Capital Contribution Scheme works as a financial support scheme for local entrepreneurs and industrial units in Goa to encourage innovation and technological growth. It provides funding to help eligible business entities expand their operations and develop special products based on locally sourced technology.
Launched in 2008 and managed by the Directorate of Industries, Trade and Commerce, Government of Goa, this scheme is open for existing industrial units that wish to scale up using locally developed technology.
Capital Contribution Scheme - Introduction
Capital Contribution Scheme is a main part of industrial growth in Goa. It is run by the Department of Industries, Government of Goa to help local entrepreneurs. If you run an existing industrial unit or wish to scale your business using locally developed technology, this scheme offers the support you need to grow.
The main aims of this scheme are:
- providing financial support to local entrepreneurs.
- helping existing functional units in their expansion journey.
- promoting and encouraging locally developed technology within the region.
Key Information
| Key | Details |
|---|---|
| Scheme Name | Capital Contribution Scheme |
| Beneficiary State | Goa |
| Target Beneficiary | Business Entity |
| Benefit Type | Financial Support |
| Department | Directorate of Industries, Trade and Commerce |
Benefits
You can receive a maximum capital contribution of up to ₹1,00,00,000 per unit. Please note that your own contribution as a promoter should typically be equal to or greater than the government contribution. This restriction is relaxed for sick units, giving them more flexibility.
This financial support is provided over a 5-year term. You will get a guaranteed return of 6% or the actual profit generated by your unit, whichever is applicable as per the sanctioned order.
Disbursement of Funds
Once your application receives approval, the government will release the funds within 60 days. To help this, you should submit your post-dated cheques for repayment along with the required collateral security as outlined in the official rules.
Eligibility
To apply for this support, you must make sure your unit meets the following criteria:
- Your cluster or unit must have remained operational for at least 3 years. Note that units already covered by the Goa Sick Industrial Unit Revival and Rehabilitation Scheme, 2008 are not eligible here.
- Partnership firms and private limited companies are welcome to apply, provided they do not fall under the rehabilitation scheme mentioned above.
- Your business must hold a valid Permanent Registration Certificate issued by the Directorate of Industries, Trade and Commerce.
*The government gives top priority to small-scale sector units, research and development projects, technically-oriented businesses, and ventures managed by women entrepreneurs. For example, if Anjali runs a small-scale textile unit that uses locally developed looms, her application may be prioritized.
Application Process
To take part, you should prepare your application in the prescribed format and submit it directly to the Directorate of Industries, Trade and Commerce with all required supporting documents.
The department will do a full review of your application. You can expect a response regarding the scrutiny within 3 months, and a final decision will be communicated within 4 months from the date of your initial submission.
Documents
Please make sure you have authenticated copies of the following documents ready for your application:
- A valid Permanent Registration Certificate from the Directorate of Industries, Trade and Commerce.
- Audited Statement of Accounts for the last 3 financial years.
- A detailed Project Report explaining your business expansion plans.
- Post-dated cheques to be submitted as security once your grant is approved.
- Collateral security equal to the amount you are requesting or the total amount for which your unit is eligible.
References
Visit the official Goa government portal for more detailed information on the scheme.
FAQ's
What is the minimum operational period required for units to be eligible?
Units must be in active operation for at least 3 years to qualify for the scheme.
Are partnership firms eligible to apply?
Yes, partnership firms can apply as long as they are not currently covered under the Goa Sick Industrial Unit Revival and Rehabilitation Scheme, 2008.
How much capital can I receive through this scheme?
You may receive a maximum capital contribution of up to ₹1,00,00,000 per unit, depending on promoter contributions and budgetary limits.
What is the duration of the financial support?
The government provides capital contribution support for a period of 5 years.
Are documentation and security submissions mandatory?
Yes, you must submit audited accounts, a project report, post-dated cheques, and collateral security as per the official instructions.