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

Eligibility for Investment Promotion Scheme (IPS) for Textile Sector: Assistance Of Interest Subsidy For Textile Sector is generally limited to residents of Dadra & Nagar Haveli and Daman & Diu unless otherwise specified in the official scheme guidelines.

IPSTSAISTS

Investment Promotion Scheme (IPS) for Textile Sector: Assistance Of Interest Subsidy For Textile Sector

6.6/10

“Assistance Of Interest Subsidy For Textile Sector” under the “Investment Promotion Scheme (IPS)” for Textile Sector, implemented by the Dept. of Industries, U.T. Administration Of DNH & DD, aims to provide credit linked interest subsidy for Textile and Technical Textile 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: Credit Linked Subsidy

Target beneficiaries: Business Entity, Industries

Tags: Textile Sector, Interest Subsidy, Incentives, Entrepreneurship, Reimbursement, IPS

Details

The scheme “Assistance Of Interest Subsidy For Textile Sector” 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 further fillip to the specialized Textile sector such as Technical textiles, Fabrics, Carpets, Garments, Apparels and Industries Manufacturing Textile Machinery, Medical Fabrics, therefore making the U.T. a Special Hub for Technical Textiles, 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 For Textile Sector" Sub-scheme:

Under this Scheme, credit linked interest subsidy will be provided for Textiles, Technical Textiles, Fabrics, Carpets, Garments, Apparels and Industries manufacturing Textile Machinery, Medical Fabrics and Textiles.

Benefits

- 60% subsidy of interest charged by Bank with an upper ceiling of ₹60,00,000/- per annum for a period of 5 years OR, for the period of repayment of loan whichever is earlier
Additional 10% subsidy will be provided to Export oriented Carpet industry upto a maximum ₹70,00,000/- per annum

60% subsidy of interest charged by Bank with an upper ceiling of ₹60,00,000/- per annum for a period of 5 years OR, for the period of repayment of loan whichever is earlier.
Additional 10% subsidy will be provided to Export oriented Carpet industry upto a maximum ₹70,00,000/- per annum.

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 at online portal within one year from the date of eligibility.

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.

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 textile businesses, promoting entrepreneurship and local employment.

Key challenges addressed

Supports new and existing textile businesses
Encourages local employment
Promotes women's participation in the textile sector

Most beneficial for

New textile manufacturing units
Existing units looking to expand
Women entrepreneurs in the textile sector

Likely challenges

Complex online application process
Limited awareness among rural entrepreneurs
Dependency on digital literacy

Practical insights for citizens

The scheme's benefits may not reach all eligible applicants due to application complexities.

Rural challenges

Limited internet access
Low awareness of the scheme

Digital challenges

High digital dependency for application
Need for email and mobile verification

Implementation bottlenecks

Complex online processes may deter applicants
Potential delays in loan sanctioning

Awareness challenges

Low outreach in rural areas
Limited information dissemination

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 Textile industry workers and entrepreneurs

Benefit analysis

Benefit type: Cash
Benefit frequency: One-time subsidy for loan interest
Benefit practicality: High, if eligibility criteria are met
Financial meaningfulness: High due to significant subsidy amounts
Long-term impact: Positive impact on local employment and business growth

Plain-language guidance

This scheme helps textile businesses by providing financial support for interest on loans. It is aimed at new and expanding textile units, especially those run by women.

Who should apply: New and existing textile businesses in Dadra & Nagar Haveli and Daman & Diu.
Who may struggle: Semi-literate individuals and those unfamiliar with online applications.
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).

Are there any time constraints for loan sanctioning to be eligible for the subsidy?: Yes, the enterprise will not be eligible for the interest subsidy if the term loan is sanctioned more than one year after the date of commencement of commercial production.
Who is eligible for this scheme?: This scheme is applicable to both new enterprises and existing enterprises looking to expand or diversify during the scheme's operative period.
What types of loans are eligible for the subsidy?: Loans sanctioned by a bank or financial institution as per RBI guidelines for industries located in the Union Territory (U.T.) are eligible for the subsidy.
When should the enterprise apply for the subsidy?: The enterprise must apply through the online portal within one year from the date of eligibility.
When will the reimbursement of the interest subsidy be made?: The interest subsidy is eligible either from the date of the first disbursement of the loan or from the date of commencement of commercial production, whichever is later. However, reimbursement of the interest subsidy will be made only after the commencement of commercial production of the enterprise.
What happens if the Enterprise defaults on the payment of interest or installment of the term loan?: If the Enterprise defaults on the payment of interest or an installment of the term loan to the Bank or Financial Institution, as per the guidelines of the Reserve Bank of India (RBI) and as mentioned in the certificate of the Bank/Financial Institution, the period of default will be deducted from the subsidy period.
Is the interest subsidy available for penal interest or other bank charges?: No, the interest subsidy is not available for penal interest or any other bank charges.
Is there a minimum interest rate that the Enterprise must bear?: Yes, the eligible Enterprise must bear a minimum of 2% interest levied on the term loan by any Bank or Financial Institution. The Enterprise must submit details and an undertaking in this regard.
How is the interest subsidy credited?: The interest subsidy will be directly credited to the Bank or Financial Institution where the term loan is held.
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.

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 now

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Frequently asked questions

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