IPS Interest Subsidy — Up to ₹1.5 Cr for MSMEs in DNH & DD — Frequently Asked Questions

The scheme pays 50% of the interest your bank charges on the eligible term loan, and that payout is capped at ₹30 lakh in any single year. You can keep receiving it for five years, or until the loan is repaid, whichever is earlier. If the subsidy runs for the full five years, the total assistance can reach ₹1.5 crore.

New manufacturing or service units in the MSME sector qualify, and so do existing manufacturing or service units that are expanding or diversifying. The unit must be located in the U.T. of Dadra & Nagar Haveli and Daman & Diu, must have started commercial production between 20 May 2022 and 19 May 2027, and must commit to staying in production for five years from that start date. Pollution control measures prescribed by the competent authority also have to be followed.

No. This is an interest subsidy, not an investment, so no shares or ownership stake is taken in your business. It simply reimburses a portion of the interest you pay to your lender on a qualifying term loan.

It applies to term loans used for equipment, machinery, and furniture or fixtures. Loans taken for land and building are explicitly excluded. The loan itself must be sanctioned by a bank or financial institution in line with RBI guidelines — an informal or non-bank arrangement will not qualify.

Yes. Differently-abled entrepreneurs, women entrepreneurs, and registered startups in the manufacturing and service sectors each get an additional 10% interest subsidy. Young entrepreneurs who had not crossed 35 years of age at the time their term loan was sanctioned also receive an additional 10%.

There are two clocks running and the earlier one applies. You must file within one year of the first disbursement of your term loan, or within one year of commencing commercial production — whichever comes first. The scheme term itself closes on 19 May 2027, and the deadline shown for this programme is 19 May 2027.

Applications are filed online through the official Single Window Portal of Dadra & Nagar Haveli and Daman & Diu. You begin by registering an account, then confirm your email through the verification link sent to you and verify your mobile number using the OTP. Once verified, your mobile number and a unique PIN are emailed to you; use them to log in. Inside the portal, open the "Departments & Services" tab, locate "District Industries Centre DD & DNH", and click through to the Investment Promotion Scheme: 2022 to 2027 form. Fill in the common application form and upload the required supporting documents before submitting.

The District Industries Centre processes the application once it is submitted. You should keep checking your application status on the portal, and be ready to respond if the authorities ask for further information or documents.

For technical problems with the Single Window Portal, call 0260-2231885 or 0260-2231886, or write to ddegs-dd@nic.in. For matters relating to the scheme itself, reach the District Industries Centre on 0260-2260871 or 0260-2260310, or email dic-dd@nic.in.

Yes. Expansion and diversification projects by existing manufacturing or service units are covered, provided the unit meets the other conditions — it must be in Dadra & Nagar Haveli and Daman & Diu, have begun commercial production within the 20 May 2022 to 19 May 2027 window, remain in production for five years, follow prescribed pollution control measures, and file the application within the stipulated one-year period.

No. DPIIT (Startup India) recognition is not listed as a mandatory requirement for IPS Interest Subsidy — Up to ₹1.5 Cr for MSMEs in DNH & DD, though having it can strengthen your application and unlock other benefits.

IPS Interest Subsidy — Up to ₹1.5 Cr for MSMEs in DNH & DD is open to startups at any stage. It is open to startups registered anywhere in India.

IPS Interest Subsidy — Up to ₹1.5 Cr for MSMEs in DNH & DD 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.