MySubsidy

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

Department of Industries, UT Administration of Dadra and Nagar Haveli and Daman and Diu · Central government

Capital investment subsidy of up to ₹45 lakh for new or expanding MSMEs in Dadra & Nagar Haveli and Daman & Diu.

Open, rolling. Applications are accepted continuously — there is no deadline.

Key facts

Subsidy amount
Up to ₹45,00,000
Instrument
Subsidy
Deadline
Rolling
Disbursement
Reimbursed after spend
Scheme duration
5 years

About this scheme

The Investment Promotion Scheme (IPS) for the MSME Sector, introduced by the Department of Industries, U.T. Administration of Dadra & Nagar Haveli and Daman & Diu, is designed to support the growth of micro, small, and medium enterprises. First launched in 2015, the scheme has been extended to remain in force until May 19, 2027. Its objectives include shielding MSMEs from market volatility, encouraging greater participation of women in business, lowering local unemployment, and motivating industries to hire resident workers, thereby aiding the socio-economic progress of the Union Territory.

Under the sub-scheme titled "Assistance of Fixed Capital Investment Subsidy," qualifying manufacturing and service units can obtain a capital investment subsidy. This benefit applies to enterprises making investments in Gross Fixed Capital Investment (GFCI), whether they are new units beginning commercial production or existing units pursuing expansion or diversification. The subsidy eases the financial load of capital expenditure, promotes industrial activity, and assists MSMEs in expanding their operations and improving their regional competitiveness.

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

- New Manufacturing/Service unit, or Existing Manufacturing/Service unit undertaking Expansion/Diversification, in the MSME sector. - Commercial production commenced between May 20, 2022, and May 19, 2027. - Unit located in the U.T. of Dadra and Nagar Haveli & Daman and Diu. - Enterprise must remain in production for 5 years from the date of commercial production. - Pollution Control measures as prescribed by PCC or other competent authority must be observed. - Application submitted within one year from the date of the first disbursement of loan, or one year from the date of commencement of commercial production.

How to apply

- **Step 1: Registration** – Go to the registration page on the Single Window Portal. Fill in all required fields and select “Register”. - **Step 2: Email Verification** – Confirm your email address by opening the verification link sent to your registered email. If it is not visible in the inbox, look in the spam folder. - **Step 3: Mobile Verification** – Use “111111” as the OTP to authenticate your mobile number. Your mobile number and PIN will be dispatched to your registered email address. - **Step 4: Login Credentials** – After registration is complete, your login details will be emailed to you. - **Step 5: Login** – Access the user login page on the official website. Enter your registered mobile number and the PIN received via email, then click “Log In”. - **Step 6: Access Application Form** – Once logged in, open the “Departments & Services” tab from the left-side menu. Scroll to “District Industries Centre DD & DNH” and press the “Click Here” button to reach the application for “Investment Promotion Scheme : 2022 to 2027 (20 May 2022 to 19 May 2027)”. - **Step 7: Complete Application** – A “Common Application Form” will appear. Provide all requested details in the fields and attach every mandatory document, which generally includes business registration, financial statements, project reports, and evidence of fixed capital investment. - **Step 8: Submit Application** – After checking all entered information and uploaded files, press the “Submit” button to finish. Ensure adherence to pollution control norms and submit the application within one year of loan disbursement or the start of commercial production.

Apply on the issuer's sitedic-dd@nic.in

How applications are assessed

Applications filed via the Single Window Portal are first checked for completeness and whether they meet the fundamental eligibility conditions. Following this, the Department of Industries carries out a thorough review, examining the type of manufacturing or service operation, the authenticity of the Gross Fixed Capital Investment (GFCI), and alignment with the scheme’s aims. This stage usually involves confirming the date when commercial production began and ensuring compliance with pollution control regulations. Based on these findings, a designated authority or committee gives the final go-ahead for releasing the subsidy.

Frequently asked questions

What is the primary objective of the Investment Promotion Scheme (IPS)?

The IPS offers incentives and assistance to the MSME sector to nurture businesses, shield them from market volatility, boost women’s participation, cut local unemployment, and encourage industries to hire resident workers.

What is the specific benefit offered by the Fixed Capital Investment Subsidy sub-scheme?

Eligible industries receive a capital investment subsidy of 15% of their Gross Fixed Capital Investment (GFCI), with upper ceilings that differ by industry size (Micro, Small, Medium).

What are the maximum subsidy amounts for different industry types?

Micro Industries are eligible for up to ₹15,00,000, Small Industries for up to ₹30,00,000, and Medium Industries for up to ₹35,00,000. Where the eligible GFCI exceeds ₹10,00,00,000, an extra ₹10,00,000 is granted, raising the overall ceiling to ₹45,00,000.

Where must the eligible unit be located to avail this subsidy?

The unit must be situated within the Union Territory of Dadra and Nagar Haveli and Daman and Diu.

Is there a specific timeframe for commencing commercial production?

The unit must have commenced commercial production between May 20, 2022, and May 19, 2027, to qualify for the subsidy.

What is the application process for the scheme?

The application is completed entirely online through the Single Window Portal, requiring email and mobile verification, login, and navigation to the District Industries Centre. You must then fill out the Common Application Form with all necessary details and documents before submitting it.

Sectors

  • Msme
  • Capital Subsidy
  • Fixed Capital
  • Investment Incentive
  • Dnh
  • Daman Diu
  • Expansion
  • Manufacturing
  • Service Sector

Details last verified on 7 September 2026. Source: the issuer's published information.