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

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, targets the region's textile industry. Its sub-scheme, "Assistance Of Interest Subsidy For Textile Sector", aims to establish the Union Territory as a centre for technical textiles, fabrics, carpets, garments, apparels, textile machinery, and medical fabrics. First launched in 2015 and now 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 burden on eligible units, encouraging investment and expansion. This support aims to improve competitiveness, foster technology adoption, and ensure 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 process, designed for the convenience of eligible MSMEs.

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

Applications submitted under the Investment Promotion Scheme: Assistance of Interest Subsidy for Textile Sector are first screened by the District Industries Centre (DIC) to confirm that eligibility criteria are met and mandatory documents are in place. A committee comprising officials from the Department of Industries and other relevant agencies of the U.T. Administration of Dadra & Nagar Haveli and Daman & Diu then evaluates each application, checking compliance with scheme objectives, the accuracy of loan details, and the date of commencement of commercial production.

Approval is granted on the basis of the completeness and correctness of the information provided, along with adherence to the scheme guidelines. Applicants who are successful receive notification about the approval and the subsequent disbursement of the interest subsidy.