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
The scheme funds MSMEs in Dadra & Nagar Haveli and Daman & Diu with a capital subsidy of up to ₹50 lakh for solar power generation investment.
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
The "Assistance For Capital Investment In Solar Power Generation" operates as a sub-scheme within the broader "Investment Promotion Scheme (IPS)" for the MSME Sector. It was launched on July 3, 2015, and subsequently extended from May 20, 2022, with an operational validity that runs until May 19, 2027.
The parent IPS is designed to offer incentives and support to the MSME Sector, shielding it from market volatility while fostering its growth. The scheme also seeks to enhance women's participation in business, curb local unemployment, and encourage industries to hire resident labourers.
Under this sub-scheme, eligible industries receive a capital subsidy for investments made in establishing Solar Power Plants for electricity generation. By providing this financial assistance, the scheme promotes the adoption of solar power among MSMEs, supporting sustainable energy practices within the Union Territory's industrial landscape.
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
- 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 meet at least 10% of its total power consumption through solar power. - Application must be submitted within six months of the generation of solar power.
How to apply
**Registration Process:** - Go to the Registration page on the Official Website. - Fill in the necessary details and select "Register". - Confirm your email address through the verification link sent to your inbox (check the spam folder if it does not appear). - Open the verification link/URL by clicking it or pasting it into your browser's address bar. - Use "111111" as the OTP to verify your mobile number. Your Mobile Number and PIN will be sent to the email address you registered with. - After registration is complete, your login credentials will be delivered to your registered email.
**Application Process:** - Access the user Login page on the Official Website. - Enter your registered Mobile Number and PIN, then select "Log In". - Choose the "Departments & Services" tab from the menu on the left side. - Navigate to "District Industries Centre DD & DNH" and select "Click Here" to apply for the "Investment Promotion Scheme : 2022 to 2027 (20 May 2022 to 19 May 2027)". - A "Common Application Form" will appear. Complete all required fields and upload the mandatory documents. - Review all information and select "Submit" to finish the application.
How applications are assessed
The District Industries Centre reviews applications submitted online. It checks eligibility against criteria such as unit type, location, commencement of production within the specified window, and the percentage of solar power consumed. Subsidy is then granted on the basis of capital investment for qualifying solar power plants.
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 support its growth, shield it from market fluctuations, boost women's participation, lower local unemployment, and encourage the hiring of resident workers.
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 for capital investment in establishing solar power plants for power generation, encouraging MSMEs to adopt solar energy.
What is the maximum subsidy available under this scheme?
Eligible enterprises may claim a capital subsidy covering 25% of their investment, capped at ₹50,00,000.
Which types of units are eligible for this scheme?
Eligibility extends to new manufacturing or service units, as well as existing units in the MSME sector that are pursuing expansion or diversification.
What is the validity period for commercial production to be commenced?
The unit must have begun commercial production on or after May 20, 2022, and no later than May 19, 2027.
Is there a deadline to apply after installing a solar power plant?
Yes, enterprises must submit their application within six months of the date their solar plant begins generating power.
Sectors
- Manufacturing Industrial
- Climate Energy Ev
- Solar Power
- Msme
- Capital Subsidy
- Renewable Energy
- Dadra Nagar Haveli
- Daman Diu
Details last verified on 3 August 2026. Source: the issuer's published information.