Investment Promotion Scheme: ₹3L–₹15L Local Employment Incentive for MSMEs — Frequently Asked Questions
Answers to the questions founders most often ask about Investment Promotion Scheme: ₹3L–₹15L Local Employment Incentive for MSMEs — who qualifies, the funding amount, required documents and how the application works.
Frequently asked questions
How much money does an MSME unit get under this scheme?
The scheme pays a one-time recruitment incentive of ₹3,00,000 for every 20 local employees a unit hires, and the total benefit per eligible unit is capped at ₹15,00,000.
What is the application deadline for the local employment incentive?
Applications are open until May 19, 2027, which is also the closing date of the scheme window. Any unit with a valid claim should apply well before that date.
Which units are eligible to apply?
New manufacturing or service MSME units qualify, and so do existing manufacturing or service units that are undertaking expansion or diversification. In every case the unit has to be located in the Union Territory of Dadra & Nagar Haveli and Daman & Diu.
Is there a condition on when my unit started commercial production?
Yes. The unit must have commenced commercial production between May 20, 2022 and May 19, 2027. Production start dates falling outside this window do not qualify.
Do the employees I hire have to be from the Union Territory?
Yes. Every employee counted towards the incentive must hold a Domicile certificate of the UT of Dadra & Nagar Haveli and Daman & Diu, and must be above 18 years of age.
Does this scheme take equity in my company?
No. The support is structured as a recruitment incentive, i.e. a grant, so no shares or ownership stake are taken in the MSME unit in return for the payment.
Is DPIIT recognition or MSME registration required to apply?
The eligibility conditions published for this incentive focus on the unit being a manufacturing or service MSME located in the Union Territory, on when it began commercial production, and on the domicile status of the workers it hires. A separate DPIIT recognition requirement is not part of the stated criteria.
What documents do I need to submit?
The application requires you to fill out a Common Application Form and upload the mandatory documents it asks for. The published scheme details do not list the individual documents, but since eligibility turns on your unit's location, its commercial production date and the domicile status of your local hires, keep those supporting records ready before you begin.
How do I apply for the Investment Promotion Scheme incentive?
The process is fully online through the UT's Single Window Portal at https://swp.dddgov.in/. First create an account on the registration page, verify your email through the link sent to your inbox, and verify your mobile number using '111111' as the OTP; your mobile number and PIN will then be emailed to you. Next, log in with your registered mobile number and PIN, open the 'Departments & Services' tab, scroll to 'District Industries Centre DD & DNH' and click through to 'Investment Promotion Scheme: 2022 to 2027 (20 May 2022 to 19 May 2027)'. Complete the Common Application Form, upload the required documents, review everything and hit Submit.
Who offers Investment Promotion Scheme: ₹3L–₹15L Local Employment Incentive for MSMEs?
Investment Promotion Scheme: ₹3L–₹15L Local Employment Incentive 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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