Investment Promotion Scheme (IPS) For Handicraft Artisans: Assistance For Capital Investment For The Handloom And Handicrafts Artisans Of The U.T. Requiring Financial Assistance For Purchase Of Machinery Or Raw Materials

Description
The scheme “Assistance For Capital Investment For The Handloom And Handicrafts Artisans Of The U.T. Requiring Financial Assistance For Purchase Of Machinery Or Raw Materials” is a sub scheme under the “Investment Promotion Scheme IPS ” for Handicraft Artisans. 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 "Assistance For Capital Investment For The Handloom And Handicrafts Artisans Of The U.T. Requiring Financial Assistance For Purchase Of Machinery Or Raw Materials" Sub-scheme: Under this scheme, the Handloom and Handicrafts artisans of the U.T. requiring financial assistance for purchase of machinery or raw materials for development of their business shall be provided Capital subsidy for investment in Machinery and for working capital.

Exclusions
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Benefits
• Subsidy Rate: 50% of the investment made in machinery.
• Maximum Subsidy Amount: Upto ₹2,00,000/-.

Eligibility Criteria
1. The applicant should be a Handloom and Handicrafts artisan.
2. The applicant should be a resident of the U.T. of Dadra and Nagar Haveli &amp;amp; Daman and Diu.
3. The applicant should be above 18 years of age.
4. The applicant should be interested in purchasing machinery or raw materials for development of their business.
5. The applicant must have skills of Handloom or Handicraft art and shall demonstrate the products made by him/her to the committee consisting of GM (DIC), Director (Tourism) and CEO (District Panchayat).

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.
• Proof of being a Handloom or Handicraft artisan (for Applicant).
• Age proof (for Applicant).
• Any other documents as required.

Frequently Asked Questions
Q: What can the capital subsidy be used for?
A: The capital subsidy can be used for purchasing machinery and raw materials essential for the development of the artisan's business.

Q: Who is eligible for financial assistance?
A: Handloom and Handicrafts artisans residing in the Union Territory (U.T.) are eligible for financial assistance.

Q: What kind of financial assistance is provided?
A: Artisans are provided with a capital subsidy for investment in machinery and working capital to help develop their business.

Q: Can the subsidy be used for other expenses?
A: No, the subsidy is specifically meant for the purchase of machinery and raw materials. It cannot be used for other unrelated expenses.

Q: How much subsidy can an artisan receive?
A: The amount of subsidy provided will be determined based on the artisan's business needs and the guidelines set by the relevant authorities.

Q: What is the maximum subsidy available for investment in machinery?
A: A beneficiary can avail a maximum subsidy of 50% of the investment made in machinery, up to [?]2,00,000/-.

Q: What is the maximum subsidy available for working capital loans?
A: A beneficiary can avail a maximum subsidy of 50% of the loan taken for working capital (e.g., for purchasing raw materials) up to [?]2,00,000/-.

Q: Is there any additional subsidy for specific groups?
A: Yes, an additional 10% subsidy is provided to Scheduled Castes (SC), Scheduled Tribes (ST), women, and differently-abled individuals with 30% or more disability.

Q: Can a beneficiary receive both machinery investment and working capital loan subsidies?
A: Yes, a beneficiary can avail subsidies for both machinery investment and working capital loans, subject to the maximum limits specified for each category.

Q: Is the subsidy applicable for all types of machinery and raw materials?
A: The subsidy applies to machinery and raw materials essential for the beneficiary's business operations, subject to approval by the relevant authorities.

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 applicant 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.