The “Scheme for Reimbursement of Stamp Duty” is a sub-scheme under the Investment Promotion Scheme (IPS), initiated by the Department of Industries, U.T. Administration of Dadra & Nagar Haveli and Daman & Diu. Initially launched on 3rd July 2015, this scheme has been extended from 20th May 2022 to 19th May 2027.
Objective
The scheme aims to financially assist eligible enterprises by reimbursing stamp duty on land acquisition, thereby reducing the initial cost of setup or expansion. It encourages industrial growth, employment generation, and increased local participation in the MSME sector within the Union Territory.
Benefits
• 50% reimbursement for MSME sector units
• 25% reimbursement for non-MSME units
• 100% reimbursement for units in Thrust Sectors
• 50% reimbursement for units in Industrial Parks
Note: Reimbursement will be processed only after the purchase of total required land and development of at least 25% infrastructure as required by the industrial park authorities.
Eligibility
• Must be a new manufacturing/service unit or an existing unit undertaking expansion/diversification
• The unit must have commenced commercial production between 20.05.2022 to 19.05.2027
• Must be located in Dadra & Nagar Haveli and Daman & Diu
Exclusions
• Units that have already availed similar incentives under other schemes are not eligible for this sub-scheme.
Application Process
Online Registration
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Visit the Registration Page
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Enter required details and click “Register”
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Verify your email using the received link (check spam folder)
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Complete verification and enter “111111” OTP to verify your mobile number
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Receive login credentials via email
Application Steps
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Login at User Login Page
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Click “Departments & Services”
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Scroll to “District Industries Centre DD & DNH”, click “Click Here”
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Fill out the Common Application Form (CAF)
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Upload required documents
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Verify all details and click “Submit”
Documents Required
• Corporate Identification Number (CIN)
• Taxpayer Identification Number (TIN)
• Permanent Account Number (PAN)*
• GST Number
• Udyam Registration / IEM
• Partnership Deed / MOA & AOA / Incorporation Certificate
• Land purchase deed / lease agreement (min. 5 years)
• Electricity Department’s sanction order with latest bill
• Consent to Operate / Renewal from PCC (as per notification)
• Factory License (if applicable)
• Authorization Letter
• Undertaking
• Land Purchase Agreements
• Receipts of Stamp Duty Payment
• Any other documents as required
Frequently Asked Questions (FAQs)
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What is the Stamp Duty Reimbursement Scheme?
It is a scheme under IPS that reimburses eligible enterprises a portion of the stamp duty paid during land acquisition. -
What is the reimbursement rate for the MSME sector?
50% of the stamp duty is reimbursed for MSME units. -
What is the reimbursement rate for units other than MSMEs?
Non-MSME units receive 25% reimbursement. -
What is the reimbursement rate for industrial complexes dedicated to Thrust sectors?
100% reimbursement is provided to units in Thrust Sectors. -
When is the reimbursement of stamp duty provided?
After complete land acquisition and development of 25% infrastructure. -
Are industrial units within industrial parks eligible for stamp duty reimbursement?
Yes, they are eligible for 50% reimbursement. -
What additional documentation is required for the reimbursement application?
Land purchase agreements and receipts of stamp duty payment are mandatory. -
How does this scheme benefit industrial units?
It reduces the upfront capital burden, making land acquisition more affordable. -
What types of enterprises are eligible for this Scheme?
New units and existing ones undertaking expansion/diversification between 20.05.2022 and 19.05.2027. -
Can an enterprise that has received similar incentives from other schemes apply for this Scheme?
No, such enterprises are excluded. -
What happens if an enterprise fails to continue production for five years?
The incentives may be withdrawn, and reimbursement recovered. -
Does the Scheme apply to only new projects or can existing projects also qualify?
Existing units can apply if they are expanding or diversifying. -
What is meant by the ‘operative period of the Scheme’?
The current period is from 20th May 2022 to 19th May 2027. -
What kind of projects qualify for the Scheme?
Industrial and service projects approved and operational within the U.T. during the operative period. -
Is there any monitoring mechanism to ensure that enterprises comply with the five-year production requirement?
Yes, regular inspections and compliance reports are part of the monitoring system. -
Are there any penalties for providing false information to avail of the Scheme?
Yes, the benefit will be canceled, and legal action may be initiated. -
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 fulfill all original conditions; otherwise, the subsidy may be withdrawn. -
What is the definition of Expansion/ Diversification?
Expansion means increasing production capacity, and diversification refers to manufacturing new products not previously produced. -
What measures are in place to prevent misuse of the subsidy scheme?
Mandatory documentation, inspections, and legal provisions ensure compliance. -
If an enterprise is established in 2023 and becomes eligible for the scheme what would be the time period in which benefits are applicable?
From the date of production start till the scheme’s end on 19th May 2027. -
How can an eligible unit apply to get the benefits of the scheme?
Through the Single Window Portal by filling the Common Application Form. -
What is meant by Gross Fixed Capital Investment (GFCI)?
It includes the total investment in fixed assets like land, buildings, and plant machinery.