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Investment Promotion Scheme (IPS): Guide On Environment Protection Infrastructure Subsidy

Pragya Pathak

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Updated: 04-04-2026 at 3:30 PM

Environment Protection Infrastructure Subsidy

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The Union Territory of Dadra & Nagar Haveli and Daman & Diu devised and introduced a scheme called the Environment Protection Infrastructure Subsidy, a sub-scheme under the Investment Promotion Scheme in the year 2015 for a period of 5 years, now extended for another five years till 2027. The Sarkari scheme aims to strike a balance between industrial growth and environment protection as both components are crucial and extremely significant independently.

Through the scheme, the UT authorities provide a range of benefits to the MSME industries, like financial assistance so that they can invest in infrastructure related to pollution control, effective management of waste, and comply effectively and smoothly with all the environmental standards and guidelines.

Read the article to learn more about the Investment Promotion Scheme Environment Protection Infrastructure Subsidy details, ranging from its meaning and benefits to eligibility criteria and application process.

Investment Promotion Scheme Overview

The table below summarises some key details about this government subsidy for industries that one should know.

Name of the scheme	Environment Protection Infrastructure Subsidy
Sub-scheme of	Investment Promotion Scheme
Launched by	Union Territory of Dadra & Nagar Haveli and Daman & Diu
Launched in	2015
Objective	IPS aims to provide financial assistance to the industries under the MSMEs, and the Infrastructure Subsidy scheme aims to promote industries to take up sustainable and environment-friendly practices.
Target group	Manufacturing or service units
Mode of application	Online

What Is The Investment Promotion Scheme (IPS): Environment Protection Infrastructure Subsidy?

The Environment Protection Infrastructure Subsidy is a sub-scheme under the Investment Promotion Scheme launched by the Department of Industries under the Union Territory of Dadra & Nagar Haveli and Daman & Diu. The Sarkari Yojana was launched back in the year 2015 for a period of 5 years, which has now been extended from 2022 to 2027.

As it is a sub-scheme under another scheme, the aim of the scheme is twofold: the IPS subsidy aims to provide financial assistance to the industries under the Micro, Small, & Medium Enterprises (MSMEs), and the Infrastructure Subsidy scheme aims to promote industries to take up sustainable and environment-friendly practices.

Through initiatives like this one, the authorities of the UT aim to balance both industrial growth along with environment protection, as protecting the planet is as important as focusing on industrial growth.

Objectives Of The IPS And Infrastructure Subsidy Scheme

Several objectives of the IPS and Investment Promotion Scheme make it unique and beneficial, some of which are described below:

Industrial & Environment Growth

The main objective of the IPS and Investment Promotion Scheme is to create and maintain a balance between industrial growth and environment conservation and protection. IPS focuses on providing financial aid to MSME enterprises, and the Environmental Compliance Subsidy for MSMEs aims at promoting sustainable practices among small and medium-sized industries.

Complying With Environmental Guidelines

All the industrial units are expected to comply with all the environmental guidelines. The government subsidy for industrial waste management helps businesses in complying with all the rules and regulations. This not only makes compliance easier for the MSMEs but also makes them feel supported in this competitive and unpredictable business environment.

Benefits Of The IPS And Infrastructure Subsidy Scheme

The Sarkari Yojana comes along with numerous benefits. Some of the key IPS and environment protection infrastructure subsidy benefits are laid out below in brief points:

One of the major benefits of the IPS scheme is that it provides Rs 30 lakh or 25% of the capital cost of establishing the facility, whichever is less. On the other hand, the IPS subsidy for pollution control equipment encourages industries to take up sustainable and environmentally friendly methods of operation.
The state government scheme helps the industries covered under it comply with the guidelines smoothly and avoid penalties. This would help them function better, focus on their growth while protecting the planet.

Also Read: Green Business Scheme For Entrepreneurs- Features And Financial Support

What Is The IPS Subsidy Eligibility Criteria?

Companies are required to comply with all the eligibility criteria to apply for the state govt scheme. The IPS subsidy eligibility criteria are as follows:

Applying companies should either be a new manufacturing or service unit or an old manufacturing or service unit involved in expansion or diversification work in the MSME sector.
The enterprise should be situated in the Union Territory of Daman and Diu.
The manufacturing unit should have started its commercial operations between 20th May 2022 to 19th May 2027.

Please ensure that the business unit is not mandated to set up Zero Liquid Discharge (ZLD) by the Pollution Control Committee (PCC).

How To Apply For Environment Infrastructure Subsidy?

The application process for the pollution control subsidy scheme can be done through an online portal from the comfort of one’s home. The process of application is broken down into steps for one’s clarity and better understanding:

Online Process For The IPS Environment Subsidy Scheme

Step 1: Please visit the official website of Industrial Clearances. Step 2: Begin the process by registering in the portal and completing registration after validating through the link (sent to the email address) and the One-Time Password (OTP) received on the mobile number.

Step 3: After registration, use your newly set up credentials to log in to the portal and then click on the ‘Departments & Services’ option.

Step 4: Navigate to the option of ‘District Industries Center DD & DNH’ and then click on the ‘Click Here’ button, which will lead you to the ‘Investment Promotion Scheme: 2022 to 2027’ option.

Step 5: Fill in the details in the application form accurately and carefully.

Step 6: Upload the scanned copies of all the required documents.

Step 7: Recheck the filled information and the order of the documents, and then click on ‘submit’.

What Are The Documents Required While Applying For The Environment Protection Subsidy Scheme?

Enterprises that meet the eligibility criteria for the government scheme have to attach some supporting documents. The IPS subsidy documents required list is as follows:

Corporate Identification Number
Taxpayer Identification Number
PAN card
GST document
Udyam registration or an Industrial Entrepreneur Memorandum
Partnership deed and Firm Registration Certificate, if it’s a partnership
MoA or AoA, if it’s a public or a private limited company
Land purchase deed, if the company owns the land
Registered lease agreement, if the company is established in a rented space (for a minimum period of 5 years)
Sanction order from the electricity department
Consent to operate or renewal from PCC, DNH, or DD
Factory license
Project report of the proposed environmental protection infrastructure
Completion report from a chartered engineer
Statement of actual expense concerning the project

Conclusion

The Environment Protection Infrastructure Subsidy scheme under the Investment Promotion Scheme is an exceptional initiative by the UT of Dadra & Nagar Haveli and Daman & Diu. Through the scheme, the authorities aim to not only encourage industries to shift to environmentally friendly practices while focusing on their growth.

Initiatives like this one are extremely important in the long run, as they comprise all the necessary components that an ideal scheme should have. It provides practical aids to industries like monetary assistance so that they can comply smoothly with the guidelines, with some support from the authorities, as their scale of operations is still small.

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