What is (LANIDS)Lakshadweep and Andaman & Nicobar Islands Industrial Development Scheme?

Lakshadweep and Andaman & Nicobar Islands Industrial Development Scheme (LANIDS) is a centrally sponsored scheme of the Ministry of Micro, Small and Medium Enterprises (MSME), Government of India. The main objective of LANIDS is to promote industrial development in the Lakshadweep and Andaman & Nicobar Islands states by providing assistance to eligible industrial units. The scheme provides financial assistance up to Rs 2 crore for setting up an industrial unit in the islands with a total investment limit of Rs 50 crore. Eligible industrial units are those carrying out any manufacturing activity, including export-oriented units.

Lakshadweep and Andaman & Nicobar Islands Industrial Development Scheme (LANIDS) is a government scheme launched in 2018. It will be effective from 01.04.2018 to promote the industrialization and development of the two islands. The scheme offers investors incentives like duty-free importation, exemptions from customs duties, preferential taxation, etc. for setting up industries on the islands.

What is Lakshadweep and Andaman & Nicobar?

Both Lakshadweep and Andaman & Nicobar are Union Territory of India. It is a region located in the Indian Ocean, consisting of the Lakshadweep Islands and the Andaman & Nicobar Islands. The region has a total area of 8300 sq. km., and a population of approximately 5,00,000. Both regions have approx 900 islands. The economy is primarily dependent on tourism and fishing. There are no major industries present in Lakshadweep. The region’s focus is instead on small businesses and cottage industries.

Read – What is (ANIIDCO) Andaman And Nicobar Islands Integrated Development Corporation?

The industrial development scheme for Lakshadweep was launched in 2006 by the Government of India to promote industrialization in the region. The scheme provides grants to businesses that invest in new equipment or technology, create jobs, and improve production levels. So far, over 120 projects have been approved under the scheme, investing over Rs 1,500 crore rupees. This has led to increased employment levels and increased production levels in several sectors of the economy.

What are the benefits of the LANIDS schemes?

Lakshadweep and Andaman and Nicobar Islands Industrial Development Scheme (LANIDS) is a government initiative to promote the development of the industrial sector in the two Union Territories, Lakshadweep and Andaman, and Nicobar Islands.

The objective of the scheme is to help create employment opportunities, improve the standard of living of the people, increase exports and stimulate economic growth in these islands. Under LANIDS, companies from various sectors can get financial assistance for setting up factories and other industrial facilities. The scheme provides loans at very low-interest rates and provides relief from various taxes such as customs duties, value-added tax (VAT), estate duty etc.

One of the major benefits of the scheme is that it provides financial support to companies from all parts of the country. This makes it more likely that eligible firms will take advantage of this opportunity and invest in Lakshadweep or Andaman & Nicobar Islands. Another advantage is that companies that benefit from LANIDS do not have to bear any interest burden while receiving loan installments. This frees up resources that they can use to expand their businesses or hire new employees.

How to apply for the LANIDS schemes?

Lakshadweep and Andaman & Nicobar Islands Industrial Development Scheme (LANIDS) is an initiative of the Government of India to promote industrial development in these islands. The scheme offers a range of incentives, including soft loans and tax benefits, to companies wishing to start or expand their businesses in the region.

To be eligible for LANIDS assistance, a company must have a registered office in Lakshadweep or Andaman & Nicobar Islands, and must have an annual turnover of Rs 100 crore or less. For loans under the scheme, lenders generally require a 50% stake in the company being financed, with at least 25% of total voting rights required to be held by Indian citizens. Additionally, companies receiving LANIDS assistance typically have to pay interest at a rate lower than that offered by commercial lending institutions.

Companies receiving LANIDS assistance can use the proceeds from the loans to finance new projects or upgrades to existing facilities. In addition, companies can use the proceeds from the loan repayment period to purchase land or other assets in Lakshadweep or Andaman & Nicobar Islands.

Applications for LANIDS loans are processed through state-level committees known as Access Committees. These committees are composed of representatives from the government agencies involved in economic development in Lakshadweep and Andaman & Nicobar Islands as well as local businesses interested in participating in the scheme. Applications for loans should be submitted to each access committee separately

Read – What is Lakshadweep Industrial Development corporation(LIDC)?

How to get a loan under the LANIDS schemes?

The Lakshadweep and Andaman and Nicobar Islands Industrial Development Scheme (LANIDS) is a financial assistance scheme offered by the Indian government to promote industrial development in the two islands. The scheme provides loans to eligible firms for the purpose of establishment or expansion of industries, and also offers other services such as marketing and export promotion.

To be eligible for a LANIDS loan, a company must meet certain criteria such as having a registered office in one of the two islands, being engaged in an industry that is deemed suitable for development under the scheme, and having a minimum shareholders’ equity of Rs 50 lakh. Loans under the scheme are available in amounts up to Rs 10 crore.

The LANIDS loans can be used for a variety of purposes including investment in machinery and equipment, creation of new jobs, acquisition of land or premises for an industrial unit, and debt repayment. The loans are repayable over a period of up to 25 years, with interest payments constituting part of the repayment obligation. In cases where the borrower fails to meet its repayment obligations, the Indian government has the power to seize assets belonging to the firm.