instruments and apparatus for measuring or checking the flow, level, pressure or other variables of liquids or gases (for example, flow meters, level gauges, manometers, heat meters).

94. Instruments for measuring or checking the flow or level of liquids.

95. Instruments and apparatus for measuring or checking pressure.

96. Other instruments and apparatus for measuring or checking.

97. Chromatographs and electrophoresis instruments.

98. Spectrometers, spectrophotometers and spectrographs using optical radiations (UV, visible, IR).

99. Other instruments and apparatus using optical radiations (UV, visible, IR).

100. Instruments and apparatus for measuring and checking, specially designed to telecommunications (for example, cross-talk meters, gain measuring instruments, distorsior factor meters, pseophometers).

101. Cellular Phones.

102. CR ROM drive, DVD ROM drive, Zip drive.

103. Modems.

104. All orts of printers.

105. Hard disks, Floppy disk drives.

106. Storage media such as CDROM, DVD ROM, Floppy diskette, Zip Drive media.

107. Communication devices such as Hubs, Switches, Routers.

108. VSAT equipment.

109. Wireless equipment.

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Semiconductor Manufacturing And Testing Equipment And Parts Thereof Related To IT Products

1. Quartz reactor tubes and holders designed for insertion into diffusion and oxidation furnaces for production of semiconductor wafers.

2. Chemical vapor deposition apparatus for semiconductor production.

3. Parts of chemical vapor deposition apparatus for semiconductor production.

4. Spin dryers for semiconductor wafer processing.

5. Parts of spin dryers for semiconductor wafer processing.

6. Deflash machines for cleaning and removing contaminants from the metal leads of semiconductor packages prior to the electroplating process.

7. Spraying appliances for etching, stripping or cleaning semiconductor wafers.

8. Parts of spraying appliances for etching, stripping or cleaning semiconductor wafers.

9. Machines for working any material by removal of material, by laser or other light or photo beam in the production of semiconductor wafers.

10. Apparatus for stripping or cleaning semiconductor wafers.

11. Machines for dry-etching patterns on semiconductor materials.

12. Focused ion beam milling machines to produce or repair masks and reticles for patterns on semiconductor devices.

13. Laserculters for cutting contacting tracks in semiconductor production by laser beam.

14. Machines for sawing monocrystal semiconductor boules into slices, or wafers into chips.

15. Grinding, polishing and lapping machines for processing of semiconductor wafers.

16. Dicing machines for scribing or scoring semiconductor wafers.

17. Parts for machines for sawing monocrystal semiconductor boules into slices, or wafers into chips.

18. Parts of dicing machines for scribing or scoring semiconductor wafers.

19. Parts of grinding, polishing and lapping machines for processing of semiconductor wafers.

20. Parts of focused ion beam milling machines to produce or repair masks and reticles for patterns on semiconductor devices.

21. Parts of laser cutters for cutting contacting tracks in semiconductor production by laser beam.

22. Parts of machines for working any material by removal of material, by laser or other light or photo beam in the production of semiconductor wafers.

23. Parts of apparatus for stripping or cleaning semiconductor wafers.

24. Parts of machines for dry-etching patterns on semiconductor materials.

25. Encapsulation equipment for assembly of semiconductors.

26. Parts of encapsulation equipment.

27. Automated machines for transport, handling and storage of semiconductor wafers, wafer cassettes, wafer boxes and other material for semiconductor devices.

28. Apparatus for growing or pulling monocrystal semiconductor boules.

29. Apparatus for physical deposition by sputtering on semiconductor wafers.

30. Apparatus for wet etching, developing, stripping or cleaning semiconductor wafers and flat panel displays.

31. Die attach apparatus, tape automated bonders, and wire bonders for assembly of semiconductors.

32. Encapsulation equipment for assembly of semiconductors.

33. Epitaxial deposition machines for semiconductor wafers.

34. Machines for bending, folding and straightening semiconductor leads.

35. Physical deposition apparatus for semiconductor production.

36. Spinners for coating photographics emulsions on semiconductor wafers.

37. Part of apparatus for physical deposition by sputtering on semiconductor wafers.

38. Parts for die attach apparatus, tape automated bonders, and wire bonders for assembly of semiconductors.

39. Parts for spinners for coating photographic emulsions on semiconductor wafers.

40. Parts of apparatus for growing or pulling monocrystal semiconductor boules.

41. Parts of apparatus for wet etching, developing, stripping or cleaning semiconductor wafers and flat panel displays.

42. Parts of automated machines for transport handling and storage of semiconductor wafers, wafer cassettes, wafer boxes and other material for semiconductor devices.

43. Parts of encapsulation equipment for assembly of semiconductors.

44. Parts of epitaxial deposition machines for semiconductor wafers.

45. Parts of machines for bending, folding and straightening semicondcutor leads.

46. Parts of physical deposition apparatus for semiconductor production.

47. Injection and compression moulds for the manufacture of semiconductor devices.

48. Resistance heated furnaces and ovens for the manufacture of semiconductor wafers.

49. Inductance or dieletric furnaces and ovens for the manufacture of semiconductor devices on semiconductors wafers.

50. Apparatus for rapid heating of semiconductors wafers.

51. Parts of resistance heated furnaces and ovens for the manufacture of semiconductor devices on semiconductor wafers.

52. Parts of apparatus for rapid heating of wafers.

53. Parts of furnaces and ovens of Headings No.8514 to No.851430.

54. Wafer probers.

55. Ion implanters for doping semiconductor materials.

56. Apparatus for wet etching, developing, stripping or cleaning semiconductor wafers and flat panel displays.

57. Parts of apparatus for wet etching, developing, stripping or cleaning semiconductor wafers and flat panel displays.

58. Parts of ion implanters for doping semiconductor materials.

59. Apparatus for projection, drawing or plating circuit patterns on sensitized semiconductor materials and flat panel displays.

60. Parts and accessories of the apparatus of Headings No.901041 to 901049.

61.Optical stereoscopic microscopes fitted with equipment specifically designed for the handling and transport of semiconductor wafers or reticles.

62. Photomicrographic microscopes fitted with equipment specifically designed for the handling and transport of semiconductor wafers or reticles.

63. Parts and accessories of optical stereoscopic microscopes fitted with equipment specifically designed for the handling and transport of semiconductor wafers or reticles.

64. Parts and accessories of photomicrographic microscopes fitted with equipment specifically designed for the handling and transport of semicondcutor wafers or reticles.

65. Electron beam microscopes fitted with equipment specifically designed for the handling and transport of semiconductor wafers or reticles.

66. Parts and accessories of electron beam microscopes fitted with equipments specifically designed for the handling and transport of semiconductor wafers or reticles.

67. Pattern generating apparatus of a kind used for producing masks or reticles from photoresist coated substrates.

68. Parts and accessories for pattern generating apparatus of a kind used for producing masks or reticles from photoresist coated substrates.

69. Parts of such pattern generating apparatus.

70. Instruments and apparatus for measuring or checking semiconductor wafers or devices.

71. Parts and accessories of instruments and apparatus for measuring or checking semiconductor wafers or devices.

72. Parts of instruments and appliances for measuring or checking semiconductor wafers or devices.

73. Optical instruments and appliances for inspecting semiconductor wafers or devices or for inspecting masks photomasks or reticles used in manufacturing semiconductor devices.

74. Optical instruments and appliances for measuring surface particulate contamination on semiconductor wafers.

75. Parts and accessories of optical instruments and appliances for inspecting semiconductor wafers or devices or for inspecting masks, photomasks or reticles used in manufacturing semiconductor devices.

76. Parts and accessories of optical instruments and appliances for measuring surface particulate contamination on semiconductor wafers.

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For more information please contact :

The Secretary (Industries & Commerce)
Government of Pondicherry,
Raj Niwas, Pondicherry-605 001.
Phone No : 0413 - 334085
Fax : 0413 - 278089
E-mail : nkumar@pondy.pon.nic.in

The Director
Industries and Commerce Department,
Industrial Estate, Thattanchavady,
Pondicherry - 605 001.
Phone No : 0413 - 248476, 248320
Fax : 0413 - 248476
E-mail : ind@pondy.pon.nic.in

The Managing Director
Pondicherry Industrial Promotion Development
and Investment Corporation Ltd.,
60, Romain Rollad Street, Pondicherry - 605 001.
Phone : 0413 - 334361, 335116, 334064,
Fax : 0413 - 336842
E-mail : pipdic@vsnl.com, md@pipdic.com
Website :http://www.pipdic.com/

REGISTER ON-LINE - Modules in Information Technology Park -Click here

Package of Incentives

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Apart from providing you the best infrastructural facilities, PIPDIC will also provide you the following to help you take off.

• Term Loans up to Rs.50 million for projects costing below Rs.120 million

• Uninterrupted power supply at lower rates.

• Full exemption from Income Tax, Excise Duty and Sales Tax for 100% Export Oriented Units.

• Rate of Incentive for Small scale industries:-

• 50% of the cost of pollution control machinery and equipment with a ceiling of Rs.5.00 lakhs per unit.

• The Rate of Incentives for Medium and Large scale industries

• 25% of the cost of pollution control machinery and equipment with ceiling of Rs.5.00 lakhs per unit.

Income-Tax Holiday

Income-tax holiday for five years is permitted for the new industrial undertakings set up in this Union territory which start regular production on or before 31-3-2004 as announced by the Government of India.

Other Incentives

100% Export Oriented units are totally exempted from Income Tax, Excise Duty and Sales Tax. Sales tax concessions of 1% on electricity consumption charges is allowed for units which export at least 10% of their product in a year.

In order to encourage Small scale Industries to employ local people in their units, it is proposed to grant subsidy to small scale industries at the following rates. Rs.100 per month/person subject to a maximum subsidy of Rs.12,000 per annum per unit.
In order to motivate industrialists and entrepreneurs to install Pollution control equipments in their industries, it is proposed to adopt the following pattern of assistance:

(a) Rate of Incentive for small Scale Industries:- 50% of the cost of pollution control machineries and equipments with a ceiling of Rs.5.00 lakhs per unit.

(b) Rate of Incentive for medium and Large Scale industries:- 25% of the cost of pollution control machineries and equipments with a ceiling of Rs.5.00 lakhs per unit.

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Package of Incentives For I.T Related Industries:

Term loans upto Rs.50 million for projects amounting to less than Rs.120 million is provided by PIPDIC. Uninterrupted power supply at lower rates. Full exemption from income Tax, Excise Duty and Sales Tax for 100% export oriented units.

Procedure For Starting A Small Scale Industry

For starting a Small Scale Industry (Other than Chemical, Chemical based industries and highly polluting industries), entrepreneurs have to first apply to the Directorate of Industries at Pondicherry. Branch Office at Karaikal, Sub Office at Mahe and Yanam, depending on the location of the unit for Provisional SSI Registration, in the form prescribed by the Development Commissioner (SSI), New Delhi.

In case of Chemical and Chemical based industries, entrepreneurs have to first get clearance from the Committee for Chemical Industries through the Diectorate of Industries and then approach for provisional SSI registration after its clearance.

All the entrepreneurs irrespective of their size of investment, may approach the 'Single Window Committee' (Functioning in the District Industries Centre) for getting the said clearances expeditiously.

The District Industries Centre will forward the complete set of applications received from the entrepreneurs to the concerned Municipality/Commune Panchayat. In turn, the Municipality/Commune Panchayat after getting clearances from the concerned Departments/ Organisations, will issue permission for establishment of the industrial units. The Municipalities/Commune Panchayat will obtain the following clearances depending upon the nature of the manufacturing activities:-

(a) NOC on pollution angle from the Department of Science, Technology and Environment (Second working day of every month is earmarked for environmental clearances meeting);

(b) Approval of Factory Building and Machinery lay out from the Inspectorate of Factories;

(c) Site clearance from Town and Country Planning Department;

(d) Permission for land use conversion and ground water clearance from Agricultural Department;

(e) Power feasibility Certificate from Electricity Department;

(f ) Building Plan approval from Pondicherry Planning Authority;

(g) Clearance from Health Department;

(h) Clearance from Fire Service Department;

(i) Clearance from Revenue Department;

(j) Licence from Food and Drugs Administration;

(k) Licence from Civil Supplies Department.

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In order to help the entrepreneurs to get the above clearances, procedures are being simplified. Single Window Committee, under the Chairmanship of the Secretary to Government (Industries) is being given a new vigour with meaningful "Single Point Deliberation" with the concerned decision making departments/authorities right in the presence of the promoters of the industries.

High degree of earnestness and transparency is being instilled into the process.

First working day of every month has been earmarked for this meeting.

After installing machinery, entrepreneurs have to get licences from the concerned Municipality/Commune Panchayat.

Licence from Inspectorate of Factories and consent orders from the Department of Environment for operation of the unit.

After commencement of regular production, the entrepreneurs have to apply for Permanent SSI Registration to the Directorate of Industries.

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Procedure for Starting Large / Medium Scale Industries

For starting Large/Medium Scale Industries, the entrepreneurs have to first apply/file for Industrial Licence/Industrial Entrepreneurs Memorandum with the Secretariat for Industrial Approvals in the Ministry of Industry, Government of India, New Delhi.

After obtaining the Industrial Licence/lEM acknowledgment from Government of India, entrepreneurs have to apply to the Directorate of Industries for Provisional No Objection Certificate for setting up of their unit.

After commencement of regular production, the entrepreneurs have to approach the Directorate of Industries for getting commencement of Production Certificate for availing Sales tax exemption and other concessions.

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Financial Norms

Interest Rate Structure

Debt Equity Norms

Note: Wherever required the equity will be increased on case to case basis.

How to Apply - Click Here

Particulars to be Submitted at the time of Filing Application

Other Incentives and Concessions

We have often heard it said that many industries came to establish themselves in Pondicherry because of low sales tax rates that had been maintained by the government. While low rates of local sales tax would have some advantage, since Pondicherry comprises a small territory, in many industries local sales tax would have constituted only a small share. However, low local sales tax rates would also help to some extent inter-state sales because CST has a ceiling of 4 per cent. The five year income tax holiday given to industries in Pondicherry must have been of much greater help.

Incentives and Concessions

We have often heard it said that many industries came to establish themselves in Pondicherry because of low sales tax rates that had been maintained by the government. While low rates of local sales tax would have some advantage, since Pondicherry comprises a small territory, in many industries local sales tax would have constituted only a small share. However, low local sales tax rates would also help to some extent inter-state sales because CST has a ceiling of 4 per cent. The five year income tax holiday given to industries in Pondicherry must have been of much greater help.

We find from data made available to us that the process of industrial growth is continuing. There is a case, therefore, for urging the Central government to continue the tax holiday for income tax for another period of ten years. It is also necessary to phase out CST as early as possible as they work against the interests of small and not highly industrial states like Pondicherry. Meanwhile, Pondicherry should bring down its CST rate to an average of 1 per cent.

more....

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