Dadra and Nagar Haveli and Daman and Diu was constituted through the merger of the former Union Territories of Dadra and Nagar Haveli with Daman and Diu.
The merger plan was announced by the Government of India in July 2019 and the same came into effect on 26 January 2020. Daman became the capital city of the newly made Union Territory.
The main reason for the merger of the Union Territory was to reduce duplication of services and the cost of administration.
The Union Territory consists of four separate geographical entities: Dadra, Nagar Haveli, Daman and Diu.
All the four entities of the UT are located in Western India near Gujarat and Maharashtra.
The four areas were Portuguese colonies. These areas came under Indian rule after the Annexation of Goa.
Till 1987, Daman and Diu was jointly administered with Goa. Goa got statehood after the Konkani language agitation.