Development Programmes in Lakshadweep

The Credit linked developmental programmes of the various government departments in UTL are dealt below.

1. Agricultural Sector

Coconut is the important crop cultivated in the area. Credit is being provided to short term facilities like crop loans, Kisan Credit Cards and Kisan Samruddhi Credit Cards. Credit facilities are provided for raising coconut nurseries also. Term loan assistance is provided for new planting and inter-planting of coconut, gap filling, coconut nurseries etc. The Department of Agriculture, Lakshadweep, provides technical assistance for all the activities in addition to input supplies. As the whole cultivable area is cultivated already, the scope for new planting of coconut is very limited in Lakshadweep. But methods to enhance yield from the existing coconut trees has to be thought of. Unyielding and uneconomic palm shall be cut and removed to facilitate growth of healthy palms. Agricultural Department is focusing on organic farming considering the peculiar eco system of the island. Use of fertilizers is banned in the Island. Green fodder cultivation in coconut gardens is a scheme, which is worth trying . Short term crops like banana, vegetables, fruit plants etc. are cultivated as intercrop in the coconut gardens and short term financial assistance is provided for the same. Bank is implementing the concept of “ flexi-credit “through the scheme for Homestead farming.

a) Minor Irrigation & Land Development

Minor Irrigation has got only very limited potential. Lakshadweep soil is formed from fragmentation of coral limestones and sedimentary rocks. However, the Department of Agriculture is implementing various schemes for protection of coastal area waste land development and mini/micro water shed programmes. The organic manure...

like vermi-compost and coconut pith compost which are available in plenty should be popularized among the farming community. More emphasis is required in land development to prevent soil erosion during monsoon. Development of irrigation through exploitation of ground water is not desirable to prevent salt ingression. Rainwater harvesting should be popularized in a big way so that every household is capable of harvesting rainwater. Bank loan is available for construction of the rain harvesting structures.

2. Animal Husbandry

a) Dairy Development

The Department of Animal Husbandry is implementing certain schemes in this sector with Bank loan and subsidy. The Department is having Dairy Farms at Minicoy and Kavaratti. Scarcity of green fodder, water and grazing lands are the main constraints for the dairy development.

b) Goat Rearing

Non-availability of grazing land and fragile eco system of the island restricts goat rearing only to stall-fed conditions. The islanders due to various social sentiments and economic reasons take up goat rearing in confinement. The animal husbandry department provides subsidy to the extent of 50% on cost of construction of shed, equipments etc...

c) Poultry

Poultry is one of the potential areas for development and there is good demand for eggs and poultry meat. However, the production is nowhere near the demand. In order to reduce this gap and also for ensuring supply of necessary inputs all the islands have been grouped into four: - 1) Kavaratti and Agatti 2) Andrott and Kalpeni 3) Amini, Kadmat, Kiltan and Chetlat and 4) Minicoy and supervisory works are carried out by the Department. For supply of day old chick a medium sized hatchery has been established by the department. They also provide 50% subsidy also for birds, construction of shed, feed etc. There are 8 poultry demonstration units in various islands. Credit facilities are available from the Bank for this purpose. Animal Husbandry Department has identified this sector for further promotion to meet the poultry meat requirements of the island.

d) Fisheries Department

Lakshadweep has got lagoon area of 4200 sq.kms. and 20000 sq. kms. of territorial waters. Fisheries activity is having good scope for credit absorption. Tuna fishing is the major activity. About half of working population is employed in fishing related field. The per capita availability of fish catch in the island is the highest in the country and it provides ample employment potential also. The Fisheries Department is extending credit facilities for purchase of boats etc. Bank finance is being provided for all activities under fisheries such as procuring fishing boats, nets, replacement or purchasing engines etc. It is also revealed that there is potential for seaweed culture, oyster and ornamental fish culture. The current annual fish catch forms only a very small part of estimated potential. Tuna, shark and skipjack are the main varieties of fishes. Projects under ornamental fish culture have good scope in the islands since lagoons provide huge potential. Use of more scientific methods of fish catching will help to exploit the potential in a more efficient way....

3. Non Farm Sector

The traditional industries in Lakshadweep are production of copra, vinegar, jaggery, mat making, fish curing, fish pickle, coir spinning etc. Production of copra by sun drying is a major activity under cottage industry. Copra produced in the island is of very good quality and it is marketed in mainland. Lack of sufficient entrepreneurship is one of the important factors in the non-development of these sectors. However, departments like Industries etc. are conducting various EDPs to promote entrepreneurship. Small Industries Service Institute, Nucleus Cell, Amini, organize Entrepreneurship Development programme exclusively for unemployed women. Motivation campaigns are also organized to motivate the unemployed to take up their own ventures. Lakshadweep Khadi & Village Development Board is implementing the Margin Money Scheme of KVIC.

There is potential for handicrafts also, which is characterized by its cheap but plentiful raw materials. Lakshadweep is declared as one of the ‘No Industry District’ of the country. Considering the thrust given for development of tourism there is scope for setting up handicrafts based on available resources. People need to be educated and made aware of the potentials through continuous programmes like EDP which will go a long way in the development of industries. The department can make use of the funds made available by NABARD for such programmes.

4. Tertiary Sector

Under Tertiary sector, there is good demand for Retail Trade and Small Business. Government Departments like DRDA and Industries Department are playing vital role in this field. Though there is potential for new investments, due to religious sentiments, geographical factors and lack of entrepreneurship, the islanders are reluctant to take up new activities.

5. Self Help Groups

As many as 196 Self Help Groups have been formed in the island. With the support of the Dist. Panchayath and DRDA, Syndicate Bank and NABARD had organized an exclusive training programme for 20 selected ladies representing different islands during April 2000 at the Staff Training College of Syndicate Bank at Kochi. Self Help Group Orientation programme was conducted by the bank in association with Syndicate Rural Development Trust, Manipal, an organization sponsored by syndicate bank at Kavaratti and Agatti during 2003. Further similar training programmes were conducted at Minicoy and Kiltan by respective bank branches during the current year. It is felt that more awareness programmes need be conducted for facilitating them to take up micro-enterprises. SHGs face the problem of marketing of their produce.


Promotion of vegetable cultivation: Lead Bank has taken a special initiative to promote vegetable cultivation in the island and farmers are supplied with vegetable kits containing suitable vegetable seeds for the islands during this kharif season. This program implemented with the help of Agriculture Dept. and Lakshadweep Administration, is well appreciated by the local inhabitants.

Skill upgradation training: Lead Bank organized skill upgradation training on stitching of school uniform for woman Self Help Group members. The program which was conducted under the sponsorship of NABARD in collaboration with Syndicate Institute for Rural Entrepreneurship, Kottiyam at Agathy island was well appreciated by the local Administration and local inhabitants.



Pradhan Mantri Jan Dhan Yojana(PMJDY) is a National mission on Financial inclusion encompassing an integrated approach to bring about comprehensive financial inclusion of all the households in the country.The plan envisages universal access to banking facilities with at least one basic banking account for every household,financial literacy,access to credit insurance and pension facility.In addition ,the beneficiaries would get Rupay Debit card having inbuilt accident insurance cover of Rs 1 lakh.The plan also envisages channeling all Government benefits from Centre/state/local Body to the beneficiaries accounts and pushing the Direct Benefits transfer(DBT) scheme of the Union Government.


Non - farm Enterprises in Manufacturing, Trading and Service Sector whose credit needs are below 10.00 Lakh and given to income generating activities will be known as MUDRA loans. Later, the Ministry of Finance, Department of Financial Services, Government of India Vide their Letter No F.NO.29/2/2016-IF-2 dated 23/06/2016 have communicated that “Activities allied to Agriculture”, e.g. Pisciculture, Beekeeping, Poultry, Livestock, Rearing, Grading, Aggregation Agro Industries, Dairy, Fishery, Agriclinics and Agribusiness Centers, Food & Agro-processing, etc. (excluding Crop loans, Land improvement such as canals, irrigation, wells) and services supporting these, which promote livelihood or are income generating shall be eligible for coverage under PMMY in 2016-17


As we are aware that Govt.of India introduced this Atal pension yojana for transforming India from Pensionless to Pensioned society. we are aim to target the unorganised workers across the islands under the ambit of APY which will address the longevity risk among the people in the unorganized sector. The APY will be applicable on all citizens of the country in the unorganised sector and the scheme is administered by the Pension Fund Regulatory and Development Authority (PFRDA) through NPS. An income tax payer or who is covered under statutory social security schemes can also join APY but those subscribers will not be eligible for GoI co-contribution.

Under the APY, subscribers would receive a fixed monthly pension of Rs. 1000 , Rs. 2000, Rs. 3000 , Rs. 4000 , Rs. 5000 at the age of 60 years, depending on their contributions, which itself would vary according to the age of joining the scheme. The minimum age of joining APY is 18 years and maximum age is 40 years. Therefore, minimum period of contribution by any subscriber under APY would be 20 years or more


Salient features of the scheme are as follows:

1. Eligibility: Age Group 18 to 50 years having Savings Bank Account. Once enrolled, life cover will continue till the age of 55 years, subject to payment of yearly premium.

2. Premium: 330/- per annum

3. Payment mode: Auto Debit from Savings Bank Account of the subscriber.

4. Renewal Premium: Renewal premium will be debited to the Savings Bank Account on or before 1st June every year till the earliest event of the following.

  • The insured person attaining the age of 55 years
  • Closure of Savings Account
  • Submission of Death Claim under the Scheme
  • Voluntary withdrawal from the Scheme
  • Discontinuation of scheme by Govt. of India

5. Risk coverage: 2.00 lacs in case of death due to any reason.


Salient features of the Scheme are as follows:

1. Eligibility: Age Group 18 to 70 years having Savings Bank Account.

2. Premium: 12/- per annum

3. Payment mode: Auto Debit from Savings Bank Account of the subscriber and the insurance cover will be provided by the Insurance Company for 1 year.

4. Renewal Premium: Renewal premium will be debited to the Savings Bank Account of the subscriber on or before 1st June every year till the earliest event of the following:

  • The insured person attaining the age of 70 years
  • Closure of Savings Account
  • Submission of Death Claim under the Scheme
  • Voluntary withdrawal from the Scheme
  • Discontinuation of scheme by Govt. of India

5. Risk coverage: In case of death due to accident: 2.00 lacs. Total and irrecoverable loss of both eyes or loss of use of both hands and feet or loss of sight of one eye and loss of use of hand or foot: 2.00 lacs. Total and irrecoverable loss of sight of one eye or loss of use of one hand or foot: 1.00 lac.


As per the instruction of Government of India,syndicate Bank, Lead Bank of Lakshadweep is actively promoting digital payments options here at islands especially USSD as the same is ideal for the Island conditions.To promote digital payments through use of credit/debit cards and mobile phone applications etc.,the central Government announced a pacakage of incentives and measures. We are using every plat form to demonstrate the same with printed pamphlets in Malayalam.. The requests for mobile banking,SMS banking,Internet banking etc. applications are being collected and activated without any delay.


The entire group of islands is considered as one district for lead bank purposes. Syndicate Bank is the lead bank and convenor of the Union Territory of Lakshadweep Bankers’ Committee. Syndicate Bank has opened its first branch at Kavaratti in 1971 and is operating throughout the UTL with nine branches in nine major islands. State Bank of India opened its first branch in April 2005 at

Contact us

Deputy General Manager
Syndicate Bank, Regional Office,
Pioneer Towers, 1st Floor,
Shanmugam Road
Ernakulam – 682031.
0484 - 2367063 / 2360035 / 2369090


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