Investment Promotion Scheme (IPS) for MSME Sector: Incentive for Local Employment

Investment Promotion Scheme (IPS) for MSME Sector: Incentive for Local Employment is a government scheme by the Dept. of Industries, U.T. Administration of Dadra & Nagar Haveli and Daman & Diu. It gives a one-time recruitment incentive to industrial units that hire local residents, and applications stay open till 19th May 2027.

This scheme is a sub-scheme under the wider Investment Promotion Scheme (IPS) for the MSME sector. It was first launched on 3rd July 2015 for a five year period, and the government extended it from 20th May 2022. The department has also moved the online application to the National Single Window System (NSWS) portal, which makes it easier for units to register and apply.

Investment Promotion Scheme (IPS) for MSME Sector: Incentive for Local Employment - Introduction

This scheme acts as a bridge to encourage industrial growth while making sure local citizens get enough job opportunities. It protects businesses from market uncertainties and promotes women's participation while reducing local unemployment. By giving a one-time recruitment incentive, the government encourages units to hire resident labourers and strengthen their workforce.

The scheme is open to new and existing manufacturing or service units in the MSME sector that have taken up expansion or diversification. Commercial production must start between 20th May 2022 and 19th May 2027 for a unit to qualify. The unit must be physically located within the U.T. of Dadra & Nagar Haveli and Daman & Diu.

Applications are accepted through the official Single Window Portal and the National Single Window System (NSWS) under the District Industries Centre section. For any help, the District Industries Centre can be reached by phone or email.

Key Information

Benefits

Eligible units can receive a recruitment incentive of ₹3,00,000 per 20 local employees hired, up to a maximum total incentive of ₹15,00,000 for each unit. This cash benefit is paid once, and it rewards units that create direct jobs for local residents of the U.T.

Eligibility

To qualify for this incentive, a unit should meet these conditions:

1. The unit should be a new or existing manufacturing or service unit in the MSME sector that has undertaken expansion or diversification.
2. The unit should have officially started commercial production between 20th May 2022 and 19th May 2027.
3. The business must be physically located within the U.T. of Dadra & Nagar Haveli and Daman & Diu.
4. The employees being claimed for must hold a valid Domicile certificate of the U.T.
5. The recruited staff should be over 18 years of age.

Application Process

Online Registration

Follow these steps to register the unit on the portal:

STEP 1 - Visit the official registration portal and fill in the required details.

STEP 2 - Click on "Register" and verify the email address using the link sent to the inbox (check the spam folder if it is not visible).

STEP 3 - Use the provided link to activate the account, then enter "111111" as the OTP to verify the mobile number.

STEP 4 - Once verified, the login credentials will be sent to the registered email.

Application Submission

STEP 1 - Log in to the official user portal using the registered mobile number and PIN.

STEP 2 - Select the "Departments & Services" tab from the left-hand menu.

STEP 3 - Navigate to "District Industries Centre DD & DNH" and select the link to apply for the "Investment Promotion Scheme: 2022 to 2027".

STEP 4 - Fill out the "Common Application Form", make sure all information is accurate, and upload the required documents.

STEP 5 - Review the entries carefully and click "Submit" to finish the application.

The department has also moved the online application to the National Single Window System (NSWS) portal, where the same scheme can be applied for online. For assistance, contact the District Industries Centre at 0260-2260871 or 0260-2260310 or email dic-dd@nic.in.

Documents

Keep digital copies of the following documents ready for the application:

1. Corporate Identification Number (CIN) document.
2. Taxpayer Identification Number (TIN) document.
3. Permanent Account Number (PAN) document.
4. Goods and Services Tax (GST) documentation.
5. Any other relevant business registration documents.
6. Copy of Udyam Registration or Industrial Entrepreneur Memorandum.
7. Partnership deed or Certificate of Incorporation/Memorandum of Association.
8. Land purchase deed or a registered lease agreement valid for at least 5 years.
9. Sanction order from the Electricity Department along with a recent bill.
10. Authorization letter.
11. Consent to Operate certificate from the Pollution Control Committee.
12. Factory license copy.
13. A signed undertaking as prescribed.
14. Detailed payment records for local employees from the last year.
15. Domicile certificates of all local employees.

References

Detailed Guidelines | Frequently Asked Questions | NSWS Scheme Page

FAQ's

What happens if an industry retrenches a local employee?

If a local employee is retrenched without prior permission from the Industries Department, the incentives received will be recovered from the unit.

Who monitors compliance?

The Industries Department monitors the employment of local persons for the first five years and may coordinate with the Labour Department to make sure scheme rules are followed.

What is the primary purpose of this scheme?

This scheme promotes the recruitment of local residents from the U.T. of Dadra & Nagar Haveli and Daman & Diu by incentivizing new direct employment opportunities.

What specific payment records are required?

Clear payment records for local employees over the last year, along with their domicile verification, should be submitted to prove eligibility.

What if my enterprise is transferred to a new owner?

If an enterprise is sold or transferred within the first five years, the new owner can claim the remaining benefits for the unexpired portion of the term.

How is 'Expansion/Diversification' defined?

This refers to an enterprise increasing its investment by at least 50% compared to its baseline investment in plant and machinery. Only one expansion project is eligible for assistance.

How can I apply?

Apply through the Single Window Portal or the NSWS portal under the District Industries Centre section.