§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

  1. Individual above 18 years, including women, ex-servicemen and physically handicapped
  2. New micro or small manufacturing/servicing unit; expansion, modernisation and diversification not eligible
  3. Investment in plant & machinery and building below ₹25 lakh
  4. Entrepreneurs Memorandum Part II with Director of Industries, Udyog Aadhaar or other registration
  5. Societies (Societies Registration Act) and SHGs that have not taken benefits under any other scheme
  6. Not eligible if subsidy taken for the same purpose from Lakshadweep Development Corporation, LKVIB, Coir Board, Coconut Board, NABARD etc.
  7. 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

  1. Building cost certified by Assistant Engineer (Civil); machinery at actual bill cost within UTL approved rate
  2. Second-hand machinery not counted; only tax-paid bills (GST bills after July 2017)
  3. Island Level Committee verifies and inspects; District Level Scrutinising Committee (chaired by Secretary, Industries) recommends
  4. Non-functioning units may face revenue recovery

§5Documents

Tick each one as you get it ready.

Bank account details

§6How to apply

  1. 1

    Scheme is advertised each year through Panchayat Raj institutions and the Lakshadweep website

  2. 2

    Submit application with documents to the Deputy Collector / SDO of your island (offline)

  3. 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

  1. Revised Guidelines for 25% Capital Investment Subsidy Scheme, Dept of Industries, Lakshadweep (2019)
  2. 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.