Government Incentives & Schemes for Women Entrepreneurs in Puducherry


There are many adjectives that describe Pondicherry – peaceful, modern, beautiful, but it seems descriptions fall short; it is indeed, serene and replete with history and culture. Businesses like – hotels, tourism, food processing, entertainment, apparels, automobile service, tyres, pharma, dairy etc have good scope here, along with good manpower and natural resources.

Recently, a Conclave was held in April 2022 to reclaim growth in Puducherry. The ‘CXO Conclave’ had the theme – “Reimagining, redefining, reclaiming growth in Puducherry” which was in line with the government’s objective, as it outlined the opportunities and strategies in investing in different sectors including electronics, aerospace and defence and electric vehicles in the Union territory of Puducherry.

Here are some government incentives and schemes for women entrepreneurs in

• Mahila Udayam Nidhi

Mahila Udayam Nidhi is a subsidy scheme for women entrepreneurs, from the Puducherry Government. Who can avail of this scheme? Women entrepreneurs setting up a new SSI unit in the service sector in Puducherry State. As per the scheme, for a project cost of Rs.10 lakhs, seed capital of 25% is provided as a subsidy and the balance 75% would be funded as a Term Loan (65%) and Promoter Contribution (10%). The term loan would have a repayment period of 6 to 8 years including moratorium of 1 to 2 years.

• Mahalir Udavi

The Mahalir Udavi which is a Scheme of Assistance to Women Entrepreneurs, extends financial assistance to new/existing micro enterprises promoted exclusively by women entrepreneurs/consisting of majority of women entrepreneurs. Loan shall be considered for acquiring fixed assets and to meet working capital requirement.

This takes into account – all existing and new SSI/Tiny units promoted exclusively by women entrepreneurs/consisting of majority of women entrepreneurs, for setting up of New SSI Units. Project cost upto Rs. 20.00 lakhs, Term Loan – 75% of project cost and Promoter’s contribution: 25% of the project cost.Repayment: 5 to 10 years including moratorium period of 1 to 2 years.

• Pradhan Mantri YUVA (PM YUVA) Yojana

The Ministry of Skill Development and Entrepreneurship (MSDE) implemented Pradhan Mantri YUVA (PM YUVA) Yojana, a pilot scheme – for creating an enabling ecosystem through entrepreneurship education, training, advocacy and easy access to entrepreneurship network. The scheme covers 10 States and 2 Union Territories (viz. i.e. Uttar Pradesh, Uttarakhand, Bihar, West Bengal, Assam, Meghalaya, Maharashtra, Tamil Nadu, Telangana, Kerala, Delhi and Puducherry).

Govt. of India, through Ministry of Micro, Small and Medium Enterprises (MSME) is implementing the Prime Minister’s Employment Generation Programme (PMEGP), which aims at generating self-employment opportunities through establishment of micro enterprises for non-farm sector. The maximum cost of projects covered under the Scheme is Rs. 25 lakh in the manufacturing sector and Rs. 10 lakh in the service sector.

• Scheme of assistance to SC/ST Entrepreneurs

This covers – new / existing micro enterprises, promoted by SC/St entrepreneurs, for setting up new Micro Enterprises or for expansion of existing units. Loan limit – Not to exceed Rs. 2.00 lakhs.

• Scheme for cottage and village Industries (Composite Loan Scheme)

This comes under the area of – artisans village and cottage Industries and small industries in tiny sectors; and it is specified that the promoters shall be residents of Puducherry. Assistance to be extended for fixed assets and or working capital. Loan Limit: Upto Rs. 10.00 lakhs.

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