Food Processing Scheme C4 (IPS) — 60% Interest Subsidy up to ₹50L
A credit-linked interest subsidy of 60% per annum, capped at ₹50 lakh a year, for new and expanding food processing MSME units in Dadra & Nagar Haveli and Daman & Diu.
- 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
Scheme C4 for Food Processing Industries is one of the sub-schemes carved out of the Investment Promotion Scheme (IPS) for Thrust Sectors. It is administered by the Department of Industries under the U.T. Administration of Dadra & Nagar Haveli and Daman & Diu, and its exclusive focus is food processing units operating in the Union Territory.
The scheme was first notified on 3 July 2015 and ran for an initial five-year term before being extended. Its present operative window stretches from 20 May 2022 to 19 May 2027, which is the period during which units must begin commercial production to qualify.
The wider IPS framework pursues several goals at once: strengthening specialised thrust sectors — furniture is the example named — and turning the U.T. into a furniture hub, drawing more women into business ownership, bringing down local unemployment, and giving industries a reason to recruit workers who are residents of the territory.
Scheme C4 contributes to that agenda through an interest subsidy rather than a capital payout. Because the support is credit-linked, it attaches to a loan that the unit has actually taken for setting up or for expanding capacity. By absorbing a large share of the interest cost, it lowers the effective burden of borrowing and is intended to draw fresh investment into food processing and generate employment in the process.
Highlights
- Credit-linked interest subsidy of 60% per annum on the unit's loan
- Payout capped at ₹50 lakh per annum
- Support continues for five years, or until the loan is repaid, whichever is earlier
- Additional 10% subsidy for food processing units in dedicated industrial parks
- Open to new and expanding MSME manufacturing or service units located in Dadra & Nagar Haveli and Daman & Diu
- Applications accepted online on a rolling basis; scheme window runs 20 May 2022 to 19 May 2027
Who can apply
What kind of unit qualifies
- 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.
Location
The unit has to be situated within Dadra & Nagar Haveli and Daman & Diu.
Production start date
Commercial production must begin between 20 May 2022 and 19 May 2027 — the current operative period of the scheme.
Filing window
The application is made online, and the timing matters. It must reach the department within one year of the first loan disbursement, or on or before the date commercial production commences — whichever of those two dates arrives first.
Food Processing Scheme C4 (IPS) — 60% Interest Subsidy up to ₹50L 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
Food Processing Scheme C4 (IPS) — 60% Interest Subsidy up to ₹50L 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
Interest subsidy of 60% per annum
What the scheme offers is a credit-linked interest subsidy, not an upfront cheque. Eligible units get 60% per annum, calculated on a credit-linked basis against the loan taken for the project.
Capped at ₹50 lakh a year
The payout is limited to a maximum of ₹50,00,000 (₹50 lakh) per annum, irrespective of how large the interest outgo happens to be.
Duration of support
Subsidy payments continue for five years, or for as long as the loan repayment runs — whichever of the two ends earlier.
Extra 10% for industrial park units
Food processing units set up inside dedicated Industrial Parks for Food Processing Industries are entitled to an additional 10% subsidy on top of the standard rate.
Because the mechanism is a subsidy linked to a loan, it is non-dilutive — the department does not take a stake in the business. The benefit shows up as a lighter interest load over the repayment period, which is what the scheme uses to encourage fresh capacity and expansion in food processing.
About the provider
Food Processing Scheme C4 (IPS) — 60% Interest Subsidy up to ₹50L 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
Every step happens on the department's Single Window Portal, and there is no separate assessment round described — the journey is registration, then the Common Application Form, then submission.
Step 1 — Create an account
Go to the registration page at https://swp.dddgov.in/registration, fill in the required information and click 'Register'.
Step 2 — Verify your email
A verification link is sent to the email address you registered. If it has not arrived, check the spam folder. Open the link, or paste it into your browser, to complete verification.
Step 3 — Verify your mobile number
Enter 111111 as the OTP to verify the mobile number. The mobile number and a PIN are then sent to your registered email address.
Step 4 — Log in
Once registration is complete, login credentials reach your registered email. Sign in at https://swp.dddgov.in/login using your registered mobile number and PIN.
Step 5 — Reach the scheme
From the menu bar on the left, click 'Departments & Services' and scroll down to 'District Industries Centre DD & DNH'. Click 'Click Here' against 'Investment Promotion Scheme : 2022 to 2027 (20 May 2022 to 19 May 2027)'.
Step 6 — Fill and submit the form
The Common Application Form opens. Enter all details in the required input fields and upload every mandatory document. Check the entries, then click 'Submit'.
Helpdesk
For technical problems, contact the Single Window Portal helpdesk on 0260-2231885 / 2231886 or write to ddegs-dd@nic.in.
Documents you’ll need
Before you apply to Food Processing Scheme C4 (IPS) — 60% Interest Subsidy up to ₹50L, 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
Food Processing Scheme C4 (IPS) — 60% Interest Subsidy up to ₹50L 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 financial support does Scheme C4 for food processing industries provide?
You receive a credit-linked interest subsidy at 60% per annum against your project loan. The amount paid out in any single year cannot exceed ₹50 lakh, and the support runs for five years or until the loan is fully repaid — whichever happens first. Units located inside dedicated Industrial Parks for Food Processing Industries get an extra 10% on top of that rate.
Does this scheme take equity in my company?
No. It is a subsidy that is tied to a loan, so it works by reducing your interest outgo rather than by buying a share of your business. There is no dilution of founder or promoter holding involved in receiving the benefit.
Who is eligible to apply?
New manufacturing or service units in the MSME sector qualify, and so do existing manufacturing or service units that are undertaking expansion or diversification. The unit must be located in Dadra & Nagar Haveli and Daman & Diu, and commercial production has to commence between 20 May 2022 and 19 May 2027.
What is the last date to apply?
Applications are accepted on a rolling basis, so there is no single cut-off date for the scheme as a whole. However, two deadlines do apply to each unit: the online application must be filed within one year of the first loan disbursement, or on or before the date commercial production starts, whichever of these comes first.
Is DPIIT recognition or MSME registration required?
The scheme's stated eligibility conditions do not list DPIIT recognition or a separate MSME certificate as a prerequisite. What is specified is that the applicant must be a manufacturing or service unit in the MSME sector, located in the Union Territory, with commercial production starting inside the scheme's operative window.
What does the additional 10% subsidy apply to?
It applies to food processing units that are established in the dedicated Industrial Parks for Food Processing Industries. Such units receive 10% over and above the standard 60% per annum interest subsidy, subject to the same ₹50 lakh annual cap.
How do I apply for the subsidy?
Everything is done online through the department's Single Window Portal. First register at the portal's registration page and verify both your email and your mobile number, using 111111 as the OTP for the mobile check. After logging in with the mobile number and PIN sent to your registered email, open the 'Departments & Services' tab, find 'District Industries Centre DD & DNH', and click through to 'Investment Promotion Scheme : 2022 to 2027 (20 May 2022 to 19 May 2027)'. Complete the Common Application Form, upload the mandatory documents and submit. Helpdesk support is available on 0260-2231885 / 2231886 or at ddegs-dd@nic.in.
What documents do I need to submit?
The Common Application Form on the portal requires you to upload all the mandatory documents before you can submit, and the form itself sets out which uploads are required for your application.
Which authority runs this scheme and where does it apply?
It is administered by the Department of Industries, U.T. Administration of Dadra & Nagar Haveli and Daman & Diu. The benefit is available only to units located within those two Union Territory regions.
What is the parent scheme behind this food processing subsidy?
This is Scheme C4, a sub-scheme under the Investment Promotion Scheme (IPS) for Thrust Sectors. The IPS was launched on 3 July 2015 for an initial five-year period and has since been extended; it is currently operative from 20 May 2022 to 19 May 2027.
Who offers Food Processing Scheme C4 (IPS) — 60% Interest Subsidy up to ₹50L?
Food Processing Scheme C4 (IPS) — 60% Interest Subsidy up to ₹50L 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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