IPS FOB Export Reimbursement — Up to ₹20L a Year for MSMEs — Frequently Asked Questions

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.