Investment Promotion Scheme for MSME Sector: Reimbursement of Free on Board Expenses

Investment Promotion Scheme for MSME Sector: Reimbursement of Free on Board (FOB) Expenses helps micro, small, and medium enterprises (MSMEs) reach global markets with less financial pressure. Businesses in the food and marine processing sector across Dadra & Nagar Haveli and Daman & Diu can claim a 20% reimbursement on their FOB export costs to stay competitive in international markets.

This sub-scheme runs under the wider Investment Promotion Scheme (IPS) of the Union Territory. It was first launched on 3rd July 2015 and has been extended to stay operative from 20th May 2022 to 19th May 2027, so eligible exporters can still apply for support in the current operative period.

Investment Promotion Scheme for MSME Sector: Reimbursement of Free on Board Expenses

Managed by the Department of Industries under the Administration of Dadra & Nagar Haveli and Daman & Diu, this scheme lowers export expenses and makes local products more attractive in overseas markets. It focuses on giving direct money relief to exporters in the food and marine processing fields.

Main aims of the scheme:

• Reduce the financial risk for MSME exporters by covering a part of their FOB shipping costs.
• Encourage local industries to join the global supply chain and grow their business.
• Support employment by helping units in the food and marine processing sector expand and hire more local workers.

Key Information

Benefits

Eligible exporters can receive a 20% reimbursement of their total Free on Board (FOB) value. This support is capped at ₹20,00,000 per beneficiary per year for a period of up to 3 years. Food processing units set up in dedicated industrial parks may also get an additional 10% incentive.

Eligibility

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

• It should be a new or existing manufacturing or service unit that goes through significant expansion or diversification within the MSME sector.
• Commercial production should have started between 20-05-2022 and 19-05-2027.
• The facility must be located within the Union Territory of Dadra & Nagar Haveli and Daman & Diu.
• Application should be submitted within six months following 31st March of the relevant preceding financial year.

Application Process

Registration and application are done through the official Single Window Portal of the Union Territory. Follow the steps below to apply.

STEP 1 - Visit the official registration page and fill in your business details in the required spaces, then select Register.

STEP 2 - Verify your email address using the confirmation link sent to your inbox. Check the spam folder if it does not arrive promptly.

STEP 3 - Use the OTP sent to your registered mobile number to confirm your identity. Your login credentials will be delivered to your email.

STEP 4 - Log in to the applicant dashboard using your registered mobile number and PIN, then open the Departments & Services tab on the menu bar.

STEP 5 - Locate the District Industries Centre for your region and choose the option to apply for the Investment Promotion Scheme for the current operative period.

STEP 6 - Fill out the Common Application Form with your business details, upload all required supporting documents, and review the application carefully before submitting it.

Support Desk: For any queries, reach out to the District Industries Centre at 0260-2260871 or 0260-2260310 or email dic-dd@nic.in. For technical issues with the portal, contact 0260-2231885 or email ddegs-dd@nic.in.

Documents

Keep the following documents ready while applying:

• Corporate Identification Number (CIN) or Taxpayer Identification Number (TIN) and Permanent Account Number (PAN).
• Goods and Services Tax (GST) registration certificate and Udyam Registration or Industrial Entrepreneur Memorandum.
• Partnership deed, articles of association, or incorporation certificates, along with a land purchase deed or registered lease agreement for at least 5 years.
• Electricity department sanction order, recent utility bill, authorized signatory letter, and consent to operate from the Pollution Control Committee.
• Valid factory license and completed project undertaking forms.

References

For further reading and official notifications, please refer to the following links:

• Official Scheme Guidelines
• Frequently Asked Questions

FAQ's

Which products qualify for this export subsidy?

Only finished products exported by your unit are eligible for this reimbursement.

What happens if my business changes ownership?

If you transfer or sell your new enterprise within five years of establishment, the new owner can claim the remaining benefits for the unexpired period.

How is 'Expansion or Diversification' defined?

Expansion refers to increasing your investment by at least 50% compared to your original fixed capital, with at least 60% of that new investment dedicated to plant and machinery. You may claim this benefit only once during the scheme period.

Can I apply if my unit is covered under another scheme?

Yes, you can choose the most beneficial scheme, but you cannot claim the same subsidy from multiple sources. You may use complementary schemes if they do not overlap.

Are there extra benefits for food processing units?

Yes, food processing units situated in dedicated industrial parks may receive an additional 10% incentive.

What is the deadline for my application?

You should complete your application process within six months of the 31st March of the previous financial year.