Investment Promotion Scheme (IPS) For Cottage Industries: Financial Assistance To Cottage Industries
At a Glance
Scheme Category
Business & Entrepreneurship,Setting up / start-up / entrepreneurship
Target Beneficiaries
Individual,Business Entity,Industries
Brief Description
“Financial Assistance To Cottage Industries'' under the “Investment Promotion Scheme (IPS)”, implemented by the Dept. of Industries, U.T. Administration Of DNH & DD, aims to provide financial assistance to Cottage Industries on the term loan taken through banks.
Benefit Type
Cash
Eligibility Criteria
- The applicant should be associated with Cottage Industry. - The applicant should be above 18 years of age. - The applicant should have passed minimum standard Four (IV). - The applicant should have undergone training for minimum one month from Government of India recognized Institutes, in the area of the proposed business. Or, The applicant should have experience of minimum 1 year in the same activity Or The applicant should be hereditary craftsperson.
Application Mode
Online
Application Process
> Registration Process: Step 1: Visit the <nis:link nis:type=webUrl nis:id=slugId nis:text="Registration" nis:value=https://swp.dddgov.in/registration nis:enabled=true/>page of the Official Website. Step 2: Provide the information in the respective input spaces and click on “Register”. Step 3: Verify your email address using the verification link sent on your email (If Mail is Not Received Your Inbox. Please Check the Spam). Step 4: Click the Link/URL in the received email or Paste Link/URL in browser&39;s address bar to complete your Account Verification. Step 5: Now enter “111111” as OTP to verify your mobile number. Mobile Number and Pin Successfully will be sent to the registered Email Address. Step 6: On successful registration the login credentials will be received in the registered email. > Application Process: Step 1: Visit the user <nis:link nis:type=webUrl nis:id=slugId nis:text="Login" nis:value=https://swp.dddgov.in/login nis:enabled=true/>page of the Official Website. Step 2: Enter registered Mobile Number along with PIN sent on your email then click “Log In”. Step 3: On successful Log In, from the left side menu bar click on “Departments & Services” tab. Step 4: Scroll down to “District Industries Centre DD & DNH” and click on the “Click Here” button to apply for “Investment Promotion Scheme : 2022 to 2027 (20 May 2022 to 19 May 2027)”. Step 5: “Common Application Form” will be open. Enter all the details in required input fields and upload all the mandatory documents. Step 6: After successful entry of the information, verify all the details and click on the “Submit” button to complete the application process. > Helpdesk: District Industries Centre, Contact No.: 0260-2260871 / 0260-2260310 E-mail Address: dic-dd@nic.in For Technical Assistance on Single Window Portal (i.e. https://investdd.in) Contact No. : 0260-2231885 / 2231886 E-Mail : ddegs-dd@nic.in
Required Documents
- Corporate Identification Number (CIN) Document. Taxpayer Identification Number (TIN) Document. Permanent Account Number (PAN) Document.* Goods and Services Tax Number (GST) Document. Other Registrations Document. Copy of Udyam Registration /Industrial Entrepreneur Memorandum, as applicable. Copy of Partnership Deed and Firm Registration Certificate in case of partnership concern or Memorandum & Articles of Association and Date of Incorporation Certificate in case of Public/Private Limited companies. Copy of land purchase deed duly signed by the applicant (If the Enterprise is functioning in its own land). Copy of registered lease agreement for a minimum period of 5 years from the date of commencement of commercial production (If the Enterprise is functioning in a leased land/ building). Copy of sanction order from Electricity Department for power supply with copy of the latest bill. Authorization letter. Copy of Consent to Operate / Renewal from PCC, DNH & DD (as applicable for Notification No. PCC/DMN/13(PART VI)/2020-21/448 DATED 25/01/2021 ). Copy of Factory licensee. Undertaking . Any other document as required.
FAQs
What is the definition of Cottage Industry?
Cottage industry is a business or manufacturing activity carried on in people’s homes at very low scales as a small-scale, unorganized/ decentralized manufacturing business using simple hand-operated tools. Examples include Smithy, Carpentry, weaving, Pottery, Blanket making, Stone Carving, Textiles, Ceramics, Handmade Jewelry, etc.
What does the scheme provide?
The scheme provides financial assistance to Cottage Industries through term loans taken from Nationalized Banks, Cooperative Banks, Public Sector Banks, or Private Banks.
What is the maximum limit for the bank loan?
The maximum limit for the bank loan is ₹20,00,000/-.
What is the rate of capital subsidy?
Beneficiaries can avail a maximum subsidy of 25% of the term loan amount for setting up the Cottage Industry, up to a maximum of ₹5,00,000/-.
Is there any additional subsidy for specific groups?
Yes, an additional 10% subsidy is provided to Scheduled Castes, Scheduled Tribes, Women, and Differently abled individuals with 30% or more disability.
What is the rate of capital subsidy?
Beneficiaries can avail a maximum subsidy of 25% of the term loan amount for setting up the Cottage Industry, up to a maximum of ₹5,00,000/-.
Is there any age limit for the applicant?
Yes, the applicant must be above 18 years of age.
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.