IPS Textile Interest Subsidy — Up to ₹70L for DNH & Daman and Diu Units — Frequently Asked Questions

The Department covers 60% of the interest your bank charges on the loan, subject to a ceiling of ₹60,00,000 per year. If you are an export-oriented carpet industry, an additional 10% is added, which raises your annual limit to ₹70,00,000. The calculation always follows the interest you actually pay, so the final figure depends on your loan size and repayment period.

You need to be a new manufacturing or service unit in the MSME textile sector, or an existing unit that is expanding or diversifying. The unit has to be located in the U.T. of Dadra and Nagar Haveli and Daman and Diu, and commercial production must have started between May 20, 2022 and May 19, 2027.

No. This is an interest subsidy, which means the Department reimburses a portion of the interest your bank charges on a loan you have raised yourself. It does not dilute your ownership or take a stake in the business.

The scheme is aimed at specialised textile segments — technical textiles, fabrics, carpets, garments, apparels, and units manufacturing textile machinery and medical fabrics. It is intended to build the Union Territory into a hub across these segments rather than to support one narrow product category.

Support is available for 5 years, or until the loan is fully repaid, whichever comes first. The clock runs from the point at which commercial production begins, so a unit that repays early receives the subsidy only up to the date of full repayment.

An Udyam registration certificate is one of the documents you are required to upload with the application, so you should have it ready. DPIIT recognition does not feature among the scheme's stated requirements.

The mandatory set generally includes your Udyam registration certificate, proof of the date on which commercial production commenced, the bank loan sanction letter, interest payment certificates issued by the bank, a project report, and other supporting business registration and financial documents.

There are two dates to keep in mind. Your application must be filed online within one year from the date you become eligible, that is, from the commencement of commercial production. The overall scheme itself remains operative until May 19, 2027.

Everything is handled online through the official Single Window Portal. You register an account, verify your email through the link sent to you, verify your mobile number with an OTP, and then log in with the credentials mailed to you. From the left menu, go to "Departments & Services", select "District Industries Centre DD & DNH" and open the "Investment Promotion Scheme : 2022 to 2027" application. Fill in the Common Application Form, upload the supporting documents, review everything and submit. The scheme notification is published at swp.dddgov.in.

No. Being located within the U.T. of Dadra and Nagar Haveli and Daman and Diu is a core eligibility condition, alongside the requirement that the unit be a new manufacturing or service unit, or an existing one expanding or diversifying in the MSME textile sector.

IPS Textile Interest Subsidy — Up to ₹70L for DNH & Daman and Diu Units 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.

Apply directly through the official application link on this page. Review the eligibility criteria and prepare your startup documents before you begin.