25% Capital Investment Subsidy Scheme

The Union Territory of Lakshadweep, classified as a 'No Industrial Area,' concentrates on developing Small-Scale Industrial units to stimulate economic growth and generate self-employment. In response to the specific industrialisation challenges of the islands, the Government of India, following an Expert Committee's recommendations, sanctioned the 25% Capital Investment Subsidy Scheme. This measure is intended to support the establishment of new industries in Lakshadweep and assist local entrepreneurs and unemployed youth in setting up viable Micro and Small Enterprises.

The scheme's core aims are to encourage the creation and expansion of Micro and Small Enterprises throughout the islands, thereby generating employment in the private sector. Its broader purpose is to advance industrial promotion and the economic development of Lakshadweep by fostering entrepreneurship among its residents.

The application process is carried out through the following steps:

- Scheme details are advertised and published annually through Panchayat Raj Institutions and on the Lakshadweep website. - Newly established entrepreneurs must submit their application form, as per department guidelines, along with all supporting documents to the concerned DCs/SDOs of their respective islands. - Island-level Committees, chaired by DCs/SDOs, verify the claims and conduct physical inspections of the units. - Verified claims are then forwarded to the Director, Industries, in the prescribed format, including complete details and bills from the entrepreneur. - The District Level Scrutinizing Committee reviews these details and recommends the quantum of subsidy to the beneficiary in accordance with the scheme guidelines.

The initial review of applications is carried out by Island Level Committees, which are chaired by Deputy Collectors or Sub-Divisional Officers. These committees include representatives from the Public Works Department, the Fisheries and Ports Department, and the Department of Industries. Their responsibilities involve verifying the claims, conducting on-site inspections of the units, and submitting their recommendations, along with complete documentation and bills, to the Director of Industries.

Following this, a District Level Scrutinizing Committee, which consists of the Secretary (Industries) and other senior officials, examines the information forwarded by the Island Level Committees. This committee determines the final subsidy amount to be recommended for each beneficiary, ensuring that all decisions comply with the scheme's guidelines.