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 a stable and growing MSME ecosystem. 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, boosting women's entrepreneurship, lowering local unemployment, and motivating industries to hire resident workers, thereby aiding the Union Territory's socio-economic progress.
Under the sub-scheme titled "Assistance of Fixed Capital Investment Subsidy," qualifying manufacturing and service enterprises can obtain a capital investment subsidy. This support applies to investments in Gross Fixed Capital Investment (GFCI), whether for new units starting commercial production or for existing units pursuing expansion or diversification. The subsidy eases financial strain, promotes industrial activity, and helps MSMEs expand operations and improve 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
- Must be a new manufacturing/service unit, or an existing manufacturing/service unit undertaking expansion or diversification, in the MSME sector. - Commercial production must have commenced between May 20, 2022, and May 19, 2027. - Unit must be 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. - Enterprise must comply with pollution control measures prescribed by PCC or another competent authority. - Application must be submitted within one year from the date of the first loan disbursement, or within one year from the date of commencement of commercial production.
How to apply
1. **Registration** – Go to the registration page on the Single Window Portal. Fill in all required fields and select “Register”. 2. **Email Verification** – Confirm your email address by opening the verification link sent to your registered email. If it is not visible, look in the spam folder. 3. **Mobile Verification** – Use “111111” as the OTP to authenticate your mobile number. Your mobile number and PIN will be emailed to your registered address. 4. **Login Credentials** – After registration is complete, your login details will be dispatched to your registered email. 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”. 6. **Access Application Form** – Once logged in, select the “Departments & Services” tab from the left-side menu. Scroll to “District Industries Centre DD & DNH” and press the “Click Here” button to open the application for “Investment Promotion Scheme : 2022 to 2027 (20 May 2022 to 19 May 2027)”. 7. **Complete Application** – A “Common Application Form” will appear. Provide all requested information in the fields and upload every mandatory document, which generally includes business registration, financial statements, project reports, and proof of fixed capital investment. 8. **Submit Application** – After checking all entered data and uploaded files, press “Submit” to finish. Ensure compliance with pollution control measures and apply within one year of loan disbursement or the start of commercial production.
How applications are assessed
Applications made via the Single Window Portal are first checked for completeness and whether they meet the fundamental eligibility conditions. After this initial review, the Department of Industries carries out a more detailed assessment, looking at the type of manufacturing or service unit, the legitimacy of the Gross Fixed Capital Investment (GFCI), and how well the proposal aligns with the scheme's aims. This stage usually involves confirming when commercial production began and verifying that pollution control requirements have been met.
Based on these findings, a designated authority or committee gives the final go-ahead for the subsidy payment.
Frequently asked questions
What is the primary objective of the Investment Promotion Scheme (IPS)?
The IPS provides incentives and assistance to the MSME sector to nurture businesses, shield them from market volatility, boost women’s participation, reduce 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 vary 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. An extra ₹10,00,000 is granted when the eligible GFCI exceeds ₹10,00,00,000, 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 official Single Window Portal. After registering with email and mobile verification, you log in, go to the District Industries Centre, and submit the Common Application Form with all required details and documents.
Sectors
- Msme
- Capital Subsidy
- Fixed Capital
- Investment Incentive
- Dnh
- Daman Diu
- Expansion
- Manufacturing
- Service Sector
Details last verified on 3 August 2026. Source: the issuer's published information.