25% Capital Investment Subsidy Scheme
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.
About This Scheme
Introduction:
The Union Territory of Lakshadweep has been declared as the “No industrial Area” and hence no scope for establishing major Industries in this UT. The Govt. of India is giving significant emphasis on setting up Small-Scale Industrial units for the economic development of the Islands in order to create self-employment/ job opportunities considering the lack of employment in the Government Sector under the U.T. Administration. Specific studies were conducted by the Planning Commission in pursuance of the decision taken by the Standing Committee of the Island Development Authority and constituted an Expert Committee. The Committee learned about problems of Industrialization in these Islands and identified special needs that would accelerate the Start-up Industries in Lakshadweep. Based on the recommendation of the expert committee, Govt. of India has approved the implementation of a scheme called 25% Capital Investment Subsidy to the 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 & Small Enterprises) in the Islands.
Objective of the Scheme:
• To promote Micro & Small Enterprises.
• To generate employment opportunities in the private sector.
• Industrial Promotion & Economic Development of the islands.
Benefits
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.
Eligibility Criteria
Any individual above 18 years of age including Women, ex-servicemen & physically handicapped is eligible to apply under the scheme.
New Micro or Small units engaged in manufacturing/servicing except the activities specified in the Negative List are eligible to claim a 25% Capital Investment Subsidy established in Lakshadweep Islands.
Micro Enterprises/Units, where the investment in Plant & Machinery and Building below ₹25.00 Lakhs is only eligible under this Scheme.
The 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/otherwise shall be eligible for availing subsidy under this scheme as per
Annexure-I
.
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.
Note: The area of operation of the scheme is in all inhabitant islands of Lakshadweep.
Negative List of Activities:
The following list of activities will not be permitted under 25% Capital Investment Subsidy Programmes/ Projects/Units.
Any industry/business connected with the processing/preparing of intoxicated items like Beedi/Pan/Cigarette etc.
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.
Exclusions
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.
Application Process
Apply Offline
Step 01: The Scheme will be advertised/ published through the Panchayat Raj Institution and Lakshadweep website every year to attract more Entrepreneurs.
Step 02: Newly established Entrepreneurs shall submit their
application form
as per the guidelines issued by the Department of Industries to the concerned DCs/SDOs of respective islands along with all the supporting documents.
Step 03: The duly constituted Island level Committee under the Chairmanship of DCs/SDOs shall verify the claims submitted by the Entrepreneur and also physically inspect the Units. The same may be forwarded to the Director, Industries in the prescribed format (
Annexure-IV
) with complete details including 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) shall verify the details received from the Island Level Committee and recommend the quantum of subsidy to the Beneficiary according to the guidelines.
Definition 1
Industrial Unit: 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.
Definition 2
New Industrial Unit: 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.
Definition 3
Expansion: The investments made in expansion, modernization, diversification, etc. are not eligible under this scheme.
Definition 4
Building: The actual price of the building/built-up areas needed for the purpose of industrial units. The investment of the building should be assessed/certified by the Competent Authority.
Definition 3
Plant & Machinery: Actual cost of machines, equipment & tools (original purchase bills with GST number) Transportation charges, erection cost, etc. should be considered for the calculation of investment made for the purpose. But it shall be limited to the approved rate. The value of investment in second-hand machinery purchased from any industrial unit cannot be considered for a 25 % Capital Investment Subsidy. Taxes paid bills are only eligible for subsidy. GST Number is not required for the Plants and Machinery purchased before the introduction of GST (July 2017).
Official Source: View on myScheme.gov.in
Eligibility Criteria
Any individual above 18 years of age including Women, ex-servicemen & physically handicapped is eligible to apply under the scheme.
New Micro or Small units engaged in manufacturing/servicing except the activities specified in the Negative List are eligible to claim a 25% Capital Investment Subsidy established in Lakshadweep Islands.
Micro Enterprises/Units, where the investment in Plant & Machinery and Building below ₹25.00 Lakhs is only eligible under this Scheme.
The 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/otherwise shall be eligible for availing subsidy under this scheme as per Annexure-I
.
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.
Note: The area of operation of the scheme is in all inhabitant islands of Lakshadweep.
Negative List of Activities:
The following list of activities will not be permitted under 25% Capital Investment Subsidy Programmes/ Projects/Units.
Any industry/business connected with the processing/preparing of intoxicated items like Beedi/Pan/Cigarette etc.
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.
Benefits
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.
Application Process
Apply OfflineStep 01: The Scheme will be advertised/ published through the Panchayat Raj Institution and Lakshadweep website every year to attract more Entrepreneurs.
Step 02: Newly established Entrepreneurs shall submit their application form
as per the guidelines issued by the Department of Industries to the concerned DCs/SDOs of respective islands along with all the supporting documents.
Step 03: The duly constituted Island level Committee under the Chairmanship of DCs/SDOs shall verify the claims submitted by the Entrepreneur and also physically inspect the Units. The same may be forwarded to the Director, Industries in the prescribed format (Annexure-IV
) with complete details including 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) shall verify the details received from the Island Level Committee and recommend the quantum of subsidy to the Beneficiary according to the guidelines.
References & Official Links
Scheme Details
| Full Name | 25% Capital Investment Subsidy Scheme |
| Short Title | 25%CISS |
| Level | State |
| Scheme For | Infra |
| Categories | Business & Entrepreneurship |
| States | Lakshadweep |
| Gender | All |
| Age Range | 18 — 25 years |
| Caste/Category | PwD |
| Area | Rural |
| Source | www.myscheme.gov.in ↗ |
Deepika Raikwar · 📅 11 Apr 2026
Deepika Raikwar is an Education Analyst and scholarship researcher who focuses on public welfare and merit-based scholarships. She simplifies complex eligibility rules, deadlines, and application processes to help common people access reliable funding opportunities worldwide.
View all posts by Deepika Raikwar →