PONDICHERRY

The union territory of Pondicherry encompasses an area of only 492 sq. km. Nearly 4% of the population is engaged in agriculture and allied pursuits. Ninety percent of the cultivated area is irrigated. The main food crop is rice. Food grain production is 102, 513 tonnes.

The state government policies and responsive local administration. Skilled labor is available at low cost. The drawback though is the severe power crisis, with capacity meeting only 51% of the demand.

Land area: 492 sq. km.
Population: 8 million
Capital: Pondicherry
Per Capita Income: Rs 10,554
Inflation Rate: 13.3%

Incentives:

• 25% Central investment subsidy for units with fixed capital of Rs 2,500,000 or more
• Financial assistance for transport and hotel industry projects
• Power subsidy for the first 5 years on a tapering scale, starting with 33%
• 15% price preference for small-scale units on purchases by the state government
• Exemption from security deposits for small-scale units for supply of goods to state government
• Sales tax holiday for 5 years for all new industrial units
• 50% Central sales tax concession for 7 years for small-scale units after 5 years of operations
• 5-year income tax holiday for all new investments in the state