IPSFOB

Investment Promotion Scheme (IPS) for MSME Sector: Reimbursement Of Free On Board (FOB) Expenses

6.6/10

“Reimbursement Of Free On Board (FOB) Expenses” under the “Investment Promotion Scheme (IPS)” for MSME sector, implemented by the Dept. of Industries, U.T. Administration Of DNH & DD, aims for boosting exports in the Food/ Marine Food Processing Sector.

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

Target beneficiaries: Business Entity, Industries

Tags: Exports, Investment, MSMEs, Incentives, Entrepreneurship, Subsidy, Reimbursement, Food Processing, Marine Food Processing, FOB

Details

The scheme “Reimbursement Of Free On Board (FOB) Expenses” 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 "Reimbursement Of Free On Board (FOB) Expenses" Sub-scheme:

Under this scheme, financial assistance would be provided in the form of reimbursement of Free On Board(FOB) value on Export of Food/ Marine processed products.

Benefits

  • - 20% reimbursement of Free On Board(FOB) value limited to ₹20,00,000/- per beneficiary per year for 3 years
  • 20% reimbursement of Free On Board(FOB) value limited to ₹20,00,000/- per beneficiary per year for 3 years.

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 shall have to apply within six months from 31st March of the previous financial year.

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.

6.6
/ 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 8.0/10 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
  • Inclusivity8.0

What problem does this scheme solve?

The scheme provides financial assistance to MSMEs in the food processing sector, promoting exports and supporting local industries.

Key challenges addressed

  • Boosting exports in the food processing sector
  • Providing financial support to MSMEs

Most beneficial for

  • New and existing MSME units in food processing
  • Women entrepreneurs

Likely challenges

  • Complex application process for semi-literate users
  • Digital dependency may exclude some potential beneficiaries

Practical insights for citizens

The scheme is practical for those who can navigate online systems but may leave out less tech-savvy individuals.

Rural challenges

  • Limited internet access in rural areas
  • Lack of awareness about the scheme

Digital challenges

  • High digital dependency may exclude non-digital users

Implementation bottlenecks

  • Complexity in application process may deter applicants

Awareness challenges

  • Low awareness among potential beneficiaries

Application analysis

Application mode
Online portal
Documents burden
Minimal, no documents specified
Verification complexity
Moderate, requires email and mobile verification
Office dependency
Low, primarily online
DBT dependency
No direct benefit transfer mentioned
CSC support
Not specified
Estimated citizen effort
Moderate, requires multiple steps for application

Estimated beneficiary reach

  • Rural / urban reach Moderate
  • Gender reach High
  • Target income group Low to middle-income entrepreneurs
  • Occupation reach MSMEs in food processing

Benefit analysis

Benefit type
Cash
Benefit frequency
Annual for 3 years
Benefit practicality
High, as it provides substantial financial support
Financial meaningfulness
High, with a maximum of ₹20,00,000 per beneficiary
Long-term impact
Positive, as it encourages growth and sustainability of MSMEs

Plain-language guidance

This scheme helps small businesses in the food processing sector get money back for export costs. It's aimed at new and expanding businesses.

Who should apply
New and existing MSME units in the food processing sector.
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.

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).

Under this scheme, which category of products will be considered for export?

Export of finished products only shall be considered under this Scheme.

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.

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.

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 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?

Entrepreneur shall have to apply within six months from 31st March of the previous financial year.

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 now

Opens 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 MSME Sector: Reimbursement Of Free On Board (FOB) Expenses?
Investment Promotion Scheme (IPS) for MSME Sector: Reimbursement Of Free On Board (FOB) Expenses 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: Reimbursement Of Free On Board (FOB) Expenses?
Eligibility for Investment Promotion Scheme (IPS) for MSME Sector: Reimbursement Of Free On Board (FOB) Expenses 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: Reimbursement Of Free On Board (FOB) Expenses?
Benefits under Investment Promotion Scheme (IPS) for MSME Sector: Reimbursement Of Free On Board (FOB) Expenses 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: Reimbursement Of Free On Board (FOB) Expenses?
Investment Promotion Scheme (IPS) for MSME Sector: Reimbursement Of Free On Board (FOB) Expenses 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: Reimbursement Of Free On Board (FOB) Expenses?
Yes, eligible applicants may be able to apply online for Investment Promotion Scheme (IPS) for MSME Sector: Reimbursement Of Free On Board (FOB) Expenses 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: Reimbursement Of Free On Board (FOB) Expenses?
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: Reimbursement Of Free On Board (FOB) Expenses?
Applications for Investment Promotion Scheme (IPS) for MSME Sector: Reimbursement Of Free On Board (FOB) Expenses 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: Reimbursement Of Free On Board (FOB) Expenses?
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: Reimbursement Of Free On Board (FOB) Expenses available in all states?
No, Investment Promotion Scheme (IPS) for MSME Sector: Reimbursement Of Free On Board (FOB) Expenses 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: Reimbursement Of Free On Board (FOB) Expenses?
Eligibility for Investment Promotion Scheme (IPS) for MSME Sector: Reimbursement Of Free On Board (FOB) Expenses 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: Reimbursement Of Free On Board (FOB) Expenses provide business loan or startup assistance?
Investment Promotion Scheme (IPS) for MSME Sector: Reimbursement Of Free On Board (FOB) Expenses 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: Reimbursement Of Free On Board (FOB) Expenses?
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: Reimbursement Of Free On Board (FOB) Expenses?
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: Reimbursement Of Free On Board (FOB) Expenses?
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: Reimbursement Of Free On Board (FOB) Expenses?
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: Reimbursement Of Free On Board (FOB) Expenses?
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: Reimbursement Of Free On Board (FOB) Expenses 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: Reimbursement Of Free On Board (FOB) Expenses 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.