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, and make them vibrant and successful, thereby making the U.T. a Special Hub for the MSME sector. It also focuses on maximizing women's participation, reducing unemployment, and incentivizing local labor.

What specific financial assistance is offered under the "Financial Assistance To Cottage Industries" sub-scheme?

This sub-scheme provides a capital subsidy of 25% of the term loan amount, up to a maximum of ₹5,00,000, for setting up a cottage industry. It also offers a 50% interest subsidy on the interest charged by banks/NBFCs for up to 5 years from the date of production commencement.

What is the maximum loan amount eligible for benefits under this scheme?

The maximum limit for the Bank Loan that qualifies for these subsidies is ₹20,00,000.

What are the age and educational eligibility criteria for applicants?

Applicants must be above 18 years of age and have passed a minimum of the Fourth (IV) standard.

What kind of experience or training is required for eligibility?

Applicants should have either undergone training for a minimum of one month from Government of India recognized Institutes in their proposed business area, or have a minimum of 1 year of experience in the same activity, or be a hereditary craftsperson.

Investment Promotion Scheme (IPS) For Cottage Industries: Financial Assistance To Cottage Industries

The "Financial Assistance To Cottage Industries" is a pivotal sub-scheme under the broader "Investment Promotion Scheme (IPS)" for Cottage Industries. Initially launched on July 3, 2015, for a five-year term, it has been extended by the Department of Industries, U.T. Administration of Dadra & Nagar Haveli and Daman & Diu, and will remain operative until May 19, 2027. The overarching objective of the IPS is to deliver incentives and assistance to the MSME Sector, enabling them to thrive amidst market challenges and contribute to a vibrant economy. This initiative aims to transform the Union Territory into a Specialized Hub for MSMEs, enhance women's engagement in business, mitigate local unemployment, and encourage the hiring of resident labor. Specifically, this sub-scheme is designed to offer critical financial assistance to cottage industries by subsidizing term loans secured through various financial institutions, including Nationalized, Cooperative, Public Sector, and Private Banks.

The scheme outlines a clear online registration and application submission process. While detailed selection criteria beyond initial eligibility are not explicitly described, applications will likely undergo review by the District Industries Centre, DNH & D&D, to ensure compliance with all stated eligibility requirements and document completeness. Eligible applications will then proceed to sanction and disbursement of the specified subsidies.

The scheme provides significant financial assistance to cottage industries. Key benefits include a capital subsidy of 25% of the term loan amount, capped at ₹5,00,000/-, specifically for setting up new units. An additional 10% capital subsidy is available for Scheduled Castes, Scheduled Tribes, women, or differently-abled individuals with 30% or more disability, making the total capital subsidy up to 35% for these groups. Furthermore, an interest subsidy of 50% on the interest charged by banks or NBFCs will be reimbursed for a period of up to 5 years from the date of commencement of production. The maximum term loan eligible for these benefits is ₹20,00,000/-.

Investment Promotion Scheme (IPS) For Cottage Industries: Financial Assistance To Cottage Industries

Investment Promotion Scheme (IPS) For Cottage Industries: Financial Assistance To Cottage Industries

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