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Business & Entrepreneurship

Investment Promotion Scheme (IPS) for MSME Sector: Reimbursement Of Free On Board (FOB) Expenses

“Reimbursement Of Free On Board (FOB) Expenses” under the “Investment Promotion Scheme (IPS)” for MSME sector, implemented by the Dept. of Industries, U.T. Administration Of DNH & DD, aims for boosting exports in the Food/ Marine Food Processing Sector.

Authority

State/ UT

Region

Dadra & Nagar Haveli and Daman & Diu

Status

Verified 2026

Updated

March 2026

What you get

- 20% reimbursement of Free On Board(FOB) value limited to ₹20,00,000/- per beneficiary per year for 3 years.

Who can apply

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 within six months from 31st March of the previous financial year.

Required Paperwork

  • Aadhaar Card
  • PAN Card
  • Income Certificate
  • Residence Proof (Domicile)

Common Questions

Under this scheme, which category of products will be considered for export?

Export of finished products only shall be considered under this Scheme.

What happens to the benefit of the incentive if a newly setup enterprise is sold or transferred to a new owner within the first five years of its establishment?

If a newly setup enterprise is sold or otherwise transferred to a new owner during the period of five years, the benefit of the incentive shall be available to such transferee or the new owner, only for the unexpired portion.

What is the definition of Expansion/ Diversification?

Expansion/Diversification means where an existing / New Enterprise increases its investment by at least 50% (out of which at least 60% of investment is made in plant and machinery for which expansion is carried out) of its existing Gross Fixed capital investment on the date of initiating expansion and compared with the date of commencing production during the operative period of the scheme. Only one Expansion / Diversification will be eligible for assistance during the operative period of the Scheme.

What measures are in place to prevent misuse of the subsidy scheme?

Strict guidelines, documentation requirements, and verification procedures are in place to ensure that subsidies are availed by eligible enterprises for genuine purposes only.

What is the operative period of the scheme?

The operative period of scheme is from 20.05.2022 till 5 years that is 19.05.2027.

If an enterprise is established in 2023 and becomes eligible for the scheme what would be the time period in which benefits are applicable?

The enterprise can avail benefit commencing from date of production till 5 years even if that period falls beyond operative period.

How can an eligible unit apply to get the benefits of the scheme?

The eligible unit can apply by visiting single window portal website which is "swp.dddgov.in", and once page pops-up the user have to go to departments tab and select district industries tab under which the user have to click on apply for investment promotion scheme: 2022 to 2027.

If a manufacturing unit is eligible under more than one scheme then can it select the scheme which allows most benefits?

Yes. The unit can select any one scheme to avail benefits if it comes under the eligibility of more than one scheme. However, units cannot apply for benefits for the similar subsidy in multiple schemes and can apply in schemes which are complementary in nature.

What are dedicated industrial parks?

Dedicated industrial parks are mentioned in food processing incentives where an additional 10% will be accorded to food processing units setup in industrial parks having only food processing industries.

What is the deadline for an enterprise to submit the application through the online portal?

Entrepreneur shall have to apply within six months from 31st March of the previous financial year.