Lakshadweep 25% Capital Investment Subsidy Scheme 2026: Up to ₹6.25 Lakh Subsidy

At a glance

About the scheme

To accelerate economic growth and create self-employment opportunities across the inhabited islands of Lakshadweep, the Administration implements the 25% Capital Investment Subsidy Scheme through the Department of Industries. Since Lakshadweep is designated as a 'No Industrial Area' with limited scope for large-scale factories, this programme focuses on promoting viable micro and small enterprises in the manufacturing and service sectors. The scheme provides substantial financial relief by reimbursing a quarter of the initial capital expenditure incurred on land, construction, plant, and machinery.

Benefits

• Financial assistance of 25% of the total enterprise cost covering land, machinery, and construction.
• Maximum subsidy support capped at ₹6.25 lakhs per eligible micro enterprise.

Who can apply (eligibility)

• Applicant must be an individual aged 18 years or above, including women, ex-servicemen, and persons with disabilities.
• Applicant must be a resident of the Union Territory of Lakshadweep.
• New micro or small industrial units engaged in manufacturing or service sectors located in inhabited islands of Lakshadweep.
• Total investment in plant, machinery, and building must be below ₹25.00 lakhs.
• The enterprise must possess Entrepreneurs Memorandum Part-II (Permanent Registration) under the MSME Act 2006 filed with the Director of Industries, U.T. of Lakshadweep, or an Udyog Aadhaar registration.
• Institutions registered under the Societies Registration Act 1860 and Self-Help Groups that have not claimed financial benefits under other schemes are also eligible.

Who cannot apply

• Entrepreneurs who have availed of any other subsidy from institutions such as Lakshadweep Development Corporation, LKVIB, Coir Board, Coconut Board, or NABARD for the same purpose.
• Manufacturing or processing of intoxicating items, including beedi, pan, cigarettes, and related products.
• Production of polythene carry bags thinner than 20 microns.
• Manufacturing of carry bags or containers made of recycled plastic for packaging, storing, dispensing, or carrying food items, or products causing environmental harm.

Documents required

• Photocopy of Aadhaar Card
• Caste certificate
• Bank account details
• Disability certificate (if applicable)
• Certified age certificate issued by a competent authority
• Certified copy of ownership certificate for land and building
• Building plan and cost estimate certified by the Assistant Engineer (Civil)
• Tax-paid bills or GST invoices for plant and machinery purchases (purchases prior to July 2017 require tax-paid bills without GST)
• Agreement or bond executed on non-judicial stamp paper worth ₹100 with the Director of Industries

How to apply

1. 1Look out for the annual scheme advertisement published by the Lakshadweep Administration website and Panchayati Raj Institutions.
2. 2Obtain and fill in the prescribed application form as per the guidelines of the Department of Industries.
3. 3Attach all required documents, including property proofs, technical cost estimates, purchase bills, and registration copies.
4. 4Submit the physical application package to the office of the concerned Deputy Collector (DC) or Sub-Divisional Officer (SDO) of your island.
5. 5Cooperate with the Island Level Committee during physical unit inspections and claim verification.
6. 6Await the District Level Scrutinising Committee's review and final subsidy sanction recommendation.

Frequently asked questions