Investment Promotion Scheme (IPS) — ₹21L Energy & Water Subsidy for MSMEs — Frequently Asked Questions

The two components together allow up to ₹21 lakh. For the energy or water audit, 75% of what you paid a recognised institution or auditing authority is reimbursed, capped at ₹1,00,000. For the equipment that the auditor recommends, 25% of the cost is reimbursed, capped at ₹20,00,000, and that comes as a one-time assistance. The two ceilings apply separately.

No. The scheme runs on a rolling, always-open basis, so there is no closing date to beat. Applications are filed through the Single Window Portal and are processed as they come in, but they are still screened against the eligibility conditions before anything moves forward.

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. The unit has to be physically located in the Union Territory of Dadra and Nagar Haveli and Daman and Diu, and it must have started commercial production between May 20, 2022 and May 19, 2027. The energy or water saving project itself must also have been implemented and commenced during the scheme's operational period.

Neither. This is a subsidy paid out as a reimbursement, so no equity stake is taken in your business and nothing has to be returned. You spend on the audit and the equipment first, and the eligible share is reimbursed to you once the verification requirements are met.

Yes, and it is central to the whole process. Recognised energy or water auditors have to issue a certificate confirming that the equipment was installed as per their audit report. The assistance is released only after that certificate is submitted and the installation claim is verified, so without it the reimbursement does not go through.

No. The scheme covers both manufacturing and service enterprises in the MSME sector. What matters is that your unit fits the MSME profile, is located in the Union Territory, started commercial production within the specified window, and is implementing an energy or water saving project.

Start by registering on the Single Window Portal at https://swp.dddgov.in/registration, where you fill in your personal and business details and click Register. Click the verification link sent to your email — check the spam folder if you do not see it — and complete mobile verification by entering 111111 as the OTP; your mobile number and PIN are then emailed to you. Log in at https://swp.dddgov.in/login with that mobile number and PIN, open the Departments & Services tab from the left menu, scroll to District Industries Centre DD & DNH and click Click Here to reach the Investment Promotion Scheme : 2022 to 2027 application. Fill in the Common Application Form, upload the mandatory documents, review everything and hit Submit. The scheme notification is available at https://swp.dddgov.in/assets/pdf/Notification_IPS_2022_DNH_DD.pdf.

Along with your personal and business information at registration, the application requires mandatory uploads such as company registration papers, your project proposal, and details of the energy and water saving initiatives you are undertaking. Later in the process, you must also submit the audit report and the certificate from recognised energy/water auditors confirming that the recommended equipment has been installed.

It is screened for completeness and checked against the eligibility criteria, including your location, your MSME status and the commercial production period your unit falls into. Once you have implemented the project and supplied the auditor's certificate, the documentation is verified. The Department of Industries, U.T. Administration then gives final approval, and the reimbursement is disbursed once it confirms that all the scheme's conditions have been satisfied.

The eligibility conditions set out for this sub-scheme revolve around your unit being an MSME-sector manufacturing or service enterprise, being located in the Union Territory, and commencing commercial production within the May 20, 2022 to May 19, 2027 window. A DPIIT recognition requirement is not part of those stated conditions.

Investment Promotion Scheme (IPS) — ₹21L Energy & Water Subsidy 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.