States factsheet from the business pages of www.webindia.com

			Pondicherry

Area: (sq. kms)                     492
Population                          807785
Capital                             Pondicherry
Literacy: (per cent)                74.91
Principal languages                 Tamil, Telugu, Malayalam, English and French
Districts                           4
Growth Rate: (per cent)             30.6
Density of population:(per sq.km)   1065
Urban Population: (per cent)        64

Incentives for investments:

Exemption from Sales Tax

Pondicherry and Yanam regions

1. Both Central Sales Tax (CST) and Pondicherry Govt. Sales Tax (PGST) are
exempted on the sale of finished products for a period of five years from
the date of starting production for all industries to be set up in
Pondicherry and Yanam regions.
2. For Small-Scale Industry units alone, one per cent concessional rate of
CST is charged for a period of 14 years after completion of the first five
years referred to above.

Karaikal & Mahe regions

Both CST and PGST are exempted on the sale of finished products for a
period of ten years from the date of starting production for all industries
to be set up in Karaikal and Mahe. For Small-Scale Industry units alone, 1
per cent concessional rate of CST is charged for a period of 9 years after
completion of the first ten years referred to above.

Power Subsidy

Pondicherry & Yanam regions

Small Scale Industries consuming Low Tension Power alone are eligible for
power subsidy for a period of first five years from the date of starting
production at the following subsidy rates subject to a limit of Rs. 100,000
per month:

1. First three years - 33.33 per cent
2. Fourth year - 20 per cent
3. Fifth year - 10 per cent

Karaikal & Mahe regions:

Low Tension and High Tension industries are eligible for power subsidy for
a period of five years from the date of starting production at the
following subsidy rates subject to a limit of Rs. 100,000 per month -
1. First three years - 33.33 per cent
2. Fourth year - 20 per cent
3. Fifth year - 10 per cent

Income Tax Holiday

An income tax holiday of five years is available for new industrial
undertakings set up and which have started regular production on or after
01-04-1993. Clarifications about eligibility in a specific case may be
obtained from the concerned income tax authorities.


Subsidised rate of PGST on the sale of raw material

PGST payable on the sale of raw materials to industries to form part of
finished products are as follows:
1. One per cent where the rate of tax payable under PGST Act 1967 does not
exceed four per cent
2. 60 per cent of the rate applicable under PGST Act 1967 where the rate
exceeds four per cent.
The above concessions are not applicable to the raw materials sold to sugar
mills, distilleries and oil mills.

Financial Assistance
Term Loans can be sanctioned by Pondicherry Industrial Promotion
Development and Investment Corporation (PIPDIC)/SIDBI.

Contact:
Industries Secretary
Government of Pondicherry
Pondicherry - 605 001
Fax & Tel.: 0413-334036

Courtesy: http://business.webindia.com