25 Capital Investment Subsidy Scheme helps local entrepreneurs in Lakshadweep by offering financial support of up to ₹6.25 lakhs to start and run micro and small enterprises. The Union Territory of Lakshadweep continues to invite fresh applications for this subsidy through its official website, and the latest call for the 2023-24 financial year was released along with the application form.
25 Capital Investment Subsidy Scheme - Introduction
25 Capital Investment Subsidy Scheme is a key scheme run by the Union Territory of Lakshadweep to push industrial growth. By giving financial backing, the scheme helps local entrepreneurs and unemployed youth set up micro and small enterprises, since large-scale industry remains limited on the islands.
The government designed this scheme on the advice of an expert committee to deal with the special problems of island industry. By supporting small ventures, the administration wants to create steady self-employment and private-sector jobs for the people living here.
The main aims of this scheme are to grow micro and small enterprises, create long-term private-sector jobs, and speed up the economic growth of the islands. The scheme also helps reduce the money burden of a new business so that the saved funds can be used for better machinery and modern equipment.
Highlights of the Scheme
| Detail | Information |
|---|---|
| Scheme Name | 25 Capital Investment Subsidy Scheme |
| Launched By | Union Territory of Lakshadweep |
| Beneficiary State | Lakshadweep |
| Target Beneficiaries | Micro and small entrepreneurs |
| Benefit Amount | 25% of project cost, up to ₹6.25 lakhs |
| Application Mode | Offline |
| Main Department | Industries Department, Lakshadweep |
| Official Website | Lakshadweep official website |
Benefits
This scheme gives a strong start to a new venture. Eligible entrepreneurs receive financial support equal to 25% of the total cost of the enterprise, which includes land, machinery, and construction. The total subsidy is capped at a maximum of ₹6.25 lakhs per beneficiary.
This money help lowers the starting cost of a small business. It also lets owners buy modern machinery, improve the quality of their products, and create jobs in areas such as production and delivery. The scheme indirectly supports the Make in India mission by strengthening local units and reducing the need for imported goods.
Eligibility
Applicants can apply if they meet the following conditions:
- Individual applicants must be at least 18 years old. Women, retired government employees, ex-servicemen, and persons with disabilities are also welcome to apply.
- The enterprise must be a new micro or small unit engaged in manufacturing or services, excluding activities on the Negative List.
- The total investment in plant, machinery, and building must stay below ₹25.00 lakhs.
- Applicants should hold a valid Entrepreneurs Memorandum Part-II or Udyog Aadhar registration.
- Registered societies and Self-Help Groups that have not received prior financial benefits from other schemes are also eligible.
The area of operation covers all inhabited islands of Lakshadweep. For example, if Ramesh, a resident of Kavaratti, starts a small tailoring unit, he may qualify for this subsidy provided he meets all the document requirements.
Negative List of Activities
Some activities are not covered under this scheme:
- Businesses involved in processing intoxicating items like beedi, pan, or cigarettes.
- Manufacturing of plastic carry bags thinner than 20 microns, or containers made from recycled plastic that could harm the environment.
Exclusions
Benefits cannot be claimed under this scheme if a similar subsidy has already been received from other bodies such as the Lakshadweep Development Cooperation, LKVIB, Coir Board, Coconut Board, or NABARD for the same project. Taking industrial subsidy twice for the same project is not allowed.
Application Process
The scheme is advertised through both offline channels, such as Panchayats, and online channels, such as the official website of the Union Territory of Lakshadweep. Applications are accepted only during the notified window.
STEP 1 - Keep an eye on the official Lakshadweep website and announcements from the Panchayat Raj Institution for the annual notification. The latest notice for the 2023-24 financial year is available on the website.
STEP 2 - Collect the application form from the official notice and fill it in exactly as per the instructions given by the Industries Department.
STEP 3 - Attach all the required supporting documents with the form and submit it to the concerned Deputy Collector (DC) or SDO in your island.
STEP 4 - The Island Level Committee will visit your unit to carry out a physical inspection and verify your business setup.
STEP 5 - Once verified, the committee forwards the claim to the Director of Industries. The District Level Scrutinising Committee reviews the proposal and recommends the final subsidy amount as per the official rules.
Documents
Make sure the following documents are ready before applying:
- Aadhaar card photocopy, caste certificate, and proof of age issued by a competent authority.
- Active bank account details and a disability certificate, if applicable.
- Certified proof of ownership of land and building, along with approved building plans and cost estimates certified by an Assistant Engineer (Civil).
- Original purchase bills for plant and machinery, and an agreement or bond executed on a ₹100 non-judicial stamp paper as per the specified format.
Definitions
Industrial Unit
This refers to any micro or small manufacturing or servicing unit, excluding projects operated directly by the Union Territory of Lakshadweep Administration.
New Industrial Unit
This includes any micro or small unit set up in the islands where total investment in building and machinery does not exceed ₹25.00 lakhs, provided it holds valid MSME registration.
Expansion
Investments related only to expansion, modernization, or diversification of existing units are currently not eligible for this subsidy.
Building
The actual cost of construction for industrial purposes, which must be assessed and certified by an authorized official.
Plant and Machinery
Includes the actual cost of machines, transport, and installation. Second-hand machinery purchases are strictly excluded from the subsidy calculation.
References
View Latest Application Notice (2023-24) | View Official Revised Guidelines | Official Website
FAQ's
What is the 25 Capital Investment Subsidy Scheme?
This is a financial support scheme run by the Union Territory of Lakshadweep to help local entrepreneurs start micro and small businesses and support industrial growth on the islands.
What is the objective of the scheme?
The objective is to promote local enterprises, create private-sector jobs, and speed up the economic growth of the islands.
Which department manages this scheme?
The Industries Department of the Union Territory of Lakshadweep acts as the main department for this scheme.
What defines an Industrial Unit under this scheme?
An industrial unit is any micro or small manufacturing or service-based enterprise, excluding those managed directly by the UT administration.
What is the limit for New Industrial Units?
New industrial units are eligible if their total investment in buildings, plants, and machinery does not exceed ₹25.00 lakhs.
Who qualifies for these benefits?
Residents above 18 years of age, including women, ex-servicemen, and individuals with physical disabilities, are eligible.
Are there any ineligible candidates?
If a subsidy has already been received for the same project from other boards like the Coir Board, Coconut Board, or NABARD, the applicant is not eligible for this subsidy.
What is the maximum benefit available?
A subsidy of 25% of the total project cost can be received, capped at ₹6.25 lakhs.
Must I be a resident of Lakshadweep?
Yes, permanent residents of the Union Territory of Lakshadweep are eligible for this subsidy.
Can Self-Help Groups apply?
Yes, SHGs registered under the Societies Registration Act 1960 are eligible, provided they have not claimed benefits from other schemes.
What activities are strictly prohibited?
Businesses involving intoxicating items, such as cigarettes or pan, and specific hazardous plastic products are ineligible.
How do I submit my application?
The application must be submitted offline to the DC or SDO office in the respective island following the annual advertisement notification.