Govt. Incentive: Get ₹3 Lakh for Hiring Local Employees in DNH & DDScheme StatusScheme Status

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

  • ₹3,00,000 per 20 local employees, up to a maximum of ₹15,00,000 per eligible unit

  • One-time recruitment incentive to promote local employment

Eligibility

  • Must be a New or Existing Manufacturing/Service unit under MSME

  • Unit must undertake Expansion/Diversification

  • Must have started commercial production between 20.05.2022 and 19.05.2027

  • Must be located in the U.T. of Dadra & Nagar Haveli and Daman & Diu

  • Recruited employees should:

    • Have a Domicile Certificate of the Union Territory

    • Be above 18 years of age

Application Process

Mode: Online

Registration Steps:

  1. Visit the Registration Page

  2. Fill in required fields and click “Register”

  3. Verify email using the link received

  4. Use OTP “111111” to verify mobile number

  5. Credentials will be emailed after registration

Application Steps:

  1. Visit the user Login page of the portal

  2. Enter registered Mobile Number and PIN → Click “Log In”

  3. From the menu, select “Departments & Services”

  4. Choose “District Industries Centre DD & DNH” → Click “Click Here”

  5. Complete the Common Application Form (CAF)

  6. Upload required documents

  7. Verify all entries and click “Submit”

Helpdesk:

Documents Required

  • CIN, TIN, PAN, GST Documents

  • Udyam Registration / IEM Certificate

  • MOA, AOA, Incorporation Certificate / Partnership Deed

  • Land deed or Lease Agreement (min. 5 years)

  • Electricity Sanction & Latest Bill

  • Authorization Letter

  • Consent to Operate / Renewal from PCC

  • Factory License

  • Undertaking

  • Payment details made to local employees for the past year

  • Domicile Certificates of recruited employees

Frequently Asked Questions

  • 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    The incentive may be reviewed or withdrawn if employment is not sustained.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.

Sources And References

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