Investment Promotion Scheme by Bullit | MSME Incentives

Investment Promotion Scheme

Investment Promotion Scheme.webp

The Investment Promotion Scheme (IPS) 2022 for Dadra & Nagar Haveli and Daman & Diu is designed to give MSME business owners like you a strong head start. With a range of subsidies, incentives, and support, this scheme can help you set up, expand, or modernize your business, making entrepreneurship in the region more rewarding and less risky.

In this Scheme:

The Investment Promotion Scheme (IPS) 2022 is a special program started by the U.T. Administration of Dadra & Nagar Haveli and Daman & Diu to help small and medium businesses like yours grow and succeed. Since 3rd July, 2015, the government has been giving financial help and other support to new businesses, as well as those looking to expand, update, or diversify their operations. 

The main aim is to make the region a great place for industries by encouraging sustainable growth, creating more jobs, and boosting exports. The scheme also supports new ideas, and skill development, and makes it easier for you to get the guidance and approvals needed to run your business smoothly.

What is the Investment Promotion Scheme (IPS)?

The Investment Promotion Scheme (IPS) 2022 is a comprehensive support program for MSMEs and select industries in Dadra & Nagar Haveli and Daman & Diu. This scheme, valid for five years, builds on the earlier IPS-2015 and provides a wide range of incentives to help businesses like yours thrive in a competitive environment.

Objectives of the Investment Promotion Scheme

  • The scheme is designed to make your business more competitive and resilient in changing markets.
  • It encourages investment in key sectors such as Furniture, Marble, IT & ITeS, Electric Vehicles & Spare Parts, Toys and Semi-Conductor Industries Sector, Medical Equipment and Accessories, Medical diagnostics and AYUSH Products, Vaccine Manufacturing units, Food Processing, and Marine Products.
  • Doubling the export value of processed products is a major goal, positioning the region as a manufacturing hub.
  • Environmental protection and resource conservation are promoted through specific incentives.
  • Local employment generation is a priority, with special encouragement for hiring resident labour.
  • Women’s participation in entrepreneurship is maximized through additional incentives.
  • First-generation entrepreneurs and youth are empowered to develop their business skills.
  • Innovation, research and development, and quality certification are actively supported.

Key Features of the Investment Promotion Scheme

  • The scheme is valid for five years from May 2022 to 2027.
  • Interest subsidies are available on term loans, reducing your financial burden.
  • Both new and existing units undertaking significant expansion or diversification can benefit.
  • Special incentives are provided for women, youth, and differently-abled entrepreneurs.
  • Export-oriented units can access rewards for doubling their export value and reimbursement of Free On Board (FOB) expenses.
  • Assistance is available for obtaining quality certifications, patents, and trademarks.
  • Incentives are provided for adopting energy and water conservation technologies.
  • Support is offered for skill development, entrepreneurship training, and SME exchange listing.
  • Participation in national and international industrial fairs is encouraged through financial assistance.

Financial Assistance Offered Under the IPS Scheme

Scheme Code & Name

Financial Assistance Offered

A.1 Fixed Capital Investment Subsidy

15% subsidy on eligible fixed capital investment (excluding land). 

 

Upper limits: 

  • Micro - ₹15 lakh
  • Small - ₹30 lakh
  • Medium - ₹35 lakh

 

If the eligible Gross Fixed Capital investment (GFCI) is over ₹10 crore, an additional ₹10 lakhs will be given.

A.2 Interest Subsidy

Interest subsidy at the rate of 50% of interest charged by the Bank with an upper ceiling of ₹30 lakhs per annum for a period of 5 years

A.3 Quality Certification

Get 50% reimbursement on certification fees (like BIS, ISI, WHO, GMP, Hallmark, etc.), and testing equipment costs, up to ₹10 lakh.

A.4 Patent/Trademark Registration

75% reimbursement on patent/trademark costs, max ₹25 lakh per applicant.

A.5 ZED Certification

50% reimbursement (after GOI support) on ZED certification charges, up to ₹1 lakh per unit.

A.6 Energy & Water Saving

75% reimbursement for energy/water audit (up to ₹1 lakh) and 25% for recommended equipment (up to ₹20 lakh, one-time).

A.7 Skill Development/Entrepreneurship

Get 75% of course fees reimbursed, up to ₹1.5 lakh per course for up to 20 people per year, for approved entrepreneurship or skill training.

A.8 SME Exchange Listing

A one-time 25% reimbursement on SME Exchange fundraising expenses, up to ₹5 lakh, after successful equity raising.

A.9 Doubling of Export Values

1% of export value (up to ₹20 lakh) is reimbursed for doubling exports; women entrepreneurs get 2% (up to ₹30 lakh).

A.10 Reimbursement of FOB Expenses

20% FOB value reimbursed, up to ₹20 lakh per year for 3 years, on export of food or marine processed products.

A.11 Solar Power Generation

25% subsidy on solar power plant investment, up to ₹50 lakh (one-time benefit per enterprise).

A.12 Participation in Industrial Exhibitions Abroad

50% subsidy on space rent for overseas industrial exhibitions, up to ₹2 lakh per event.

A.13 Incentives for Local Employment

₹3 lakh for every 20 local recruits (with domicile certificate), up to a maximum of ₹15 lakh per unit.

A.14 Awards for MSMEs

Awards for outstanding MSMEs, up to ₹2 lakh per award.

B.1 Textile Sector Interest Subsidy

60% interest subsidy (up to ₹60 lakh/year for 5 years) for textile units; export-oriented carpet industry gets an extra 10% (up to ₹70 lakh/year).

C.1 Furniture Sector Assistance

  • 20% subsidy on automation machinery and related equipment, up to ₹50 lakh.
  • 60% interest subsidy on loans, up to ₹50 lakh/year for 5 years.
  • 20% subsidy on showroom setup costs (max ₹50 lakh) or 25% on showroom rent for 3 years (min 2000 sq. ft.).
  • 50% subsidy on space rent for international exhibitions, up to ₹5 lakh.
  • 50% of the course fee for modern furniture training (max ₹75,000/person, up to 5 persons per course).
  • Power rate incentive: ₹1/unit for 1 year, up to ₹50 lakh.

C.2 Assistance for Marble, IT & ITeS, Electric Vehicles, Toys, Semiconductor

  • 20% capital subsidy (up to ₹50 lakh/unit) for Marble, IT & ITeS, EV & Spare Parts, Toys, and Semiconductor units.
  • Large semiconductor units: 15% capital subsidy (up to ₹7.5 crore).
  • 60% interest subsidy (up to ₹50 lakh/year for 5 years) for all above sectors.

C.3 Medical Equipment, Diagnostics, AYUSH

  • 20% capital subsidy (up to ₹50 lakh/unit).
  • 60% interest subsidy (up to ₹50 lakh/year for 5 years) for medical equipment, diagnostics, and AYUSH product units.

C.4 Food Processing Industries

  • 60% interest subsidy (up to ₹50 lakh/year for 5 years) for food processing units.
  • Extra 10% subsidy for units in dedicated food processing industrial parks.

C.5 Marine Products Processing

60% interest subsidy (up to ₹50 lakh/year for 5 years) for marine products processing units.

C.6 Vaccine Manufacturing Units

  • 70% interest subsidy (up to ₹60 lakh/year for 5 years) for vaccine manufacturing units.
  • 15% capital subsidy, up to ₹10 crore.

D.1 Reimbursement of Stamp Duty

  • 50% stamp duty reimbursement for MSMEs.
  • 25% for non-MSMEs.
  • 100% for industrial complexes in Thrust sectors.
  • Reimbursement after land purchase and 25% infrastructure development.
  • Units in industrial parks: 50% stamp duty reimbursement on plot purchase.

D.2 Environment Protection Infrastructure Subsidy

Up to ₹30 lakh or 25% of capital cost (whichever is less) for setting up ZLD, effluent, or hazardous waste treatment facilities.

E.1 Handicrafts & Handloom Artisans – Machinery/Raw Material

50% subsidy on machinery and working capital loans (up to ₹2 lakh each). Extra 10% subsidy for SC/ST, women, and differently abled (30%+ disability).

E.2 Upliftment of Artisans/Persons

Financial assistance to the 27 professions will be given after inspection and the estimated cost of their toolkit

E.3 Cottage Industries

  • Max bank loan: ₹20 lakh
  • 25% capital subsidy on term loan (up to ₹5 lakh); extra 10% for SC/ST, women, and differently abled (30%+ disability)
  • 50% interest subsidy for 5 years

Note:

For a detailed sector-wise understanding of schemes and the financial assistance provided refer to the official gazette.

Eligibility Criteria for Investment Promotion Scheme

Eligibility 

You are eligible if:

  • You are setting up a new manufacturing or service unit in the U.T. of Dadra & Nagar Haveli and Daman & Diu.
  • Your existing unit is undertaking expansion or diversification with at least a 50% increase in gross fixed capital investment.
  • Your unit starts commercial production during the operative period of the scheme.
  • Your unit is located within the U.T. of Dadra & Nagar Haveli and Daman & Diu.
  • You have obtained Udyam Registration (as per MSME Act, 2006 and amendments).

Non-eligibility

You are NOT eligible if:

  • Your unit is not located in the U.T. of Dadra & Nagar Haveli and Daman & Diu.
  • You do not have a separately identifiable fixed capital investment for new projects.
  • Your expansion/diversification does not meet the minimum investment criteria.
  • You fail to meet other specific conditions mentioned in the scheme notification.

Documents Required for Investment Promotion Scheme

  • Copy of Udyam Registration or Industrial Entrepreneur Memorandum (as applicable)
  • Permanent Account Number (PAN) document
  • Goods and Services Tax (GST) registration certificate
  • Taxpayer Identification Number (TIN) document
  • Corporate Identification Number (CIN) document
  • Copy of Partnership Deed and Firm Registration Certificate (for partnership firms)
  • Memorandum & Articles of Association and Certificate of Incorporation (for Public/Private Limited companies)
  • Copy of land purchase deed signed by the applicant (if your business is on owned land)
  • Registered lease agreement for at least 5 years from the start of production (if operating on leased land/building)
  • Copy of sanction order from Electricity Department for power supply, along with the latest electricity bill
  • Copy of Factory License
  • Copy of Consent to Operate or Renewal from Pollution Control Committee (PCC), DNH & DD (as per applicable notification)
  • Authorization letter
  • Any other relevant registrations or licenses for your business
  • Undertaking (as required by the authorities)

How to Apply for the Investment Promotion Scheme?

Step 1: Register on the official website and fill in the details to get login information.

Step 2: Log in using your registered mobile number and the PIN you received on your email, then click “Log In”.

Step 3: After logging in, click on the “Departments & Services” tab from the left-side menu.

Step 4: Scroll down to find “District Industries Centre DD & DNH” and click the “Click Here” button to apply for “Investment Promotion Scheme: 2022 to 2027 (20 May 2022 to 19 May 2027)”.

Step 5: The “Common Application Form” will open. Fill in all the required details and upload the necessary documents.

Step 6: Double-check all the information you’ve entered. Once you’re sure everything is correct, click the “Submit” button to complete your application.

Note:

If you need any help, you can contact the District Industries Centre at 0260-2260871 / 0260-2260310 or email dic-dd@nic.in. For technical support on the Single Window Portal, call 0260-2231885 / 2231886 or email ddegs-dd@nic.in.

Benefits of the Investment Promotion Scheme

  • Boosts Your Capital
    The fixed capital investment subsidy reduces the financial pressure of setting up or expanding your business, allowing you to allocate funds to other important areas.
  • Reduces Interest Burden
    Interest subsidies on term loans lower your monthly repayments, freeing up cash flow for daily operations and growth.
  • Encourages Quality and Innovation
    Support for certifications and patents helps you improve your product standards, making your business more attractive to customers and partners.
  • Promotes Exports
    Export incentives and reimbursement of shipping costs make it easier for your business to enter and compete in global markets.
  • Supports Skill Development
    Training and skill development programs help you build a more capable and efficient workforce, increasing productivity and innovation.
  • Special Support for Women and Youth
    Additional incentives for women and young entrepreneurs create more opportunities for underrepresented groups, encouraging diversity in business leadership.

Real-World Examples of Investment Promotion Scheme

  • MSME Furniture Manufacturer Availing Capital Subsidy
  • Food Processing Unit Receiving Export Incentives
  • Textile Unit Benefiting from Energy Conservation Incentives
  • Women-Led Startup Accessing Interest Subsidy

Scheme Name

How It Links with IPS

MSME Export Subsidy Scheme

This scheme works alongside IPS to boost your export capabilities by offering additional export-related incentives.

Credit Guarantee Fund Scheme

When combined with IPS interest subsidies, it makes it easier for you to access loans and reduce financial risk.

Technology Upgradation Fund

You can pair this with IPS quality and technology incentives to modernize your business and stay competitive.

Skill India Mission

Skill development support from IPS complements the training and upskilling opportunities provided by Skill India.

Final Words

If you’re ready to take your business to the next level, the Investment Promotion Scheme 2022 is your launchpad. Imagine setting up a business with the government’s backing, less financial stress, more innovation, and a clear path to growth. Whether you’re just starting out or looking to scale up, this scheme can help you unlock new possibilities and compete with the best.

Don’t miss out on this opportunity to make your mark in Dadra & Nagar Haveli and Daman & Diu!