Investment Promotion Scheme (IPS): Up to ₹45L Capital Subsidy for MSMEs — Frequently Asked Questions

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

Apply directly through the official application link on this page. Review the eligibility criteria and prepare your startup documents before you begin.