Launched on 3rd July 2015 by the Dept. of Industries, U.T. Administration Of Dadra & Nagar Haveli And Daman & Diu, the scheme originally ran for five years and has been extended from 20th May 2022 to 19th May 2027. This sub-scheme, under the broader Investment Promotion Scheme (IPS) for the MSME Sector, is designed to provide financial incentives to promote specialized thrust sectors such as Marble, IT & ITES, Electric Vehicles & Spare Parts, Toys Units, and Semiconductor Industries. The initiative aims to drive industrial growth, encourage local manufacturing, and create employment opportunities by offering attractive subsidies to eligible enterprises.
Key Objectives
- Sector Promotion: Provide incentives to boost sectors like Marble, IT & ITES, Electric Vehicles & Spare Parts, Toys Units, and Semiconductor Industries.
- Economic Growth: Enhance the industrial landscape by encouraging new manufacturing or service units and supporting expansion or diversification of existing units.
- Employment & Local Participation: Maximize local labor employment and foster entrepreneurship in the region.
- Women Empowerment & Inclusive Growth: In line with broader IPS objectives, support specialized sectors to increase women participation and reduce unemployment among local residents.
Benefits
Eligible enterprises can avail the following benefits:
- Credit Linked Interest Subsidy:
- 60% per annum, subject to a maximum of ₹50,00,000 per annum for five years or for the period of loan repayment, whichever is earlier.
- Capital Investment Subsidy:
- For Small Units: 20% of the Gross Fixed Capital Investment, subject to a maximum reimbursement of ₹50,00,000 per unit.
- For Large Units in the Semiconductor Sector: 15% of the Gross Fixed Capital Investment, subject to a maximum of ₹7,50,00,000.
Eligibility Criteria
To qualify for the scheme, enterprises must meet the following conditions:
- Type of Unit: New Manufacturing/Service Units or Existing Manufacturing/Service Units undertaking Expansion or Diversification in the MSME sector.
- Production Commencement: The unit should have commenced commercial production between 20th May 2022 and 19th May 2027.
- Location: The enterprise must be located in the U.T. of Dadra and Nagar Haveli & Daman and Diu.
- Application Timeline: Enterprises are required to apply via the online portal within one year from the date they become eligible.
- Exclusions: Enterprises that have already been issued eligibility certificates, or where incentives have been sanctioned/disbursed under another state government incentive scheme, are not eligible.
- Additionally, if a term loan is sanctioned after one year from the commencement of commercial production, the enterprise will not be eligible for the Interest Subsidy.
Application Process
Online Application
Registration Process:
- Visit the Registration page of the Official Website.
- Provide the required information in the input spaces and click on “Register”.
- Verify your email address using the verification link sent to your email (check your spam folder if not received).
- Click the link or paste the URL in your browser’s address bar to complete account verification.
- Enter “111111” as the OTP to verify your mobile number; your mobile number and PIN will be sent to your registered email.
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Upon successful registration, you will receive your login credentials via email.
Application Submission:
- Visit the user Login page of the Official Website.
- Enter your registered Mobile Number along with the PIN sent via email and click “Log In”.
- From the left side menu, click on the “Departments & Services” tab.
- 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)”.
- The “Common Application Form” will open; fill in all the required details and upload the mandatory documents.
- Verify the entered information and click “Submit” to complete your application.
Helpdesk Contact:
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District Industries Centre:
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Contact No.: 0260-2260871 / 0260-2260310
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E-mail: [email protected]
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Technical Assistance (Single Window Portal – https://investdd.in):
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Contact No.: 0260-2231885 / 2231886
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E-mail: [email protected]
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Documents Required
Applicants must submit the following documents:
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Corporate Identification Documents:
- Corporate Identification Number (CIN)
- Taxpayer Identification Number (TIN)
- Permanent Account Number (PAN)
- Goods and Services Tax Number (GST)
Registration & Incorporation Proof:
- Copy of Udyam Registration or Industrial Entrepreneur Memorandum (as applicable)
- Partnership Deed and Firm Registration Certificate (for partnerships) or Memorandum & Articles of Association and Date of Incorporation Certificate (for Public/Private Limited companies)
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Property Documents:
- Copy of land purchase deed (if the enterprise owns its land)
- Copy of a registered lease agreement for a minimum of 5 years from the commencement of production (if applicable)
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Utility & Operational Documents:
- Copy of the sanction order from the Electricity Department and the latest electricity bill
- Authorization letter
- Copy of Consent to Operate/Renewal from PCC, DNH & DD (as per Notification No. PCC/DMN/13(PART VI)/2020-21/448 dated 25/01/2021)
- Copy of Factory License
- Undertaking as per guidelines
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Additional Documents:
- Any other statutory documents as required
- Copies of relevant bills, money receipts for expenditure incurred (if applicable)
Frequently Asked Questions (FAQs)
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Are loans sanctioned by banks or financial institutions eligible for subsidy?
Yes, loans sanctioned by recognized banks or financial institutions are eligible for the subsidy, provided all other eligibility criteria are met. -
What is the eligibility criteria for Interest Subsidy under this Scheme?
Eligibility for the Interest Subsidy requires that the enterprise is a new or existing unit (undertaking expansion/diversification) in the MSME sector, has commenced production within the specified period, and is located in the U.T. of Dadra and Nagar Haveli & Daman and Diu. Additionally, the term loan must be sanctioned within one year from the commencement of production. -
When should an Enterprise apply for the Interest Subsidy?
The enterprise must apply within one year from the date it becomes eligible, i.e., from the commencement of its commercial production. -
When does the Interest Subsidy become effective?
The subsidy becomes effective from the date the term loan is sanctioned, provided it is within the stipulated one-year period from the commencement of commercial production. -
What happens if the Enterprise defaults on payment?
In cases of default, the incentive benefit may be subject to penalties or recovery actions as per the scheme guidelines. -
What is the scope of the interest subsidy?
The interest subsidy covers 60% per annum, up to a maximum of ₹50,00,000 per annum, for a period of five years or for the duration of the loan repayment, whichever is earlier. -
Are penal interest and other bank charges covered under the subsidy?
No, the subsidy specifically covers the interest component on the sanctioned term loan and does not include penal interest or other bank charges. -
Is there a minimum interest rate requirement for eligibility?
The scheme guidelines may specify a minimum interest rate criterion to qualify; enterprises must comply with these requirements to be eligible. -
How can an enterprise demonstrate compliance with the minimum interest requirement?
Compliance can be demonstrated through official sanction letters and bank statements that detail the interest rate applied to the term loan. -
How is the interest subsidy disbursed?
The subsidy is typically disbursed on a periodic basis (annually) as per the loan repayment schedule, subject to the maximum limit specified in the scheme. -
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?
Transfer or sale of the enterprise within the first five years may result in adjustments or discontinuation of the incentive benefits as per the terms and conditions outlined in the scheme. -
What is the definition of Expansion/ Diversification in this context?
Expansion or diversification refers to the process of increasing the operational capacity, product range, or services offered by the existing enterprise within the MSME sector. -
What measures are in place to prevent misuse of the subsidy scheme?
The scheme incorporates strict verification processes, document checks, and periodic audits to ensure that the incentives are utilized appropriately and to prevent fraudulent claims. -
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 would be applicable from the date of commencement of commercial production within the stipulated period (20th May 2022 to 19th May 2027), with all benefits calculated based on the time frame defined by the scheme guidelines. -
How can an eligible unit apply to get the benefits of the scheme?
Eligible units must apply online through the designated portal by completing the registration and application process as outlined above. -
If a manufacturing unit is eligible under more than one scheme, can it select the scheme which allows the most benefits?
The selection of a scheme is subject to the specific guidelines and criteria outlined by the authorities. Enterprises should review all applicable schemes and choose the one that best aligns with their operational and financial requirements, ensuring compliance with the terms and conditions of each.