Investment Promotion Scheme (IPS) — ₹4 Lakh Subsidy for Handicraft Artisans — Frequently Asked Questions

An artisan can receive a machinery investment subsidy of 50% of the amount invested in machinery, capped at ₹2,00,000, and a working capital loan subsidy of 50% of the loan taken, also capped at ₹2,00,000. Claimed together, that adds up to a maximum of ₹4,00,000. Artisans from Scheduled Castes, Scheduled Tribes, Women and Differently Abled categories (30% or more disability) get an additional 10% subsidy on top.

You need to be a handloom or handicraft artisan, above 18 years of age, and a resident of Dadra & Nagar Haveli and Daman & Diu. You should be looking to buy machinery or raw materials to develop your business, and you must be able to demonstrate genuine handloom or handicraft skills by showing the products you have made to the official committee.

Yes. Residency in the Union Territory of Dadra & Nagar Haveli and Daman & Diu is a stated condition of eligibility, since the scheme is run by the U.T.'s Department of Industries for artisans based in the U.T.

It is a subsidy, which means the money does not have to be repaid and no equity or ownership stake is taken in the artisan's business. Because the scheme funds 50% of the machinery investment or working capital loan, the artisan is expected to arrange the remaining half through personal funds or a loan.

The machinery investment subsidy applies to what you spend on machinery. The working capital loan subsidy applies to a working capital loan taken for running the business, such as purchasing raw materials. Both are aimed at developing and expanding your handloom or handicraft enterprise.

The eligibility conditions set out for this sub-scheme centre on being a handloom or handicraft artisan, being resident in the U.T., being above 18, and being able to demonstrate your craft. DPIIT recognition or MSME registration is not named among the stated requirements, so check the current notification and the Common Application Form before applying.

The scheme remains operative until 19 May 2027, and applications are accepted during that window, which runs from 20 May 2022 to 19 May 2027. Applying well before the closing date is advisable.

The process is entirely online. Register on the official portal at swp.dddgov.in/registration, verify your email through the link sent to you, and verify your mobile number. Your login credentials are then emailed to you. Log in at swp.dddgov.in/login with your registered mobile number and PIN, open the Departments & Services tab from the left menu, scroll to District Industries Centre DD & DNH and click through to Investment Promotion Scheme: 2022 to 2027. Fill in the Common Application Form, upload the mandatory documents specified there, re-check every detail and submit.

Your craftsmanship and your business development proposal are assessed through a demonstration of the products you have made. This demonstration goes before a dedicated committee that generally includes the General Manager (GM) of the District Industries Centre (DIC), the Director (Tourism) and the CEO (District Panchayat), who together decide whether the capital subsidy is granted.

Yes. Artisans from Scheduled Castes, Scheduled Tribes, Women, and Differently Abled individuals with 30% or more disability receive an additional 10% subsidy, which increases the total financial support they can receive under the scheme.

Investment Promotion Scheme (IPS) — ₹4 Lakh Subsidy for Handicraft Artisans 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.