Investment Promotion Scheme (IPS): Thrust Sector Subsidy up to ₹7.5Cr — Frequently Asked Questions

It depends on the unit's size and sector. A small unit can claim a capital investment subsidy of 20% of its Gross Fixed Capital Investment, capped at ₹50 lakh. A large unit in the semi-conductor sector can claim 15% of Gross Fixed Capital Investment, up to ₹7.5 crore. Separately, a credit-linked interest subsidy of 60% per annum on loan interest is available, capped at ₹50 lakh per annum.

The scheme is limited to five thrust sectors: marble, information technology and IT-enabled services (ITeS), electric vehicles and their spare parts, toys manufacturing units, and semi-conductor industries.

New manufacturing or service units in the MSME sector can apply, and so can existing MSME manufacturing or service units that are expanding or diversifying. The unit must be located in the Union Territory of Dadra & Nagar Haveli and Daman & Diu, and commercial production must have started between May 20, 2022 and May 19, 2027.

Yes. This sub-scheme sits under the Investment Promotion Scheme (IPS) framework created for the MSME sector, and the eligibility conditions are written for MSME manufacturing and service units rather than for large corporates.

There is no single deadline that every applicant shares. The scheme itself runs until May 19, 2027, and applications are accepted on a rolling basis. The critical date is personal to your unit: the claim has to be filed on the online portal within one year from the date your unit becomes eligible.

No. This is a subsidy programme, so the support is released as cash assistance and no equity, shares or ownership stake is taken in return. The subsidy amount is not something you repay — the interest subsidy simply reduces the interest burden on the loan your unit has already taken.

It covers 60% per annum of the interest on your unit's loan, subject to a maximum of ₹50 lakh per annum. The benefit continues for five years, or for as long as the loan repayment lasts, whichever ends first.

Applications are made entirely online through the Single Window Portal at swp.dddgov.in. You first register an account and verify your email and mobile number, then log in with your registered mobile number and the PIN emailed to you. From the left menu, open 'Departments & Services', scroll to 'District Industries Centre DD & DNH', click through to the Investment Promotion Scheme 2022 to 2027, and complete the Common Application Form.

The Common Application Form requires you to fill in all the details it asks for and to upload the mandatory documents listed on the portal. An application is only complete once those uploads are attached, so it is worth going through the form's document checklist before you begin.

Applications submitted through the Single Window Portal are reviewed by the Department of Industries, U.T. Administration of Dadra & Nagar Haveli and Daman & Diu. The review checks compliance with the eligibility conditions and the completeness and accuracy of the documents. Once an application is verified as eligible, it moves ahead for disbursement of the applicable subsidy as per the scheme guidelines.

No. DPIIT (Startup India) recognition is not listed as a mandatory requirement for Investment Promotion Scheme (IPS): Thrust Sector Subsidy up to ₹7.5Cr, though having it can strengthen your application and unlock other benefits.

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. It is provided as non-dilutive funding.