Grant Of Retention Scholarship to Scheduled Caste Girl Students 2026

The Lakshadweep Administration offers a 25% Capital Investment Subsidy to local entrepreneurs to boost small businesses and Read More... create jobs on the islands. Read less

Details

Lakshadweep, often known as a region with limited industrial scope, is taking steps to empower its local entrepreneurs. The administration has launched the '25% Capital Investment Subsidy Scheme' to encourage the establishment of Micro and Small Enterprises. This initiative aims to boost self-employment and create job opportunities, addressing the need for economic development and private sector jobs.

Following recommendations from expert committees, this scheme provides crucial financial support to local individuals and groups looking to start or expand businesses.

What is the 25% Capital Investment Subsidy Scheme?

This scheme is designed to provide a financial boost to entrepreneurs in Lakshadweep. It offers a subsidy that covers 25% of the total investment made in setting up a micro or small enterprise. The goal is to make it easier for locals to start businesses, thereby promoting industrial growth and generating employment within the islands.

Who is this scheme for?

The scheme targets individuals, including women, ex-servicemen, and people with disabilities, who are 18 years or older. It also extends to registered societies and self-help groups that haven't received similar financial aid from other government programs. The focus is on new micro and small units involved in manufacturing or services, provided they are not on the scheme's 'Negative List'.

Why is this scheme important for Lakshadweep?

Given the unique economic landscape of Lakshadweep, where government jobs are limited, this scheme is vital. It helps overcome the initial financial hurdles for setting up businesses. By supporting local entrepreneurs, the scheme aims to foster economic self-reliance, create private sector jobs, and drive the overall industrial and economic development of the Union Territory.

Objective

The Lakshadweep Administration offers a 25% Capital Investment Subsidy to local entrepreneurs to boost small businesses and create jobs on the islands.

Benefits

The scholarship shall be granted for 10 months in an academic year at the following rates:

Under this scheme, ₹1,000/- per year to girl students studying from I to V Standard i.e. (₹100/- per month per girl student for 10 months in an academic year).

Note 01:The benefit of this scheme will be available only to bonafide students so long as they continue their studies satisfactorily in the recognized institutions of the Union Territory of Puducherry.

Note 02:A student shall be deemed to be continuing her studies satisfactorily if she secures promotion to the next higher class annually.

Sources and references

Guidelines

Eligibility Criteria

Any individual aged 18 years and above, including women, ex-servicemen, and persons with physical disabilities, can apply.
New Micro or Small units focusing on manufacturing or servicing activities are eligible. However, activities listed in the Negative List are excluded.
The scheme is for Micro Enterprises/Units where the total investment in Plant & Machinery and Building is less than ₹25.00 Lakhs.
Applicants must have registered their unit. This can be through the Entrepreneurs Memorandum Part-II (Permanent Registration) filed before the Director of Industries, U.T. of Lakshadweep, or via Udyog Aadhar registration, or other eligible means as per Annexure-I.
Institutions registered under the Societies Registration Act 1960 and Self-Help Groups are also eligible, provided they have not received financial benefits from any other scheme.

Note: The scheme is applicable across all inhabited islands of Lakshadweep.

Negative List of Activities (Activities not permitted):

Any business related to processing or preparing intoxicated items like Beedi, Pan, Cigarette, etc.
Manufacturing of polythene carry bags less than 20 microns thick.
Manufacturing of carry bags or containers made from recycled plastic for storing, carrying, dispensing, or packaging food items, or any other environmentally harmful items.

How To Apply

Newly established entrepreneurs should submit their applications to the concerned Deputy Commissioners (DCs) or Sub-Divisional Officers (SDOs) on their respective islands.
Applications must be submitted along with all the required supporting documents as per the guidelines issued by the Department of Industries.

Documents Required

Photocopy of Aadhaar Card
Caste certificate
Bank account details
Certificate for physical disability, if applicable
A certified copy of the applicant's Age Certificate issued by the Competent Authority
Certified copy of the ownership certificate for land and building
Building plan and cost estimate certified by the Assistant Engineer (Civil) (as per Annexure-II)
Purchase bills for plants and machinery. For purchases made before July 2017 (introduction of GST), taxes paid bills are eligible for subsidy. GST registration number is required for purchases made after GST implementation.
An Agreement/Bond executed on a ₹100/- non-judicial stamp paper with the Director of Industries, as per the format in Annexure-III.

FAQ’s

What's the main goal of the 25% Capital Investment Subsidy Scheme?

The scheme aims to boost Micro and Small Enterprises in Lakshadweep. It supports local entrepreneurs by providing financial aid, helping generate jobs in the private sector, and contributing to the overall economic development of the islands.

Can institutions or self-help groups apply for this subsidy?

Yes, definitely! Institutions registered under the Societies Registration Act 1960 and Self-Help Groups are eligible. The key condition is that they should not have already received financial benefits from any other scheme for the same purpose.

What kind of businesses are NOT allowed under this scheme?

Certain activities are restricted. These include businesses involved with intoxicating items like Beedi or Pan. Also, manufacturing polythene bags under 20 microns thickness and producing containers from recycled plastic for food items, or other environmentally problematic items, are not permitted.

What exactly is the financial benefit provided by the scheme?

The scheme offers financial assistance that covers 25% of the total cost of setting up your enterprise. This cost includes land, machinery, and construction. The subsidy is capped at a maximum of ₹6.25 lakhs.

Who is responsible for implementing this scheme?

The scheme is implemented by the Department of Industries, Government of the Union Territory of Lakshadweep.

If I have already received a subsidy from another agency for my business, can I still apply?

No, if you have already received a subsidy for the same purpose from another institution like Lakshadweep Development Cooperation, LKVIB, Coir Board, Coconut Board, or NABARD, you won't be eligible for this 25% Capital Investment Subsidy from the Department of Industries.

How do I go about applying for this subsidy?

If you have started a new enterprise, you need to submit your application directly to the concerned Deputy Commissioners (DCs) or Sub-Divisional Officers (SDOs) of your island. Make sure to attach all the necessary supporting documents as per the guidelines provided by the Department of Industries.

What does 'New Industrial Unit' mean in the context of this scheme?

A 'New Industrial Unit' refers to any Micro or Small Industrial unit that has been established in the islands. The total investment in building, plants, and machinery should not exceed ₹25.00 Lakhs. The unit must be registered either with this Department, online via the Udyog Aadhaar portal of the Ministry of MSME, or through other recognized channels.

Is residency in Lakshadweep a requirement for this scheme?

Yes, it is essential that the applicant is a resident of the Union Territory of Lakshadweep to be eligible for this scheme.

What is considered an 'Industrial Unit' for this scheme?

An 'Industrial Unit' includes any Micro or Small Industrial manufacturing and servicing unit. Importantly, it does not include industrial units that are already run by the Department of the Union Territory of Lakshadweep Administration.

What's the maximum investment allowed for an enterprise to be eligible?

Only Micro Enterprises/Units where the total investment in both Plant & Machinery and Building is less than ₹25.00 Lakhs are eligible to apply for this scheme.

Who can actually apply for the scheme's benefits?

The scheme is open to any individual who is 18 years of age or older. This includes women, ex-servicemen, and individuals with physical handicaps.