IPSFACI
Investment Promotion Scheme (IPS) For Cottage Industries: Financial Assistance To Cottage Industries
6.6/10“Financial Assistance To Cottage Industries'' under the “Investment Promotion Scheme (IPS)”, implemented by the Dept. of Industries, U.T. Administration Of DNH & DD, aims to provide financial assistance to Cottage Industries on the term loan taken through banks.
States / UT: Dadra & Nagar Haveli and Daman & Diu
Nodal department: Department of Industries
Scheme for: Infra
Scheme profile
DBT (direct benefit transfer): No
Scheme open date: 2015-07-03
Categories: Business & Entrepreneurship
Sub-categories: Setting up / start-up / entrepreneurship
Target beneficiaries: Individual, Business Entity, Industries
Tags: Cottage Industries, MSMEs, Incentives, Entrepreneurship, Subsidy, Reimbursement, IPS, Term Loan, Capital Subsidy, Interest Subsidy
Details
The scheme “Financial Assistance To Cottage Industries” is a sub scheme under the “Investment Promotion Scheme (IPS)” for Cottage Industries. It was launched on 3rd July, 2015 for a period of five years by the Dept. of Industries, U.T. Administration Of Dadra & Nagar Haveli And Daman & Diu. Now it has been extended further from 20th May, 2022 and shall be operative till 19th May, 2027.
Objective of the "Investment Promotion Scheme (IPS)”:
The scheme envisages to provide incentives and assistance to the MSME Sector in order to nurture them and protect them from market vagaries thereby making them vibrant and successful. therefore making the U.T. a Special Hub for the MSME sector; maximize Women participation in the business sector, reduce unemployment among the local residents and incentivize the industries to employ resident laborers etc.
Objective of the "Financial Assistance To Cottage Industries" Sub-scheme:
Under this scheme, financial assistance shall be provided to Cottage Industries on the term loan taken through Nationalized Banks, Cooperative banks, Public sector Banks or Private Banks.
Benefits
- - Rate of Capital Subsidy: 25% of the term loan amount for setting up of the Cottage Industry up to a maximum of ₹5,00,000/-
- Rate of Interest Subsidy: 50% of the Interest charged by Bank or NBFC or Cooperative Bank shall be reimbursed up to a period of 5 years from the date of commencement of Production. Note:
- 10% additional capital subsidy shall be provided to Scheduled Castes/ Scheduled Tribes / Women/ Differently abled having 30% or more disability
- Maximum limit of the Bank Loan should be ₹20,00,000/-
Rate of Capital Subsidy: 25% of the term loan amount for setting up of the Cottage Industry up to a maximum of ₹5,00,000/-.
Rate of Interest Subsidy: 50% of the Interest charged by Bank or NBFC or Cooperative Bank shall be reimbursed up to a period of 5 years from the date of commencement of Production.
Note:10% additional capital subsidy shall be provided to Scheduled Castes/ Scheduled Tribes / Women/ Differently abled having 30% or more disability.
Maximum limit of the Bank Loan should be ₹20,00,000/-.
Eligibility
- The applicant should be associated with Cottage Industry.
- The applicant should be above 18 years of age.
- The applicant should have passed minimum standard Four (IV).
- The applicant should have undergone training for minimum one month from Government of India recognized Institutes, in the area of the proposed business.
Or,
The applicant should have experience of minimum 1 year in the same activity
Or
The applicant should be hereditary craftsperson.
How useful is this scheme?
A practical look at this scheme for citizens
AI-generated insights showing how useful, accessible, and practical this scheme may be — combining deterministic scoring rules with a public-policy LLM analyst.
- Accessibility5.0
- Financial impact9.5
- Rural utility5.0
- Awareness4.5
- Simplicity5.0
- Inclusivity9.0
What problem does this scheme solve?
The scheme provides financial assistance to cottage industries, promoting entrepreneurship and supporting local businesses.
Key challenges addressed
- Access to financial support for cottage industries
- Encouragement of local entrepreneurship
- Support for women and marginalized groups in business
Most beneficial for
- Individuals starting cottage industries
- Women entrepreneurs
- Scheduled Castes and Scheduled Tribes
Likely challenges
- Complex application process for semi-literate individuals
- Digital dependency may hinder access for some applicants
- Awareness of the scheme may be limited in rural areas
Practical insights for citizens
While the scheme has good intentions, practical challenges may hinder its effectiveness in rural areas.
Rural challenges
- Limited internet access
- Lack of awareness about the scheme
Digital challenges
- Dependence on digital literacy for application
- Potential issues with online registration
Implementation bottlenecks
- Verification delays
- Limited outreach in rural areas
Awareness challenges
- Low awareness among potential beneficiaries
- Need for targeted outreach programs
Application analysis
- Application mode
- Online portal
- Documents burden
- Minimal documentation required
- Verification complexity
- Moderate complexity due to multiple verification steps
- Office dependency
- Low, primarily online
- DBT dependency
- None
- CSC support
- Limited
- Estimated citizen effort
- Moderate effort required for application
Estimated beneficiary reach
Benefit analysis
- Benefit type
- Cash
- Benefit frequency
- One-time financial assistance
- Benefit practicality
- Practical for those who meet eligibility criteria
- Financial meaningfulness
- Moderately meaningful, especially for small-scale businesses
- Long-term impact
- Potentially positive impact on local economies and employment
Plain-language guidance
This scheme helps cottage industries by providing financial assistance for starting and growing their businesses. It is especially beneficial for women and marginalized groups.
- Who should apply
- Individuals or groups looking to start or expand a cottage industry.
- Who may struggle
- Semi-literate individuals and those unfamiliar with online processes.
- Best application route
- Apply via the official online portal or seek assistance from local CSC.
This intelligence section is generated by an AI policy analyst combined with rule-based scoring. Scores and narrative are estimates derived from the publicly available scheme information shown on this page; actual experience may vary by state, district, and department. Always confirm details on the official portal before you apply.
Application Process
Online
Registration Process:
Step 1: Visit the Registration page of the Official Website.
Step 2: Provide the information in the respective input spaces and click on “Register”.
Step 3: Verify your email address using the verification link sent on your email (If Mail is Not Received Your Inbox. Please Check the Spam).
Step 4: Click the Link/URL in the received email or Paste Link/URL in browser's address bar to complete your Account Verification.
Step 5: Now enter “111111” as OTP to verify your mobile number. Mobile Number and Pin Successfully will be sent to the registered Email Address.
Step 6: On successful registration the login credentials will be received in the registered email.
Application Process:
Step 1: Visit the user Login page of the Official Website.
Step 2: Enter registered Mobile Number along with PIN sent on your email then click “Log In”.
Step 3: On successful Log In, from the left side menu bar click on “Departments & Services” tab.
Step 4: Scroll down to “District Industries Centre DD & DNH” and click on the “Click Here” button to apply for “Investment Promotion Scheme : 2022 to 2027 (20 May 2022 to 19 May 2027)”.
Step 5: “Common Application Form” will be open. Enter all the details in required input fields and upload all the mandatory documents.
Step 6: After successful entry of the information, verify all the details and click on the “Submit” button to complete the application process.
Helpdesk:
District Industries Centre,
Contact No.: 0260-2260871 / 0260-2260310
E-mail Address: dic-dd@nic.in
For Technical Assistance on Single Window Portal (i.e. https://investdd.in) Contact No. : 0260-2231885 / 2231886 E-Mail : ddegs-dd@nic.in
Clarifications
Additional points from the scheme information published on myScheme (not legal advice).
- What is the definition of Cottage Industry?
Cottage industry is a business or manufacturing activity carried on in people's homes at very low scales as a small-scale, unorganized/ decentralized manufacturing business using simple hand-operated tools. Examples include Smithy, Carpentry, weaving, Pottery, Blanket making, Stone Carving, Textiles, Ceramics, Handmade Jewelry, etc.
- What does the scheme provide?
The scheme provides financial assistance to Cottage Industries through term loans taken from Nationalized Banks, Cooperative Banks, Public Sector Banks, or Private Banks.
- What is the maximum limit for the bank loan?
The maximum limit for the bank loan is ₹20,00,000/-.
- What is the rate of capital subsidy?
Beneficiaries can avail a maximum subsidy of 25% of the term loan amount for setting up the Cottage Industry, up to a maximum of ₹5,00,000/-.
- Is there any additional subsidy for specific groups?
Yes, an additional 10% subsidy is provided to Scheduled Castes, Scheduled Tribes, Women, and Differently abled individuals with 30% or more disability.
- What is the rate of capital subsidy?
Beneficiaries can avail a maximum subsidy of 25% of the term loan amount for setting up the Cottage Industry, up to a maximum of ₹5,00,000/-.
- Is there any age limit for the applicant?
Yes, the applicant must be above 18 years of age.
- What measures are in place to prevent misuse of the subsidy scheme?
Strict guidelines, documentation requirements, and verification procedures are in place to ensure that subsidies are availed by eligible enterprises for genuine purposes only.
- What is the operative period of the scheme?
The operative period of scheme is from 20.05.2022 till 5 years that is 19.05.2027.
- If an enterprise is established in 2023 and becomes eligible for the scheme what would be the time period in which benefits are applicable?
The enterprise can avail benefit commencing from date of production till 5 years even if that period falls beyond operative period.
- How can an eligible unit apply to get the benefits of the scheme?
The eligible unit can apply by visiting single window portal website which is "swp.dddgov.in", and once page pops-up the user have to go to departments tab and select district industries tab under which the user have to click on apply for investment promotion scheme: 2022 to 2027.
Official links
References
- Guidelines
- https://swp.dddgov.in/assets/pdf/Notification_IPS_2022_DNH_DD.pdf
- FAQs
- https://swp.dddgov.in/assets/pdf/FAQs_IPS_2022.pdf
Apply
Apply nowOpens the official application or programme portal in a new tab. If in doubt, confirm details on the ministry site.
Frequently asked questions
- What is the purpose of Investment Promotion Scheme (IPS) For Cottage Industries: Financial Assistance To Cottage Industries?
- Investment Promotion Scheme (IPS) For Cottage Industries: Financial Assistance To Cottage Industries is a government welfare initiative designed to support Infra, Individual, Business Entity, Industries through benefits related to Business & Entrepreneurship, financial assistance, subsidies, social welfare, healthcare, education, or livelihood support.
- Who can apply for Investment Promotion Scheme (IPS) For Cottage Industries: Financial Assistance To Cottage Industries?
- Eligibility for Investment Promotion Scheme (IPS) For Cottage Industries: Financial Assistance To Cottage Industries may depend on factors such as income category, age, gender, occupation, state of residence, social category, and government-defined beneficiary criteria.
- What benefits are offered under Investment Promotion Scheme (IPS) For Cottage Industries: Financial Assistance To Cottage Industries?
- Benefits under Investment Promotion Scheme (IPS) For Cottage Industries: Financial Assistance To Cottage Industries may include financial assistance, subsidies, scholarships, insurance support, healthcare benefits, pension support, training assistance, or welfare services depending on the scheme guidelines.
- Which department manages Investment Promotion Scheme (IPS) For Cottage Industries: Financial Assistance To Cottage Industries?
- Investment Promotion Scheme (IPS) For Cottage Industries: Financial Assistance To Cottage Industries is managed by Department of Industries and may be implemented through district offices, online portals, CSC centres, banks, or authorised government agencies.
- Can users apply online for Investment Promotion Scheme (IPS) For Cottage Industries: Financial Assistance To Cottage Industries?
- Yes, eligible applicants may be able to apply online for Investment Promotion Scheme (IPS) For Cottage Industries: Financial Assistance To Cottage Industries through official government portals, authorised service centres, or digital application systems depending on the implementation process.
- Is Aadhaar mandatory for Investment Promotion Scheme (IPS) For Cottage Industries: Financial Assistance To Cottage Industries?
- Many government schemes may require Aadhaar verification, identity proof, or linked bank account details for beneficiary validation and direct benefit transfer processing.
- Where can users apply for Investment Promotion Scheme (IPS) For Cottage Industries: Financial Assistance To Cottage Industries?
- Applications for Investment Promotion Scheme (IPS) For Cottage Industries: Financial Assistance To Cottage Industries may be submitted through government departments, official scheme portals, CSC centres, district offices, welfare departments, or authorised service centres.
- What documents may be required for Investment Promotion Scheme (IPS) For Cottage Industries: Financial Assistance To Cottage Industries?
- Applicants may need Aadhaar card, income certificate, residence proof, bank account details, caste certificate, photographs, educational records, or occupation-related documents depending on scheme eligibility requirements.
- Is Investment Promotion Scheme (IPS) For Cottage Industries: Financial Assistance To Cottage Industries available in all states?
- No, Investment Promotion Scheme (IPS) For Cottage Industries: Financial Assistance To Cottage Industries is primarily available for eligible residents of Dadra & Nagar Haveli and Daman & Diu and may be implemented through state government departments and local administrative offices.
- Can residents outside Dadra & Nagar Haveli and Daman & Diu apply for Investment Promotion Scheme (IPS) For Cottage Industries: Financial Assistance To Cottage Industries?
- Eligibility for Investment Promotion Scheme (IPS) For Cottage Industries: Financial Assistance To Cottage Industries is generally limited to residents of Dadra & Nagar Haveli and Daman & Diu unless otherwise specified in the official scheme guidelines.
- Does Investment Promotion Scheme (IPS) For Cottage Industries: Financial Assistance To Cottage Industries provide business loan or startup assistance?
- Investment Promotion Scheme (IPS) For Cottage Industries: Financial Assistance To Cottage Industries may support entrepreneurs, startups, self-employed individuals, MSMEs, or small businesses through financial assistance, subsidies, credit support, or training initiatives.
- Is collateral required under Investment Promotion Scheme (IPS) For Cottage Industries: Financial Assistance To Cottage Industries?
- Collateral requirements may vary depending on the loan amount, implementing agency, financial institution, and government subsidy structure.
- Can CSC centres help users apply for Investment Promotion Scheme (IPS) For Cottage Industries: Financial Assistance To Cottage Industries?
- Many government schemes may be accessible through nearby CSC centres, authorised digital service centres, or welfare facilitation offices.
- How can users check the latest updates for Investment Promotion Scheme (IPS) For Cottage Industries: Financial Assistance To Cottage Industries?
- Users should verify official notifications, department announcements, application deadlines, and eligibility updates through authorised government portals or implementing agencies.
- Are there deadlines for applying to Investment Promotion Scheme (IPS) For Cottage Industries: Financial Assistance To Cottage Industries?
- Some schemes may operate through fixed application windows, annual registration cycles, or department-specific deadlines depending on scheme implementation policies.
- Can beneficiaries track application status for Investment Promotion Scheme (IPS) For Cottage Industries: Financial Assistance To Cottage Industries?
- Certain schemes may provide online application tracking, beneficiary verification systems, or status-check facilities through official portals.
- Where can users get help for Investment Promotion Scheme (IPS) For Cottage Industries: Financial Assistance To Cottage Industries in Dadra & Nagar Haveli and Daman & Diu?
- Users in Dadra & Nagar Haveli and Daman & Diu may seek assistance through CSC centres, district welfare offices, government departments, agriculture offices, social welfare departments, or authorised facilitation centres.
- Which nearby public services may help with Investment Promotion Scheme (IPS) For Cottage Industries: Financial Assistance To Cottage Industries applications?
- Depending on the scheme, users may require support from Aadhaar centres, CSC centres, banks, hospitals, post offices, or government welfare offices for document verification and application assistance.