25% Capital Investment Subsidy Scheme

Lakshadweep, a Union Territory classified as a 'No Industrial Area', focuses on developing Small-Scale Industrial units to stimulate economic growth and generate self-employment. In response to the region's specific industrialisation challenges, the Government of India, acting on an Expert Committee's recommendations, sanctioned the 25% Capital Investment Subsidy Scheme. The programme is intended to support the growth of new industries in the islands, helping local entrepreneurs and unemployed youth establish viable Micro and Small Enterprises.

The scheme's core aims are to encourage the creation and expansion of Micro and Small Enterprises throughout the islands, thereby generating private-sector employment. It is designed to advance industrial promotion and the broader economic development of Lakshadweep, enabling residents to benefit from entrepreneurial opportunities.

The application process is carried out through the following steps:

• Scheme details are announced annually through Panchayat Raj Institutions and published on the Lakshadweep website.
• New entrepreneurs must submit their application, following the format prescribed by the department, along with all required supporting documents, to the concerned DCs/SDOs of their respective islands.
• Island-level Committees, headed by the DCs/SDOs, verify the claims and conduct physical inspections of the units.
• Verified claims, complete with all necessary details and bills from the entrepreneur, are forwarded to the Director, Industries, in the specified format.
• The District Level Scrutinizing Committee subsequently examines these submissions and determines the subsidy amount to be recommended for the beneficiary, in line with the scheme guidelines.

Applications first go through Island Level Committees, led by Deputy Collectors or SDOs, with representatives from PWD, FPU, and the Department of Industries. These bodies check the stated claims, carry out on-site visits to the units, and pass on their recommendations, along with full particulars and invoices, to the Director of Industries. After that, a District Level Scrutinizing Committee, made up of the Secretary (Industries) and other senior officers, reviews the data forwarded by the Island Level Committees. This committee decides the final subsidy amount to be suggested for each applicant, making sure the scheme’s rules are followed.