Investment Promotion Scheme (IPS): Thrust Sector Subsidy up to ₹7.5Cr

This is a focused subsidy window carved out of the Investment Promotion Scheme (IPS) for the MSME sector. It is administered by the Department of Industries, U.T. Administration of Dadra & Nagar Haveli and Daman & Diu, and it exists to push money into a short list of priority industries rather than spreading support thinly across the board.

Five sectors qualify: marble, information technology and IT-enabled services (ITeS), electric vehicles together with their spare parts, toys manufacturing, and semi-conductors. Units working in these areas receive cash subsidies — not equity — when they set up fresh capacity or expand what they already have.

The scheme first came into force on July 3, 2015, and initially ran for five years. It was subsequently extended with effect from May 20, 2022, and remains in force until May 19, 2027. Applications are accepted on a rolling basis, so there is no single closing date to chase — but a unit must file its claim within one year of the date on which it becomes eligible.

The programme also carries wider economic intent. It supports the Union Territory's aim of becoming a specialised industrial base for these sectors, of bringing more women into business, of reducing unemployment among local residents, and of encouraging units to hire labour from within the Union Territory.

• Capital investment subsidy of up to ₹7.5 crore for large semi-conductor units
• Small units can claim 20% of Gross Fixed Capital Investment, capped at ₹50 lakh
• Credit-linked interest subsidy of 60% per annum, up to ₹50 lakh a year
• Open to MSME manufacturing and service units in marble, IT & ITeS, EV, toys and semi-conductor sectors
• Scheme is valid until May 19, 2027, with claims to be filed within one year of eligibility
• Only units located in Dadra & Nagar Haveli and Daman & Diu qualify

The scheme is open to units in the MSME sector that fit the following conditions:

• New manufacturing or service units, or existing manufacturing or service units going in for expansion or diversification.
• Commercial production must have commenced between May 20, 2022 and May 19, 2027.
• The unit has to be located in the Union Territory of Dadra & Nagar Haveli and Daman & Diu.
• The unit should operate in one of the thrust sectors this sub-scheme covers — marble, IT & ITeS, electric vehicles and spare parts, toys manufacturing, or semi-conductors.
• The application must be filed on the online portal within one year from the date the unit becomes eligible.

Investment Promotion Scheme (IPS): Thrust Sector Subsidy up to ₹7.5Cr is open to startups at any stage. It is open to startups registered anywhere in India.

Investment Promotion Scheme (IPS): Thrust Sector Subsidy up to ₹7.5Cr 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.

Support comes in two forms, and a qualifying unit is assessed against the relevant one.

• Credit-linked interest subsidy: a subsidy of 60% per annum on the interest payable on the unit's loan, subject to a ceiling of ₹50 lakh per annum. This runs for five years, or until the loan is fully repaid, whichever happens first.
• Capital investment subsidy for small units: reimbursement of 20% of Gross Fixed Capital Investment, capped at ₹50 lakh per unit.
• Capital investment subsidy for large units in the semi-conductor sector: reimbursement of 15% of Gross Fixed Capital Investment, with a much higher ceiling of ₹7.5 crore.

The support is released as a subsidy, so no stake in the business is taken in return.

Investment Promotion Scheme (IPS): Thrust Sector Subsidy up to ₹7.5Cr 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.

Every application filed on the Single Window Portal is examined by the Department of Industries, U.T. Administration of Dadra & Nagar Haveli and Daman & Diu.

The review looks at two things: whether the unit meets each of the stated eligibility conditions, and whether the paperwork submitted is complete and accurate. Applications that clear this verification are then taken forward for disbursement of the applicable subsidy in line with the scheme guidelines. The intent behind this check-and-verify route is a fair, transparent allocation of benefits to the enterprises that genuinely qualify.

Before you apply to Investment Promotion Scheme (IPS): Thrust Sector Subsidy up to ₹7.5Cr, 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.

Investment Promotion Scheme (IPS): Thrust Sector Subsidy up to ₹7.5Cr is best suited for startups in India seeking non-dilutive funding of ₹7.5Cr. If that describes your startup, review the eligibility criteria above before applying.