The “Incentive For Local Employment” is a sub-scheme under the “Investment Promotion Scheme (IPS)” for the MSME sector. It was originally 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 to 19th May 2027. Its main objective is to provide a recruitment-based incentive to MSMEs for generating employment opportunities for local residents.
Benefits
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₹3,00,000 per 20 local employees, up to a maximum of ₹15,00,000 per eligible unit
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One-time recruitment incentive to promote local employment
Eligibility
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Must be a New or Existing Manufacturing/Service unit under MSME
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Unit must undertake Expansion/Diversification
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Must have started commercial production between 20.05.2022 and 19.05.2027
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Must be located in the U.T. of Dadra & Nagar Haveli and Daman & Diu
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Recruited employees should:
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Have a Domicile Certificate of the Union Territory
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Be above 18 years of age
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Application Process
Mode: Online
Registration Steps:
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Visit the Registration Page
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Fill in required fields and click “Register”
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Verify email using the link received
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Use OTP “111111” to verify mobile number
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Credentials will be emailed after registration
Application Steps:
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Visit the user Login page of the portal
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Enter registered Mobile Number and PIN → Click “Log In”
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From the menu, select “Departments & Services”
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Choose “District Industries Centre DD & DNH” → Click “Click Here”
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Complete the Common Application Form (CAF)
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Upload required documents
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Verify all entries and click “Submit”
Helpdesk:
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District Industries Centre
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Phone: 0260-2260871 / 2260310
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Email: [email protected]
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Technical Assistance:
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Phone: 0260-2231885 / 2231886
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Email: [email protected]
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Documents Required
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CIN, TIN, PAN, GST Documents
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Udyam Registration / IEM Certificate
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MOA, AOA, Incorporation Certificate / Partnership Deed
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Land deed or Lease Agreement (min. 5 years)
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Electricity Sanction & Latest Bill
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Authorization Letter
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Consent to Operate / Renewal from PCC
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Factory License
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Undertaking
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Payment details made to local employees for the past year
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Domicile Certificates of recruited employees
Frequently Asked Questions
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What happens if an industry retrenches a local employee?
The incentive may be reviewed or withdrawn if employment is not sustained. -
Who monitors compliance with the scheme?
The District Industries Centre and other authorized bodies. -
What documentation is required to claim the incentive?
Domicile certificates, salary proofs, CAF form, and legal registrations. -
What is considered Expansion/Diversification?
Addition of new products, services, or scaling of existing operations. -
What happens if ownership changes?
Benefits may be subject to review or cancellation. -
What if a unit qualifies under multiple schemes?
The enterprise can choose the scheme offering the best benefits, but cannot claim from more than one scheme for the same purpose. -
What is the operative period?
From 20th May 2022 to 19th May 2027 -
Deadline to apply?
As per policy, application must be submitted in accordance with the completion of the employment term and before the scheme’s closure.