The “25% Capital Investment Subsidy Scheme” is introduced by the Government of India to promote Micro and Small Enterprises (MSEs) in Lakshadweep. The scheme aims to support local entrepreneurs by providing financial assistance to set up industries and enterprises in Lakshadweep, thereby fostering self-employment and economic development. The scheme was designed to address the lack of employment opportunities in government sectors within the Union Territory.
It focuses on job creation, industrial promotion, and economic development of Lakshadweep, with an emphasis on Micro and Small Enterprises (MSEs) that can be set up with minimal investment.
Scheme Key Highlights (Short Summary)
• Launched By: Government of India
• Objective: To promote Micro and Small Enterprises (MSEs), generate employment, and support industrialization in Lakshadweep.
• Subsidy: 25% of total project cost, limited to a maximum of ₹6.25 Lakhs.
• Eligibility: Open to individuals, women, ex-servicemen, and physically handicapped entrepreneurs.
• Exclusions: Service-based enterprises and those receiving financial aid from other government agencies are not eligible.
• Negative List: Industries related to intoxicants, plastic bags, and certain environmental impact businesses are excluded.
• Application Process: Offline through submission to Island Level Committee and District Level Committee.
Benefits
• Financial Assistance:
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25% subsidy on the total capital investment (including land, machinery, and construction), with a maximum limit of ₹6.25 Lakhs per project.
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Subsidy applies only to Micro Enterprises with plant and machinery investments below ₹25 Lakhs.
Eligibility
• Who can apply?
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Local Entrepreneurs in Lakshadweep, including women, ex-servicemen, and physically handicapped individuals.
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New Micro or Small units in manufacturing and servicing, except for the activities in the Negative List.
• Eligibility Criteria:
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Entrepreneurs must file Entrepreneurs Memorandum Part-II (Permanent Registration) or Udyog Aadhar Registration under the MSME Act 2006.
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The enterprise must be located in Lakshadweep and have a minimum 25% investment from eligible entrepreneurs.
Negative List of Activities
• Industries/businesses related to intoxicated items like Beedi, Pan, and Cigarettes.
• Manufacturing of plastic carry bags or recycled plastic bags (less than 20 microns thick).
• Environmental hazard industries are not allowed.
Exclusions
• Service enterprises are not eligible.
• Entrepreneurs who have already received financial aid under other schemes (Lakshadweep Development Cooperation, Coir Board, etc.) are not eligible.
Application Process
Offline
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Step 1: Advertisement and publication of the scheme via Panchayat Raj Institutions and Lakshadweep website to invite applications.
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Step 2: Entrepreneurs submit the application along with supporting documents to the concerned DC/SDOs of their respective islands.
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Step 3: Island Level Committee (Chairman: DC/SDO) will verify the application and conduct a physical inspection of the unit.
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Step 4: The verified application is forwarded to the Director, Industries, who processes the application as per the guidelines.
Documents Required
• Aadhaar Card
• Caste Certificate (if applicable)
• Bank Account Details
• Ownership Certificate of land and building
• Plan and Cost Estimate certified by the Assistant Engineer (Civil)
• Tax Paid Bills for machinery purchased (pre-GST purchases)
• Agreement/Bond on non-judicial stamp paper
• Udyog Aadhaar or MSME Registration Certificate
• Proof of Physical Handicapped Certificate (if applicable)
• Photocopy of Age Certificate issued by the Competent Authority
Frequently Asked Questions (FAQs)
Q: What is the 25% Capital Investment Subsidy Scheme?
A: It is a scheme to provide financial assistance (subsidy) to entrepreneurs in Lakshadweep to set up Micro and Small Enterprises.
Q: What is the maximum subsidy an entrepreneur can receive?
A: The subsidy is 25% of the total cost, with a maximum of ₹6.25 Lakhs.
Q: Who is eligible for this scheme?
A: Local entrepreneurs, including women, ex-servicemen, and physically handicapped individuals, are eligible.
Q: What is the deadline for applying?
A: The application must be submitted within one year from the date of registration or project initiation.
Q: Can an entrepreneur receive multiple subsidies?
A: No, if the entrepreneur has received aid from any other schemes for the same project, they will not be eligible.