State Profile of Lakshadweep

• Lakshadweep and Andaman & Nicobar Islands Industrial Development Scheme, (LANIDS) 2018

• The Islands Administration (A&N or Lakshadweep) will be the nodal agency

Not available

Not available

Central Capital Investment Incentive for access to credit (CCIIAC),

• Central Capital Investment Incentive for access to credit (CCIIAC): All eligible new industrial units and existing industrial units on their substantial expansion in the manufacturing and service sector located anywhere in the Lakshadweep and Andaman & Nicobar Islands will be provided Central Capital Investment Incentive for access to credit (CCIIAC) @ 30% of the investment in plant and machinery with an upper limit of Rs.5.00 crore.

• Central Interest Incentive (CII): All eligible new industrial units and existing industrial units on their substantial expansion located anywhere in the Lakshadweep shall be given an interest incentive @3% on working capital credit advanced by the Scheduled Banks or Central/State financial institutions for first 5 years from the date of commencement of commercial production/ operation. For the purpose of this Scheme, the working capital requirement of a unit shall be capped at @ 25 % of their annual turnover. Inventory norms may be applied, if necessary, after providing for aforesaid maximum level. In respect of such units for which norms have not been laid down/ are not applicable, the request of working capital should be considered favorably by the Empowered Committee so long as the working capital is not very much above such maximum level. Special norms can also be evolved for inventory and receivables.

• The industrial unit set up under this scheme can claim reimbursement of central share of income tax for first 5 years, including the year of commencement of commercial production by the unit.

• Central Comprehensive Insurance Incentive (CCII): All eligible new industrial units and existing industrial units on their substantial expansion located anywhere in the Lakshadweep and Andaman & Nicobar Islands will be eligible for reimbursement of 100% insurance premium on insurance of building and Plant & Machinery for a maximum period of 5 years from the date of commencement of commercial production/ operation.

• All eligible new industrial units and existing industrial units on their substantial expansion located anywhere in the Lakshadweep shall be eligible for reimbursement of Goods and Services Tax (GST) paid on finished products manufactured up to the extent of central share of the CGST and IGST for period of 5 years from the date of commencement of commercial production subject to the following condition GST reimbursement on finished goods is applicable only on the net GST paid, other than the amount of Tax paid by utilization of Input Tax credit under the Input Tax Credit Rules, 2017.

• MHA shall be paying additional 3.67% of the employer’s contribution to Employees’ Provident Fund (EPF) in addition to Government bearing 8.33 % Employee Pension Scheme (EPS) contribution of the employer in the Pradhan Mantri Rojgar Protsahan Yojana (PMRPY).

• All eligible new industrial units and existing industrial units on their substantial expansion located anywhere in the Lakshadweep can avail incentive on Transportation of only finished goods through shipping, railways or the railway public sector undertaking, inland waterways or scheduled airlines for a period of 5 years from the date of commencement of commercial production / operation, subject to production of actual receipt. The terms and conditions of transport incentive through different modes are as follows:-

  • Up to 20% of the cost of transportation for finished goods for shipping from the port nearest to the location of the industrial unit to the mainland port directly, or via the main port of the island.

  • 20% of the cost of transportation including the incentive currently provided by railways or the Railway PSUs for movement of finished goods by rail from the railway station nearest to the mainland port to the railway station nearest to the location of the buyer.

  • 33% of the cost of transportation of Air Freight by scheduled airlines and non-scheduled operator permit (NSOP) holders approved by DGCA for perishable items / goods (as defined by IATA) from the airport nearest to the location of industrial unit to any airport within the country, nearest to the location of the buyer.

Central Comprehensive Insurance Incentive (CCII)

• All eligible new industrial units and existing industrial units on their substantial expansion located anywhere in the Lakshadweep and Andaman & Nicobar Islands will be eligible for reimbursement of 100% insurance premium on insurance of building and Plant & Machinery for a maximum period of 5 years from the date of commencement of commercial production/ operation