Investment Promotion Scheme (IPS) for Textile Sector: Assistance Of Interest Subsidy For Textile Sector
By Department of Industries, UT Administration of Dadra and Nagar Haveli and Daman and Diu
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Quick Answer
An interest subsidy scheme under the Investment Promotion Scheme for MSME sector in Dadra & Nagar Haveli and Daman & Diu, offering up to ₹70 lakh annually for eligible textile manufacturing units.
- Funding amount
- Up to ₹70L
- Funding type
- Subsidy
- Application deadline
- 203d — 19 May 2027
- Eligible stage
- Revenue
- Registrations needed
- Udyam registration
About this subsidy
The Investment Promotion Scheme (IPS) for the MSME Sector, launched by the Department of Industries, U.T. Administration of Dadra & Nagar Haveli and Daman & Diu, is a strategic initiative aimed at bolstering the region's textile industry. This particular sub-scheme, "Assistance Of Interest Subsidy For Textile Sector", seeks to transform the Union Territory into a specialized hub for various textile segments, including technical textiles, fabrics, carpets, garments, apparels, and the manufacturing of textile machinery and medical fabrics. Originally introduced in 2015 and recently extended until May 2027, the scheme plays a crucial role in promoting industrial growth, fostering innovation within the textile value chain, and addressing local socio-economic challenges.
A primary objective of the IPS is to stimulate economic activity by offering significant incentives to new and expanding manufacturing and service units within the MSME textile sector. Beyond direct industrial growth, the scheme also aims to maximize women's participation in business, create employment opportunities for local residents, and encourage industries to employ resident laborers. By providing a credit-linked interest subsidy, the administration directly reduces the financial burden on eligible units, making it more attractive for businesses to invest, expand, and contribute to the region's industrial ecosystem. This targeted support is designed to enhance competitiveness, promote technological adoption, and ensure sustainable development within the vibrant textile landscape of Dadra & Nagar Haveli and Daman & Diu. The scheme is a testament to the government's commitment to creating a conducive environment for industrial prosperity and job creation in the Union Territory.
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
- Up to ₹70L
What You Get
Eligible textile units can receive a substantial 60% interest subsidy on the interest charged by their bank, capped at ₹60,00,000 per annum. This subsidy is provided for a period of 5 years or until the full repayment of the loan, whichever comes first, significantly easing the financial strain associated with credit. For export-oriented carpet industries, there's an additional incentive: a 10% extra subsidy, increasing their total annual ceiling to ₹70,00,000. This enhanced support specifically targets industries contributing to India's export economy, recognizing their role in generating foreign exchange and promoting global competitiveness. The scheme ensures that businesses can invest in expansion, diversification, or new ventures with reduced interest costs, thereby fostering growth and encouraging greater participation in the textile sector.
- Disbursement
- Tranched
- Duration
- 61 months
- Bootstrap friendly
- Yes
Timelines & Process
Selection Process
The selection process for the Investment Promotion Scheme: Assistance of Interest Subsidy for Textile Sector primarily involves a thorough review of online applications. Once an application is submitted, it undergoes an initial screening by the District Industries Centre (DIC) to ensure all eligibility criteria are met and mandatory documents are provided. Following this, a designated committee, comprising officials from the Department of Industries and other relevant agencies of the U.T. Administration of Dadra & Nagar Haveli and Daman & Diu, will evaluate the application. The committee assesses the unit's compliance with scheme objectives, the validity of the loan details, and the commencement of commercial production. Decisions are made based on the completeness and accuracy of the information provided and adherence to the scheme guidelines. Successful applicants will be notified regarding the approval and disbursement process of the interest subsidy.
Application Process
- 1
Register Account
Visit the official Single Window Portal registration page and provide the required information to create an account.
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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
Q: Who is eligible for the Interest Subsidy Scheme?
A: The scheme is open to new manufacturing/service units or existing units undertaking expansion/diversification in the MSME textile sector, located in Dadra & Nagar Haveli and Daman & Diu, that commenced commercial production between May 20, 2022, and May 19, 2027.
Q: What is the maximum interest subsidy I can receive?
A: Standard eligible units can receive up to ₹60,00,000 per annum, while export-oriented carpet industries can receive an additional 10% subsidy, capping their annual benefit at ₹70,00,000.
Q: For how long is the interest subsidy provided?
A: The subsidy is provided for a period of 5 years or for the duration of the loan repayment, whichever is earlier, from the date of commencement of commercial production.
Q: What types of textile industries are covered under this scheme?
A: The scheme covers various specialized textile sectors including Technical textiles, Fabrics, Carpets, Garments, Apparels, and Industries manufacturing Textile Machinery and Medical Fabrics.
Q: Is there a deadline to apply for this subsidy?
A: Yes, eligible units must apply online within one year from the date of commencing commercial production. The overall scheme is operative till May 19, 2027.
Q: What documents are typically required for the application?
A: Mandatory documents generally include Udyam registration certificate, proof of commercial production commencement, bank loan sanction letter, interest payment certificates from the bank, project report, and other relevant business registration and financial documents.
Sources
Data on this page is compiled from official program and provider references.
