Investment Promotion Scheme (IPS) for MSME Sector: Assistance of Interest Subsidy
By Department of Industries, UT Administration of Dadra and Nagar Haveli and Daman and Diu
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Quick Answer
Up to 50% interest subsidy (up to ₹30 lakh/year) on term loans for new or expanding MSME manufacturing and service units in Dadra & Nagar Haveli and Daman & Diu.
- Funding amount
- Up to ₹1.5Cr
- Funding type
- Subsidy
- Application deadline
- 203d — 19 May 2027
- Eligible stage
- Revenue
- Registrations needed
- Udyam registration
About this subsidy
The Department of Industries, U.T. Administration of Dadra & Nagar Haveli and Daman & Diu runs this interest subsidy for MSME manufacturing and service units. It was introduced on July 3, 2015, for a five-year term, extended from May 20, 2022, and stays operational until May 19, 2027.
It covers term loans for equipment, machinery and furniture/fixtures, for new units and for existing units that expand or diversify. Land and building costs are excluded.
You get 50% of the interest charged by banks, up to ₹30 lakh a year. It runs for five years or until the loan is repaid, whichever comes first, for a total of up to ₹1.5 crore. Differently-abled entrepreneurs, women entrepreneurs and registered startups get an additional 10%. Entrepreneurs below 35 at the time of term loan sanction also get an additional 10%.
The unit must start commercial production between May 20, 2022 and May 19, 2027, stay in production for 5 years and follow the prescribed pollution control measures. The loan must be sanctioned by a bank or financial institution as per RBI guidelines. 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 ₹1.5Cr
What You Get
The scheme offers significant financial relief through an interest subsidy of 50% on the interest charged by banks, up to an annual ceiling of ₹30,00,000/- (₹30 Lakh). This subsidy is provided for a period of five years or until the full repayment of the loan, whichever occurs first. Over the maximum five-year period, an eligible enterprise could receive a total subsidy of up to ₹1,50,00,000/- (₹1.5 Crore). This substantial support helps reduce the operational costs associated with term loans taken for purchasing essential equipment, machinery, and furniture/fixtures for new units or for expansion/diversification projects. Beyond the general subsidy, the scheme includes additional incentives to promote inclusive growth. Differently-abled entrepreneurs, women entrepreneurs, and registered startups in both manufacturing and service sectors are eligible for an additional 10% interest subsidy. Furthermore, young entrepreneurs who are below 35 years of age at the time of term loan sanction also receive an additional 10% subsidy. These targeted benefits aim to encourage entrepreneurship among diverse demographic groups, fostering a more inclusive and dynamic industrial landscape within the Union Territory.
- Disbursement
- Reimbursement
- Duration
- 61 months
- Bootstrap friendly
- Yes
Application Process
- 1
Register Account
Visit the registration page and provide required information to create an account.
You - 2
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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 main 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 vagaries, maximize women's participation in business, reduce unemployment among local residents, and incentivize industries to employ resident laborers.
Who is eligible for the Assistance of Interest Subsidy sub-scheme?
New or existing manufacturing and service units in the MSME sector undertaking expansion or diversification are eligible. Units must have commenced commercial production between May 20, 2022, and May 19, 2027, and be located in Dadra & Nagar Haveli and Daman & Diu. They must also commit to remaining in production for 5 years and observe pollution control measures.
What is the maximum interest subsidy an eligible unit can receive?
An eligible unit can receive up to 50% of the interest charged by the bank, with an upper ceiling of ₹30,00,000 per annum. This subsidy is available for a maximum period of 5 years or the loan repayment period, whichever is earlier, totaling up to ₹1.5 crore.
Are there any additional benefits for specific groups of entrepreneurs?
Yes, an additional 10% interest subsidy is provided to differently-abled entrepreneurs, women entrepreneurs, and registered startups in manufacturing/service sectors. Young entrepreneurs below 35 years of age at the time of term loan sanction also receive an additional 10% subsidy.
What types of loans are covered by this interest subsidy?
The subsidy applies to term loans on equipment, machinery, and furniture/fixtures. It explicitly excludes loans taken for land and building. The loan must be sanctioned by a bank or financial institution as per RBI guidelines.
What is the deadline for submitting the application?
The application must be submitted within one year from the date of the first disbursement of the term loan, or within one year from the date of commencement of commercial production, whichever is earlier. The scheme itself is operative till May 19, 2027.
Where can I get support if I face technical issues with the online portal?
For technical assistance with the Single Window Portal (https://investdd.in), you can contact 0260-2231885 / 2231886 or email ddegs-dd@nic.in. For general scheme inquiries, contact the District Industries Centre at 0260-2260871 / 0260-2260310 or dic-dd@nic.in.
Sources
Data on this page is compiled from official program and provider references.
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