Investment Promotion Scheme (IPS) for MSME Sector: Assistance For Capital Investment In Solar Power GenerationScheme StatusScheme Status

The “Assistance For Capital Investment In Solar Power Generation” is a sub-scheme under the Investment Promotion Scheme (IPS) for the MSME Sector in Dadra & Nagar Haveli and Daman & Diu. Originally 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, the scheme was extended from 20th May 2022 and is now operative until 19th May 2027. This scheme is designed to provide a capital subsidy to eligible industries for setting up solar power plants, encouraging MSMEs to adopt solar power for their energy requirements.

Key Objectives

  • MSME Support: Provide incentives and assistance to MSMEs to make them resilient against market fluctuations.
  • Sustainable Energy Adoption: Encourage the use of solar power by offering a capital subsidy for setting up solar power plants.
  • Local Employment & Participation: Enhance local participation in the business sector, reduce unemployment, and incentivize industries to employ resident laborers.
  • Sectoral Growth: Facilitate the growth of MSMEs by lowering energy costs and promoting sustainable practices.

Objective of the Sub-scheme

The sub-scheme offers a capital subsidy to eligible enterprises for their investment in solar power generation infrastructure. It aims to promote the use of renewable energy by ensuring that enterprises meet at least 10% of their total power consumption through solar power.

Benefits

  • Subsidy Rate: A subsidy of 25% of the capital investment is provided, subject to a maximum limit of ₹50,00,000/‑.
  • One-Time Benefit: Each enterprise is eligible to avail this scheme only once.

Eligibility Criteria

  • Unit Type: Open to new manufacturing/service units or existing manufacturing/service units undertaking expansion or diversification in the MSME sector.
  • Production Commencement: The enterprise must have commenced commercial production between 20th May 2022 and 19th May 2027.
  • Location: The unit must be located in the U.T. of Dadra & Nagar Haveli and Daman & Diu.
  • Solar Power Requirement: The enterprise must meet at least 10% of its total power consumption through solar power.
  • Application Timing: The enterprise must apply within six months of generating solar power.

Application Process

Online Registration and Application:

  1. Registration Process:

  • Step 1: Visit the Registration page on the Official Website.
  • Step 2: Provide the required information in the respective input fields and click “Register.”
  • Step 3: Verify your email address using the verification link sent to your email (check the spam folder if not received).
  • Step 4: Complete your account verification by clicking the link or pasting the URL in your browser’s address bar.
  • Step 5: Enter “111111” as the OTP to verify your mobile number; your mobile number and PIN will be sent to your registered email.
  • Step 6: Upon successful registration, your login credentials will be received via email.
  1. Application Submission:

  • Step 1: Visit the user Login page on the Official Website.
  • Step 2: Enter your registered mobile number along with the PIN sent to your email, then click “Log In.”
  • Step 3: From the left side menu, click on the “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: Fill out the “Common Application Form” by entering all the required details and uploading the mandatory documents.
  • Step 6: Verify the information and click “Submit” to complete the application process.

Helpdesk Contacts:

Documents Required

  • Corporate Identification Number (CIN) document.
  • Taxpayer Identification Number (TIN) document.
  • Permanent Account Number (PAN) document.
  • Goods and Services Tax (GST) document.
  • Other registration documents.
  • Copy of Udyam Registration/Industrial Entrepreneur Memorandum, as applicable.
  • For partnerships: Copy of the Partnership Deed and Firm Registration Certificate; for companies: Copy of the Memorandum & Articles of Association and Date of Incorporation Certificate.
  • Copy of the land purchase deed (if the enterprise operates on its own land).
  • Copy of the registered lease agreement (minimum period of 5 years from the commencement of production) if operating on leased property.
  • Copy of the sanction order from the Electricity Department along with the latest bill.
  • Authorization letter.
  • Copy of Consent to Operate/Renewal from PCC, DNH & DD (as applicable per Notification No. PCC/DMN/13(PART VI)/2020-21/448 dated 25/01/2021).
  • Copy of Factory License.
  • Undertaking.
  • Power Consumption Report.

Frequently Asked Questions (FAQs)

  • To be eligible, what percentage of the total power consumption must an enterprise meet through solar power?
    The enterprise must meet at least 10% of its total power consumption through solar power.

  • Can an enterprise avail this scheme more than once?
    No, an enterprise is eligible to avail this scheme only once.

  • Which report should be submitted along with other documents by an enterprise while applying for this scheme?
    A Power Consumption Report must be submitted along with the other required documents.

  • What happens to the benefit of the incentive if a newly set-up enterprise is sold or transferred to a new owner within the first five years of its establishment?
    Refer to the detailed guidelines for the specific conditions applicable to the transfer or sale of the enterprise.

  • What is the definition of Expansion/Diversification?
    Expansion/Diversification is defined in the official scheme guidelines, typically involving increasing or broadening the range of products/services or market reach.

  • What measures are in place to prevent misuse of the subsidy scheme?
    Strict eligibility checks, thorough document verification, and monitoring by the Dept. of Industries help prevent misuse of the subsidy.

  • What is the operative period of the scheme?
    The scheme is operative from 20th May 2022 to 19th May 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?
    Benefits are applicable as per the operational guidelines of the scheme; refer to the official guidelines for specific timeframes based on the date of establishment.

  • How can an eligible unit apply to get the benefits of the scheme?
    Eligible units must apply online through the Official Website following the prescribed registration and application process.

  • If a manufacturing unit is eligible under more than one scheme, can it select the scheme which allows most benefits?
    The selection process is guided by the official scheme guidelines; generally, an enterprise must adhere to the conditions of the scheme under which it is primarily eligible.

  • What is the deadline for an enterprise to submit the application through the online portal?
    Applications must be submitted within the operational period of the scheme (20th May 2022 to 19th May 2027), and the enterprise must apply within six months of generating solar power.

Sources and References

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