Investment Promotion Scheme (IPS) for MSME Sector: Incentive For Local Employment
By Department of Industries, UT Administration of Dadra and Nagar Haveli and Daman and Diu
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Quick Answer
MSME units in Dadra & Nagar Haveli and Daman & Diu get a one-time recruitment incentive of up to ₹15 lakh for employing local residents.
- Funding amount
- ₹3L – ₹15L
- Funding type
- Subsidy
- Application deadline
- 203d — 19 May 2027
- Registrations needed
- Udyam registration
About this subsidy
MSME units in Dadra & Nagar Haveli and Daman & Diu get a one-time recruitment incentive of ₹3,00,000 for every 20 local employees hired, up to ₹15 lakh per unit. This is the Incentive For Local Employment under the Investment Promotion Scheme (IPS) for the MSME Sector.
It is open to new and existing manufacturing and service units undertaking expansion or diversification. The unit must have started commercial production between May 20, 2022, and May 19, 2027. Recruited employees must hold a Domicile certificate of Dadra & Nagar Haveli and Daman & Diu and be above 18 years of age.
Eligibility
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Subsidy providers
Provider
Department of Industries, UT Administration of Dadra and Nagar Haveli and Daman and DiuDadra and Nagar Haveli and Daman and Diu · India
Benefits & Funding
- Amount
- ₹3L – ₹15L
What You Get
This scheme provides a one-time recruitment incentive of ₹3,00,000 for every 20 local employees hired, with a maximum benefit of ₹15,00,000 per eligible MSME unit. This financial assistance aims to directly support businesses in generating local employment and expanding their operations within the Union Territory. The incentive helps offset recruitment and initial operational costs, fostering economic growth and reducing unemployment among local residents.
- Disbursement
- Lump Sum
- Duration
- 61 months
- Bootstrap friendly
- Yes
Application Process
- 1
Register
Create an account on the Single Window Portal.
You - 2
- 3
- 4
- 5
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How to apply
Four steps from draft to disbursement — one action each.
- 1
See the questions before you start
Download every question this programme's application form asks, so you can prepare your answers offline before opening the portal.
- 2
Line up your documents
Keep every document from the checklist ready in one folder. Missing docs are the #1 reason applications get bounced.
- 3
Submit on the official portal
Use the official application link and verify all details before final submission.
- 4
Follow up
Reach out 5–7 days after submitting to confirm receipt and ask about the review timeline.
Program templates & documents
Files the program publishes for applicants — download these and apply in the prescribed format.
Frequently Asked Questions
What is the primary objective of the 'Incentive For Local Employment' scheme?
The scheme aims to provide a one-time recruitment incentive to industrial units in the MSME sector for generating employment for local residents, thereby reducing unemployment and maximizing local participation.
Which types of units are eligible for this incentive?
New manufacturing/service units or existing manufacturing/service units undertaking expansion/diversification in the MSME sector are eligible.
What is the maximum incentive an eligible unit can receive?
An eligible unit can receive a maximum incentive of ₹15,00,000 for employing local persons.
What is the eligibility criterion regarding the commercial production commencement?
The unit should have commenced commercial production between May 20, 2022, and May 19, 2027.
Are there any domicile requirements for the recruited employees?
Yes, the recruited employees must possess a Domicile certificate of the U.T. of Dadra & Nagar Haveli And Daman & Diu and be above 18 years of age.
How can I apply for this scheme?
The application process is online through the Single Window Portal of the Dadra & Nagar Haveli and Daman & Diu administration, requiring initial registration and then filling a common application form for the scheme.
Sources
Data on this page is compiled from official program and provider references.
