25% Capital Investment Subsidy for Lakshadweep MSMEs — Up to ₹6.25L

The 25% Capital Investment Subsidy Scheme is a Lakshadweep-focused funding programme run by the Standing Committee of the Island Development Authority, Lakshadweep. The Union Territory is officially treated as a 'No Industrial Area', which is why the administration leans on small-scale industrial units to create work and self-employment for residents. Following recommendations from an Expert Committee, the Government of India approved this scheme to speed up the growth of start-up industries on the islands.

New Micro and Small Enterprises in manufacturing or servicing, established within Lakshadweep, can claim a subsidy worth 25% of the enterprise's total cost — land, plant, machinery and construction included — subject to a ceiling of ₹6.25 lakhs. It is a subsidy rather than a loan, so nothing has to be repaid, and no equity or ownership share is taken in the business.

The scheme exists to shrink the upfront capital burden on first-time promoters, including local entrepreneurs and unemployed youth. Its wider aim is to build private-sector jobs across the islands and to strengthen industrial activity and the local economy of Lakshadweep by turning residents into business owners.

There is no fixed last date: applications run on a rolling basis. The scheme is publicised every year through the Panchayat Raj Institutions and the Lakshadweep website, and completed forms go to the Deputy Collector or SDO of the applicant's own island.

• Capital subsidy of 25% of total enterprise cost, capped at ₹6.25 lakhs
• Open to new Micro and Small manufacturing or servicing units set up in Lakshadweep
• Non-repayable: no repayment required and no equity taken
• Investment in plant, machinery and building must stay below ₹25 lakhs for micro units
• Rolling window, publicised annually through Panchayat Raj Institutions and the Lakshadweep website
• Applications go to the island's DC/SDO, then are verified locally and scrutinised at district level

Who can apply: any individual above 18 years of age, including women, ex-servicemen and physically handicapped persons.

The unit itself must be a new Micro or Small Enterprise engaged in manufacturing or servicing, and it must be established in the Lakshadweep Islands. Activities on the scheme's negative list are not covered.

• Investment in plant and machinery, and in building, must be below ₹25 lakhs for micro enterprises/units.
• 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, or another specified registration — is required.
• Institutions registered under the Societies Registration Act 1960 and Self-Help Groups are also eligible, provided they have not taken financial benefits under any other scheme.

25% Capital Investment Subsidy for Lakshadweep MSMEs — Up to ₹6.25L is open to startups at any stage. It is open to startups registered anywhere in India.

25% Capital Investment Subsidy for Lakshadweep MSMEs — Up to ₹6.25L accepts applications on a rolling basis — there is no fixed cut-off date, so eligible startups can apply at any time. Because rolling programmes can pause without notice, confirm the window is still open on the official site before you start.

The support is a capital investment subsidy equal to 25% of the total cost of the enterprise, calculated on the land, machinery and construction put into the project. The payout is capped at ₹6.25 lakhs.

Because it is a subsidy, the money is non-repayable — there is no repayment schedule, and no equity stake is handed over to the government. This is direct cash assistance designed to reduce the initial capital burden that new ventures in the islands face.

By lowering entry costs, the scheme helps local entrepreneurs and unemployed youth take on viable business projects, encourages the formation and growth of Micro and Small Enterprises across Lakshadweep, and aims to create private-sector employment and wider industrial development in the Union Territory.

25% Capital Investment Subsidy for Lakshadweep MSMEs — Up to ₹6.25L is offered by Standing Committee of the Island Development Authority, Lakshadweep, a government body. As a government-backed subsidy, it is publicly funded and open to eligible startups across India.

Applications are checked in two steps, first at island level and then at district level.

• Island Level Committee review: a committee chaired by the Deputy Collector/SDO, with members from the PWD, the FPU and the Department of Industries, verifies each claim and physically inspects the unit.
• Forwarding: the committee sends the verified claim to the Director, Industries, in the prescribed format, along with complete details and the entrepreneur's bills.
• District Level Scrutinising Committee: this body, which includes the Secretary (Industries) and other senior officials, examines what the island committees have sent and decides the quantum of subsidy to be recommended to the beneficiary, in line with the scheme guidelines.

Before you apply to 25% Capital Investment Subsidy for Lakshadweep MSMEs — Up to ₹6.25L, keep the following documents ready:

• A pitch deck or short business plan describing the problem, product and traction
• Company registration documents and PAN
• Founder identification (PAN / Aadhaar) and brief profiles
• Recent financial statements or projections
• Product details — a demo, prototype or working link if available

Exact requirements are confirmed on the official application portal — treat this as a preparation checklist.

25% Capital Investment Subsidy for Lakshadweep MSMEs — Up to ₹6.25L is best suited for startups in India seeking non-dilutive funding of ₹6.3L. If that describes your startup, review the eligibility criteria above before applying.