Investment Promotion Scheme (IPS): Environment Protection Infrastructure Subsidy

Description
The scheme “Environment Protection Infrastructure Subsidy” is a sub scheme under the “Investment Promotion Scheme IPS ”. It was launched on 3rd July, 2015 for a period of five years by the Dept. of Industries, U.T. Administration Of Dadra & Nagar Haveli And Daman & Diu. Now it has been extended further from 20th May, 2022 and shall be operative till 19th May, 2027. Objective of the "Investment Promotion Scheme IPS ”: The scheme envisages to provide incentives and assistance to the MSME Sector in order to nurture them and protect them from market vagaries thereby making them vibrant and successful. therefore making the U.T. a Special Hub for the MSME sector; maximize Women participation in the business sector, reduce unemployment among the local residents and incentivize the industries to employ resident laborers etc. Objective of the "Environment Protection Infrastructure Subsidy" Sub-scheme: The assistance is aimed at encouraging enterprises to set up facilities that treat effluent, hazardous waste, and recycle wastewater, as well as to support manufacturing units dealing with alternatives to single-use plastic items. This helps in promoting environmental sustainability and compliance with regulatory standards.

Exclusions
• <br>

Benefits
• ₹30,00,000/- or 25% of capital cost of setting up of facility, whichever is less.

Eligibility Criteria
1. Should be a New Manufacturing/ Service units or Existing Manufacturing/ Service units which undertakes Expansion/ Diversification in MSME sector.
2. The unit should have commenced the commercial production between 20.05.2022 to 19.05.2027.
3. Unit should be located in the U.T. of Dadra and Nagar Haveli &amp;amp; Daman and Diu.
4. The unit should not be mandated to set up Zero Liquid Discharge (ZLD) by the Pollution Control Committee (PCC).

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 &amp; 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 &amp; DD (as applicable for Notification No. PCC/DMN/13(PART VI)/2020-21/448 DATED 25/01/2021).
• Copy of Factory licensee.
• Undertaking.
• Project Report of the Proposed Environment Protection Infrastructure.
• Completion Report from a Chartered Engineer.
• Statement of Actual Expenditure Incurred on the Project.

Frequently Asked Questions
Q: What is the role of the Chartered Engineer in this process?
A: A Chartered Engineer must verify and provide a completion report for the project, including a detailed statement of the actual expenditure incurred.

Q: Can ongoing projects qualify for this incentive?
A: No, only projects that are started and completed during the Scheme period will be considered for assistance.

Q: Can the cost of land be included in the project cost for the incentive?
A: No, land costs will not be considered under the cost of the project. Only the costs directly related to the environmental protection infrastructure are eligible.

Q: What type of projects are considered for this incentive?
A: Projects related to the development of Environment Protection Infrastructure, excluding ZLD systems for industries where ZLD is mandated by PCC.

Q: What should the project report include?
A: The project report should detail the proposed Environment Protection Infrastructure, including objectives, methodology, expected outcomes, and a detailed budget excluding land costs.

Q: What expenses are eligible under the actual expenditure statement?
A: Eligible expenses include costs directly related to the development and implementation of the Environment Protection Infrastructure, excluding any land acquisition costs.

Q: How can I confirm if my industry is mandated to set up ZLD by PCC?
A: You should consult the guidelines issued by the Pollution Control Committee or contact them directly to determine if your industry is mandated to set up ZLD.

Q: Is there a deadline for submitting the completion report and expenditure statement?
A: Yes, the completion report and expenditure statement must be submitted within the Scheme period to be considered for assistance. Specific deadlines will be outlined in the Scheme guidelines.

Q: Can multiple projects be submitted for incentives under this Scheme?
A: Yes, multiple projects can be submitted, provided each project meets the eligibility criteria and documentation requirements outlined in the Scheme.

Q: How will the incentive amount be determined?
A: The incentive amount will be based on the actual expenditure incurred on the project, as verified by the Chartered Engineer's completion report, excluding any land costs.

Q: 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?
A: 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.

Q: What is the definition of Expansion/ Diversification?
A: 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.

Q: What measures are in place to prevent misuse of the subsidy scheme?
A: Strict guidelines, documentation requirements, and verification procedures are in place to ensure that subsidies are availed by eligible enterprises for genuine purposes only.

Q: What is the operative period of the scheme?
A: The operative period of scheme is from 20.05.2022 till 5 years that is 19.05.2027.

Q: If an enterprise is established in 2023 and becomes eligible for the scheme what would be the time period in which benefits are applicable?
A: The enterprise can avail benefit commencing from date of production till 5 years even if that period falls beyond operative period.

Q: How can an eligible unit apply to get the benefits of the scheme?
A: 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.