Lok Sabha Question No. 5263 (UNSTARRED), answered on 2026-03-24
Subject: Department of Industries in UT of Lakshadweep
Ministry: COMMERCE AND INDUSTRY
Asked by: Shri Muhammed Hamdullah Sayeed

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY DEPARTMENT FOR PROMOTION OF INDUSTRY AND INTERNAL TRADE

## LOK SABHA

## UNSTARRED QUESTION NO. 5263. TO BE ANSWERED ON TUESDAY, THE 24 TH  MARCH, 2026.

## DEPARTMENT OF INDUSTRIES IN UT OF LAKSHADWEEP

## 5263.  SHRI MUHAMMED HAMDULLAH SAYEED:

Will the Minister of COMMERCE AND INDUSTRY

be pleased to state: वाणिज्य एवं उद्योग मंत्री

- (a) the current structure and functions of the Department of Industries in the Union Territory of Lakshadweep;
- (b) the industrial units, schemes and projects currently being implemented by the department in the UT;
- (c) the total funds allocated and utilized by the department in the UT during the last three years;
- (d) the employment generated and beneficiaries impacted through the department's initiatives in the UT; and
- (e) the steps being taken by the Government to promote entrepreneurship, local industries and sustainable economic development in the islands?

## ANSWER

## वाणिज्य एवं उद्योग मंत्रालय में राज्य मंत्री ( श्री णिणिन प्रसाद ) THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE & INDUSTRY (SHRI JITIN PRASADA)

- (a): The main functions of the Department of Industries in the Union Territory of Lakshadweep are promoting small-scale and village industries, implementing various schemes for self -employment and entrepreneurship, and supporting coconut-  based  industries,  as  informed  by  the  UT  of  Lakshadweep.  The Department  also  facilitates  training  and  skill  development  programmes  and provides  assistance  to  local  entrepreneurs  in  establishing  MSME  units.  In addition, the Department implements Government of India schemes such as the  PM  Vishwakarma  Scheme  aimed  at  promoting  traditional  skills  and generating employment opportunities in Lakshadweep.
- (b): The industrial units in the UT includes the following: (i) Coir Production Centers (05 Nos.) located at: Agatti, Amini, Androth, Kadmath and Kavaratti; (ii) Coir Fibre Factories (07 Nos.) located at: Agatti, Amini, Androth, Kadmath, Kalpeni, Kavaratti,  and  Kiltan;  (iii)  Handicraft  Training  Centre  (01  No.)  located  at: Kavaratti; and (iv) Hosiery Factory (01 No.) located at: Kalpeni.

The 25% Capital Investment Subsidy is the only State Scheme implemented by the Department of Industries in Lakshadweep to promote local entrepreneurship. Under this scheme, eligible local entrepreneurs establishing micro and small enterprises receive a subsidy of 25% of the capital investment, encouraging industrial development, self-employment, and sustainable economic growth in the islands.

- (c): Total fund allocated and utilized by the Department of Industries during the last three years is as under:
- (d): The 25% Capital Investment Subsidy Scheme, in force since 1987, supports approximately 10 MSMEs annually. Till date, a total of 198 MSMEs have been assisted  with  a  cumulative  subsidy  amounting  to  Rs.  1,91,89,954/-.  This initiative  has  significantly  contributed  to  promoting  local  entrepreneurship, strengthening  small-scale  industries,  and  supporting  sustainable  economic development in Lakshadweep.

| Year    |   Fund Allocated (Rs. In Lakh) |   Fund Utilized (Rs. In Lakh) |
|---------|--------------------------------|-------------------------------|
| 2023-24 |                             20 |                            20 |
| 2024-25 |                             20 |                            20 |
| 2025-26 |                             20 |                            20 |

Government  of  India  schemes  such  as  PM  Vishwakarma  is  also  being effectively implemented to support traditional artisans and enhance livelihood opportunities.  Under  the  PM  Vishwakarma  Scheme,  basic  skill  training  has been provided to 441 beneficiaries (66% of registered beneficiaries) and toolkits have been distributed to 42 beneficiaries. Further under the scheme, financial assistance amounting to Rs. 15,30,000/has been disbursed to 19 beneficiaries.

In addition, the Department conducts Handicrafts Training, Coir-based Value Addition  Training,  Mahila  Coir  Yojana,  and  Entrepreneurship  Development Programme  (EDP)  awareness  programmes,  benefiting  approximately  300 unemployed youth annually.

- (e): The Government has undertaken several initiatives to promote entrepreneurship and local industries in Lakshadweep, including provision of capital investment subsidies to MSMEs, implementation of skill development and training programmes in handicrafts and coir-based sectors; and conduct of Entrepreneurship Development Programmes (EDP).

Lakshadweep possesses abundant availability of coconuts, providing a strong natural advantage for the promotion of coconut and fish based industries. In this context, the Department has initiated the development and establishment of  an  industrial  cluster  focusing  on  coconut  and  fish  based  value-added products, particularly coconut flakes and virgin coconut oil, with the objective of enhancing value addition, improving income generation, and creating employment opportunities.

The Industries Department has also undertaken market linkage initiatives by conducting  two  fests  for  PM  Vishwakarma  beneficiaries  in  the  islands  of Kavaratti  and  Agatti,  which  resulted  in  good  sales  of  their  products.  The Industries Department has also got approval to implement RAMP (Raising and Accelerating MSME Performance) in Lakshadweep.

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