The Union Territory of Lakshadweep has implemented the scheme “25% Capital Investment Subsidy” to provide financial assistance to local entrepreneurs for promoting Micro and Small Enterprises in Lakshadweep. This scheme paves the way to improve industrialization and to facilitate local entrepreneurs/unemployed youth to take up viable ventures (Micro and small Enterprises) in the Islands.

The objective of the scheme is to promote Micro & Small Enterprises, generate employment opportunities in the private sector and Industrial Promotion & Economic Development of the islands.

Department of Industries, U.T. of Lakshadweep

Industrial unit means any Micro or Small Industrial manufacturing and servicing unit other than the Industrial units run by the department of Union Territory of Lakshadweep Administration.

Any Micro or Small Industrial units established in the islands. The investment includes the cost of building, plants& machinery does not exceed ₹ 25.00 Lakhs. The Unit that has been registered under this Department/online Udyog Aadhaar portal of M/O MSME / otherwise shall be eligible for availing of subsidy benefits in this scheme.

Any individual above 18 years of age including Women, ex-servicemen & physically handicapped is eligible to apply under the scheme.

The Entrepreneur enjoyed any other subsidy from any other Institution such as Lakshadweep Development Cooperation, LKVIB, Coir Board, Coconut Board, NABAD, etc. for the same purpose is not eligible for a 25% Capital Investment Subsidy from the Department of Industries.

Under the scheme, financial assistance of 25 % of the total cost of the Enterprise inclusive of land, machinery, and construction limited to the maximum amount of ₹6.25 lakhs will be provided to the eligible entrepreneurs.

Yes, the applicant should be a resident of Union Territory of Lakshadweep.

Yes, the institutions registered under the Societies Registration Act 1960 and Self-Help Groups that have not availed financial benefits under any other scheme are eligible for a 25% Capital Investment Subsidy.

Micro Enterprises/Units, where the investment in Plant & Machinery and Building below ₹25.00 Lakhs is only eligible under this Scheme.

Any industry/business connected with the processing/preparing of intoxicated items like Beedi/Pan/Cigarette etc. are not permitted under the scheme. Further, the manufacturing of Polythene carry bags of less than 20Microns thickness and manufacture of carry bags or containers made of recycled plastic for storing, carrying, dispensing, or packaging of foodstuff and any other items that cause environmental problems are also not be permitted.

Newly established Entrepreneurs shall submit their application as per the guidelines issued by the Department of Industries to the concerned DCs/ SDOs of respective islands along with all the supporting documents.