Investment Promotion Scheme (IPS) for MSME Sector: Assistance For Capital Investment In Solar Power Generation
Department of Industries, UT Administration of Dadra and Nagar Haveli and Daman and Diu · Central government
Dadra & Nagar Haveli and Daman & Diu MSMEs can get a capital subsidy of up to ₹50 lakh for investing in solar power generation.
Open, rolling. Applications are accepted continuously — there is no deadline.
Key facts
- Subsidy amount
- Up to ₹50,00,000
- Instrument
- Subsidy
- Deadline
- Rolling
- Disbursement
- Reimbursed after spend
- Scheme duration
- 5 years
About this scheme
"Assistance For Capital Investment In Solar Power Generation" operates as a sub-scheme within the larger Investment Promotion Scheme (IPS) for the MSME Sector. It came into force on July 3, 2015, was extended with effect from May 20, 2022, and remains in operation until May 19, 2027.
The wider IPS exists to extend incentives and assistance to the MSME Sector, supporting and shielding these enterprises from market fluctuations so that they stay vibrant and successful. Its further aims include drawing more women into business, lowering local unemployment, and encouraging industries to hire resident labourers.
Under this particular sub-scheme, eligible industries receive a capital subsidy towards their capital investment in establishing Solar Power Plants for electricity generation. By extending financial assistance, the sub-scheme nudges MSMEs towards solar power usage, advancing sustainable energy practices across the industrial sector of 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 and Nagar Haveli, Daman and Diu
- The unit must be a new manufacturing or service unit, or an existing manufacturing or service unit carrying out expansion or diversification, in the MSME sector. - Commercial production must have started on or after May 20, 2022, and on or before May 19, 2027. - The unit must be situated in the Union Territory of Dadra and Nagar Haveli & Daman and Diu. - At least 10% of the enterprise's total power consumption must come from solar power. - The application must be filed within six months of the solar power being generated.
How to apply
**Registration Process:** - Go to the Registration page on the Official Website. - Fill in the details asked for and select "Register". - A verification link will be sent to your email inbox; use it to confirm your email address (if it does not arrive, look in your spam folder). - Open the verification link by clicking it or by pasting the link/URL into your browser's address bar. - To verify your mobile number, key in "111111" as the OTP. Your Mobile Number and PIN will then be emailed to the address you registered with. - Once registration is complete, your login credentials will arrive at your registered email address.
**Application Process:** - Go to the user Login page on the Official Website. - Key in your registered Mobile Number and PIN, then select "Log In". - On the left side menu bar, select the "Departments & Services" tab. - Scroll down to "District Industries Centre DD & DNH" and select "Click Here" to apply for "Investment Promotion Scheme : 2022 to 2027 (20 May 2022 to 19 May 2027)". - A "Common Application Form" will appear. Fill in every required detail and upload the mandatory documents. - Check all the details you have entered, then select "Submit" to finish the application process.
How applications are assessed
Applications are made through the online portal and are examined by the District Industries Centre. During scrutiny, the unit type, its location, whether production began within the stipulated window, and the share of solar power consumed are all verified against the eligibility conditions. Capital investment in qualifying solar power plants then forms the basis on which the subsidy is sanctioned.
Frequently asked questions
What is the primary objective of the Investment Promotion Scheme (IPS)?
The IPS offers incentives and support to the MSME sector so that units can grow, withstand market fluctuations, increase women's participation, lower unemployment among local residents, and encourage the hiring of resident labourers.
What is the specific objective of the 'Assistance For Capital Investment In Solar Power Generation' sub-scheme?
This sub-scheme offers a capital subsidy to eligible industries that invest in setting up solar power plants for generating electricity, thereby promoting solar power adoption among MSMEs.
What is the maximum subsidy available under this scheme?
Enterprises that qualify may claim a capital subsidy covering 25% of their investment, capped at ₹50,00,000.
Which types of units are eligible for this scheme?
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 validity period for commercial production to be commenced?
Commercial production must have begun at the unit between 20 May 2022 and 19 May 2027.
Is there a deadline to apply after installing a solar power plant?
Yes, an application must be submitted within six months of the date on which the plant begins generating solar power.
Sectors
- Manufacturing Industrial
- Climate Energy Ev
- Solar Power
- Msme
- Capital Subsidy
- Renewable Energy
- Dadra Nagar Haveli
- Daman Diu
Details last verified on 18 September 2026. Source: the issuer's published information.