§1Who it is for
- Local entrepreneurs, unemployed youth, societies and SHGs setting up new micro or small units in any inhabited island
Useful if
Island residents starting a small workshop, food or service unit.
Do not spend time on it if
Anyone who already took a coir/coconut/NABARD subsidy for the same unit.
§2Eligibility
- Individual above 18 years, including women, ex-servicemen and physically handicapped
- New micro or small manufacturing/servicing unit; expansion, modernisation and diversification not eligible
- Investment in plant & machinery and building below ₹25 lakh
- Entrepreneurs Memorandum Part II with Director of Industries, Udyog Aadhaar or other registration
- Societies (Societies Registration Act) and SHGs that have not taken benefits under any other scheme
- Not eligible if subsidy taken for the same purpose from Lakshadweep Development Corporation, LKVIB, Coir Board, Coconut Board, NABARD etc.
- Negative list: beedi/pan/cigarette and other intoxicants; polythene bags below 20 microns and recycled-plastic food containers
§3Benefits
- 25% of total cost of the enterprise including land, machinery and construction, max ₹6.25 lakh
§4Norms — pattern of assistance
- Building cost certified by Assistant Engineer (Civil); machinery at actual bill cost within UTL approved rate
- Second-hand machinery not counted; only tax-paid bills (GST bills after July 2017)
- Island Level Committee verifies and inspects; District Level Scrutinising Committee (chaired by Secretary, Industries) recommends
- Non-functioning units may face revenue recovery
§5Documents
Tick each one as you get it ready.
Bank account details
§6How to apply
- 1
Scheme is advertised each year through Panchayat Raj institutions and the Lakshadweep website
- 2
Submit application with documents to the Deputy Collector / SDO of your island (offline)
- 3
Island Level Committee verifies and sends to Director, Industries (Annexure IV)
§7Pros and cons
Merits
- Land is counted in project cost
- SHGs and societies also eligible
Demerits
- Small cap of ₹6.25 lakh
- Only new units; no help for expansion
- Offline, island-by-island committees; yearly advertisement, so timing is uncertain
→Related schemes
Need help with Lakshadweep 25% subsidy?
Eligibility check, DPR and application file — ask us on WhatsApp.
Our interestHelp is our paid service. You can also apply for the scheme yourself.
¶Sources
- Revised Guidelines for 25% Capital Investment Subsidy Scheme, Dept of Industries, Lakshadweep (2019)
- myScheme - 25% Capital Investment Subsidy Scheme, Lakshadweep
Checked on 18 October 2026. For information only — confirm with the department or bank. Spotted a mistake? Report it.
