Investment Promotion Scheme (IPS) for MSME Sector: Assistance of Fixed Capital Investment Subsidy
By Department of Industries, UT Administration of Dadra and Nagar Haveli and Daman and Diu
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Quick Answer
Capital subsidy of 15% on fixed capital investment, up to ₹45 lakh, for new or expanding MSMEs in Dadra & Nagar Haveli and Daman & Diu.
- Funding amount
- Up to ₹45L
- Funding type
- Subsidy
- Application deadline
- Rolling
- Registrations needed
- Udyam registration
About this subsidy
New and expanding MSME manufacturing and service units in Dadra & Nagar Haveli and Daman & Diu can get a non-repayable capital subsidy of 15% on eligible Gross Fixed Capital Investment (GFCI), up to ₹45 lakh. The Department of Industries, U.T. Administration runs the scheme. It was introduced in 2015 and extended to May 19, 2027.
The cap depends on size: ₹15,00,000 for Micro, ₹30,00,000 for Small and ₹35,00,000 for Medium industries. If eligible GFCI is above ₹10,00,00,000, an extra ₹10,00,000 is paid, so the most you can get is ₹45,00,000.
Your unit must start commercial production between May 20, 2022 and May 19, 2027, and stay in production for 5 years. It must follow the pollution control measures set by PCC or another competent authority. Apply within one year of the first loan disbursement or of starting commercial production.
Eligibility
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Full eligibility criteria — entity type, stage, sector, founder profile and registration requirements — plus your fit for this program. Sign up to view.
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
- Up to ₹45L
What You Get
This scheme provides a non-repayable capital investment subsidy for eligible Gross Fixed Capital Investment (GFCI). Micro Industries are eligible for a 15% subsidy, capped at ₹15,00,000. Small Industries receive a 15% subsidy, with an upper ceiling of ₹30,00,000. Medium Industries also qualify for a 15% subsidy, up to ₹35,00,000. Additionally, for eligible GFCI exceeding ₹10,00,00,000, an extra ₹10,00,000 will be disbursed, making the maximum possible subsidy ₹45,00,000. This financial support aims to alleviate the burden of significant capital expenditures, thereby promoting business growth and expansion within the region.
- Disbursement
- Reimbursement
- Duration
- 61 months
- Bootstrap friendly
- Yes
Timelines & Process
Applications
Rolling basis
Selection Process
Applications submitted through the Single Window Portal undergo an initial screening to ensure completeness and adherence to basic eligibility criteria. Subsequently, detailed evaluation is performed by the Department of Industries, focusing on the nature of the manufacturing or service unit, the validity of the Gross Fixed Capital Investment (GFCI), and compliance with scheme objectives. This evaluation typically includes verification of commercial production commencement dates and adherence to pollution control norms. Final approval for the subsidy disbursement is granted by a competent authority or committee based on these detailed assessments.
Application Process
- 1
Register Online
Visit the official Single Window Portal and complete the user registration process, including email and mobile verification.
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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 Investment Promotion Scheme (IPS)?
The IPS aims to provide incentives and assistance to the MSME Sector to nurture them, protect them from market volatilities, maximize women's participation in business, reduce unemployment among local residents, and incentivize industries to employ resident laborers.
What is the specific benefit offered by the Fixed Capital Investment Subsidy sub-scheme?
Eligible industries are entitled to a capital investment subsidy for the investment made in Gross Fixed Capital Investment (GFCI). The subsidy is 15% of the investment, with varying upper ceilings based on the industry size (Micro, Small, Medium).
What are the maximum subsidy amounts for different industry types?
Micro Industries can receive up to ₹15,00,000, Small Industries up to ₹30,00,000, and Medium Industries up to ₹35,00,000. An additional ₹10,00,000 is provided if the eligible GFCI exceeds ₹10,00,00,000, making the total maximum ₹45,00,000.
Where must the eligible unit be located to avail this subsidy?
The unit must be located within the Union Territory of Dadra and Nagar Haveli and Daman and Diu.
Is there a specific timeframe for commencing commercial production?
Yes, the unit must have commenced commercial production between May 20, 2022, and May 19, 2027, to be eligible for the subsidy.
What is the application process for the scheme?
The application process is entirely online. It involves a multi-step registration on the official Single Window Portal, including email and mobile verification, followed by logging in, navigating to the District Industries Centre, and filling out the Common Application Form with all required details and documents before submission.
Sources
Data on this page is compiled from official program and provider references.
