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
A capital and interest subsidy scheme for cottage industries in Dadra & Nagar Haveli and Daman & Diu, funding MSME growth and employment.
Open for applications. Applications close on 19 May 2027 — 243 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 Department of Industries, U.T. Administration of Dadra & Nagar Haveli and Daman & Diu, administers Financial Assistance to Cottage Industries as a sub-scheme of the Investment Promotion Scheme (IPS) for Cottage Industries. First introduced on July 3, 2015, with a five-year term, the scheme now runs until May 19, 2027.
The IPS extends incentives and assistance to the MSME Sector so that units can cope with market pressures and add to a vibrant economy. Its aims include turning the Union Territory into a Specialized Hub for MSMEs, raising women's participation in business, reducing local unemployment, and promoting the recruitment of resident labour.
Under this sub-scheme, cottage industries receive financial assistance in the form of subsidies on term loans availed from Nationalized, Cooperative, Public Sector, and Private Banks, along with other financial institutions.
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
- Association with a Cottage Industry is required. - The applicant's age must exceed 18 years. - Completion of at least standard Four (IV) is necessary. - The applicant must satisfy any one of the following: training of no less than one month from Institutes recognised by the Government of India in the field of the proposed business; or at least 1 year of experience in the same activity; or status as 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 press "Register". 3. Open the verification link emailed to you to confirm your email address (if it is not in your inbox, look in the spam folder). 4. Finish verifying your account by clicking the link provided, or by copying the URL and pasting it into your browser's address bar. 5. Use "111111" as the OTP to verify your mobile number. Your mobile number and PIN will then be sent to your registered email address. 6. Sign in to the user portal (https://swp.dddgov.in/login) with your registered mobile number and PIN. 7. In the menu bar on the left, select the "Departments & Services" tab. 8. Scroll down 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)". 9. The "Common Application Form" will appear. Fill in every required detail and upload all mandatory documents. 10. Once the information has been entered successfully, check all the details carefully and press the "Submit" button to complete the application process.
How applications are assessed
Applications are submitted online after registration. Beyond the eligibility conditions already stated, the scheme does not set out further selection criteria; submissions are expected to be scrutinised by the District Industries Centre, DNH & D&D, which checks that every eligibility requirement is met and that the supporting documents are complete. Applications that clear this review move on to sanction and to disbursement of the subsidies specified under the scheme.
Frequently asked questions
What is the primary objective of the Investment Promotion Scheme (IPS)?
The IPS offers incentives and assistance to MSMEs so they can grow, withstand market fluctuations and thrive, with the aim of making the Union Territory a dedicated hub for the sector. It also seeks to increase women's participation, lower unemployment and encourage the use of 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 amount is available for setting up a cottage industry, capped at ₹5,00,000, along with a 50% interest subsidy on bank/NBFC interest for up to 5 years from the date production begins.
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, which brings their total capital subsidy to 35% of the term loan amount.
What is the maximum loan amount eligible for benefits under this scheme?
What is the maximum bank loan amount eligible for these subsidies? A bank loan of up to ₹20,00,000 qualifies for these subsidies.
What are the age and educational eligibility criteria for applicants?
You need to be at least 18 years old and have completed the Fourth (IV) standard to apply.
What kind of experience or training is required for eligibility?
To qualify, an applicant must either hold at least one month's training from a Government of India recognised institute in the proposed line of business, possess a minimum of one year's experience in that 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 18 September 2026. Source: the issuer's published information.