Investment Promotion Scheme (IPS) for MSME Sector: Assistance of Interest Subsidy
Department of Industries, UT Administration of Dadra and Nagar Haveli and Daman and Diu · Central government
Offers up to 50% interest subsidy (₹30 lakh/year) on term loans for new or expanding MSME units in Dadra & Nagar Haveli and Daman & Diu.
Open for applications. Applications close on 19 May 2027 — 243 days left.
Key facts
- Subsidy amount
- ₹1 – ₹1,50,00,000
- Instrument
- Subsidy
- Deadline
- 19 May 2027
- Disbursement
- Reimbursed after spend
- Scheme duration
- 5 years
About this scheme
The Department of Industries, U.T. Administration of Dadra & Nagar Haveli and Daman & Diu operates the Investment Promotion Scheme (IPS) for the MSME Sector. Its "Assistance of Interest Subsidy" sub-scheme was introduced on July 3, 2015, for a five-year term. The scheme was extended from May 20, 2022, and remains in force until May 19, 2027. The IPS provides incentives to MSMEs to help them withstand market fluctuations. Its objectives include increasing women's participation in business, lowering unemployment among local residents, and encouraging the hiring of resident labour.
The interest subsidy applies to term loans taken for capital expenditure on equipment, machinery, and furniture or fixtures. Land and building costs are not covered. This financial support reduces the burden on eligible manufacturing and service industries, enabling investment in assets for growth, expansion, or diversification. The scheme supports industrial development and entrepreneurship across the Union Territory.
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 & Nagar Haveli, Daman & Diu
- Must be a new manufacturing/service unit, or an existing manufacturing/service unit undergoing 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. - Pollution control measures, as prescribed by the competent authority, must be observed. - Loan must be sanctioned by a Bank or Financial Institution per RBI guidelines. - Application must be submitted within one year from the date of the first disbursement of the loan, or on or before one year from the date of commencement of commercial production.
How to apply
The application for the Investment Promotion Scheme (IPS) for MSME Sector: Assistance of Interest Subsidy is submitted online via the official Single Window Portal of Dadra & Nagar Haveli and Daman & Diu. The steps are as follows:
- **Step 1: Account Registration:** Go to the Registration page on the official website and enter the required personal and contact details to set up your account. - **Step 2: Email Verification:** After registration, a verification link is sent to the email address you provided. Check your inbox and spam folder, then click the link to confirm your email. - **Step 3: Mobile Number Verification:** An OTP, which is "111111", is needed to verify your mobile number. Once verified, your mobile number and a unique PIN are emailed to you. Keep these credentials for subsequent logins. - **Step 4: Login to the Portal:** Access the user Login page on the official website. Use your registered mobile number and the PIN from your email to sign in. - **Step 5: Access Application Form:** After logging in, open the "Departments & Services" tab in the left-side menu. Find "District Industries Centre DD & DNH" in the list and select the "Click Here" button next to it. This opens the application for the "Investment Promotion Scheme: 2022 to 2027 (20 May 2022 to 19 May 2027)". - **Step 6: Complete and Submit Application:** A "Common Application Form" appears. Fill in all required fields and upload the mandatory supporting documents as directed. Review the information carefully, then press the "Submit" button to finish. - **Post-Submission:** The District Industries Centre reviews the application. Monitor your application status on the portal and respond to any follow-up queries or requests from the authorities.
Frequently asked questions
What is the main objective of the Investment Promotion Scheme (IPS)?
The IPS provides incentives and assistance to the MSME sector to nurture businesses, shield them from market fluctuations, maximise women’s participation, reduce local unemployment, and encourage industries to hire resident workers.
Who is eligible for the Assistance of Interest Subsidy sub-scheme?
Manufacturing and service units in the MSME sector, whether new or existing, that are expanding or diversifying are eligible if they began commercial production between May 20, 2022, and May 19, 2027, and are located in Dadra & Nagar Haveli and Daman & Diu. They must also commit to operating for 5 years and comply with pollution control measures.
What is the maximum interest subsidy an eligible unit can receive?
An eligible unit may claim up to 50% of the bank's interest, capped at ₹30,00,000 per year, for a maximum of 5 years or until the loan is repaid, whichever comes first. The total subsidy over this period cannot exceed ₹1.5 crore.
Are there any additional benefits for specific groups of entrepreneurs?
Yes, an additional 10% interest subsidy is available to differently-abled entrepreneurs, women entrepreneurs, and registered startups in the manufacturing or service sectors. Young entrepreneurs under 35 years of age at the time of term loan sanction are also eligible for this extra 10% subsidy.
What types of loans are covered by this interest subsidy?
The subsidy covers term loans for equipment, machinery, and furniture/fixtures, but excludes loans for land and building. The loan must be sanctioned by a bank or financial institution in accordance with RBI guidelines.
What is the deadline for submitting the application?
The application must be filed within one year of the first term loan disbursement or one year from the start of commercial production, whichever comes first. The scheme remains in force until May 19, 2027.
Where can I get support if I face technical issues with the online portal?
For technical assistance with the Single Window Portal (https://investdd.in), call 0260-2231885 / 2231886 or email ddegs-dd@nic.in. For general scheme inquiries, contact the District Industries Centre at 0260-2260871 / 0260-2260310 or dic-dd@nic.in.
Sectors
- Msme
- Dadra Nagar Haveli
- Daman Diu
- Interest Subsidy
- Manufacturing
- Service Sector
- Expansion
- Diversification
Details last verified on 7 September 2026. Source: the issuer's published information.