IPSTSFPI

Investment Promotion Scheme (IPS) for Thrust Sectors: III. Scheme C4: For Food Processing Industries

6.3/10

“Scheme For Food Processing Industries'' under the “Investment Promotion Scheme (IPS)” for Thrust Sectors, implemented by the Dept. of Industries, U.T. Administration Of DNH & DD, aims to provide Interest Subsidy to the Establishment /Expansion of Food processing industries.

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: 2020-01-01

Categories: Business & Entrepreneurship

Sub-categories: Setting up / start-up / entrepreneurship

Target beneficiaries: Business Entity, Industries

Tags: Thrust Sectors, Food Processing Industries, Incentives, Entrepreneurship, Subsidy, Reimbursement, IPS

Details

The scheme ““Scheme For Food Processing Industries” is a sub scheme under the “Investment Promotion Scheme (IPS)” for Thrust 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 Thrust Sectors such as Plastic Furniture, Steel Furniture, Brass Furniture, Metal Furniture, Cane Furniture, Wooden Furniture, Bamboo Furniture, Fibre Glass Furniture and Marble Furniture etc, therefore making the U.T. a Special Hub for the furniture 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 "Scheme For Food Processing Industries" Sub-scheme:

Under this Scheme, Credit linked interest subsidy will be provided for Establishment/ Expansion of Food processing industries.

Benefits

  • - Credit Linked Interest Subsidy: 60% per annum limited to maximum of ₹50,00,000/- lakhs per annum for Five years OR for the period of repayment of loan whichever is earlier. - Additional Subsidy: Additional 10% subsidy for Food processing units established in dedicated Industrial parks for Food processing Industries
  • Credit Linked Interest Subsidy: 60% per annum limited to maximum of ₹50,00,000/- lakhs per annum for Five years OR for the period of repayment of loan whichever is earlier. - Additional Subsidy: Additional 10% subsidy for Food processing units established in dedicated Industrial parks for Food processing Industries.

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 first disbursement of loan or on or before 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.

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.

6.3
/ 10
Public Benefit Score
Accessibility 5.0/10 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 6.0/10 Moderate
Bigger shape means a better fit for citizens
  • Accessibility5.0
  • Financial impact9.5
  • Rural utility5.0
  • Awareness4.5
  • Simplicity5.0
  • Inclusivity8.0

What problem does this scheme solve?

The scheme provides financial support to food processing industries, promoting entrepreneurship and local employment.

Key challenges addressed

  • Encourages establishment and expansion of food processing units
  • Provides financial incentives to reduce unemployment

Most beneficial for

  • New and existing food processing businesses
  • Women entrepreneurs

Likely challenges

  • Complex online application process
  • Limited awareness among potential beneficiaries

Practical insights for citizens

The scheme may not reach all intended beneficiaries due to application complexities.

Rural challenges

  • Limited internet access
  • Lack of awareness about the scheme

Digital challenges

  • High digital dependency for application process

Implementation bottlenecks

  • Potential delays in loan disbursement

Awareness challenges

  • Low outreach in rural areas

Application analysis

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

Estimated beneficiary reach

  • Rural / urban reach Moderate
  • Gender reach High
  • Occupation reach Industries

Benefit analysis

Benefit type
Cash
Benefit frequency
One-time subsidy linked to loan disbursement
Benefit practicality
Financial support is significant but may not cover all costs.
Financial meaningfulness
7
Long-term impact
Encourages sustainable business growth in food processing sector.

Plain-language guidance

This scheme helps food processing businesses get financial support to grow. It offers interest subsidies for loans taken to start or expand these businesses.

Who should apply
New and existing food processing units 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 loans sanctioned by banks or financial institutions eligible for subsidy?

Yes, loans sanctioned by banks or financial institutions in accordance with RBI guidelines for industries located in U.T. are eligible for subsidy under this scheme.

What is the eligibility criteria for Interest Subsidy under this Scheme?

The Enterprise will not be eligible for Interest Subsidy if the term loan is sanctioned after one year from the date of commencement of commercial production.

When does the Interest Subsidy become effective?

Interest subsidy will be 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 interest subsidy shall be made only after the commencement of commercial production of the enterprise.

What happens if the Enterprise defaults on payment?

If the Enterprise becomes a defaulter in the payment of interest or installment of term loan to the Bank/Financial institution as per the guidelines of RBI and as mentioned in the certificate of the Bank/Financial institution, such default period will be deducted.

What is the scope of the interest subsidy?

The interest subsidy is applicable solely to the interest charged by financial institutions or banks on loans.

Are penal interest and other bank charges covered under the subsidy?

No, penal interest and other bank charges are not eligible for the interest subsidy.

Is there a minimum interest rate requirement for eligibility?

Yes, the eligible enterprise must bear a minimum of 2% interest on term loans provided by any bank or financial institution.

How can an enterprise demonstrate compliance with the minimum interest requirement?

The enterprise is required to submit details and an undertaking confirming their compliance with the minimum interest requirement.

How is the interest subsidy disbursed?

The interest subsidy is directly credited to the respective bank or financial institution that provided the loan.

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.

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.

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 Thrust Sectors: III. Scheme C4: For Food Processing Industries?
Investment Promotion Scheme (IPS) for Thrust Sectors: III. Scheme C4: For Food Processing Industries 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 Thrust Sectors: III. Scheme C4: For Food Processing Industries?
Eligibility for Investment Promotion Scheme (IPS) for Thrust Sectors: III. Scheme C4: For Food Processing 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 Thrust Sectors: III. Scheme C4: For Food Processing Industries?
Benefits under Investment Promotion Scheme (IPS) for Thrust Sectors: III. Scheme C4: For Food Processing 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 Thrust Sectors: III. Scheme C4: For Food Processing Industries?
Investment Promotion Scheme (IPS) for Thrust Sectors: III. Scheme C4: For Food Processing 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 Thrust Sectors: III. Scheme C4: For Food Processing Industries?
Yes, eligible applicants may be able to apply online for Investment Promotion Scheme (IPS) for Thrust Sectors: III. Scheme C4: For Food Processing 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 Thrust Sectors: III. Scheme C4: For Food Processing 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 Thrust Sectors: III. Scheme C4: For Food Processing Industries?
Applications for Investment Promotion Scheme (IPS) for Thrust Sectors: III. Scheme C4: For Food Processing 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 Thrust Sectors: III. Scheme C4: For Food Processing 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 Thrust Sectors: III. Scheme C4: For Food Processing Industries available in all states?
No, Investment Promotion Scheme (IPS) for Thrust Sectors: III. Scheme C4: For Food Processing 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 Thrust Sectors: III. Scheme C4: For Food Processing Industries?
Eligibility for Investment Promotion Scheme (IPS) for Thrust Sectors: III. Scheme C4: For Food Processing 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 Thrust Sectors: III. Scheme C4: For Food Processing Industries provide business loan or startup assistance?
Investment Promotion Scheme (IPS) for Thrust Sectors: III. Scheme C4: For Food Processing 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 Thrust Sectors: III. Scheme C4: For Food Processing 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 Thrust Sectors: III. Scheme C4: For Food Processing 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 Thrust Sectors: III. Scheme C4: For Food Processing 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 Thrust Sectors: III. Scheme C4: For Food Processing 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 Thrust Sectors: III. Scheme C4: For Food Processing 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 Thrust Sectors: III. Scheme C4: For Food Processing 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 Thrust Sectors: III. Scheme C4: For Food Processing 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.