IPS FOB Export Reimbursement — Up to ₹20L a Year for MSMEs
A sub-scheme of the Investment Promotion Scheme for MSMEs that pays back 20% of the Free On Board value earned on exports of Food and Marine processed products, up to ₹20 lakh a year for three years, for eligible units in Dadra and Nagar Haveli and Daman and Diu.
- Funding amount
- ₹20L (subsidy)
- Funding type
- Subsidy
- Provider
- Department of Industries, UT Administration of Dadra and Nagar Haveli and Daman and Diu (Government)
- Application deadline
- Rolling
- Eligible stage
- Any stage
- Location
- Open to startups registered in India
Overview
Reimbursement of Free On Board (FOB) Expenses is one of the sub-schemes that sits under the Investment Promotion Scheme (IPS) for the MSME Sector. It is run by the Department of Industries, UT Administration of Dadra and Nagar Haveli and Daman and Diu, and it works as a subsidy rather than an investment — a portion of the export value a unit earns is paid back to it in cash.
This particular sub-scheme is aimed squarely at export-facing processors. If an MSME unit in the Union Territory ships Food or Marine processed products abroad, the FOB value of those shipments becomes the base on which the reimbursement is calculated.
The wider IPS framework exists to shore up the small and medium business base of the territory: helping units ride out market swings, pulling more women into business ownership, cutting local unemployment and encouraging the hiring of local workers. The FOB sub-scheme brings that same intent to the export side of food and marine processing.
The scheme's current run began on May 20, 2022 and stays open until May 19, 2027. An earlier version of the scheme was in place from July 3, 2015, and the 2022 notification extended it for a further five years. Applications are accepted on a rolling basis, so there is no single annual cut-off to wait for — though each year's claim carries its own filing window.
Highlights
- Reimburses 20% of FOB value on Food and Marine processed product exports
- Up to ₹20 lakh per beneficiary per year
- Benefit can be drawn for a total of 3 years
- Open to new MSME units and to existing ones expanding or diversifying
- Rolling applications through the scheme period running to May 19, 2027
- Claim must be filed within six months of the March 31 financial-year close
Who can apply
The scheme is open to MSME units in two situations: a new manufacturing or service unit, or an existing manufacturing or service unit that is expanding or diversifying.
- Location: the unit has to be based in the Union Territory of Dadra and Nagar Haveli and Daman and Diu.
- Production start date: commercial production must have begun between May 20, 2022 and May 19, 2027, which is the scheme's current operative period.
- Nature of the claim: the reimbursement relates to exports of Food and Marine processed products.
- Filing window: the application must reach the department within six months of the March 31 closing date of the preceding financial year.
There is no separate founder or promoter condition attached to this sub-scheme — the test is the profile of the unit, where it operates and when it began production.
IPS FOB Export Reimbursement — Up to ₹20L a Year for MSMEs is open to startups at any stage. It is open to startups registered anywhere in India.
- Eligible stage
- Any stage
- Location
- Open to startups registered in India
Deadline & timing
IPS FOB Export Reimbursement — Up to ₹20L a Year for MSMEs accepts applications on a rolling basis — there is no fixed cut-off date, so eligible startups can apply at any time. Because rolling programmes can pause without notice, confirm the window is still open on the official site before you start.
What the funding covers
The support comes as a direct cash reimbursement — it is a subsidy, not a loan and not an equity investment, so nothing is repaid and no stake is handed over.
- 20% of the Free On Board (FOB) value of exported Food and Marine processed products is paid back to the unit.
- The payout is capped at ₹20,00,000 (₹20 lakh) per beneficiary, each year.
- The benefit can be claimed across a total of 3 years.
The scheme is listed as offering both cash support and facilitation, which means the department's role is not limited to releasing funds — it also channels the claim through the District Industries Centre process.
About the provider
IPS FOB Export Reimbursement — Up to ₹20L a Year for MSMEs is offered by Department of Industries, UT Administration of Dadra and Nagar Haveli and Daman and Diu, a government body. As a government-backed subsidy, it is publicly funded and open to eligible startups across India.
How to apply
Applications are submitted on the . Confirm the current deadline and document checklist there before you start.
Selection process
All applications are made online, and they move through a defined review path rather than being decided at the point of submission.
- Initial screening: the department first checks that the applicant satisfies the eligibility conditions and that every required document has been supplied. Incomplete or ineligible applications are filtered out at this stage.
- Referral to the approving side: applications that clear the screening are passed on to a selection committee or to the relevant authorities within the District Industries Centre.
- Evaluation on merits: the committee studies the details in the application — in particular when commercial production started and what export activity was carried out — to work out whether the reimbursement is payable.
Because the assessment centres on production commencement and export records, keeping those two sets of evidence clean and consistent is what drives the outcome.
Documents you’ll need
Before you apply to IPS FOB Export Reimbursement — Up to ₹20L a Year for MSMEs, keep the following documents ready:
- A pitch deck or short business plan describing the problem, product and traction
- Company registration documents and PAN
- Founder identification (PAN / Aadhaar) and brief profiles
- Recent financial statements or projections
- Product details — a demo, prototype or working link if available
Exact requirements are confirmed on the official application portal — treat this as a preparation checklist.
Who this is best for
IPS FOB Export Reimbursement — Up to ₹20L a Year for MSMEs is best suited for startups in India seeking non-dilutive funding of ₹20L. If that describes your startup, review the eligibility criteria above before applying.
Frequently asked questions
What does this scheme actually reimburse?
It reimburses a share of the Free On Board (FOB) value that an eligible MSME unit earns by exporting Food and Marine processed products. The FOB value is the shipment value used as the base for the calculation, and the scheme pays back 20% of it in cash.
How much money can a unit receive under the FOB sub-scheme?
The reimbursement is 20% of the FOB value of the qualifying exports, subject to a ceiling of ₹20,00,000 — that is ₹20 lakh — per beneficiary in a single year. The same benefit is available for 3 years, so the ceiling applies afresh each year.
Who is eligible to apply?
MSME units that are either newly set up in manufacturing or services, or existing manufacturing or service units that are going in for expansion or diversification. Beyond that, the unit has to be located in the Union Territory of Dadra and Nagar Haveli and Daman and Diu, and its commercial production has to have started between May 20, 2022 and May 19, 2027.
Can an older unit that is already running apply, or is this only for new units?
Existing units are not shut out. The scheme covers existing manufacturing or service units that are undertaking expansion or diversification, provided they meet the other conditions — being based in the Union Territory and having commenced commercial production inside the May 20, 2022 to May 19, 2027 window.
Is there a deadline for applying?
The scheme itself is rolling and remains open right through its operative period, which ends on May 19, 2027, so there is no single date on which applications close. Individual claims, however, are time-bound: an application has to be submitted within six months of the March 31 closing date of the preceding financial year.
Does the scheme take equity in my business or have to be repaid?
Neither. This is a subsidy in the form of a reimbursement, so the money is paid out to the unit rather than invested into it. No equity stake is taken, and there is no repayment obligation of the kind a loan would carry.
Is DPIIT recognition or MSME/Udyam registration required to apply?
The published eligibility conditions for this sub-scheme do not list DPIIT recognition or a separate MSME registration as a requirement. What the scheme sets out is the nature of the unit — new, or existing and expanding or diversifying in the MSME sector — its location in the Union Territory, and the date on which commercial production began.
How do I apply for the reimbursement?
Everything is handled online through the UT's portal. Begin by registering at swp.dddgov.in/registration, supplying the required information, then verifying your email through the link sent to you and verifying your mobile number with the one-time password. Once registration is complete, the login credentials are emailed to you. Log in at swp.dddgov.in/login with your registered mobile number and PIN, open the 'Departments & Services' section, go to 'District Industries Centre DD & DNH' and select the Investment Promotion Scheme: 2022 to 2027 (20 May 2022 to 19 May 2027). The Common Application Form opens there — fill in the details, upload the mandatory documents, check everything over and submit. The departmental notification for the scheme is also available on the same portal.
What documents do I need to furnish?
The application is made on the Common Application Form, and the form sets out the mandatory documents that have to be uploaded along with it. Details concerning the start of commercial production and the unit's export activity carry particular weight, since those are the points the reviewing committee examines.
How is my application assessed after I submit it?
Online submissions first go through an initial screening, where eligibility and completeness of documents are checked. Applications that clear that step are forwarded to a selection committee or the relevant authorities at the District Industries Centre, who evaluate the particulars — especially the commencement of commercial production and the export activity — before deciding whether the reimbursement can be granted.
Who offers IPS FOB Export Reimbursement — Up to ₹20L a Year for MSMEs?
IPS FOB Export Reimbursement — Up to ₹20L a Year for MSMEs is offered by Department of Industries, UT Administration of Dadra and Nagar Haveli and Daman and Diu, a government body. It is provided as non-dilutive funding.
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