Investment Promotion Scheme (IPS) for Thrust Sectors: Assistance For Furniture Sector

DETAILS The scheme “Assistance For Furniture Sector” 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 further fillip to the specialized Thrust Sectors such as Plastic Furniture, Steel Furniture, Brass Furniture, Metal Furniture, Cane Furniture, Wooden Furniture, Bamboo Furniture, Fibre Glass Furniture and Marble Furniture etc, therefore making the U.T. a Special Hub for the furniture sector: 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 For Furniture Sector" Sub-scheme: Under this Scheme, an eligible furniture sector enterprises shall be provided with various types of subsidies i.e. Capital Investment Subsidy, Credit linked Interest Subsidy, reimbursement on cost of establishment, space rent subsidy etc. BENEFITS Capital Investment Subsidy: 20% limited to a maximum reimbursement of ₹50,00,000/-. Credit Linked Interest Subsidy: 60% per annum limited to maximum of ₹50,00,000/- per annum for 5 years OR, for the period of repayment of loan whichever is earlier. Space Rent Subsidy: 50% up to a maximum of ₹5,00,000/- on actual rent paid by Furniture Industry for participation in industrial exhibitions in foreign countries. Reimbursement on Course Fee: 50% of the course fee limited to ₹75,000/- per person for training in manufacture of modern furniture in reputed institutions will be reimbursed for a maximum of 5 persons per industry course. Power Rate Incentive: ₹1/- per unit as reimbursement for a period of one year subject to a maximum of ₹50,00,000/- Lakhs from date of commencement of production. Reimbursement on the cost of establishment of Showroom: Owned Showroom: 20% limited to maximum of ₹50,00,000/-. Rented Showroom: 25% of actual rent for 3 years for a showroom with a minimum size of 2000 square feet. 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 shall have to apply at online portal within one year from the date of eligibility. Exclusions The Enterprise will not be eligible for Interest Subsidy under this Scheme if, term loan is sanctioned after one year from the date of commencement of commercial production.