Investment Promotion Scheme (IPS) for MSME Sector: Incentive For Local Employment

Description
The scheme “Incentive For Local Employment” is a sub scheme under the “Investment Promotion Scheme IPS ” for MSME Sector. 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, 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 "Incentive For Local Employment" Sub-scheme: Under this scheme, one-time recruitment incentive is provided to the Industrial Units for generating employment for local residents.

Exclusions
• <br>

Benefits
• ₹3,00,000/- per 20 local Persons (employees) upto Maximum amount of ₹15,00,000/- to each eligible unit.

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 recruited employees should have a Domicile certificate of the U.T. of Dadra &amp;amp; Nagar Haveli And Daman &amp;amp; Diu.
5. The age of the recruited employees should be above 18 years.

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.
• Payment Details made to the local employees over the period of last one year.
• Domicile Certificate of the recruited employees.

Frequently Asked Questions
Q: What happens if an industry retrenches a local employee?
A: If an industry availing benefits under the Scheme retrenches a local employee without permission from the Industries Department, the incentives provided under the Scheme will be recovered from the industry.

Q: Who will monitor the compliance of the Scheme?
A: The Industries Department is responsible for monitoring the compliance of employment to local persons for the first five years. They may seek assistance from the Labour Department for implementing the Scheme when necessary.

Q: What is the purpose of the Scheme?
A: The Scheme aims to promote the recruitment of local persons from the Union Territory of Dadra and Nagar Haveli & Daman and Diu for new direct employment opportunities.

Q: What additional documentation is required for claiming benefits under the Scheme?
A: Applicants must submit payment details made to local employees over the last year along with verification of their domicile status. This information will be used by the department to verify the eligibility of the claim.

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.