IPS Subsidy — Up to ₹50L for Medical, Diagnostics & AYUSH Units in DNH & DD
A thrust-sector window of the Investment Promotion Scheme giving medical equipment, diagnostics and AYUSH products manufacturers in Dadra and Nagar Haveli and Daman and Diu a 20% capital investment subsidy up to ₹50 lakh, plus a 60% credit-linked interest subsidy up to ₹50 lakh a year.
- 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
- 19 May 2027
- Eligible stage
- Any stage
- Location
- Open to startups registered in India
Overview
The Investment Promotion Scheme (IPS) is the incentive programme run by the Department of Industries, UT Administration of Dadra and Nagar Haveli and Daman and Diu, to pull specialised manufacturing into the Union Territory. Inside that umbrella sits a dedicated window for units producing medical equipment and accessories, medical diagnostics, and AYUSH products — a sub-scheme written specifically for the healthcare manufacturing ecosystem.
This window was first notified on 3 July 2015. It has since been extended, and its present term runs from 20 May 2022 until 19 May 2027. That seven-year block is what decides which units the scheme can reach, because a unit's commercial production has to begin inside it.
The parent IPS works on a broader agenda for the UT: building up thrust sectors, drawing more women into business ownership, bringing down unemployment, and encouraging units to hire locally. The medical and AYUSH window carries that same thinking into an industry where plant, machinery and testing equipment cost a great deal to install, and where access to affordable credit shapes how fast a unit can scale.
Support reaches an applicant through two channels — a Capital Investment Subsidy and a Credit Linked Interest Subsidy. The first softens the cost of creating fixed assets; the second brings down the cost of the borrowing that funds them. Together they are meant to lift production capacity, innovation and output in these sectors within the UT.
Highlights
- Capital investment subsidy of 20% of Gross Fixed Capital Investment, capped at ₹50 lakh per unit
- Credit-linked interest subsidy at 60% per annum, capped at ₹50 lakh per annum
- Interest support runs for five years or the loan repayment period, whichever is earlier
- Open to new and expanding MSME manufacturing or service units in medical equipment, diagnostics and AYUSH products
- Unit must be in Dadra and Nagar Haveli and Daman and Diu, with commercial production starting between 20 May 2022 and 19 May 2027
- Online application through the UT single window portal; scheme operative till 19 May 2027
Who can apply
The scheme is aimed at MSME-sector units in manufacturing or services that are either starting fresh or are already running and taking up expansion or diversification.
- Commercial production must have commenced between 20 May 2022 and 19 May 2027.
- The unit has to be located in the U.T. of Dadra and Nagar Haveli and Daman and Diu.
- The application must be filed online within one year of the first disbursement of the loan, or on or before the date commercial production begins — whichever applies to the project.
- The activity must fall within the covered basket: medical equipment and accessories, medical diagnostics, or AYUSH products.
The published eligibility conditions are framed around MSME manufacturing and service units. A separate DPIIT recognition requirement does not appear among them.
IPS Subsidy — Up to ₹50L for Medical, Diagnostics & AYUSH Units in DNH & DD 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
Applications for IPS Subsidy — Up to ₹50L for Medical, Diagnostics & AYUSH Units in DNH & DD are open and the current deadline is 19 May 2027. Deadlines can change — always reconfirm on the official source before submitting.
What the funding covers
An eligible unit can draw on two subsidies under this window, and both are built around the same eligible project.
Capital Investment Subsidy
- A reimbursement of 20% of the Gross Fixed Capital Investment the unit has made.
- Subject to a ceiling of ₹50 lakh per unit.
Credit Linked Interest Subsidy
- An interest subsidy at 60% per annum on the unit's credit.
- Capped at ₹50 lakh per annum.
- Available for up to five years, or for the entire loan repayment period, whichever is earlier.
Read together, the capital subsidy reduces the one-time burden of putting up or expanding a manufacturing facility, while the interest subsidy lowers the recurring cost of the borrowing behind it. The design is meant to make it easier for units in medical equipment, diagnostics and AYUSH production to invest in capacity and grow their output.
About the provider
IPS Subsidy — Up to ₹50L for Medical, Diagnostics & AYUSH Units in DNH & DD 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.
Documents you’ll need
Before you apply to IPS Subsidy — Up to ₹50L for Medical, Diagnostics & AYUSH Units in DNH & DD, 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
IPS Subsidy — Up to ₹50L for Medical, Diagnostics & AYUSH Units in DNH & DD 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 funding can a unit actually receive under this scheme?
There are two separate benefits. The Capital Investment Subsidy reimburses 20% of your Gross Fixed Capital Investment, up to a maximum of ₹50 lakh per unit. The Credit Linked Interest Subsidy pays 60% per annum of the interest on your credit, up to ₹50 lakh per annum, for as long as five years or for the loan repayment period, whichever is shorter. Both are subsidy payments — nothing is repaid to the department.
Who is eligible to apply for this sub-scheme?
You need to be an MSME-sector unit in manufacturing or services. Either you are a new unit setting up, or an existing unit going in for expansion or diversification. The unit must be located in the U.T. of Dadra and Nagar Haveli and Daman and Diu, and commercial production must have started between 20 May 2022 and 19 May 2027.
Which industries does this window cover?
It is limited to healthcare manufacturing. Specifically, units making medical equipment and accessories, units working in medical diagnostics, and units manufacturing AYUSH products.
What is the last date to apply?
The scheme itself runs from 20 May 2022 to 19 May 2027, so that is the outer boundary. Within that period, the application has to be filed online within one year from the date of the first disbursement of your loan, or on or before the date your commercial production starts. Your own project milestones, not a single fixed date, decide the filing deadline that applies to you.
Is DPIIT recognition or MSME registration required?
The eligibility conditions are written around MSME-sector manufacturing and service units, so MSME status is the relevant frame. The published criteria for this sub-scheme do not list a separate DPIIT recognition condition, so nothing in the scheme documents makes DPIIT approval a prerequisite.
Does the government take equity or a stake in my business?
No. This is a subsidy scheme — a capital investment reimbursement and a credit-linked interest subsidy. No shares are issued, no ownership is transferred, and there is no dilution of the founders' stake. The support is entirely non-dilutive.
Can an existing manufacturing unit that is already in operation apply?
Yes, provided it is undertaking expansion or diversification and satisfies the other conditions, including the requirement that commercial production falls between 20 May 2022 and 19 May 2027. The scheme is not restricted to brand-new units.
When must commercial production have commenced?
Between 20 May 2022 and 19 May 2027. A unit whose production start date falls outside that window does not fit the eligibility conditions of this sub-scheme.
How do I apply for the scheme?
Applications are online only, through the UT's single window portal. First register at swp.dddgov.in/registration, fill in the required details and click Register. Verify your email through the link sent to you, then enter 111111 as the OTP to verify your mobile number — your mobile number and PIN are then emailed to you. Next, log in at swp.dddgov.in/login using your registered mobile number and the PIN, open the Departments & Services tab on the left menu, scroll to District Industries Centre DD & DNH and click through to apply for Investment Promotion Scheme: 2022 to 2027 (20 May 2022 to 19 May 2027). The Common Application Form opens; fill every required field, upload the mandatory documents, re-check the details and submit.
What documents do I need to upload with the application?
The online Common Application Form requires you to upload the mandatory documents it lists before the submission goes through. The scheme's published details do not set out a separate document checklist, so the form itself is the authority on what has to be attached.
Who offers IPS Subsidy — Up to ₹50L for Medical, Diagnostics & AYUSH Units in DNH & DD?
IPS Subsidy — Up to ₹50L for Medical, Diagnostics & AYUSH Units in DNH & DD 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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