Investment Promotion Scheme (IPS) for MSME Sector: Assistance For Capital Investment In Solar Power Generation
By Department of Industries, UT Administration of Dadra and Nagar Haveli and Daman and Diu
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Quick Answer
This scheme provides a capital subsidy of up to ₹50 lakh to MSME units in Dadra & Nagar Haveli and Daman & Diu for investing in solar power generation.
- Funding amount
- Up to ₹50L
- Funding type
- Subsidy
- Application deadline
- Rolling
- Registrations needed
- Udyam registration
About this subsidy
The "Assistance For Capital Investment In Solar Power Generation" is a sub-scheme under the broader "Investment Promotion Scheme (IPS)" for the MSME Sector. Launched on July 3, 2015, and extended from May 20, 2022, it will be operative until May 19, 2027. The primary objective of the overall IPS is to provide incentives and assistance to the MSME Sector, nurturing them and protecting them from market fluctuations to ensure their vibrancy and success. It also aims to maximize women's participation in business, reduce local unemployment, and incentivize industries to employ resident laborers. Specifically, this sub-scheme offers a capital subsidy to eligible industries for their capital investment in setting up Solar Power Plants for electricity generation. It encourages MSMEs to adopt solar power usage by providing financial assistance, thereby promoting sustainable energy practices within the industrial sector of the Union Territory.
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 ₹50L
What You Get
The scheme offers a significant financial incentive for MSMEs to adopt solar power. Eligible units can receive a capital subsidy of 25% on their investment in setting up a Solar Power Plant, subject to a maximum limit of ₹50,00,000. This non-repayable subsidy directly reduces the capital expenditure for businesses, making the transition to renewable energy more economically viable. Beyond the direct financial assistance, the scheme acts as a grants facilitation mechanism, guiding MSMEs through the process of availing government support for green initiatives. This benefit helps nurture MSMEs, protects them from market volatilities, and contributes to job creation and women's participation in the business sector.
- Disbursement
- Reimbursement
- Duration
- 60 months
- Bootstrap friendly
- Yes
Timelines & Process
Applications
Rolling basis
Selection Process
Applications are submitted online and reviewed by the District Industries Centre. Eligibility criteria, including unit type, location, commencement of production within the specified window, and solar power consumption percentage, are assessed. The subsidy is provided based on capital investment for eligible solar power plants.
Application Process
- 1
Register Online
Create an account on the official website by providing your details and verifying email and mobile number.
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 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 vagaries, maximize women's participation, reduce unemployment among local residents, and incentivize employment of resident laborers.
What is the specific objective of the 'Assistance For Capital Investment In Solar Power Generation' sub-scheme?
This sub-scheme provides a capital subsidy to eligible industries for capital investment in setting up Solar Power Plants for power generation, encouraging MSMEs to use solar power.
What is the maximum subsidy available under this scheme?
Eligible enterprises can receive a capital subsidy of 25% of their investment, subject to a maximum limit of ₹50,00,000.
Which types of units are eligible for this scheme?
New Manufacturing/Service units or Existing Manufacturing/Service units undertaking Expansion/Diversification in the MSME sector are eligible.
What is the validity period for commercial production to be commenced?
The unit should have commenced commercial production between May 20, 2022, and May 19, 2027.
Is there a deadline to apply after installing a solar power plant?
Yes, enterprises must apply within six months of the generation of solar power from their plant.
Sources
Data on this page is compiled from official program and provider references.
