Investment Promotion Scheme (IPS) for MSME Sector: Assistance of Fixed Capital Investment Subsidy

Investment Promotion Scheme (IPS) for MSME Sector: Assistance of Fixed Capital Investment Subsidy serves businesses in Dadra & Nagar Haveli and Daman & Diu by offering financial support for Gross Fixed Capital Investment. This scheme helps micro, small, and medium enterprises grow by providing a percentage-based subsidy on their qualified capital investments, and the department has moved the online application to the National Single Window System (NSWS) portal.

Investment Promotion Scheme (IPS) for MSME Sector: Assistance of Fixed Capital Investment Subsidy - Introduction

Investment Promotion Scheme (IPS) for MSME Sector: Assistance of Fixed Capital Investment Subsidy is a dedicated scheme by the Department of Industries, U.T. Administration of Dadra & Nagar Haveli and Daman & Diu. This scheme aims to boost the local industrial landscape by providing essential financial support to MSMEs for their investments in Gross Fixed Capital (GFCI).

Launched on 3rd July 2015, this scheme has been extended and remains open for applications until 19th May 2027. It encourages entrepreneurship and local employment by making it easier for businesses to establish or expand their operations.

Objective of the scheme:

This scheme helps nurture the MSME sector by protecting it from market challenges. It focuses on maximizing women's participation in business, reducing unemployment for local residents, and encouraging companies to hire resident labor.

Objective of the Assistance of Fixed Capital Investment Subsidy:

Eligible industries get a capital investment subsidy based on their investments in Gross Fixed Capital, making it easier for new founders to scale their manufacturing or service units.

Key Information

Benefits

The scheme provides significant financial relief for growing businesses:

Note: If your eligible GFCI exceeds ₹10,00,00,000, you will get an additional ₹10,00,000.

Eligibility

To qualify for this subsidy, you should meet the following criteria:

• You should be running a new or existing manufacturing or service unit in the MSME sector that is undergoing expansion or diversification.
• Your unit should have commenced commercial production between 20th May 2022 and 19th May 2027.
• Your enterprise must be located within the U.T. of Dadra and Nagar Haveli and Daman and Diu.
• You should commit to remaining in production for at least 5 years from your commercial production date.
• Your facility must follow all pollution control measures prescribed by the PCC or another competent authority.
• You should submit your application within one year from the date of the first loan disbursement or your commercial production date.

Exclusions

Please note that your enterprise will not be eligible for this Capital Investment Subsidy if your term loan is sanctioned more than one year after your commercial production commencement date.

Application Process

The department has shifted the online application for Investment Promotion Scheme 2022-2027 to the National Single Window System (NSWS) portal. Earlier the process ran through the state EODB single window portal, and that portal still hosts the registration and login services.

STEP 1 - Go to the NSWS portal page for Dadra and Nagar Haveli and Daman and Diu and create your account or log in with your existing details.

STEP 2 - Find the Investment Promotion Scheme 2022 to 2027 service link and open the application form from the list of state services.

STEP 3 - Fill out the Common Application Form with your business details and provide the required registration information like unit type, investment amount and commercial production date.

STEP 4 - Upload the required documents in the format asked by the portal and review everything carefully.

STEP 5 - Submit your application and keep a note of the reference number for tracking the status later.

Need Help? Contact the District Industries Centre at 0260-2260871 or 0260-2260310. For portal issues, email ddegs-dd@nic.in or call 0260-2231885.

Documents

Keep these documents ready for your online application process:

• Corporate Identification Number (CIN)
• Taxpayer Identification Number (TIN) and Permanent Account Number (PAN)
• Goods and Services Tax (GST) registration
• Udyam Registration or Industrial Entrepreneur Memorandum
• Partnership deed/Registration certificate OR Memorandum & Articles of Association
• Land purchase deed or registered lease agreement (minimum 5-year requirement)
• Electricity supply sanction order and latest bill
• Pollution Control Committee consent to operate and factory license
• Signed undertaking: Download here

References

Official Guidelines PDF

Frequently Asked Questions PDF

Apply on NSWS portal

FAQ's

What happens if the enterprise is transferred?

If a new enterprise is sold or transferred within the first 5 years, the new owner can claim the remaining benefit for the unexpired portion of the term.

What defines expansion or diversification?

It means your enterprise increases investment by at least 50% of the existing GFCI, with at least 60% of that new investment going toward plant and machinery.

How is Gross Fixed Capital Investment (GFCI) defined?

For manufacturing, it includes investments in buildings, plant, machinery, and tools/equipment. For the service sector, it excludes land and building costs.

What if I fail to continue production for 5 years?

You must maintain production for 5 years from your start date. Failure to do so will result in the recovery of the disbursed subsidy as arrears of land revenue.

Can I use machines I already bought?

No, only new machinery is eligible for the subsidy benefits.