Investment Promotion Scheme (IPS) for MSME Sector: Assistance of Fixed Capital Investment Subsidy

DETAILS The scheme “Assistance of Fixed Capital Investment Subsidy” is a sub scheme under the “Investment Promotion Scheme (IPS)” for MSME Sector. It was launched on 3rd July, 2015 for a period of five years by the Dept. of Industries, U.T. Administration Of Dadra & Nagar Haveli And Daman & Diu. Now it has been extended further from 20th May, 2022 and shall be operative till 19th May, 2027. Objective of the "Investment Promotion Scheme (IPS)”: The scheme envisages to provide incentives and assistance to the MSME Sector in order to nurture them and protect them from market vagaries thereby making them vibrant and successful, maximize Women participation in the business sector, reduce unemployment among the local residents and incentivize the industries to employ resident laborers etc. Objective of the "Assistance of Fixed Capital Investment Subsidy" Sub-scheme: Through this incentive, eligible industries will be entitled to a Capital Investment subsidy for the investment made in Gross Fixed Capital investment (GFCI). BENEFITS Micro Industries: 15% Subsidy with an upper ceiling of ₹15,00,000/-. Small Industries: 15% Subsidy with an upper ceiling of ₹30,00,000/-. Medium Industries: 15% Subsidy with an upper ceiling of ₹35,00,000/-. Note: If the eligible GFCI is over ₹10,00,00,000/- an additional ₹10,00,000/- will be given. ELIGIBILITY Should be a New Manufacturing/ Service units or Existing Manufacturing/ Service units which undertakes Expansion/ Diversification in MSME sector. The unit should have commenced the commercial production between 20.05.2022 to 19.05.2027. Unit should be located in the U.T. of Dadra and Nagar Haveli & Daman and Diu. Enterprise will have to remain in production for 5 years from the date of commercial production. Enterprise will have to observe Pollution Control measures as prescribed by PCC or other competent authority as per Notification No. PCC/DMN/13(PART IV)/2020-2021/448 DATED 25/01/2021. The enterprise shall have to submit the application within one year from the date of the first disbursement of loan or on or before one year from the date of commencement of commercial production. Exclusions The Enterprise will not be eligible for Capital Investment Subsidy under this Scheme if, a term loan is sanctioned after one year from the date of commencement of commercial production.