IPS 2022 — Vaccine Manufacturing Units Scheme (Up to ₹13 Cr)

The Scheme For Vaccine Manufacturing Units is a dedicated sub-scheme carved out of the Investment Promotion Scheme (IPS) 2022, the umbrella industrial policy of the Union Territory of Dadra & Nagar Haveli and Daman & Diu. It is delivered by the UT's Department of Industries and exists to draw vaccine production capacity — along with the biotech and health-sector activity that follows it — into the territory.

Vaccine manufacturing is capital-heavy and debt-heavy, so the sub-scheme pushes on both sides at once. It subsidises the interest a unit pays on its bank term loan, and it subsidises the fixed capital that same unit sinks into buildings and machinery. Taken together, the two incentives are worth up to ₹13 crore to a single eligible enterprise.

The wider IPS 2022 was launched on 7 May 2022 and runs from 20 May 2022 to 19 May 2027. Its agenda is broad: lifting the value of exports of processed products, establishing the UT as a manufacturing base for selected products, rewarding the employment of local labour, drawing more women into business, backing first-generation entrepreneurs, building entrepreneurship skills among young people, and encouraging R&D and patenting. The vaccine sub-scheme is the portion of that agenda aimed squarely at vaccine production and the innovation around it.

Both newcomers and established players are in scope — units setting up fresh production, and existing units that expand or diversify during the scheme's operative period. Support flows as a subsidy, so founders keep full ownership of their company while the state shares the cost of building capacity.

• Interest subsidy covering 70% of bank interest, capped at ₹60 lakh per year for 5 years
• Capital investment subsidy of 15% of investment, up to ₹10 crore
• Combined benefit of up to ₹13 crore per eligible unit
• Open to new vaccine units and to existing units expanding or diversifying
• Available to units located in Dadra & Nagar Haveli and Daman & Diu
• Rolling applications — the scheme operates from 20 May 2022 to 19 May 2027

The sub-scheme is open to vaccine manufacturing enterprises of two kinds: units starting production fresh, and existing units that commence commercial production during the operative period of IPS 2022. The Department of Industries applies the same tests to both.

• Investment test: incentives are calculated on the Gross Fixed Capital Investment a unit makes in new buildings and in plant, machinery and equipment. Land is excluded from the calculation.
• Expansion or diversification route: an enterprise investing in expansion or diversification qualifies where that investment exceeds 50% of its GFCI, and at least 60% of it goes into plant and machinery.
• One activity only: during the policy period, an enterprise can claim for expansion or for diversification — not both.
• Loan condition: the term loan must be sanctioned by a bank or financial institution in line with RBI guidelines, for an industry located inside the Union Territory. A loan sanctioned more than a year after commercial production begins disqualifies the unit from the interest subsidy.
• Application window: the online application must reach the department within one year of the first disbursement of the loan, or by the date commercial production begins — whichever is later.
• Cost sharing: the enterprise itself must bear at least 2% of the interest the bank levies on the term loan.
• Ongoing duties: pollution control measures prescribed by the PCC or another competent authority must be observed; production, sales, turnover and employment details must be filed annually with the concerned District Industries Centre before the end of September; and commercial production must continue for at least five years from its start, failing which the capital investment subsidy is recovered.

IPS 2022 — Vaccine Manufacturing Units Scheme (Up to ₹13 Cr) is open to startups at any stage. It is open to startups registered anywhere in India.

IPS 2022 — Vaccine Manufacturing Units Scheme (Up to ₹13 Cr) 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.

Two distinct subsidies sit inside this sub-scheme, and one eligible unit can claim both.

Credit-linked interest subsidy

• The department covers 70% of the interest a bank charges on the term loan.
• The payout is capped at ₹60 lakh per annum.
• It runs for five years, or until the loan is fully repaid — whichever comes first.
• The money is credited directly to the bank or financial institution, so it reduces the loan burden rather than landing in the company's account.

Capital investment subsidy

• A subsidy of 15% of the investment, subject to a ceiling of ₹10 crore.
• It applies to the gross fixed capital a unit puts into new buildings, plant and machinery, and equipment.
• This is the component that helps a manufacturer build or scale a modern production facility.

Combined, the two benefits can reach ₹13 crore for a single enterprise over the life of the scheme. Both are subsidies — the department takes no equity and nothing has to be repaid, so a founder's shareholding stays intact.

IPS 2022 — Vaccine Manufacturing Units Scheme (Up to ₹13 Cr) 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.

The scheme documentation does not publish a detailed scoring matrix or name the approving committee, so the assessment pathway described for this sub-scheme is as follows.

• Eligibility screening: applications are first checked against the basic conditions — whether the applicant is a new or existing enterprise, whether the investment falls within the Gross Fixed Capital Investment definition, whether the term loan has been sanctioned by a bank or financial institution as per RBI guidelines, and whether the application was filed inside the permitted window.
• Committee review: applications that clear the screening are then taken up by a committee that includes representatives of the Department of Industries, and potentially other bodies of the UT administration.
• Assessment on merit: the committee weighs the proposed investment, the enterprise's commitment to production and employment, and how far the project advances the UT's industrial objectives in the vaccine manufacturing sector.
• Approval: sanction goes to enterprises that follow the scheme guidelines closely and are expected to deliver a significant economic impact.

Approval is therefore tied to both compliance and the economic case a unit presents, not to a first-come-first-served queue.

Before you apply to IPS 2022 — Vaccine Manufacturing Units Scheme (Up to ₹13 Cr), 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 2022 — Vaccine Manufacturing Units Scheme (Up to ₹13 Cr) is best suited for startups in India seeking non-dilutive funding of ₹13Cr. If that describes your startup, review the eligibility criteria above before applying.