Food Processing Scheme C4 (IPS) — 60% Interest Subsidy up to ₹50L — Frequently Asked Questions

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.