The “Scheme For Medical Equipment And Accessories, Medical Diagnostics And Ayush Products Manufacturing Units” is a sub-scheme under the Investment Promotion Scheme (IPS) for Thrust Sector. It was initially launched on 3rd July 2015 for five years by the Department of Industries, U.T. Administration of Dadra & Nagar Haveli and Daman & Diu. It has now been extended from 20th May 2022 to 19th May 2027.
Objective
The main objective of the IPS is to: • Promote specialized thrust sectors such as various furniture segments
• Create a business-friendly environment in the U.T.
• Maximize women’s participation in business
• Reduce unemployment among locals
• Encourage industries to employ resident laborers
The sub-scheme specifically aims to promote medical equipment, diagnostics, and AYUSH product manufacturing through financial assistance and capital investment subsidies.
Benefits
• Capital Investment Subsidy:
20% of Gross Fixed Capital Investment reimbursed (up to ₹50,00,000 per unit)
• Credit Linked Interest Subsidy:
60% per annum reimbursement (up to ₹50,00,000 per annum) for five years or until loan repayment period ends (whichever is earlier)
Eligibility Criteria
• Applicable to New or Existing Manufacturing/Service Units undertaking Expansion/Diversification
• Units must commence commercial production between 20.05.2022 and 19.05.2027
• Unit must be located in Dadra & Nagar Haveli and Daman & Diu
• Application must be submitted within 1 year of first loan disbursement or before commencement of production, whichever is earlier
Exclusions
• Interest subsidy not applicable if term loan is sanctioned after 1 year from production commencement
Application Process
Online Mode
Registration Process:
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Visit the Registration page of the Official Website
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Enter required details and click “Register”
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Verify email through link sent
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Enter “111111” as OTP to verify mobile number
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Login credentials sent via email
Application Process:
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Log in using Mobile Number and PIN
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Go to “Departments & Services” → Select “District Industries Centre DD & DNH”
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Click “Click Here” under Investment Promotion Scheme: 2022 to 2027
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Fill in the Common Application Form and upload documents
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Review and submit
Documents Required
• Corporate Identification Number (CIN)
• Taxpayer Identification Number (TIN)
• PAN Card
• GST Registration
• Udyam Registration / IEM
• Firm/Company registration documents (Partnership Deed or MOA & AOA)
• Land purchase deed / Lease agreement (min. 5 years)
• Power connection sanction order & latest electricity bill
• Authorization Letter
• Consent to Operate / Renewal from PCC
• Factory License
• Undertaking
Frequently Asked Questions (FAQs)
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Are loans sanctioned by banks or financial institutions eligible for subsidy?
Yes, loans from recognized financial institutions are eligible if sanctioned within the specified time frame. -
What is the eligibility criteria for Interest Subsidy under this Scheme?
The term loan must be sanctioned within one year of commercial production. -
When does the Interest Subsidy become effective?
From the date of first loan repayment or as per the loan schedule. -
What happens if the Enterprise defaults on payment?
The subsidy may be withdrawn or recovered, subject to terms. -
What is the scope of the interest subsidy?
60% reimbursement of interest paid, up to ₹50 lakh per year for 5 years. -
Are penal interest and other bank charges covered under the subsidy?
No, only regular interest on the term loan is eligible. -
Is there a minimum interest rate requirement for eligibility?
Yes, the interest should be within prescribed institutional limits. -
How can an enterprise demonstrate compliance with the minimum interest requirement?
Through CA-certified statements and bank-issued interest certificates. -
How is the interest subsidy disbursed?
It is disbursed after submission of required proofs and verification. -
What happens to the benefit of the incentive if a newly setup enterprise is sold or transferred to a new owner within the first five years of its establishment?
The new owner must comply with eligibility conditions, or the benefit may be cancelled or recovered. -
What is the definition of Expansion/ Diversification?
Expansion means increasing production capacity; diversification refers to adding new products. -
What measures are in place to prevent misuse of the subsidy scheme?
Scrutiny of documents, inspections, and audits are conducted regularly. -
What is the operative period of the scheme?
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?
For five years from the date of first loan disbursement or till repayment ends. -
What is the timeline of making an application?
Within one year from the date of loan disbursement or before the date of commercial production.