Investment Promotion Scheme (IPS) for Textile Sector: Assistance Of Interest Subsidy For Textile Sector

The Department of Industries, U.T. Administration of Dadra & Nagar Haveli and Daman & Diu runs the Investment Promotion Scheme (IPS) for the MSME Sector. Its sub-scheme, "Assistance Of Interest Subsidy For Textile Sector", targets the region's textile industry. The goal is to develop the Union Territory into a centre for technical textiles, fabrics, carpets, garments, apparels, textile machinery, and medical fabrics. Introduced in 2015 and extended until May 2027, the scheme supports industrial growth, innovation in the textile value chain, and local socio-economic development.

The IPS offers incentives to new and expanding manufacturing and service units in the MSME textile sector. It seeks to increase women's participation in business, generate employment for local residents, and promote the hiring of resident labour. Through a credit-linked interest subsidy, the administration lowers the financial load on eligible units, encouraging investment and expansion. This support aims to improve competitiveness, encourage technology adoption, and foster sustainable development in the textile industry of Dadra & Nagar Haveli and Daman & Diu.

The application for the Investment Promotion Scheme (IPS) interest subsidy is conducted entirely through an online mode, ensuring convenient access for eligible MSMEs.

- **Step 1: Account Registration:** Applicants must begin by visiting the official Single Window Portal and completing the registration procedure by submitting the requisite details. - **Step 2: Email Verification:** A verification link is dispatched to the applicant's registered email address. Activating the account requires clicking this link. - **Step 3: Mobile Verification:** A One-Time Password (OTP), which is typically '111111' as per the guidelines, must be entered to verify the mobile number. Once verification succeeds, login credentials (comprising the Mobile Number and PIN) are sent to the registered email. - **Step 4: Portal Login:** Use the provided credentials to sign in to the user portal. - **Step 5: Accessing the Application Form:** From the left-hand menu, select "Departments & Services," then locate "District Industries Centre DD & DNH" and click to apply under the "Investment Promotion Scheme : 2022 to 2027." - **Step 6: Completing the Application and Uploading Documents:** Fill out the Common Application Form with all necessary information concerning the unit, its operations, financial projections, and loan particulars. Mandatory documents—typically including Udyam registration, the project report, the loan sanction letter, interest certificates issued by the bank, and other supporting business papers—must be uploaded. - **Step 7: Review and Submission:** Scrutinise all entered data and uploaded files for correctness before pressing the "Submit" button to conclude the application. To remain eligible, applicants must ensure submission occurs within one year from the date commercial production begins.

Applications under the Investment Promotion Scheme: Assistance of Interest Subsidy for Textile Sector are processed through a staged review. After submission, the District Industries Centre (DIC) carries out an initial check to confirm that eligibility conditions are met and required documents accompany the application. The file then moves to a committee made up of officials from the Department of Industries and other agencies under the U.T. Administration of Dadra & Nagar Haveli and Daman & Diu.

This committee examines whether the unit aligns with scheme objectives, verifies the loan particulars, and confirms the start of commercial production. Approval rests on the accuracy and completeness of the submitted information and compliance with scheme rules. Applicants who succeed receive communication about the sanction and the manner in which the interest subsidy will be released.