IPS Solar Power Subsidy — Up to ₹50 Lakh for MSME Units in DNH & DD — Frequently Asked Questions

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.

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.

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.

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.

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.

The unit must be located in the Union Territory of Dadra and Nagar Haveli and Daman and Diu.

Commercial production should have started between May 20, 2022 and May 19, 2027.

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.

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.

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.

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.

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.