Investment Promotion Scheme for MSME Sector: Assistance to Small and Medium Enterprises for Raising of Capital Through SME Exchange

Investment Promotion Scheme for MSME Sector: Assistance to Small and Medium Enterprises for Raising of Capital Through SME Exchange is a government scheme that gives one-time reimbursement to MSMEs for the cost of raising funds through an SME exchange. The Department of Industries, U.T. Administration of Dadra & Nagar Haveli and Daman & Diu runs this support under the Investment Promotion Scheme, and it remains open for applications as of August 2026.

The scheme helps small and medium businesses cover a part of the expenses they face when they raise capital on an SME exchange. Eligible units can claim back 25% of that expenditure, up to a maximum of ₹5,00,000, which makes fundraising easier for growing units.

Investment Promotion Scheme for MSME Sector: Assistance to Small and Medium Enterprises for Raising of Capital Through SME Exchange

This sub-scheme works as a dedicated support system under the Investment Promotion Scheme for the MSME sector. The Department of Industries, U.T. Administration of Dadra & Nagar Haveli and Daman & Diu launched this measure on 3rd July 2015. After its first five-year run, the government extended the scheme, and it remains operative from 20th May 2022 until 19th May 2027.

The main aim of this scheme is to support the MSME sector by offering useful incentives. This support helps businesses handle market challenges, encourages more women to take up entrepreneurship, and works to bring down local unemployment by pushing industries to create jobs for local residents.

Under this sub-scheme, a unit that raises capital through an SME exchange during the operative period can claim one-time support for the costs linked to that fundraising process. The support is paid as a cash subsidy to the eligible business entity.

Key Information

Benefits

Eligible units can receive a reimbursement covering 25% of the expenditure incurred for raising funds through an SME exchange. This money help is subject to a maximum cap of ₹5,00,000. The reimbursement is paid once for the fundraising done during the operative period of the scheme.

Eligibility

To qualify for this support, a unit should meet the following criteria:

1. The unit must be a new manufacturing or service unit, or an existing unit undergoing expansion or diversification within the MSME sector.
2. The unit should have started commercial production between 20th May 2022 and 19th May 2027.
3. The enterprise must be physically located within the U.T. of Dadra and Nagar Haveli & Daman and Diu.
4. The application should be submitted within one year from the date of listing on the SME exchange.

Application Process

Application for this scheme is done online through the Single Window Portal. Follow these steps to apply:

STEP 1 - Go to the Registration page on the Single Window Portal and enter your details, then click "Register".

STEP 2 - Verify your email using the link sent to your inbox. Check the spam folder if the mail does not appear, then click the verification link to confirm the account.

STEP 3 - Enter "111111" as the OTP to verify your mobile number. Your login details will be sent to your registered email.

STEP 4 - Log in to the Login page using your mobile number and the PIN received via email.

STEP 5 - Select the "Departments & Services" tab from the left menu, then go to "District Industries Centre DD & DNH" and choose the option to apply for the Investment Promotion Scheme.

STEP 6 - Fill out the "Common Application Form" with accurate information, upload all required documents, review the entries, and click "Submit" to complete the application.

For any help, contact the District Industries Centre at 0260-2260871/2260310 or email dic-dd@nic.in. For technical portal issues, call 0260-2231885 / 2231886.

Documents

Keep the following documents ready before applying:

1. Corporate Identification Number (CIN) document.
2. Taxpayer Identification Number (TIN) document.
3. Permanent Account Number (PAN) card.
4. Goods and Services Tax (GST) registration document.
5. Relevant industry registration documents.
6. Copy of Udyam Registration or Industrial Entrepreneur Memorandum.
7. Partnership deed and firm registration, or Memorandum & Articles of Association and incorporation certificate.
8. Land purchase deed for owned land, or a registered lease agreement for at least 5 years for leased property.
9. Electricity board sanction order and the latest bill.
10. Authorization letter.
11. Consent to Operate or renewal from the Pollution Control Committee.
12. Copy of Factory license.
13. Signed Undertaking.

References

• Official Guidelines
• Frequently Asked Questions
• NSWS Portal for Dadra and Nagar Haveli and Daman and Diu

FAQ's

How is the SME status of an enterprise determined on the date of its listing on an SME Exchange?

The status is assessed based on the classification of the enterprise on the specific date of listing at the SME Exchange.

What happens if a newly setup enterprise is sold to a new owner within the first five years?

If the enterprise is sold or transferred during this five-year period, the remaining incentive benefits are passed to the new owner for the unexpired duration of the scheme.

What is the definition of Expansion or Diversification?

Expansion or Diversification means an enterprise increasing its investment by at least 50% compared to its gross fixed capital on the start date, with at least 60% of this new investment going toward plant and machinery.

How does the department prevent misuse of the subsidy?

Rigorous checking procedures and required document checks are done to make sure only genuine applicants receive the subsidy.

What is the operative period of this scheme?

The scheme is operative from 20th May 2022 to 19th May 2027.

Can an enterprise established in 2023 avail the benefits?

Yes, an enterprise can get benefits from the date of commercial production for a period of five years, even if that timeline extends beyond the official scheme end date.

How can I apply for these benefits?

You can apply online via the Single Window Portal at swp.dddgov.in by selecting the relevant industry department and the Investment Promotion Scheme option.

What is the deadline for submitting an application?

You should apply within six months of completing the required requirements or training as specified in the guidelines.