Investment Promotion Scheme (IPS): Up to ₹45L Capital Subsidy for MSMEs
A capital investment subsidy of up to ₹45 lakh for new and expanding MSME manufacturing and service units in Dadra and Nagar Haveli and Daman and Diu.
- Funding amount
- ₹45L (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
The Investment Promotion Scheme (IPS) is a capital subsidy programme for MSMEs, run by the Department of Industries under the UT Administration of Dadra and Nagar Haveli and Daman and Diu. It first came into being in 2015, and the edition currently in force stays open until May 19, 2027.
Within the scheme, the sub-scheme covered here is the Assistance of Fixed Capital Investment Subsidy. It is aimed at units that put money into Gross Fixed Capital Investment (GFCI) — either a fresh manufacturing or service unit that has just gone into production, or an existing one that is expanding or diversifying.
The broader intent goes past the cash incentive. The scheme is meant to build a sturdier MSME base in the Union Territory: shielding smaller businesses from market swings, drawing more women into business ownership, bringing down unemployment among residents, and nudging industries to take on local labour.
For an entrepreneur, the practical appeal is simple. A chunk of a heavy capital outlay comes back as a non-repayable subsidy, which lightens the load of setting up or scaling a unit in DNH and Daman and Diu.
Highlights
- Capital investment subsidy of up to ₹45 lakh
- 15% of eligible Gross Fixed Capital Investment, capped by unit size
- Open to new and expanding MSME manufacturing and service units in DNH and Daman and Diu
- Commercial production must start between May 20, 2022 and May 19, 2027
- Rolling applications — file within one year of first loan disbursement or production start
- Non-repayable subsidy, with no equity dilution
Who can apply
The scheme covers Micro, Small and Medium Enterprises that are either building fresh manufacturing or service capacity, or are already running and going in for expansion or diversification.
- Unit type: New manufacturing or service units, and existing manufacturing or service units undertaking expansion or diversification, in the MSME sector.
- Production start date: Commercial production must have begun between May 20, 2022 and May 19, 2027.
- Location: The unit has to be situated within the Union Territory of Dadra and Nagar Haveli and Daman and Diu.
- Continuity: The enterprise must stay in production for five years from the date commercial production started.
- Pollution control: Measures prescribed by the Pollution Control Committee or another competent authority have to be observed.
- Application window: The form must be filed within one year, counted either from the first disbursement of the loan or from the start of commercial production.
Investment Promotion Scheme (IPS): Up to ₹45L Capital Subsidy 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
Investment Promotion Scheme (IPS): Up to ₹45L Capital Subsidy 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
Support comes as a capital investment subsidy on eligible Gross Fixed Capital Investment (GFCI). It is a non-repayable incentive — the scheme takes no equity or shareholding in your business in return.
The rate is 15% of eligible GFCI across the board, but the ceiling shifts with the size of the industry:
- Micro industries: 15%, subject to a maximum of ₹15,00,000.
- Small industries: 15%, subject to a maximum of ₹30,00,000.
- Medium industries: 15%, subject to a maximum of ₹35,00,000.
- Top-up: where eligible GFCI crosses ₹10,00,00,000, a further ₹10,00,000 is disbursed.
With that top-up counted in, the highest subsidy a unit can draw works out to ₹45,00,000. The idea is to soften the weight of a large fixed capital spend so that units can scale up and compete better within the region.
About the provider
Investment Promotion Scheme (IPS): Up to ₹45L Capital Subsidy 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
Every application goes in through the Single Window Portal and then moves through a structured review.
- Initial screening: The submission is checked for completeness and for meeting the basic eligibility conditions.
- Detailed evaluation: The Department of Industries examines the application closely — what kind of manufacturing or service unit it is, whether the Gross Fixed Capital Investment (GFCI) claimed is valid, and how far the proposal fits the objectives of the scheme.
- Verification: This stage typically covers confirmation of the commercial production commencement date and compliance with pollution control norms.
- Approval: A competent authority or committee gives the final go-ahead on the basis of these assessments, after which the subsidy is disbursed.
Documents you’ll need
Before you apply to Investment Promotion Scheme (IPS): Up to ₹45L Capital Subsidy 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
Investment Promotion Scheme (IPS): Up to ₹45L Capital Subsidy for MSMEs is best suited for startups in India seeking non-dilutive funding of ₹45L. If that describes your startup, review the eligibility criteria above before applying.
Frequently asked questions
How much subsidy can a unit get under this scheme?
The size of your unit decides the ceiling, though the rate stays the same 15% of eligible Gross Fixed Capital Investment for everyone. Micro industries can receive up to ₹15,00,000, small industries up to ₹30,00,000 and medium industries up to ₹35,00,000. Where eligible GFCI is more than ₹10,00,00,000, an additional ₹10,00,000 is disbursed, which pushes the overall maximum to ₹45,00,000.
Can an existing business that is expanding or diversifying apply?
Yes. This is not restricted to greenfield units. A new manufacturing or service unit that has just entered commercial production qualifies, and so does an existing manufacturing or service unit going in for expansion or diversification, provided the rest of the eligibility conditions are satisfied.
Does the scheme take equity in my company?
No. This is a capital investment subsidy rather than an investment, and the amount is non-repayable. The Department of Industries does not pick up any stake or shares in your business in exchange for the money.
Is there a last date to apply?
There is no single closing date in the usual sense — applications run on a rolling basis through the scheme period, which stays open until May 19, 2027. What matters is the deadline attached to your own unit: the form has to be submitted within one year, counted either from the first disbursement of your loan or from the date commercial production began. Letting that one-year window lapse costs you eligibility.
Where does the unit need to be located?
Only units situated in the Union Territory of Dadra and Nagar Haveli and Daman and Diu can claim this subsidy. The Department of Industries of that Union Territory administers the scheme.
When must commercial production begin?
Commercial production has to commence between May 20, 2022 and May 19, 2027. That window matches the current edition of the scheme, which itself operates until May 19, 2027.
What documents are needed for the application?
The Common Application Form on the Single Window Portal asks for the details of your unit along with a set of mandatory uploads. These typically include your business registration papers, financial statements, the project report, and proof of the fixed capital investment you are claiming.
How do I submit the application?
The whole process is online. Register first on the Single Window Portal, confirm your email through the verification link sent to your inbox, and verify your mobile number with the OTP. Your login PIN reaches you by email. Once you log in using your registered mobile number and that PIN, open the 'Departments & Services' tab, scroll down to 'District Industries Centre DD & DNH' and pick the Investment Promotion Scheme 2022 to 2027 application. Fill in the Common Application Form, upload the mandatory documents, recheck everything and press Submit.
How long must the unit stay in production after receiving the subsidy?
The enterprise has to remain in production for five years from the date commercial production started. That commitment forms part of the eligibility conditions of the scheme.
Is pollution control compliance part of the eligibility?
Yes. Units must observe the pollution control measures prescribed by the Pollution Control Committee or another competent authority, and this is verified while your application is being evaluated.
Is DPIIT recognition required for Investment Promotion Scheme (IPS): Up to ₹45L Capital Subsidy for MSMEs?
No. DPIIT (Startup India) recognition is not listed as a mandatory requirement for Investment Promotion Scheme (IPS): Up to ₹45L Capital Subsidy for MSMEs, though having it can strengthen your application and unlock other benefits.
Who offers Investment Promotion Scheme (IPS): Up to ₹45L Capital Subsidy for MSMEs?
Investment Promotion Scheme (IPS): Up to ₹45L Capital Subsidy 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.
How do I apply for Investment Promotion Scheme (IPS): Up to ₹45L Capital Subsidy for MSMEs?
Apply directly through the official application link on this page. Review the eligibility criteria and prepare your startup documents before you begin.
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