Investment Promotion Scheme (IPS) for Thrust Sectors: Assistance For Furniture Sector
By Department of Industries, UT Administration of Dadra and Nagar Haveli and Daman and Diu
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Quick Answer
Subsidies and reimbursements for furniture manufacturing and service MSMEs in Dadra & Nagar Haveli and Daman & Diu under the Investment Promotion Scheme (IPS).
- Funding amount
- ₹75,000 – ₹2.5Cr
- Funding type
- Subsidy
- Application deadline
- Rolling
- Registrations needed
- Udyam registration
About this subsidy
This sub-scheme of the Investment Promotion Scheme (IPS) is for furniture manufacturing and service enterprises in Dadra & Nagar Haveli and Daman & Diu. The Department of Industries of the U.T. Administration set it up on July 3, 2015, and it now runs to May 19, 2027. Plastic, Steel, Brass, Metal, Cane, Wooden, Bamboo, Fibre Glass and Marble furniture are Thrust Sectors.
New MSME manufacturing or service units, and existing units expanding or diversifying, can apply if they began commercial production between May 20, 2022 and May 19, 2027. Apply online within one year of starting commercial production.
You get a 20% capital investment subsidy, up to ₹50,00,000, and a 60% credit-linked interest subsidy per annum, up to ₹50,00,000 per annum for up to 5 years or the loan period, whichever is earlier. Other support covers power at ₹1 per unit for one year, foreign exhibition rent, training course fees and showrooms.
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
- ₹75,000 – ₹2.5Cr
What You Get
The "Assistance For Furniture Sector" scheme provides a comprehensive package of subsidies and reimbursements designed to support various aspects of furniture enterprises:
- Capital Investment Subsidy: Enterprises can receive a 20% subsidy, capped at a maximum reimbursement of ₹50,00,000, for their capital investments. This aims to reduce the initial financial outlay for setting up or expanding manufacturing units.
- Credit Linked Interest Subsidy: To alleviate debt financing costs, the scheme offers a 60% interest subsidy per annum, limited to a maximum of ₹50,00,000 per annum for up to 5 years, or the period of loan repayment, whichever is earlier. This significant support makes borrowing more affordable for growth.
- Space Rent Subsidy: For promoting market access, a 50% subsidy is provided on actual rent paid for participation in industrial exhibitions in foreign countries, capped at ₹5,00,000. This helps local businesses showcase their products globally.
- Reimbursement on Course Fee: Recognizing the importance of skilled labor, 50% of course fees, up to ₹75,000 per person, will be reimbursed for training in modern furniture manufacturing at reputed institutions. This is available for a maximum of 5 persons per industry course, fostering skill development.
- Power Rate Incentive: A reimbursement of ₹1 per unit on power consumption is offered for one year, up to a maximum of ₹50,00,000, from the date of commencement of production. This reduces operational costs for new or expanding units.
- Reimbursement on Showroom Establishment:
- For owned showrooms, a 20% reimbursement is provided, capped at ₹50,00,000.
- For rented showrooms, 25% of the actual rent is reimbursed for 3 years, provided the showroom has a minimum size of 2000 square feet. These incentives help businesses establish strong retail presence.
- Disbursement
- Reimbursement
- Bootstrap friendly
- Yes
Timelines & Process
Applications
Rolling basis
Selection Process
While the specific detailed selection criteria are not explicitly outlined, the general process involves a thorough review of the submitted online applications. Following the submission, applications are likely screened by the District Industries Centre (DIC) or a designated committee from the Department of Industries. This committee assesses each application against the eligibility criteria, including the unit's operational status, location, and adherence to the scheme's objectives. Decisions are typically made based on the completeness of the application, the alignment of the enterprise's activities with the identified thrust sectors, and the potential impact on local employment and economic development. Successful applicants will then proceed to receive the approved subsidies and reimbursements.
Application Process
- 1
Register on Portal
Visit the registration page, provide details, and verify email/mobile 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
Q: What is the primary objective of the Investment Promotion Scheme (IPS) for the Furniture Sector?
A: The main objective is to provide a significant boost to specialized furniture sectors in Dadra & Nagar Haveli and Daman & Diu, aiming to establish the U.T. as a dedicated furniture hub. It also focuses on increasing women's participation in business and reducing local unemployment.
Q: What types of benefits can an eligible furniture enterprise receive under this scheme?
A: Eligible enterprises can receive various subsidies and reimbursements, including Capital Investment Subsidy, Credit Linked Interest Subsidy, Space Rent Subsidy for foreign exhibitions, Reimbursement on Course Fees for training, Power Rate Incentives, and reimbursements for the establishment of owned or rented showrooms.
Q: What are the key eligibility criteria for an enterprise to apply?
A: The enterprise must be a new or expanding MSME unit in the furniture sector, have commenced commercial production between May 20, 2022, and May 19, 2027, be located in Dadra & Nagar Haveli and Daman & Diu, and apply within one year from its date of eligibility.
Q: Is there a maximum limit to the total financial assistance an enterprise can receive?
A: While individual subsidies have specific maximum limits (e.g., ₹50 lakh for Capital Investment, ₹50 lakh per annum for Credit Linked Interest Subsidy), the Credit Linked Interest Subsidy alone can amount to up to ₹2.5 crore over 5 years, indicating substantial overall potential support.
Q: How does the application process work, and where can I apply?
A: The entire application process is online, starting with registration on the Single Window Portal (swp.dddgov.in/registration), followed by logging in and completing the "Common Application Form" under the District Industries Centre section.
Q: Does this scheme require DPIIT Startup India recognition or Udyam MSME registration?
A: The scheme explicitly targets the MSME sector, implying that Udyam MSME registration is a prerequisite for eligibility. DPIIT Startup India recognition is not explicitly mentioned as a requirement.
Sources
Data on this page is compiled from official program and provider references.
