Investment Promotion Scheme (IPS) for MSME Sector: Incentive For Local Employment
Department of Industries, UT Administration of Dadra and Nagar Haveli and Daman and Diu · Central government
Dadra & Nagar Haveli and Daman & Diu MSMEs hiring local residents can get a one-time recruitment incentive of up to ₹15 lakh.
Open for applications. Applications close on 19 May 2027 — 240 days left.
Key facts
- Subsidy amount
- ₹3,00,000 – ₹15,00,000
- Instrument
- Subsidy
- Deadline
- 19 May 2027
- Disbursement
- Single lump sum
- Scheme duration
- 5 years
About this scheme
The Investment Promotion Scheme (IPS) for the MSME Sector operates in the Union Territory of Dadra & Nagar Haveli and Daman & Diu, where it seeks to strengthen the growth and staying power of Micro, Small and Medium Enterprises. It was introduced to cushion businesses against market uncertainty, and its wider goals include building a thriving MSME ecosystem, drawing more women into business, and raising local employment.
One sub-scheme under IPS — 'Incentive For Local Employment' — provides a one-time financial incentive to industrial units that create jobs for residents of the region.
Manufacturing and service units that are newly set up, along with existing units going in for expansion or diversification, are encouraged through this incentive to give local hiring priority. The scheme thereby targets unemployment while spurring economic development across the region.
Who can apply
- Eligible business forms
- Private limited company, Limited liability partnership, One person company, Partnership firm, Sole proprietorship
- Udyam registration
- Not specified
- MSME registration
- Required
- DPIIT startup recognition
- Not specified
- GST registration
- Not specified
- Where the business may be based
- Dadra and Nagar Haveli and Daman and Diu
- Manufacturing or service MSME units, whether new or already operating, that are carrying out expansion or diversification. - Commercial production must have started on or after May 20, 2022, and no later than May 19, 2027. - The unit's location must fall within Dadra & Nagar Haveli and Daman & Diu. - Every employee recruited must be above 18 years of age and hold a Domicile certificate of Dadra & Nagar Haveli and Daman & Diu.
How to apply
**Registration Process:** - Step 1: Go to the Registration page on the Official Website (https://swp.dddgov.in/registration). - Step 2: Fill in the details asked for and press 'Register'. - Step 3: Open the verification link delivered to your inbox to confirm your email address (look in spam if it has not arrived). - Step 4: Either click the verification link or paste it into your browser to finish verifying the account. - Step 5: Use '111111' as the OTP when verifying your mobile number. Your mobile number and PIN will be emailed to your registered address. - Step 6: Once registration succeeds, your login credentials will arrive at your registered email.
**Application Process:** - Step 1: Go to the user Login page on the Official Website (https://swp.dddgov.in/login). - Step 2: Key in your registered Mobile Number and PIN, then press 'Log In'. - Step 3: On the left side menu bar, select the 'Departments & Services' tab. - Step 4: Scroll down to 'District Industries Centre DD & DNH' and press 'Click Here' to apply for 'Investment Promotion Scheme: 2022 to 2027 (20 May 2022 to 19 May 2027)'. - Step 5: Complete the 'Common Application Form' with all the details required and upload the mandatory documents. - Step 6: Check every detail and press 'Submit' to finish the application.
Frequently asked questions
What is the primary objective of the 'Incentive For Local Employment' scheme?
The scheme offers a one-time recruitment incentive to MSME industrial units that create jobs for local residents, with the aim of lowering unemployment and increasing local participation.
Which types of units are eligible for this incentive?
New manufacturing or service MSME units qualify, as do existing manufacturing or service MSME units that are carrying out expansion or diversification.
What is the maximum incentive an eligible unit can receive?
An eligible unit can claim up to ₹15,00,000 as an incentive for providing employment to local persons.
What is the eligibility criterion regarding the commercial production commencement?
Commercial production must have begun between 20 May 2022 and 19 May 2027.
Are there any domicile requirements for the recruited employees?
Yes. Recruited employees must be over 18 years of age and hold a Domicile certificate for the U.T. of Dadra & Nagar Haveli And Daman & Diu.
How can I apply for this scheme?
Apply online via the Single Window Portal of the Dadra & Nagar Haveli and Daman & Diu administration: register first, then complete the scheme's common application form.
Sectors
- Msme
- Employment
- Manufacturing
- Service
- Daman Diu
- Dadra Nagar Haveli
Intended beneficiaries
- Local Communities
Details last verified on 22 September 2026. Source: the issuer's published information.