IPS Solar Power Subsidy — Up to ₹50 Lakh for MSME Units in DNH & DD
A capital subsidy of 25% (up to ₹50 lakh) for MSME units in Dadra & Nagar Haveli and Daman & Diu that invest in setting up solar power generation.
- Funding amount
- ₹50L (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 Assistance For Capital Investment In Solar Power Generation is a dedicated sub-scheme of the Investment Promotion Scheme (IPS) for the MSME Sector, run by the Department of Industries, UT Administration of Dadra and Nagar Haveli and Daman and Diu. Its purpose is to nudge industrial units in the Union Territory into generating their own solar electricity, and it does that with a direct cash incentive rather than a loan.
The parent IPS was introduced on July 3, 2015. Its current edition was extended from May 20, 2022, and stays in force until May 19, 2027. Across that window, qualifying units can claim support on what they spend to put up a solar power plant, with the subsidy capped at ₹50,00,000.
The wider IPS mandate goes well beyond energy. It is built to give MSMEs incentives and assistance, cushion them against market swings, draw more women into business ownership, bring down local unemployment and encourage industries to hire labourers who are residents of the region. The solar sub-scheme does its part on the energy side by making the shift to renewable power financially lighter for small and medium manufacturers and service units.
Highlights
- 25% capital subsidy on investment in a solar power plant
- Subsidy capped at ₹50,00,000 (₹50 lakh)
- Open to new MSME units and existing units expanding or diversifying
- Unit must be located in Dadra & Nagar Haveli and Daman & Diu
- Apply within six months of generating solar power
- Scheme stays operative until May 19, 2027
Who can apply
This scheme is meant for units in the MSME sector that operate inside the Union Territory of Dadra and Nagar Haveli and Daman and Diu.
- Your unit can be new — a fresh manufacturing or service unit — or an existing manufacturing or service unit that is carrying out expansion or diversification.
- The unit has to be located in the U.T. of Dadra and Nagar Haveli & Daman and Diu.
- Commercial production should have started between May 20, 2022 and May 19, 2027.
- At least 10% of the unit's total power consumption must be met from solar power.
- The application has to be submitted within six months of the solar power being generated.
IPS Solar Power Subsidy — Up to ₹50 Lakh for MSME Units in DNH & DD 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 Solar Power Subsidy — Up to ₹50 Lakh for MSME Units in DNH & DD 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
Qualifying units receive a 25% capital subsidy on what they invest in setting up a solar power plant, capped at ₹50,00,000.
Because this is a capital subsidy, the money is non-repayable — it brings down the upfront cost of the plant instead of creating a repayment obligation. No equity or ownership share is taken in the unit.
The scheme also functions as a grants facilitation route, guiding MSMEs through the process of accessing government support for green energy investments.
The larger outcomes the IPS is designed around are nurturing MSMEs, shielding them from market volatility, supporting job creation and increasing women's participation in business.
About the provider
IPS Solar Power Subsidy — Up to ₹50 Lakh for MSME Units in DNH & DD 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
Applications are filed online and reviewed by the District Industries Centre.
The Centre assesses the eligibility criteria — the type of unit, whether it is located in the Union Territory, whether commercial production began inside the specified window, and the share of power consumption met through solar.
The subsidy is then worked out on the basis of the capital investment made in the eligible solar power plant.
Documents you’ll need
Before you apply to IPS Solar Power Subsidy — Up to ₹50 Lakh for MSME Units in DNH & DD, 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 Solar Power Subsidy — Up to ₹50 Lakh for MSME Units in DNH & DD is best suited for startups in India seeking non-dilutive funding of ₹50L. If that describes your startup, review the eligibility criteria above before applying.
Frequently asked questions
How much subsidy can an MSME get under this scheme?
Eligible units get a 25% capital subsidy on the amount they invest in a solar power plant, and the payout is capped at ₹50,00,000 (₹50 lakh). The subsidy is calculated on what you actually spend, so it never crosses the ₹50 lakh ceiling.
Is the subsidy repayable, and does the government take equity in my unit?
Neither. This is a capital subsidy, which means the amount is non-repayable and no equity, stake or ownership share is taken in your business.
Which types of units are eligible to apply?
New manufacturing or service units qualify, and so do existing manufacturing or service units that are undertaking expansion or diversification — as long as they fall in the MSME sector and are based in the Union Territory of Dadra and Nagar Haveli and Daman and Diu.
What is the last date to apply?
There is no fixed closing date; the scheme runs on a rolling, always-open basis. Two timing rules do apply, though. The scheme remains operative until May 19, 2027, and you must submit your application within six months of the solar power being generated.
How much of my power consumption has to come from solar?
Your unit has to meet at least 10% of its total power consumption through solar power. That minimum threshold is part of how eligibility is assessed.
Where does my unit have to be located?
The unit must be located in the Union Territory of Dadra and Nagar Haveli and Daman and Diu.
When should my unit's commercial production have commenced?
Commercial production should have started between May 20, 2022 and May 19, 2027.
How do I apply for this subsidy?
Start by registering on the Registration page of the official portal, giving the required information and clicking Register. Verify your email through the link sent to your inbox (check spam if it does not arrive). Enter 111111 as the OTP to verify your mobile number — the mobile number and PIN are then sent to your registered email — and your login credentials also arrive by email.
Once registered, log in with your mobile number and PIN, open the Departments & Services tab on the left menu, scroll to District Industries Centre DD & DNH and click through to apply for Investment Promotion Scheme: 2022 to 2027 (20 May 2022 to 19 May 2027). A Common Application Form opens — fill in all required details, upload the mandatory documents, verify everything and click Submit.
Who evaluates the application and decides the subsidy?
The District Industries Centre reviews applications. It checks the eligibility criteria, including the type of unit, whether it is located in the Union Territory, when commercial production began within the specified window, and the solar power consumption percentage. The subsidy is then provided based on the capital investment in the eligible solar power plant.
What is the wider objective of the Investment Promotion Scheme that this sub-scheme sits under?
The IPS provides incentives and assistance to the MSME Sector so that units are nurtured and protected from market fluctuations. It also aims to maximise women's participation in business, reduce unemployment among local residents, and incentivise industries to employ resident labourers.
Is DPIIT recognition required for IPS Solar Power Subsidy — Up to ₹50 Lakh for MSME Units in DNH & DD?
No. DPIIT (Startup India) recognition is not listed as a mandatory requirement for IPS Solar Power Subsidy — Up to ₹50 Lakh for MSME Units in DNH & DD, though having it can strengthen your application and unlock other benefits.
Who offers IPS Solar Power Subsidy — Up to ₹50 Lakh for MSME Units in DNH & DD?
IPS Solar Power Subsidy — Up to ₹50 Lakh for MSME Units 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.
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