Sarkari Yojana
25% Capital Investment Subsidy Scheme
About 25% Capital Investment Subsidy Scheme
Introduction: Since Lakshadweep is designated a “No Industrial Area,” large-scale industries cannot be set up there, so the Government of India instead focuses on Small-Scale Industrial units to drive the islands’ economic development and create self-employment given the limited scope for government jobs under the U.T. Administration. Acting on a decision of the Island Development Authority’s Standing Committee, the Planning Commission set up an Expert Committee that studied the islands’ industrialization challenges and identified what special support would help Start-up Industries take off in Lakshadweep. Following its recommendations, the Government of India approved the 25% Capital Investment Subsidy for local entrepreneurs promoting Micro and Small Enterprises in Lakshadweep — a scheme meant to advance industrialization and enable local entrepreneurs and unemployed youth to pursue viable Micro & Small Enterprise ventures on the islands. Objective of the Scheme: • Promoting Micro & Small Enterprises. • Creating private-sector employment opportunities. • Driving industrial promotion and economic development across the islands.
Scheme Overview
State Government
Department Of Industries, Kavaratti
Individual
Scheme Details
Eligibility Requirements
To qualify for 25% Capital Investment Subsidy Scheme, applicants must satisfy the following conditions:
Any individual aged above 18 — including women,…
Any individual aged above 18 — including women, ex-servicemen, and persons with disabilities — can apply under the scheme.
New Micro or Small units taking up manufacturing/servicing…
New Micro or Small units taking up manufacturing/servicing activities, other than those listed in the Negative List, can claim the 25% Capital Investment Subsidy in the Lakshadweep Islands. 1. Only Micro Enterprises/Units with an investment in Plant & Machinery and Building below ₹25.00 Lakhs qualify under this scheme.
Units that have filed the Entrepreneurs Memorandum Part-II…
Units that have filed the Entrepreneurs Memorandum Part-II (Permanent Registration) under the MSME Act 2006 with the Director of Industries, U.T. of Lakshadweep, or hold Udyog Aadhar registration or its equivalent, are eligible for the subsidy as per Annexure-I. 1. Institutions registered under the Societies Registration Act 1960, and Self-Help Groups that haven't availed financial benefit under any other scheme, are also eligible for the 25% Capital Investment Subsidy. Note: This scheme operates across every inhabited island of Lakshadweep. Negative List of Activities: The activities below cannot be funded under the 25% Capital Investment Subsidy Programmes/ Projects/Units.
Any industry or business involved in processing or…
Any industry or business involved in processing or preparing intoxicant items such as Beedi, Pan, or Cigarettes, etc.
Manufacturing polythene carry bags below 20 microns in…
Manufacturing polythene carry bags below 20 microns in thickness, or making carry bags/containers from recycled plastic for storing, carrying, dispensing, or packaging foodstuff and other items that pose environmental hazards.
Benefits Provided
25% Capital Investment Subsidy Scheme provides the following benefits to eligible applicants:
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1. Eligible entrepreneurs receive financial assistance covering 25% of the enterprise's total cost — including land, machinery, and construction — up to a maximum of ₹6.25 lakhs.
Documents Required
Applicants should keep the following documents ready before starting the application:
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1. A photocopy of the Aadhaar Card A caste certificate Bank account details A certificate of disability, where applicable A certified copy of the entrepreneur's age, issued by the competent authority, to accompany the subsidy claim A certified copy of the ownership certificate for the land and building The building's plan and cost estimate, certified by the Assistant Engineer (Civil) ( Annexure-II ) Tax-paid bills/GST registration numbers are not needed for machinery purchase bills predating the GST rollout (July 2017); only tax-paid bills qualify for subsidy thereafter An Agreement/Bond executed by the entrepreneur on ₹100/- non-judicial stamp paper with the Director of Industries, per Annexure-III
How to Apply
Offline Application
Applicants can apply for 25% Capital Investment Subsidy Scheme through the offline application process outlined below.
Each year, the scheme is publicised through the…
Each year, the scheme is publicised through the Panchayat Raj Institution and the Lakshadweep website to draw in more entrepreneurs.
New entrepreneurs must submit their application form, following…
New entrepreneurs must submit their application form, following the Department of Industries' guidelines, to the concerned DC/SDO of their respective island, along with all supporting documents.
The Island Level Committee, chaired by the DC/SDO,…
The Island Level Committee, chaired by the DC/SDO, verifies the entrepreneur's claim and physically inspects the unit, then forwards its findings to the Director of Industries in the prescribed format (Annexure-IV), complete with the bills received from the entrepreneur. A. Island Level Committee except Bitra are as follows: 1. Deputy Collector/ SDOs- Chairman 2. Assistant Engineer (PWD)- Member 3. Senior Auditor/JAO, FPU- Member 4. Senior most Supervisor, Department of Industries - Member Bitra: 1. Assistant Engineer (PWD)- Chairman 2. Authorised Officer Bitra- Member 3. Executive Officer, Panchayat- Member B. District Level Scrutinising Committee 1. The Secretary (Industries) – Chairman 2. The Accounts Officer(1), DP - Member 3. The Superintending Engineer, LPWD- Member 4. The Director (Plg. & Stats) – Member 5. The Director of Industries – Member Note: The District Level Committee (DLC) cross-checks what the Island Level Committee has submitted and recommends the subsidy amount payable to the beneficiary, in line with the guidelines.
Exclusions / Who Is Not Eligible
1. The entrepreneurs who enjoyed any other subsidy from any other Institutions such as Lakshadweep Development Cooperation, LKVIB, Coir Board, Coconut Board, NABAD, etc. for the same purpose are not eligible for a 25% Capital Investment Subsidy from the Department of Industries.
Official Application & Website
Verify the latest eligibility, dates and instructions before applying.