SFSSIMSIS

The scheme aims to extend financial support to establish new, or expand/modernize existing, Small Scale Industry and Medium Scale Industry units. Benefits include term loans up to ₹10,00,00,000/- for fixed asset acquisition.

The scheme "Scheme for SSI / MSI Sector" was launched by the Pondicherry Industrial Promotion Development and Investment Corporation Limited (PIPDIC), Department of Industries & Commerce, Puducherry. The scheme aims to extend financial assistance for new enterprises to establish Micro, Small, or Medium units and for expansion, modernization, or diversification by existing units. The scheme provides financial assistance for acquiring fixed assets such as purchasing land, constructing buildings, and procuring machinery, equipment, electricals, and miscellaneous fixed assets. The scheme is implemented by PIPDIC, and applications for this scheme are accepted online.

• The applicant must belong to the Small Scale or Medium Scale sector.
• The applicant organization must be one of the following forms:

• Proprietary Concern
• Partnership Firm
• Co-operative Society
• Private Limited Company
• Public Limited Company

• The loan application purpose must be for one of the following purposes:

• Setting-up New Small-Scale Units
• Setting-up New Medium Scale Units
• Expansion of Existing Units
• Modernization of Existing Units
• Diversification of Existing Units
• Any other activities eligible for assistance under the scheme.

• The total project cost ceiling must not exceed ₹20,00,00,000/-.

• Financial assistance (Term Loan) up to a maximum of ₹10,00,00,000/- per project.
• Loan proceeds may be used for acquiring fixed assets, including the purchase of land, construction of buildings, and procurement of machinery, equipment, electricals, and miscellaneous fixed assets.
• The maximum repayment period is 8 years, which includes a maximum moratorium period of 2 years.

##### Benefit Disbursement Criteria

• The Debt Equity Ratio (DER) must be 3:1 for loans up to ₹25,00,000/-.
• The Debt Equity Ratio (DER) must be 2:1 for loans above ₹25,00,000/-.

##### Conditions

• Collateral security in the form of immovable property must be offered as per the lending policy of the corporation.
• The valuation of properties offered as security must be assessed by engaging Chartered Engineers or valuers from the approved panel of the Corporation.
• In respect of immovable property situated in the Union Territory of Puducherry, the value of the property offered must be not less than the amount of the term loan sanctioned.
• In respect of immovable property situated outside the Union Territory of Puducherry, the value of land with building offered must be not less than 150% of the loan amount.
• If the property offered outside the Union Territory of Puducherry is only land, its value must be not less than 200% of the loan amount.
• For units promoted by Women, Scheduled Caste, Scheduled Tribe, or Differently Abled persons, the value of the property to be offered as collateral security is fixed at 50% of the loan amount.