25% Capital Investment Subsidy Scheme in Kottayam
25% CISS
Department of Industries, U.T. of Lakshadweep
Guidance for businesses in Kottayam
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.
At a glance
- Scheme Name
- 25% Capital Investment Subsidy Scheme
- Implementing Department
- Department of Industries, U.T. of Lakshadweep
- Target Audience
- Local entrepreneurs / new Micro & Small Enterprises
- Subsidy
- 25% of the total cost of the enterprise (land, machinery, construction)
- Maximum Assistance
- ₹6.25 lakh
- Investment Ceiling
- Investment in Plant & Machinery and Building below ₹25.00 Lakhs
- Area of Operation
- All inhabited islands of Lakshadweep
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
- 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 (not permitted): Any industry/business connected with the processing/preparing of intoxicated items like Beedi/Pan/Cigarette etc.; Manufacturing of Polythene carry bags of less than 20 Microns 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.
Documents required
- Photocopy of the Aadhaar Card
- Caste certificate
- Bank account details
- Certificate of physically handicapped, if applicable
- A certified copy of the Age of Entrepreneurs issued by the Competent Authority is required to be produced with a subsidy claim.
- Certified copy of the ownership certificate of land and building.
- Plan & cost of the building certified by the Assistant Engineer (Civil) (Annexure-II).
- 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.
- 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.
How to apply
- 1
The Scheme will be advertised/published through the Panchayat Raj Institution and Lakshadweep website every year to attract more Entrepreneurs.
- 2
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.
- 3
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.
- 4
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.
About the scheme
The 25% Capital Investment Subsidy Scheme is implemented by the Department of Industries, Union Territory of Lakshadweep. It provides financial assistance to local entrepreneurs to set up new Micro and Small Enterprises in the islands, thereby promoting industrialisation and employment.
Under the scheme, eligible entrepreneurs receive 25% of the total cost of the enterprise—inclusive of land, machinery, and construction—up to a maximum of ₹6.25 lakh. The scheme operates across all inhabited islands of Lakshadweep.
Why it matters
- Boosts Local Enterprise:
- Financial assistance helps local entrepreneurs start Micro and Small Enterprises.
- Substantial Support:
- 25% of the enterprise cost, up to ₹6.25 lakh.
- Inclusive Eligibility:
- Open to individuals above 18, including women, ex-servicemen and physically handicapped persons.
- Industrial Development:
- Promotes industrialisation and employment across Lakshadweep's islands.
Focus areas
- Micro & Small Enterprises:
- Promoting new manufacturing and servicing units in the islands.
- Capital Investment Support:
- 25% subsidy on the total cost of the enterprise.
- Employment Generation:
- Encouraging local entrepreneurs and unemployed youth to start ventures.
- Industrial Development:
- Boosting industrialisation and economic development in Lakshadweep.
Is this scheme right for you?
The “25% Capital Investment Subsidy Scheme” is a strong incentive for entrepreneurs in Lakshadweep to establish new Micro and Small Enterprises. By covering 25% of the total enterprise cost—up to ₹6.25 lakh—the scheme makes setting up a viable venture far more affordable and helps drive industrialisation across the islands. If you are a resident of Lakshadweep planning a new manufacturing or servicing unit, this scheme can provide meaningful capital support.
Frequently asked questions
What is the “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. 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.
What is the objective of the scheme?
The objective of the scheme is to promote Micro & Small Enterprises, generate employment opportunities in the private sector and Industrial Promotion & Economic Development of the islands.
Which is the implementing department of this scheme?
Department of Industries, U.T. of Lakshadweep
What does mean “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.
What does mean “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.
Who is eligible to get the benefits of the scheme?
Any individual above 18 years of age including Women, ex-servicemen & physically handicapped is eligible to apply under the scheme.
Who is not eligible to get the benefits of the scheme?
The Entrepreneur enjoyed any other subsidy from any other Institution such as Lakshadweep Development Cooperation, LKVIB, Coir Board, Coconut Board, NABAD, etc. for the same purpose is not eligible for a 25% Capital Investment Subsidy from the Department of Industries.
What is the benefit of the scheme?
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.
Is this scheme only for the residents of Union Territory of Lakshadweep?
Yes, the applicant should be a resident of Union Territory of Lakshadweep.
Is the institution or Self-Help Group eligible to apply under the scheme?
Yes, the 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.
Which types of enterprises are eligible to apply under the scheme?
Micro Enterprises/Units, where the investment in Plant & Machinery and Building below ₹25.00 Lakhs is only eligible under this Scheme.
Which types of activities are not permitted under the scheme?
Any industry/business connected with the processing/preparing of intoxicated items like Beedi/Pan/Cigarette etc. are not permitted under the scheme. Further, the 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 are also not be permitted.
How can an applicant apply under the scheme?
Newly established Entrepreneurs shall submit their application as per the guidelines issued by the Department of Industries to the concerned DCs/ SDOs of respective islands along with all the supporting documents.
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