IPS Environment Protection Infrastructure Subsidy — ₹30L for MSMEs
A capital subsidy of up to ₹30 lakh for MSME units in Dadra and Nagar Haveli and Daman and Diu that build effluent treatment, hazardous waste or wastewater recycling infrastructure — or manufacture products that replace single-use plastics.
- Funding amount
- ₹30L (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 Environment Protection Infrastructure Subsidy is a sub-scheme of the Investment Promotion Scheme (IPS), delivered by the Department of Industries under the UT Administration of Dadra and Nagar Haveli and Daman and Diu. It exists for industrial units that put money into environmental infrastructure — plant for treating effluent, handling hazardous waste, or reusing wastewater — and for manufacturers whose output helps displace single-use plastics.
The parent IPS was introduced in 2015 and has since been extended so that it stays in force until 19 May 2027. Its stated purpose is broad: to grow the MSME base of the Union Territory, shelter small units from sharp swings in the market, and build the region into a special hub for the sector. It also carries social objectives — bringing more women into business, cutting local unemployment, and giving industries a reason to hire residents of the UT.
The environment sub-scheme takes on the sustainability side of that agenda. Units that invest in pollution-control infrastructure, or that make eco-friendly substitutes for single-use plastic goods, can claim support towards the capital cost of setting up. In practical terms, it reduces the financial weight of meeting environmental obligations while pushing the region towards greener industrial activity.
Funding is offered on a rolling basis rather than against a single closing date, and applications run through the UT's online Single Window Portal. A unit's commercial production, however, must have started within the window the scheme covers — 20 May 2022 to 19 May 2027 — for the application to be considered.
Highlights
- Capital subsidy capped at ₹30 lakh or 25% of capital cost
- Open to MSME manufacturing and service units in Dadra and Nagar Haveli and Daman and Diu
- Funds effluent treatment, hazardous waste handling and wastewater recycling infrastructure
- Also available to makers of alternatives to single-use plastics
- Rolling applications, with the scheme running from 20 May 2022 to 19 May 2027
- Applied for online through the UT Single Window Portal
Who can apply
- Type of unit: a new manufacturing or service unit in the MSME sector, or an existing manufacturing or service unit that is going in for expansion or diversification.
- Production start date: commercial production must have commenced between 20 May 2022 and 19 May 2027.
- Location: the unit needs to be situated in the Union Territory of Dadra and Nagar Haveli and Daman and Diu.
- Environmental status: a unit that the Pollution Control Committee (PCC) has directed to install Zero Liquid Discharge (ZLD) is not covered by this subsidy.
Meet all four conditions and your unit can apply, provided the proposed spending goes into eligible environmental protection infrastructure or into manufacturing substitutes for single-use plastics.
IPS Environment Protection Infrastructure Subsidy — ₹30L 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
IPS Environment Protection Infrastructure Subsidy — ₹30L 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
How much you get. The assistance is the smaller of ₹30 lakh and 25% of the capital cost of the eligible facility, so ₹30,00,000 is the absolute ceiling per unit.
What the money goes towards. Capital spending on effluent treatment plants, hazardous-waste handling, and systems that recycle wastewater. Units engaged in developing and producing replacements for single-use plastic products are also covered.
No equity, no dilution. This is a capital subsidy, so the Department does not acquire a stake in the business and nothing has to be repaid.
Compliance made affordable. The support is designed so that enterprises can put environmental sustainability practices and infrastructure in place and stay on the right side of the regulatory standards and mandates that apply in the Union Territory.
Wider economic effect. Because the subsidy sits inside the Investment Promotion Scheme, it also feeds the parent programme's goals — a stronger MSME sector, more jobs in the region, and greater participation of women in business.
About the provider
IPS Environment Protection Infrastructure Subsidy — ₹30L 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
- Online filing. The application is submitted through the Union Territory's Single Window Portal, which is the only route described for this subsidy.
- Initial screening. The Department of Industries, Dadra and Nagar Haveli and Daman and Diu, first screens the submitted application.
- Eligibility review. The unit is then examined against every condition of the scheme — its MSME status, its location, the date on which commercial production began, and its compliance with environmental mandates.
- Sanction. Applications that clear the review move ahead to the sanctioning stage.
- Disbursement. The amount finally released is worked out from the capital cost of the eligible environmental protection infrastructure or manufacturing unit.
Documents you’ll need
Before you apply to IPS Environment Protection Infrastructure Subsidy — ₹30L 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
IPS Environment Protection Infrastructure Subsidy — ₹30L for MSMEs is best suited for startups in India seeking non-dilutive funding of ₹30L. If that describes your startup, review the eligibility criteria above before applying.
Frequently asked questions
How much funding does this subsidy actually give?
Your unit can receive the lower of two figures: ₹30 lakh, or 25% of the capital cost of the eligible facility. So ₹30,00,000 is the maximum anyone can get, and a smaller project simply receives a quarter of what it spent on the qualifying infrastructure.
What kind of projects does the subsidy support?
Two broad categories. The first is environmental protection infrastructure — facilities for treating effluent, for managing hazardous waste, and for recycling wastewater. The second is manufacturing units that develop and produce alternatives to single-use plastic items. In both cases, the support is aimed at capital spending that improves environmental sustainability and keeps the unit compliant with the region's regulations.
Who is eligible to apply?
The unit must be a new manufacturing or service unit in the MSME sector, or an existing manufacturing or service unit taking up expansion or diversification. It has to be located in the Union Territory of Dadra and Nagar Haveli and Daman and Diu, and its commercial production must have started between 20 May 2022 and 19 May 2027. One exclusion applies: if the Pollution Control Committee has required the unit to set up Zero Liquid Discharge, it cannot claim this subsidy.
What is the last date to submit an application?
There is no single closing date — the scheme runs on a rolling, always-open basis. Applications are accepted while the umbrella Investment Promotion Scheme is in force, which is from 20 May 2022 until 19 May 2027. The date that really matters for eligibility is when your commercial production began, since that too must fall within the same window.
Is this a grant, a loan or an equity investment?
It is a capital subsidy. Nothing has to be repaid, and the Department does not take any equity or stake in your business in return. That makes it a non-dilutive source of funding for the facility you are setting up.
Can a unit that has been told to install Zero Liquid Discharge apply?
No. Units that the Pollution Control Committee has mandated to set up Zero Liquid Discharge are specifically excluded from this sub-scheme. If your unit falls in that category, it is not eligible for the Environment Protection Infrastructure Subsidy even if it meets the other criteria.
Do I need DPIIT recognition or MSME registration to apply?
The published eligibility criteria for this subsidy are built around the unit belonging to the MSME sector, its location in the Union Territory, the date its commercial production began, and its environmental status. DPIIT recognition is not listed among the conditions. You will, however, need to upload the mandatory documents specified in the Common Application Form on the portal.
How do I apply for the subsidy?
Everything is handled online. Start at the registration page of the Single Window Portal (https://swp.dddgov.in/registration), fill in your details and register. Verify your email through the link that is sent to you, then verify your mobile number using the OTP 111111 — after this, your mobile number and PIN reach your registered email. Log in at https://swp.dddgov.in/login with your mobile number and PIN, open the "Departments & Services" tab from the left menu, scroll to "District Industries Centre DD & DNH", click "Click Here" and select "Investment Promotion Scheme : 2022 to 2027 (20 May 2022 to 19 May 2027)". The Common Application Form will open; fill in every required field, upload the mandatory documents, check the entries carefully and hit "Submit".
What documents will I need to submit?
The Common Application Form on the Single Window Portal lists the documents that must be uploaded, and all of them are mandatory. Keep your registration details, email access and mobile number handy through the process, since account verification and the PIN delivery both depend on them.
Who can I contact if I need help?
For questions about the scheme itself, reach the District Industries Centre on 0260-2260871 or 0260-2260310, or write to dic-dd@nic.in. For technical problems with the Single Window Portal, call 0260-2231885 or 0260-2231886, or email ddegs-dd@nic.in.
Who offers IPS Environment Protection Infrastructure Subsidy — ₹30L for MSMEs?
IPS Environment Protection Infrastructure Subsidy — ₹30L 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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