25% Capital Investment Subsidy Scheme
By Standing Committee of the Island Development Authority, Lakshadweep
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Quick Answer
This scheme provides a 25% capital investment subsidy, up to ₹6.25 lakhs, to local entrepreneurs for establishing Micro and Small Enterprises in Lakshadweep.
- Funding amount
- Up to ₹6.25L
- Funding type
- Subsidy
- Application deadline
- Rolling
- Location
- Lakshadweep
- Registrations needed
- Udyam registration
About this subsidy
The Union Territory of Lakshadweep, designated as a 'No Industrial Area,' places significant emphasis on fostering Small-Scale Industrial units to drive economic development and create self-employment opportunities. Recognizing the unique challenges and needs for industrialization in the Islands, the Government of India, based on recommendations from an Expert Committee, approved the implementation of the 25% Capital Investment Subsidy Scheme. This initiative aims to accelerate the growth of start-up industries in Lakshadweep. The scheme is designed to facilitate local entrepreneurs and unemployed youth in establishing viable Micro and Small Enterprises. The primary objectives of this scheme are to promote the establishment and growth of Micro and Small Enterprises across the islands, thereby generating crucial employment opportunities within the private sector. Ultimately, it seeks to contribute significantly to the industrial promotion and overall economic development of Lakshadweep, empowering its residents through entrepreneurship.
Eligibility
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Full eligibility criteria — entity type, stage, sector, founder profile and registration requirements — plus your fit for this program. Sign up to view.
Subsidy providers
Benefits & Funding
- Amount
- Up to ₹6.25L
What You Get
The scheme offers financial assistance equivalent to 25% of the total enterprise cost, including land, machinery, and construction. This support is capped at a maximum amount of ₹6.25 lakhs and is provided to eligible entrepreneurs establishing Micro and Small Enterprises. This non-repayable subsidy aims to reduce the initial capital burden on new ventures, encouraging industrial promotion and economic development within the islands by facilitating local entrepreneurs and unemployed youth to undertake viable business projects.
- Disbursement
- Reimbursement
- Bootstrap friendly
- Yes
Timelines & Process
Applications
Rolling basis
Selection Process
Applications are initially reviewed by Island Level Committees, chaired by Deputy Collectors/SDOs, which include members from PWD, FPU, and the Department of Industries. These committees verify the claims, conduct physical inspections of the units, and forward their recommendations along with complete details and bills to the Director of Industries. Subsequently, a District Level Scrutinizing Committee, comprising the Secretary (Industries) and other senior officials, verifies the information received from the Island Level Committees and determines the final quantum of subsidy to be recommended to the beneficiary, ensuring adherence to the scheme guidelines.
Application Process
- 1
Advertise Scheme
The scheme is advertised annually through Panchayat Raj Institutions and the Lakshadweep website.
Provider - 2
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How to apply
Four steps from draft to disbursement — one action each.
- 1
See the questions before you start
Download every question this programme's application form asks, so you can prepare your answers offline before opening the portal.
- 2
Line up your documents
Keep every document from the checklist ready in one folder. Missing docs are the #1 reason applications get bounced.
- 3
Submit on the official portal
Use the official application link and verify all details before final submission.
- 4
Follow up
Reach out 5–7 days after submitting to confirm receipt and ask about the review timeline.
Frequently Asked Questions
What is the maximum subsidy available under this scheme?
The maximum financial assistance provided is ₹6.25 lakhs, which covers 25% of the total cost of the enterprise including land, machinery, and construction.
Who is eligible to apply for this subsidy?
Any individual over 18, including women, ex-servicemen, and physically handicapped persons. New Micro or Small manufacturing/servicing units established in Lakshadweep, with investment in Plant & Machinery and Building below ₹25.00 Lakhs, are eligible. Institutions registered under the Societies Registration Act 1960 and Self-Help Groups are also eligible.
Are there any activities excluded from this scheme?
Yes, industries involved in processing/preparing intoxicated items (like Beedi/Pan/Cigarette) and manufacturing polythene carry bags under 20 microns thickness or recycled plastic items for foodstuff that cause environmental problems are on the negative list.
What registration is required for availing the subsidy?
Entrepreneurs Memorandum Part-II (Permanent Registration) under the MSME Act 2006 filed before the Director of Industries, U.T. of Lakshadweep, or Udyog Aadhar registration, or similar specified registrations are required.
How does the application process work?
The scheme is advertised annually. Newly established entrepreneurs must submit their application form and supporting documents to the concerned DCs/SDOs of their respective islands. These applications are then verified and inspected by Island-level Committees and further reviewed by a District Level Scrutinising Committee.
