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

The subsidy is 25% of the total cost of your enterprise, taking land, machinery and construction into account, and it is capped at ₹6.25 lakhs. Whatever the size of the project, the assistance you receive does not go above that ceiling.

Neither. This is a capital investment subsidy, so the amount is non-repayable — no instalments, no interest and no return of the money. The government also does not take any equity or ownership share in your enterprise in exchange for the subsidy.

Individuals above 18 years of age can apply, including women, ex-servicemen and physically handicapped persons. The business must be a new Micro or Small Enterprise involved in manufacturing or servicing, and it must be set up in the Lakshadweep Islands. Institutions registered under the Societies Registration Act 1960 and Self-Help Groups qualify as well, but only if they have not already received financial benefits under another scheme.

Yes. For micro enterprises/units, the investment in plant and machinery and in building must remain below ₹25 lakhs.

You need 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 registration specified for the scheme.

Certain activities fall on the negative list and will not be supported. These include industries that process or prepare intoxicating items such as beedi, pan and cigarette, makers of polythene carry bags thinner than 20 microns, and units producing recycled plastic items for foodstuff that create environmental problems.

No. The scheme is rolling and stays open, with details advertised or published every year through the Panchayat Raj Institutions and the Lakshadweep website. Treat that annual publicity as your cue to file rather than as a single hard deadline.

Newly established entrepreneurs submit the application form prescribed by the department, along with all supporting documents, to the Deputy Collector or SDO of their own island. The claim is then verified and inspected locally before it moves ahead for scrutiny.

Along with the application form, you must provide the supporting documents and the bills that the Island Level Committee needs to verify your claim, since the complete details and bills are forwarded to the Director, Industries, in the prescribed format.

An Island Level Committee chaired by the Deputy Collector/SDO, with representatives from the PWD, the FPU and the Department of Industries, verifies the claim and physically inspects the unit. The file then goes to a District Level Scrutinising Committee led by the Secretary (Industries) along with other senior officials, which determines the final quantum of subsidy recommended to the beneficiary under the scheme guidelines.

No. DPIIT (Startup India) recognition is not listed as a mandatory requirement for 25% Capital Investment Subsidy for Lakshadweep MSMEs — Up to ₹6.25L, though having it can strengthen your application and unlock other benefits.

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. It is provided as non-dilutive funding.

Apply directly through the official application link on this page. Review the eligibility criteria and prepare your startup documents before you begin.