AI SummaryInvestment Promotion Scheme for Thrust Sectors: Scheme for Food Processing Industries is an initiative by the Department of Industries, U.T. Administration of Dadra and Nagar Haveli and Daman and Diu. It supports the establishment and expansion of food processing business entities by providing a credit-linked interest subsidy. This scheme serves as a useful money help for entrepreneurs who want to grow their food processing units within the region.
Investment Promotion Scheme for Thrust Sectors: Scheme for Food Processing Industries - Introduction
Investment Promotion Scheme for Thrust Sectors: Scheme for Food Processing Industries is a dedicated scheme launched by the Department of Industries, U.T. Administration of Dadra and Nagar Haveli and Daman and Diu. It gives an interest subsidy to help you establish or expand your food processing business. It works as a sub-scheme under the larger Investment Promotion Scheme for Thrust Sectors. It was first launched on 3rd July 2015 for five years, then extended on 20th May 2022 and remains open until 19th May 2027.
The scheme aims to boost specialized industrial sectors, encourage women entrepreneurs, reduce local unemployment, and push industries to hire local residents. Through credit-linked interest support, the government helps new and existing food processing units grow. For the 2026-27 period, the scheme continues to accept applications from eligible units in the Union Territory.
Key Information
| Scheme Name | Investment Promotion Scheme for Thrust Sectors: Scheme for Food Processing Industries |
| Level | State |
| Scheme For | Infra |
| Beneficiary States | Dadra & Nagar Haveli and Daman & Diu |
| Category | Business & Entrepreneurship |
| Target Beneficiaries | Business Entity, Industries |
| Sub Category | Setting up or start-up or entrepreneurship |
| Benefit Type | Cash |
| DBT Scheme | No |
| Nodal Department | Department of Industries |
| Open Date | 2015-07-03 |
Benefits
You can get the following financial incentives under this program:
| Benefit Type | Quantum of Subsidy |
|---|---|
| Credit Linked Interest Subsidy | 60% per annum, capped at a maximum of ₹50,00,000 per annum for five years or until the loan is fully repaid. |
| Additional Subsidy | An extra 10% subsidy for units located in dedicated food processing industrial parks. |
For example, if Rohan sets up a food processing unit in a dedicated zone, he may receive the standard subsidy plus an extra boost to cover his borrowing costs, making his expansion much more affordable.
Eligibility
To qualify for this support, you should meet the following criteria:
STEP 1 - Operate as a new or existing manufacturing or service unit within the MSME sector involved in expansion or diversification.
STEP 2 - Make sure your unit commences commercial production between 20th May 2022 and 19th May 2027.
STEP 3 - The business must be located within the U.T. of Dadra and Nagar Haveli and Daman and Diu.
STEP 4 - Submit your application online within one year from the date of the first loan disbursement or before the official commencement of commercial production.
Exclusions
Please note that your enterprise will not be eligible for the interest subsidy if your term loan is sanctioned more than one year after the official date of commencement of commercial production.
Application Process
You should follow these steps to apply for the scheme online:
STEP 1 - Visit the Registration page. Provide your details and click 'Register'. Verify your email using the link sent to your inbox. Use '111111' as the OTP to verify your mobile number. Once registered, you will receive your login credentials via email.
STEP 2 - Log in at the Login portal using your registered mobile number and PIN. Navigate to the 'Departments & Services' menu, find 'District Industries Centre DD & DNH', and select the 'Apply' button for the Investment Promotion Scheme.
STEP 3 - Fill in the 'Common Application Form', upload your mandatory documents, and submit your request for review.
Helpdesk:
If you face technical issues, contact the District Industries Centre at 0260-2260871 or 0260-2260310, or email dic-dd@nic.in. For portal-specific support, call 0260-2231885 or email ddegs-dd@nic.in.
Documents
You should keep the following documentation ready before starting your application:
- Corporate Identification Number (CIN) or Taxpayer Identification Number (TIN), along with your PAN and GST registration.
- Copy of Udyam Registration or Industrial Entrepreneur Memorandum.
- Partnership deed, registration certificate, or Memorandum & Articles of Association as applicable.
- Land purchase deed or a registered lease agreement for at least 5 years.
- Electricity department sanction order and latest bill, plus an authorization letter.
- Copy of 'Consent to Operate' from the Pollution Control Committee and your factory license.
- Signed Undertaking.
References
You can find more official details here:
FAQ's
Are loans sanctioned by banks or financial institutions eligible for subsidy?
Yes, loans sanctioned by banks or financial institutions in accordance with RBI guidelines for industries within the U.T. are eligible for this subsidy.
What is the eligibility criteria for Interest Subsidy?
Your enterprise will not be eligible if the term loan is sanctioned more than one year after your date of commercial production commencement.
When does the Interest Subsidy become effective?
The subsidy begins either from the date of the first loan disbursement or the date of commercial production, whichever is later. You will receive the reimbursement only after commercial production officially commences.
What happens if the Enterprise defaults on payment?
If you become a defaulter on interest payments or loan installments as per RBI guidelines, that specific period of default will be deducted from your subsidy eligibility.
Are penal interest and other bank charges covered?
No, penal interest and additional bank fees are not included or covered by this subsidy.
Is there a minimum interest rate requirement?
Yes, your enterprise must bear at least 2% interest on the term loan provided by the lender.
How is the interest subsidy disbursed?
The government credits the interest subsidy directly to the bank or financial institution that provided your loan.
What happens if the enterprise is sold to a new owner?
If you transfer the ownership within the first five years, the new owner may continue to receive the benefit for the remaining unexpired portion of the five-year term.
What defines expansion or diversification?
Expansion refers to increasing your total investment by at least 50%, with at least 60% of that new investment directed into plant and machinery compared to your initial capital.
What are dedicated industrial parks?
These are exclusive zones for food processing units. If you set up your plant in one of these parks, you are eligible for an additional 10% subsidy.