What documents may be required for Investment Promotion Scheme (IPS) for MSME Sector: Assistance of Interest Subsidy?

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.

Can residents outside Dadra & Nagar Haveli and Daman & Diu apply for Investment Promotion Scheme (IPS) for MSME Sector: Assistance of Interest Subsidy?

Eligibility for Investment Promotion Scheme (IPS) for MSME Sector: Assistance of Interest Subsidy 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 MSME Sector: Assistance of Interest Subsidy provide business loan or startup assistance?

Investment Promotion Scheme (IPS) for MSME Sector: Assistance of Interest Subsidy may support entrepreneurs, startups, self-employed individuals, MSMEs, or small businesses through financial assistance, subsidies, credit support, or training initiatives.

Can CSC centres help users apply for Investment Promotion Scheme (IPS) for MSME Sector: Assistance of Interest Subsidy?

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 MSME Sector: Assistance of Interest Subsidy?

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 MSME Sector: Assistance of Interest Subsidy?

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 MSME Sector: Assistance of Interest Subsidy?

Certain schemes may provide online application tracking, beneficiary verification systems, or status-check facilities through official portals.

IPSAIS

Investment Promotion Scheme (IPS) for MSME Sector: Assistance of Interest Subsidy

6.7/10

“Assistance of Interest Subsidy” under the “Investment Promotion Scheme (IPS)” for MSME sector, implemented by the Dept. of Industries, U.T. Administration Of DNH & DD, aims to provide Interest Subsidy on the term loan on equipment/machinery etc and furniture’s / fixtures (except land and building).

State Cash

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, Loan

Target beneficiaries: Business Entity, Industries

Tags: Interest Subsidy, Investment, MSMEs, Incentives, Entrepreneurship, Subsidy, Reimbursement, IPS

Details

The scheme “Assistance of Interest Subsidy” is a sub scheme under the “Investment Promotion Scheme (IPS)” for MSME Sector. 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, 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 "Assistance of Interest Subsidy" Sub-scheme:

Through this incentive, eligible industries will be eligible for Interest Subsidy on the term loan on equipment/ machinery etc. and furniture’s/ fixtures (except land and building).

Benefits

- 50% Subsidy of interest charged by the Bank with an upper ceiling of ₹30,00,000/- per annum for a period of 5 years OR for the period of repayment of loan whichever is earlier. Note:
10% additional interest subsidy to differently abled entrepreneurs, women entrepreneurs and registered Start up in manufacturing /service sector 10% additional subsidy to young entrepreneurs below the age of 35 years on the date of sanction of term loan

50% Subsidy of interest charged by the Bank with an upper ceiling of ₹30,00,000/- per annum for a period of 5 years OR for the period of repayment of loan whichever is earlier.

Note:

10% additional interest subsidy to differently abled entrepreneurs, women entrepreneurs and registered Start up in manufacturing /service sector.
10% additional subsidy to young entrepreneurs below the age of 35 years on the date of sanction of term loan.

Eligibility

Should be a New Manufacturing/ Service units or Existing Manufacturing / Service units which undertakes Expansion/ Diversification in MSME sector.
The unit should have commenced the commercial production between 20.05.2022 to 19.05.2027.
Unit should be located in the U.T. of Dadra and Nagar Haveli & Daman and Diu.
Enterprise will have to remain in production for 5 years from the date of commercial production.
Enterprise will have to observe Pollution Control measures as prescribed by PCC or other competent authority as per Notification No. PCC/DMN/13(PART IV)/2020-2021/448 DATED 25/01/2021.
Loan should be sanctioned by a Bank or Financial Institution as per RBI guidelines.
The enterprise shall have to submit the application within one year from the date of the first disbursement of loan or on or before one year from the date of commencement of commercial production.

Exclusions

The Enterprise will not be eligible for Interest Subsidy under this Scheme if, term loan is sanctioned after one year from the date of commencement of commercial production/ rendering services.

How useful is this scheme?

Public benefit analysis

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.

6.7

/ 10

Public Benefit Score

Accessibility 6.0/10 Moderate

Rural usefulness 5.0/10 Moderate

Application complexity 5.0/10 Moderate

Financial impact 9.5/10 Good

Literacy barrier 6.0/10 Moderate

Women inclusivity 9.0/10 Good

Awareness 4.5/10 Moderate

Implementation reliability 7.0/10 Good

Bigger shape means a better fit for citizens

Accessibility6.0
Financial impact9.5
Rural utility5.0
Awareness4.5
Simplicity5.0
Inclusivity9.0

What problem does this scheme solve?

The scheme provides significant financial assistance to MSMEs through interest subsidies, promoting entrepreneurship and local employment.

Key challenges addressed

Financial burden of interest on loans for MSMEs
Encouragement of local entrepreneurship
Support for women and young entrepreneurs

Most beneficial for

New and existing MSME units
Women entrepreneurs
Differently-abled entrepreneurs

Likely challenges

Complex application process
Digital literacy requirements
Awareness among potential beneficiaries

Practical insights for citizens

While the scheme offers substantial benefits, the application process may deter less digitally literate individuals.

Rural challenges

Limited internet access
Lack of awareness about the scheme

Digital challenges

High digital dependency for application
Need for email and mobile verification

Implementation bottlenecks

Potential delays in loan sanctioning
Complexity in understanding eligibility criteria

Awareness challenges

Low awareness among rural MSMEs
Need for outreach programs

Application analysis

Application mode: Online portal
Documents burden: Low
Verification complexity: Moderate
Office dependency: Low
DBT dependency: No
CSC support: Limited
Estimated citizen effort: Moderate

Estimated beneficiary reach

Rural / urban reach Moderate
Gender reach High
Occupation reach Business Entities, Industries

Benefit analysis

Benefit type: Cash
Benefit frequency: Annual for 5 years
Benefit practicality: High, as it directly reduces financial burden
Financial meaningfulness: Very high due to substantial interest subsidy
Long-term impact: Positive, fostering growth in the MSME sector

Plain-language guidance

This scheme helps small businesses by providing cash subsidies on loan interest. It's especially beneficial for women and young entrepreneurs.

Who should apply: New and existing MSME units, especially women and young entrepreneurs.
Who may struggle: Individuals with low digital literacy or limited internet access.
Best application route: Apply via the official online portal.

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.

Heldesk:

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 happens to the benefit of the incentive if a newly setup enterprise is sold or transferred to a new owner within the first five years of its establishment?: If a newly setup enterprise is sold or otherwise transferred to a new owner during the period of five years, the benefit of the incentive shall be available to such transferee or the new owner, only for the unexpired portion.
What is the definition of Expansion/ Diversification?: Expansion/Diversification means where an existing / New Enterprise increases its investment by at least 50% (out of which at least 60% of investment is made in plant and machinery for which expansion is carried out) of its existing Gross Fixed capital investment on the date of initiating expansion and compared with the date of commencing production during the operative period of the scheme. Only one Expansion / Diversification will be eligible for assistance during the operative period of the Scheme.
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.
What is the timeline of making an application?: The timeline to make application is within one year of first disbursement of loan or within one year of production whichever is later. the application submitted after one year will not be entitled to capital and interest subsidy.
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.
Are secondhand machineries eligible for the benefits under the scheme?: No, only new machineries shall be eligible for the benefits under the scheme. However, the existing second hand machineries can be considered for ascertaining the expansion criteria as per scheme.
If a manufacturing unit is eligible under more than one scheme then can it select the scheme which allows most benefits?: Yes. The unit can select any one scheme to avail benefits if it comes under the eligibility of more than one scheme. However, units cannot apply for benefits for the similar subsidy in multiple schemes and can apply in schemes which are complementary in nature.
What are the potential consequences if the Enterprise fails to make timely payments of interest or installments of a term loan to a Bank or Financial Institution?: If the Enterprise becomes defaulter in payment of interest or installment of term loan to Bank / Financial institution as per guidelines of RBI and as mentioned in certificate of Bank / Financial institution such default period will be deducted.
What is the minimum interest rate that an enterprise must bear on a term loan from any bank or financial institution?: The eligible Enterprise shall have to bear a minimum of 2% interest levied on term loan by any Bank /Financial institution and shall submit an affidavit in this regard containing details of subsidy received from Government of India or any other agencies.
Who shall directly receive the interest subsidy: the Bank/ Financial institution or the borrower?: The interest subsidy shall be directly credited to the Ban/ Financial institution.
Is it compulsory to take a term loan for solar subsidy?: No. However, it is advisable.
Which chartered engineer can certify for building, self fabricated machineries, solar certificates?: A qualified person who is certified by or member of the Indian Institution of Engineers (IIE).
What are dedicated industrial parks?: Dedicated industrial parks are mentioned in food processing incentives where an additional 10% will be accorded to food processing units setup in industrial parks having only food processing industries.
What is the deadline for an enterprise to submit the application through the online portal?: The enterprise shall have to apply on online portal within one year from the date of first disbursement of loan or on or before the date of commencement of commercial production, whichever is later.
Which types of financial institutions' loans are eligible for incentives under the Scheme according to RBI guidelines, and which are not?: Loan sanctioned and disbursed by Bank or Financial institution as per RBI guidelines will be eligible for incentive under the Scheme. Loan sanctioned by Non-Banking Financial Institutes will not be eligible for incentive under this resolution.
What conditions must an enterprise meet regarding the duration of production to avoid repayment of the capital investment subsidy, and what are the consequences if these conditions are not met?: Enterprise will have to remain in production for 5 years from the date of commercial production and if it fails to continue production for five years then the amount of capital investment subsidy disbursed will be recovered as arrears of land revenue.

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

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Frequently asked questions

What is the purpose of Investment Promotion Scheme (IPS) for MSME Sector: Assistance of Interest Subsidy?: Investment Promotion Scheme (IPS) for MSME Sector: Assistance of Interest Subsidy is a government welfare initiative designed to support Infra, 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 MSME Sector: Assistance of Interest Subsidy?: Eligibility for Investment Promotion Scheme (IPS) for MSME Sector: Assistance of Interest Subsidy 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 MSME Sector: Assistance of Interest Subsidy?: Benefits under Investment Promotion Scheme (IPS) for MSME Sector: Assistance of Interest Subsidy 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 MSME Sector: Assistance of Interest Subsidy?: Investment Promotion Scheme (IPS) for MSME Sector: Assistance of Interest Subsidy 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 MSME Sector: Assistance of Interest Subsidy?: Yes, eligible applicants may be able to apply online for Investment Promotion Scheme (IPS) for MSME Sector: Assistance of Interest Subsidy 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 MSME Sector: Assistance of Interest Subsidy?: 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 MSME Sector: Assistance of Interest Subsidy?: Applications for Investment Promotion Scheme (IPS) for MSME Sector: Assistance of Interest Subsidy 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 MSME Sector: Assistance of Interest Subsidy?: 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 MSME Sector: Assistance of Interest Subsidy available in all states?: No, Investment Promotion Scheme (IPS) for MSME Sector: Assistance of Interest Subsidy 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 MSME Sector: Assistance of Interest Subsidy?: Eligibility for Investment Promotion Scheme (IPS) for MSME Sector: Assistance of Interest Subsidy 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 MSME Sector: Assistance of Interest Subsidy provide business loan or startup assistance?: Investment Promotion Scheme (IPS) for MSME Sector: Assistance of Interest Subsidy 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 MSME Sector: Assistance of Interest Subsidy?: 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 MSME Sector: Assistance of Interest Subsidy?: 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 MSME Sector: Assistance of Interest Subsidy?: 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 MSME Sector: Assistance of Interest Subsidy?: 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 MSME Sector: Assistance of Interest Subsidy?: 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 MSME Sector: Assistance of Interest Subsidy 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 MSME Sector: Assistance of Interest Subsidy 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.