25% Capital Investment Subsidy Scheme
in Lakshadweep
Last updated:
25% Capital Investment Subsidy Scheme in Lakshadweep
25% Capital Investment Subsidy Scheme is a government scheme available to eligible residents of Lakshadweep.
Apply for 25% Capital Investment Subsidy Scheme in Lakshadweep
Scheme Overview
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.
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. 1. 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](https://cdn.s3waas.gov.in/s358238e9ae2dd305d79c2ebc8c1883422/uploads/2019/08/2019082183.pdf). 1. 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.
Required Documents
| # | Document |
|---|---|
| 1 | Photocopy of the Aadhaar Card |
| 2 | Caste certificate |
| 3 | Bank account details |
| 4 | Certificate of physically handicapped, if applicable |
| 5 | A certified copy of the Age of Entrepreneurs issued by the Competent Authority is required to be produced with a subsidy claim. |
| 6 | Certified copy of the ownership certificate of land and building. |
| 7 | Plan & cost of the building certified by the Assistant Engineer (Civil) (Annexure-II) |
| 8 | The taxes paid bills/GST & its registration Number are not required for the purchase bills pertaining to Plants and machinery purchased before the introduction of GST (July 2017). The taxes paid bills are only eligible for subsidy. |
| 9 | Entrepreneurs should execute an Agreement/Bond on non-judicial stamp paper worth ₹100/- with Director Industries as per Annexure-III enclosed for executing an agreement. |
Common questions in Lakshadweep
Who can apply for 25% Capital Investment Subsidy Scheme in Lakshadweep?
Eligible residents of Lakshadweep who meet the scheme’s overall criteria can apply for 25% Capital Investment Subsidy Scheme. Refer to the eligibility section above for the complete checklist.
What documents are required for 25% Capital Investment Subsidy Scheme in Lakshadweep?
Applicants in Lakshadweep typically need identity proof (Aadhaar), state residency proof, bank account details, and any scheme-specific documents listed in the documents section.
Frequently Asked Questions
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. This scheme paves the way to improve industrialization and to facilitate local entrepreneurs/unemployed youth to take up viable ventures (Micro and small Enterprises) in the Islands.