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

Investment Promotion Scheme (IPS) for MSME Sector: Interest Subsidy Assistance

The “Investment Promotion Scheme (IPS)” is a vital initiative designed to bolster the MSME sector in Dadra & Nagar Haveli and Daman & Diu. Under this scheme, the “Assistance of Interest Subsidy” component aims to provide financial relief through interest subsidies on term loans utilized for acquiring essential equipment, machinery, furniture, and fixtures, excluding land and buildings.

Overview of the Scheme

Launched on July 3, 2015, the “Assistance of Interest Subsidy” functions as a sub-scheme of the IPS for the MSME sector, managed by the Department of Industries of the U.T. Administration of Dadra & Nagar Haveli and Daman & Diu. This initiative, initially set for five years, has been extended from May 20, 2022, and will remain active until May 19, 2027.

Objectives of the Investment Promotion Scheme (IPS)

The primary aim of the IPS is to provide crucial incentives and support to the MSME sector. The scheme focuses on:

• Encouraging vibrant and successful MSMEs.
• Maximizing participation of women in business.
• Reducing unemployment among local residents.
• Incentivizing industries to hire local laborers.

Goals of the “Assistance of Interest Subsidy” Sub-scheme

This subsidy initiative allows qualified industries to receive financial assistance in the form of interest subsidies on loans taken for machinery, equipment, and furniture, while excluding land and building costs.

Key Benefits of the Scheme

Under this scheme, eligible MSMEs can benefit from:

• A subsidy covering 50% of the interest charged by banks, with a maximum limit of ₹30,00,000 per annum.
• The subsidy is available for five years or until the loan repayment period concludes, whichever occurs first.

Additional Benefits:

• A further 10% interest subsidy for differently-abled entrepreneurs, women entrepreneurs, and registered startups in the manufacturing or service sector.
• An additional 10% subsidy for young entrepreneurs aged below 35 years at the time of loan sanction.

Eligibility Criteria

<pTo qualify for the "Assistance of Interest Subsidy," applicants must meet the following requirements:

• Must be new or existing manufacturing or service units engaged in expansion or diversification within the MSME sector.
• Commercial production should have commenced between May 20, 2022, and May 19, 2027.
• The unit must be situated in the U.T. of Dadra and Nagar Haveli and Daman and Diu.
• Enterprises must maintain production for a minimum of five years from the start of commercial production.
• Compliance with pollution control measures as mandated by the PCC or other relevant authorities (Notification No. PCC/DMN/13(PART IV)/2020-2021/448 dated January 25, 2021).
• Loans must be sanctioned by banks or financial institutions in accordance with RBI guidelines.
• Applications should be submitted within one year from the first loan disbursement or within a year of commencing commercial production.

Exclusions

Enterprises will not qualify for the interest subsidy if the term loan is sanctioned more than one year after the commencement of commercial production or service provision.

Application Process

To apply for the “Assistance of Interest Subsidy,” follow these steps:

Registration Process:

1. Visit the registration page on the official website.
2. Input the requested information and click on “Register.”
3. Verify your email address using the link sent to your inbox (check spam if not received).
4. Click the link in the email or copy it into your browser to complete account verification.
5. Enter “111111” as the OTP to validate your mobile number, with confirmation sent to your registered email.
6. Upon successful registration, login credentials will be dispatched to your email.

Application Steps:

1. Access the user login page on the official website.
2. Enter the registered mobile number and the PIN sent to your email, then click “Log In.”
3. Once logged in, navigate to the “Departments & Services” tab on the left menu.
4. Locate “District Industries Centre DD & DNH” and select the button to apply for the “Investment Promotion Scheme: 2022 to 2027.”
5. The “Common Application Form” will appear. Complete all required fields and upload necessary documents.
6. After verifying your details, click on the “Submit” button to finalize your application.

Contact Information

For assistance, reach out to the District Industries Centre:

• Contact Numbers: 0260-2260871 / 0260-2260310
• Email: [email protected]

For technical assistance on the Single Window Portal, contact:

• Contact Numbers: 0260-2231885 / 2231886
• Email: [email protected]

For more information, visit the official source: myScheme.gov.in.