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Business & Entrepreneurship

Investment Promotion Scheme (IPS) for MSME Sector: Assistance For Quality Certification

“Assistance of Interest Subsidy” under the “Investment Promotion Scheme (IPS)” for MSME sector, implemented by the Dept. of Industries, U.T. Administration Of DNH & DD, aims to extend support to MSME to get quality certification to introduce quality products in competitive markets.

Authority

State/ UT

Region

Dadra & Nagar Haveli and Daman & Diu

Status

Verified 2026

Updated

March 2026

What you get

- 50% of fee payable to certification for National/ International Certification. | - 50% cost of testing equipment and machinery required for that certification up to a maximum amount of ₹10,00,000/-.

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.; The unit should be located in the U.T. of Dadra and Nagar Haveli & Daman and Diu.; The unit should acquire the certificates from certifying bodies, registered with National Accreditation Board for Certification Bodies (NABCB).; The Enterprise shall have to apply within one year from the date of issue of the Certificate.

Required Paperwork

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

Common Questions

What are the National/ International Certifications for which subsidy is provided under this sub-scheme?

Subsidy is payable for the certification of Bureau of Indian Standards (BIS), Indian Standards Institution (ISI), World Health Organization (WHO), Good Manufacturing Practice (GMP), Hallmark, etc.

What components are encompassed in the cost for certification?

The cost for certification will include:- Fees charged by certification agency (excluding travel, hotel & surveillance charges), Cost of testing equipment/machinery as required for certification, Calibration charges of equipment.

What are the essential components of the cost associated with testing equipment and machinery in industries, particularly concerning upgrades in hygiene and Quality Control Testing facilities?

The cost of testing equipment and machinery includes equipment required for upgrading hygiene, Quality Control Testing facilities such as in-house food testing laboratories, etc.

How can consultants justify the costs associated with these certifications in relation to the claimed benefits?

Details of plant & machinery should be duly certified by the consultant and their relevance to BIS / ISO with full justification in support of cost claimed.

Is the testing equipment purchased after the issuance of a Quality certificate eligible for assistance?

The testing equipment purchased after the issuance of Quality certificate shall not be eligible for assistance.

What types of expenditures are deemed ineligible for assistance under the Scheme?

Expenditure incurred for renewal of certificate shall not be eligible for assistance under the Scheme.

What supplementary Quality Certification Scheme has been proposed in relation to the Government of India's existing scheme?

Quality Certification Scheme will be supplementary to such Scheme to Government of India. However, in no case total assistance from this scheme and GOI should exceed more than actual expenditure incurred by the Enterprise for said purpose.

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 is the procedure for claiming the Subsidy?

Enterprises need to apply for the subsidy along with the required documents to the designated authorities as per the guidelines provided by the concerned department or agency.

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.

What is the timeline of making an application?

The timeline to make application is within one year of first disbursement of loan or within one year of production whichever is later. the application submitted after one year will not be entitled to capital and interest subsidy.

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?

The Enterprise shall have to apply within one year from the date of issue of the Certificate.