This scheme helps MSMEs in Dadra & Nagar Haveli and Daman & Diu boost exports by reimbursing Read More... a portion of their Free On Board (FOB) expenses for Food and Marine products. Read less
Details
The Department of Industries, under the UT Administration of Dadra & Nagar Haveli and Daman & Diu, has a special scheme to support the Micro, Small, and Medium Enterprises (MSMEs) in the region. It's called the Investment Promotion Scheme (IPS), and a key part of it is the 'Reimbursement Of Free On Board (FOB) Expenses'.
Simply put, this sub-scheme aims to encourage MSMEs to export their food and marine-processed products. It does this by giving back a percentage of the Free On Board (FOB) costs incurred during exports. Think of it as a little help to make your export business more profitable and competitive.
This scheme is designed for MSMEs located in the Union Territory of Dadra and Nagar Haveli and Daman & Diu. This includes both brand new manufacturing or service units, as well as existing ones looking to expand or diversify their operations. The crucial part is that the unit must have started commercial production between May 20, 2022, and May 19, 2027, to be eligible.
The larger Investment Promotion Scheme (IPS) has a broad goal: to nurture MSMEs, protect them from market ups and downs, boost women's participation in business, reduce local unemployment, and encourage industries to hire local workers. This particular sub-scheme directly contributes by making it easier and more financially viable for MSMEs to enter and succeed in the international market through exports.
Objective
Benefits
Sources and references
To apply for this scheme, you need to visit the official Single Window Portal of the UT Administration:
Make sure to submit your application within the specified timeframe.
What is the time frame for the scheme's operation?
The scheme is active from May 20, 2022, and will continue for five years until May 19, 2027.
If my unit qualifies for more than one government scheme, can I choose the one with the best benefits?
Yes, you can choose any one scheme if your unit is eligible for multiple schemes. However, you cannot claim benefits for the same subsidy under different schemes. You can apply for schemes that complement each other.
What kind of products are eligible for export benefits under this scheme?
Only fully processed finished products will be considered for export benefits under this scheme.
What if an enterprise is sold or transferred to a new owner within the first five years? Will the incentives continue?
If a new enterprise is sold or transferred within the first five years of establishment, the new owner can continue to receive the incentive benefits, but only for the remaining unexpired period.
What is considered an 'Expansion' or 'Diversification' for this scheme?
Expansion or Diversification means that an existing or new enterprise increases its investment by at least 50%. Crucially, at least 60% of this new investment must be in plant and machinery related to the expansion. This is compared to the Gross Fixed Capital Investment at the time expansion began, and then to the production commencement date during the scheme's active period. Only one such expansion or diversification is eligible for assistance during the scheme's operative duration.
When can my eligible unit start receiving benefits if it was established in 2023?
If your enterprise becomes eligible in 2023, you can start receiving benefits from your production date. These benefits can continue for up to 5 years, even if that period extends beyond the scheme's overall operative end date.
How do I apply for this scheme?
You can apply by visiting the single window portal at swp.dddgov.in. On the homepage, go to the 'Departments' tab, select 'District Industries', and then click on the 'Apply for Investment Promotion Scheme: 2022 to 2027' option.
What are the specific guidelines to ensure the subsidy isn't misused?
The scheme has strict guidelines, requires thorough documentation, and involves verification processes. These measures are in place to ensure that only eligible enterprises receive subsidies for genuine export activities.
Is there an additional benefit for food processing units located in specific industrial parks?
Yes, there is an added incentive of 10% for food processing units that are set up in industrial parks exclusively dedicated to food processing industries.
What is the last date to apply for the scheme after the financial year ends?
An entrepreneur must submit their application within six months from March 31st of the preceding financial year.