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Business & Entrepreneurship

Investment Promotion Scheme (IPS) for MSME Sector: Incentive For Local Employment

“Incentive For Local Employment” under the “Investment Promotion Scheme (IPS)” for MSME sector, implemented by the Dept. of Industries, U.T. Administration Of DNH & DD, aims to provide One-time recruitment incentive to the Industrial Units for generating employment for local residents.

Authority

State/ UT

Region

Dadra & Nagar Haveli and Daman & Diu

Status

Verified 2026

Updated

March 2026

What you get

- ₹3,00,000/- per 20 local Persons (employees) upto Maximum amount of ₹15,00,000/- to each eligible unit.

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.; The recruited employees should have a Domicile certificate of the U.T. of Dadra & Nagar Haveli And Daman & Diu.; The age of the recruited employees should be above 18 years.

Required Paperwork

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

Common Questions

What happens if an industry retrenches a local employee?

If an industry availing benefits under the Scheme retrenches a local employee without permission from the Industries Department, the incentives provided under the Scheme will be recovered from the industry.

Who will monitor the compliance of the Scheme?

The Industries Department is responsible for monitoring the compliance of employment to local persons for the first five years. They may seek assistance from the Labour Department for implementing the Scheme when necessary.

What is the purpose of the Scheme?

The Scheme aims to promote the recruitment of local persons from the Union Territory of Dadra and Nagar Haveli & Daman and Diu for new direct employment opportunities.

What additional documentation is required for claiming benefits under the Scheme?

Applicants must submit payment details made to local employees over the last year along with verification of their domicile status. This information will be used by the department to verify the eligibility of the claim.

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.