MySubsidy

Investment Promotion Scheme (IPS) For Handicraft Artisans: Assistance For Capital Investment For The Handloom And Handicrafts Artisans Of The U.T. Requiring Financial Assistance For Purchase Of Machinery Or Raw Materials

Department of Industries, UT Administration of Dadra and Nagar Haveli and Daman and Diu · Central government

Dadra & Nagar Haveli and Daman & Diu's capital subsidy scheme funds handloom and handicraft artisans for machinery and working capital.

Open for applications. Applications close on 19 May 2027 — 243 days left.

Key facts

Subsidy amount
Up to ₹4,00,000
Instrument
Subsidy
Deadline
19 May 2027
Disbursement
Reimbursed after spend

About this scheme

The sub-scheme titled "Assistance For Capital Investment For The Handloom And Handicrafts Artisans Of The U.T. Requiring Financial Assistance For Purchase Of Machinery Or Raw Materials" sits within the larger Investment Promotion Scheme (IPS) for Handicraft Artisans. It was first introduced on July 3, 2015, with a five-year term, and was subsequently extended from May 20, 2022; it will stay in force until May 19, 2027. The Department of Industries, U.T. Administration of Dadra & Nagar Haveli and Daman & Diu, is the administering body.

The parent Investment Promotion Scheme (IPS) exists to extend incentives and assistance to the MSME Sector, helping it grow and withstand market fluctuations so that it remains vibrant and successful. Its aims include turning the Union Territory into a specialised hub for the MSME sector, raising women's participation in business substantially, bringing down local unemployment, and encouraging industries to hire resident labourers.

This particular sub-scheme directs its support at Handloom and Handicrafts artisans in the U.T. It provides capital subsidies for machinery investments and assistance towards working capital requirements, including the purchase of raw materials, which artisans need to develop and expand their businesses. Such targeted backing serves to keep traditional crafts alive while allowing artisans to modernise and grow their operations.

Who can apply

Eligible business forms
Sole proprietorship
Udyam registration
Not specified
MSME registration
Not specified
DPIIT startup recognition
Not specified
GST registration
Not specified
Where the business may be based
Dadra and Nagar Haveli and Daman and Diu

- Handloom and Handicrafts artisan status is required. - Residence in Dadra and Nagar Haveli & Daman and Diu is required. - Age must exceed 18 years. - The applicant must intend to buy machinery or raw materials for business development. - Handloom or Handicraft art skills are required, along with the ability to demonstrate products before an official committee.

How to apply

Applications are made wholly online, in two phases: registration, followed by submission of the application.

**Registration:** - Step 1: Go to the Registration page on the Official Website (swp.dddgov.in/registration). - Step 2: Fill in the requested details in the input fields and select 'Register'. - Step 3: Confirm your email address by opening the verification link sent to the email you registered with (look in spam if it has not arrived). - Step 4: Either select the link given in the email or paste the URL into your browser to finish verifying the account. - Step 5: Key in '111111' as the OTP to confirm your mobile number. Your mobile number and PIN will then be sent to your registered email address. - Step 6: Once registration succeeds, your login credentials will be emailed to the address you registered with.

**Application:** - Step 1: Go to the user Login page on the Official Website (swp.dddgov.in/login). - Step 2: Key in your registered Mobile Number together with the PIN received by email, then select 'Log In'. - Step 3: Once logged in, select the 'Departments & Services' tab from the menu bar on the left. - Step 4: Scroll down to 'District Industries Centre DD & DNH' and select the 'Click Here' button to apply for 'Investment Promotion Scheme: 2022 to 2027 (20 May 2022 to 19 May 2027)'. - Step 5: A 'Common Application Form' will open. Fill in all required details in the input fields and upload every mandatory document as specified. - Step 6: Having entered all information successfully, check all the details you have provided carefully and select the 'Submit' button to complete the application process.

Apply on the issuer's sitedic-dd@nic.in

How applications are assessed

Eligibility for the capital subsidy rests on a demonstration and evaluation of the applicant's skills. Artisans must hold genuine Handloom or Handicraft skills and be able to show the products they have made. This demonstration goes before a dedicated committee, usually made up of key officials including the General Manager (GM) of the District Industries Centre (DIC), the Director (Tourism), and the CEO (District Panchayat).

The committee weighs the artisan's craftsmanship alongside the viability of their business development proposal, and on that basis decides whether they qualify for the capital subsidy.

Frequently asked questions

Who is eligible to apply for this scheme?

Handloom and handicraft artisans residing in Dadra and Nagar Haveli & Daman and Diu may apply if they are over 18 years of age, wish to expand their business through the purchase of machinery or raw materials, and can present their craft skills and products before a designated committee.

What kind of financial assistance is provided?

The scheme provides two capital subsidies: a Machinery Investment Subsidy covering 50% of investment up to ₹2,00,000, and a Working Capital Loan Subsidy covering 50% of the loan taken up to ₹2,00,000, with a combined ceiling of ₹4,00,000 per artisan.

Are there any additional benefits for specific groups?

Artisans from Scheduled Castes, Scheduled Tribes, Women, and Differently Abled categories (with 30% or more disability) are eligible for an extra 10% subsidy.

What is the application process?

Register at swp.dddgov.in/registration and verify your email and mobile number, then log in, go to 'Departments & Services', and submit the Common Application Form for the 'Investment Promotion Scheme: 2022 to 2027' along with the required documents.

Is co-financing required for this scheme?

Yes. Since the scheme covers 50% of the investment or loan amount as subsidy, the applicant must arrange the remaining 50% themselves, whether from own funds or through a loan.

What is the deadline for applications?

Yes. The scheme remains in force and applications are accepted up to May 19, 2027, so it is best to apply well before that date.

Sectors

  • Manufacturing Industrial
  • Social Impact
  • Handicraft
  • Handloom
  • Artisan
  • Microenterprise
  • Capitalsubsidy
  • Machinery
  • Rawmaterials
  • Damandiu

Details last verified on 18 September 2026. Source: the issuer's published information.