IPSFTSVMU

“ Scheme For Vaccine Manufacturing Units'' under the “Investment Promotion Scheme (IPS) - 2022” for Thrust Sectors, implemented by the Dept. of Industries, U.T. Administration Of DNH & DD, aims to provide Credit Linked Interest Subsidy & Capital Subsidy to Vaccine Manufacturing Units.

The scheme “ Scheme For Vaccine Manufacturing Units” is a sub scheme under the “Investment Promotion Scheme (IPS)- 2022” for Thrust Sectors. It was launched on 07th May 2022 for a period of five years by the Dept. of Industries, U.T. Administration Of Dadra & Nagar Haveli And Daman & Diu.

> Objective of the "Investment Promotion Scheme (IPS)- 2022”:

• 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.
• The Scheme intends to provide impetus for the identified Thrust sectors such as Furniture, Marble, IT & ITeS , Electric Vehicles & Spare Parts, Toys and Semi-Conductor Industries Sector, Medical Equipment and Accessories, Medical diagnostics and AYUSH Products, Vaccine Manufacturing units, Food Processing, Marine Products thereby making the U.T as a hub of manufacturing of these Products.

• To double the value of Export of the Processed Products as well as to make the U.T, a center for these identified export products.
• To incentivize industry to take up environment protection measures for judicious use of scarce resources and as well as to ensure inter generational equity.
• To reduce unemployment among the local residents and incentivize the industries to employ resident laborers.
• To maximize Women participation in the business sector by providing incentives.
• To encourage first generation Entrepreneurs and support them in their entrepreneurial endeavor.
• To hone the Entrepreneurship skills of the youth of the Territory and create a skillful workforce.
• To provide further fillip to the specialized Textile sector such as Technical textiles, Fabrics, Carpets, Garments, Apparels and Industries Manufacturing Textile Machinery, Medical Fabrics, therefore making the U.T. a Special Hub for Technical Textiles.
• To promote innovation in Industrial sector by encouraging industry to involve themselves in Research & Development (R&D) works and to obtain Patents both, National and International Level.

Objective of the " Scheme For Vaccine Manufacturing Units" Sub-scheme:

Under this scheme, Credit-Linked Interest Subsidy and Capital Subsidy shall be provided to Vaccine Manufacturing Units.

• The Scheme is applicable to New Enterprises and Existing Enterprises who had started commercial production during the operative period of the Scheme.
• Only Gross Fixed Capital Investment (GFCI) made in New Building, New Plant & Machinery / Equipment and Machineries excluding land will be eligible for incentives for manufacturing.
• Enterprise shall have to furnish information regarding production, sales, turnover, and employment etc. annually to concerned DIC before end of September each year.
• Enterprise will have to observe pollution Control measures as prescribed by PCC or other competent authority.
• Enterprise will have to remain in production for 5 years from the date of commercial production and if it fails to continue production for 5 years, the amount of Capital Investment Subsidy disbursed will be recovered as arrears of land revenue.
• Out of Diversification and Expansion, only one activity once will be eligible for subsidy during the policy period.
• Existing or New Enterprise carrying out an activity of Expansion or Diversification with an investment more than 50% (out of which minimum 60% investment should be in Plant & machinery) of GFCI will be eligible.
• The Enterprise shall furnish Chartered Accountant certified bills.
• Loan Sanctioned by Bank or Financial Institution as per RBI guidelines for the industry located in U.T. will be eligible for subsidy under this Scheme.
• The Enterprise will not be eligible for Interest Subsidy under this Scheme if, term loan is sanctioned after one year from the date of commencement of commercial production.
• Enterprise shall have to apply at online portal within one year from the date of first disbursement of loan or on or before the date of commencement of commercial production, whichever is later.
• Interest subsidy will be eligible either from the date of first disbursement of loan or from the date of commencement of commercial production whichever is later.
• Reimbursement of interest subsidy will be made only after commencement of commercial production of the enterprise.
• If the Enterprise becomes defaulter in payment of interest or instalment of term loan to Bank/Financial institution as per guidelines of RBI and as mentioned in certificate of Bank/Financial institution such default period will be deducted.
• The interest subsidy will be available only on interest levied by the financial institution/banks.
• Interest Subsidy will not be available for penal interest or any other bank charges.
• The eligible Enterprise shall have to bear a minimum of 2% interest levied on term loan by any Bank / Financial institution. The Enterprise shall submit details and undertaking in this regard.
• The interest subsidy will be directly credited to Bank / Financial institution.

Credit Linked Interest Subsidy for Vaccine Manufacturing Units @ 70% of interest charged by Bank with upper ceiling up to Rs.60 Lakhs per annum for 5 years OR for the period of repayment of loan whichever is earlier and Capital investment Subsidy @ 15% of the investment upto a maximum of 10 crores.

• The Enterprise will not be eligible for Interest Subsidy under this Scheme if, term loan is sanctioned after one year from the date of commencement of commercial production.