Investment Promotion Scheme (IPS) For Cottage Industries: Financial Assistance To Cottage Industries
Department of Industries, UT Administration of Dadra and Nagar Haveli and Daman and Diu · Central government
The scheme offers capital and interest subsidies to cottage industries in Dadra & Nagar Haveli and Daman & Diu, supporting MSME growth and employment.
Open for applications. Applications close on 19 May 2027 — 290 days left.
Key facts
- Subsidy amount
- Up to ₹5,00,000
- Instrument
- Subsidy
- Deadline
- 19 May 2027
- Disbursement
- Reimbursed after spend
About this scheme
The "Financial Assistance To Cottage Industries" operates as a sub-scheme within the "Investment Promotion Scheme (IPS)" for Cottage Industries. It was first introduced on July 3, 2015, with a five-year validity, and has since been renewed by the Department of Industries, U.T. Administration of Dadra & Nagar Haveli and Daman & Diu. The scheme remains in force until May 19, 2027.
The IPS aims to provide incentives and support to the MSME sector, helping enterprises manage market pressures and contribute to economic growth. Its broader goals include positioning the Union Territory as a specialised MSME hub, increasing women's participation in business, reducing local unemployment, and promoting the employment of resident workers.
This sub-scheme specifically targets cottage industries by offering financial assistance through subsidies on term loans obtained from financial institutions. Eligible lenders include Nationalised, Cooperative, Public Sector, and Private Banks.
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 and Daman and Diu
- Applicant must be associated with a Cottage Industry. - Applicant must be above 18 years of age. - Applicant must have passed at least Standard IV. - Applicant must have undergone at least one month of training from a Government of India recognised institute in the proposed business area, OR have a minimum of 1 year of experience in the same activity, OR be a hereditary craftsperson.
How to apply
1. Go to the registration page on the Official Website (https://swp.dddgov.in/registration). 2. Fill in the required details in the input fields and select "Register". 3. Confirm your email address by clicking the verification link sent to your inbox (check the spam folder if it is not visible). 3. Finish account verification by clicking the provided link or copying and pasting the URL into your browser's address bar. 4. Use "111111" as the OTP to verify your mobile number. Your mobile number and PIN will be sent to your registered email address. 5. Access the user portal (https://swp.dddgov.in/login) with your registered mobile number and PIN. 6. From the menu on the left side, choose the "Departments & Services" tab. 7. Scroll to "District Industries Centre DD & DNH" and press the "Click Here" button to apply for "Investment Promotion Scheme : 2022 to 2027 (20 May 2022 to 19 May 2027)". 8. The "Common Application Form" will appear. Enter all necessary information and upload every mandatory document. 9. After entering the details, review everything carefully and press the "Submit" button to complete the application.
How applications are assessed
Applications are submitted through the online registration and application process set out under the scheme. While the published guidelines do not detail selection criteria beyond the initial eligibility conditions, each application is expected to be reviewed by the District Industries Centre, DNH & D&D, to verify compliance with all stated requirements and confirm that the necessary documents are complete.
Following this review, applications that meet the eligibility criteria move forward for sanction and disbursement of the specified subsidies.
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 nurture it, shield it from market fluctuations, and foster its growth, positioning the U.T. as a dedicated hub for MSMEs. It also prioritises greater women’s participation, lower unemployment, and support for local labour.
What specific financial assistance is offered under the "Financial Assistance To Cottage Industries" sub-scheme?
Under this sub-scheme, a capital subsidy of 25% of the term loan, capped at ₹5,00,000, is available for establishing a cottage industry. Additionally, a 50% interest subsidy applies to bank or NBFC charges for a maximum of 5 years from the start of production.
Are there any additional subsidies for specific categories of applicants?
Yes, applicants from Scheduled Castes, Scheduled Tribes, women, or persons with a disability of 30% or more receive an extra 10% capital subsidy, raising their total subsidy to 35% of the term loan amount.
What is the maximum loan amount eligible for benefits under this scheme?
The maximum bank loan amount eligible for these subsidies is ₹20,00,000.
What are the age and educational eligibility criteria for applicants?
Applicants must be at least 18 years old and have completed the Fourth (IV) standard as the minimum educational qualification.
What kind of experience or training is required for eligibility?
Applicants must have completed at least one month of training from a Government of India recognised institute in their proposed business area, or possess a minimum of one year of experience in the same activity, or be a hereditary craftsperson.
Sectors
- Cottage Industries
- Msme
- Subsidy
- Daman And Diu
- Dadra And Nagar Haveli
- Financial Assistance
Details last verified on 3 August 2026. Source: the issuer's published information.