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

The “Assistance of Interest Subsidy for Textile Sector” is a sub-scheme under the “Investment Promotion Scheme (IPS)” for the MSME sector. Initially launched on 3rd July 2015 by the Department of Industries, U.T. Administration of Dadra & Nagar Haveli and Daman & Diu, the scheme has been extended from 20th May 2022 and will remain operative till 19th May 2027.

This sub-scheme focuses on supporting enterprises in the textile sector with credit-linked interest subsidies, aiming to promote industries such as technical textiles, fabrics, carpets, garments, apparels, textile machinery, and medical fabrics, while encouraging employment and local entrepreneurship.

Benefits

• 60% interest subsidy on bank loans

  • Maximum limit: ₹60,00,000 per annum

  • Duration: Up to 5 years or till loan repayment (whichever is earlier)

• Additional 10% subsidy (total 70%) for export-oriented carpet industries

  • Cap: ₹70,00,000 per annum

Eligibility

• Applicant must be:

  • A New Manufacturing/Service Unit, or

  • An Existing Unit undergoing Expansion or Diversification in the MSME sector

• Unit must:

  • Be located in Dadra & Nagar Haveli and Daman & Diu

  • Have started commercial production between 20.05.2022 and 19.05.2027

  • Apply within one year from the date of eligibility on the official portal

Exclusions

• Enterprises not eligible if:

  • The term loan is sanctioned after one year from the date of commercial production

Application Process

Mode: Online

Registration Process:

1. Visit the registration page on the Official Portal

2. Fill in all necessary fields and click “Register”

3. Verify your email address via the link sent to your inbox/spam

4. Click the verification link or paste it in your browser to confirm account

5. Enter “111111” as OTP to verify your mobile number

6. Login credentials will be sent to your registered email

Application Process:

1. Login using your mobile number and PIN

2. Navigate to “Departments & Services”

3. Click on “District Industries Centre DD & DNH”, then click “Click Here” under IPS

4. Fill out the Common Application Form with required data

5. Upload all mandatory documents

6. Verify and Submit the application

Documents Required

• CIN, TIN, PAN, GST documents

• Other statutory registration documents

• Udyam Registration / Industrial Entrepreneur Memorandum

• Partnership Deed / Firm Registration Certificate or
  MOA, AOA, Incorporation Certificate for Pvt./Ltd. companies

• Land ownership deed or registered lease agreement (min. 5 years)

• Electricity Department sanction order with latest bill

• Authorization letter

• Consent to Operate / Renewal from PCC, DNH & DD

• Factory License

• Undertaking

Frequently Asked Questions

• Q: What is the maximum interest subsidy available?
  ₹60,00,000 per annum (₹70,00,000 for export-oriented carpet industry)

• Q: Who can apply for this scheme?
  New or expanding/diversifying textile MSMEs in Dadra & Nagar Haveli and Daman & Diu

• Q: What if the term loan is sanctioned after 1 year of production start?
  The unit becomes ineligible for interest subsidy

Sources And References

•  Guidelines

• FAQs