25% Capital Investment Subsidy Scheme
Category: Business & Entrepreneurship
Level: State | State: Lakshadweep

Details:
**Introduction:**
The Union Territory of Lakshadweep has been declared as the “No industrial Area” and hence no scope for establishing major Industries in this UT. The Govt. of India is giving significant emphasis on setting up Small-Scale Industrial units for the economic development of the Islands in order to create self-employment/ job opportunities considering the lack of employment in the Government Sector under the U.T. Administration. Specific studies were conducted by the Planning Commission in pursuance of the decision taken by the Standing Committee of the Island Development Authority and constituted an Expert Committee. The Committee learned about problems of Industrialization in these Islands and identified special needs that would accelerate the Start-up Industries in Lakshadweep. Based on the recommendation of the expert committee, Govt. of India has approved the implementation of a scheme called 25% Capital Investment Subsidy to the 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 &amp; Small Enterprises) in the Islands.
**Objective of the Scheme:**
•	To promote Micro &amp; Small Enterprises.
•	To generate employment opportunities in the private sector.
•	Industrial Promotion &amp; Economic Development of the islands.

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 Criteria:
1. Any individual above 18 years of age including Women, ex-servicemen &amp; physically handicapped is eligible to apply under the scheme.
   1. 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 &amp; Machinery and Building below ₹25.00 Lakhs is only eligible under this Scheme.
   1. 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.

   1. Any industry/business connected with the processing/preparing of intoxicated items like Beedi/Pan/Cigarette etc.
   1. 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.