IPS Skill Development Assistance — 75% Course Fee Reimbursed for MSMEs

The Investment Promotion Scheme (IPS) for the MSME Sector is administered by the Department of Industries under the U.T. Administration of Dadra & Nagar Haveli and Daman & Diu. This page covers one specific arm of it: the sub-scheme titled Assistance For Entrepreneurship Under Skill Development, which channels support into people and training rather than into capital spending.

The IPS framework first came into being in 2015 and has since been extended, with the current edition remaining operative until May 19, 2027. Across the Union Territory, the wider programme works on a broader agenda — offering incentives and assistance to MSMEs, drawing more women into business ownership, generating work for local residents, and encouraging industries to take on resident labour so that unemployment comes down and the local economy becomes steadier.

The skill development sub-scheme takes that agenda forward by investing in human capital. Aspiring entrepreneurs and the staff of established businesses can both seek assistance for entrepreneurship, management development or skill training. The course has to come from a reputed national-level institution, or from a trainer certified by the National Skill Development Corporation (NSDC) or a State Skill Council, so that what is learnt is genuinely industry-relevant. By absorbing most of the course fee, the scheme aims to strengthen the region's entrepreneurial base, lift the operating efficiency of existing MSMEs, and support innovation and competitiveness across local industry.

• Reimbursement of 75% of the training course fee
• Maximum of ₹1,50,000 per course
• Up to 20 persons per eligible unit per year
• Open to new units and to existing units expanding or diversifying
• Claim within 6 months of completing the training
• Fully online through the DNH & DD Single Window Portal

The applicant has to be an MSME-sector unit operating inside the Union Territory of Dadra & Nagar Haveli and Daman and Diu. Both manufacturing and service businesses are covered, in either of these situations:

• A new unit that is just setting up.
• An existing unit going in for expansion or diversification.

Two timing conditions apply:

• Commercial production must have commenced between May 20, 2022 and May 19, 2027.
• The claim has to be filed within six months of the date the training is completed.

The individuals who undergo the training may be budding entrepreneurs or the staff of an already running unit. The training itself must be in entrepreneurship, management development or a skill area, and the institute must be a reputed national-level institution or hold NSDC / State Skill Council certification.

Because this is part of the MSME-sector IPS, the unit is expected to be a registered MSME.

IPS Skill Development Assistance — 75% Course Fee Reimbursed for MSMEs is open to startups at any stage. It is open to startups registered anywhere in India.

IPS Skill Development Assistance — 75% Course Fee Reimbursed 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.

Approved training is reimbursed at 75% of the course fee, subject to a ceiling of ₹1,50,000 per course.

• Up to 20 persons per eligible unit can be covered in a single year.
• The subsidy applies to entrepreneurship, management development and skill development courses.
• The course must be delivered by a reputed national-level institution, or by a provider certified by the National Skill Development Corporation or a State Skill Council.

Since the support comes as a reimbursement rather than an investment or a credit line, no equity or shareholding is taken and there is nothing to repay. The unit bears the course fee first and receives 75% of it back within the cap.

The practical gain goes beyond the cash. Participants pick up skills from accredited institutions, which helps a business tidy up its operations, and founders get the management grounding needed to run and grow an enterprise. That improvement in human resources is exactly what the sub-scheme is built to trigger, and it feeds into the wider aim of making MSMEs in the Union Territory more competitive.

IPS Skill Development Assistance — 75% Course Fee Reimbursed 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.

Submitted applications are examined by the Department of Industries, U.T. Administration of Dadra & Nagar Haveli and Daman & Diu. There is no pitch or competitive shortlisting described — the review is a verification exercise, and it checks:

• That the applicant is an eligible MSME unit.
• That commercial production began within the May 20, 2022 to May 19, 2027 window.
• That the unit is located in the Union Territory.
• The nature of the training undertaken.
• That the training institution holds accreditation from the National Skill Development Corporation or a State Skill Council.
• The course fee, the number of persons trained, and that the claim stays within the 75% reimbursement limit of ₹1,50,000 per course.

Final approval of the reimbursement rests on a complete and accurate submission with all required documents attached, and on the claim meeting the scheme guidelines.

Before you apply to IPS Skill Development Assistance — 75% Course Fee Reimbursed 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.

IPS Skill Development Assistance — 75% Course Fee Reimbursed for MSMEs is best suited for startups in India seeking non-dilutive funding of ₹1.5L. If that describes your startup, review the eligibility criteria above before applying.