Incentives to Encourage Consumption of Local Raw Material Scheme- 2008 helps local Micro, Small, and Medium Enterprises by offering Sales Tax reimbursements and utility subsidies. It supports manufacturers using indigenous raw materials to strengthen the village economy and promote sustainable industrial growth.
Scheme has been closed or it was a one time scheme which has been closed by the government.
Incentives to Encourage Consumption of Local Raw Material Scheme- 2008 - Introduction
Incentives to Encourage Consumption of Local Raw Material Scheme- 2008 supports the growth of local industries by encouraging the use of raw materials sourced within the state. By giving priority to local inputs, this scheme helps village economies, including sectors like horticulture, food processing, and various cluster businesses.
Introduced in 2008 by the Directorate of Industries, Trade and Commerce, Government of Goa, this scheme provided financial support to eligible Micro, Small, and Medium Enterprises (MSMEs). Through perks like big Sales Tax reimbursements and utility subsidies, it helped businesses keep their operational costs low. This scheme focused on green and specified orange category units that maintained a minimum of 50% consumption of local raw materials. Please note that this program remained active only until 31st March, 2011.
Key Information
| Scheme Name | Incentives to Encourage Consumption of Local Raw Material Scheme- 2008 |
| Level | State |
| Scheme For | Infra |
| Beneficiary State | Goa |
| Category | Business & Entrepreneurship |
| Target Beneficiaries | Business Entity |
| Sub Category | Setting up/start-up/entrepreneurship, Waste and environmental impact |
| Benefit Type | Cash |
| DBT Scheme | No |
| Nodal Department | Commercial Taxes Department |
| Open Date | 15th January, 2009 |
| Tags | Incentive, MSME, Industry, Manufacturing, Business |
Benefits
This scheme provided the following financial support to eligible businesses:
| Incentive Type | Benefit Details |
| Sales Tax | Reimbursement of up to 90% of the Sales Tax paid, calculated based on the proportion of local raw material consumption. |
| Utility Subsidy | 25% subsidy on total expenditure incurred on power and water tariffs. |
| Maximum Limit | Subject to a maximum of ₹2,00,000/- per annum for utility subsidies. |
Eligibility
To qualify for support under this scheme, a unit needed to meet the following requirements:
- Your unit must have commenced production on or after 6th August, 2008.
- You should operate under the green or specified orange category.
- You must hold a permanent registration with the Directorate of Industries, Trade and Commerce or have clearance from the High Powered Co-ordination Committee (HPCC).
- Your enterprise must be classified as a Micro, Small, or Medium Enterprise under the MSMED Act.
- You should make sure your unit consumes at least 50% (by value) of its raw materials from local sources.
Definition of Local Raw Material:
- Materials manufactured in any approved industrial unit within Goa.
- Materials mined or produced naturally in Goa, such as agricultural products, marine goods, minerals, or ore.
For example, if Ramesh runs a small food processing unit in Goa and sources 55% of his fruits from local Goan farms, he becomes eligible for pro-rata benefits. Conversely, if Sita's unit uses 65% local minerals for her manufacturing process, she becomes eligible for 100% of the possible benefits.
Application Process
Offline Application Steps
STEP 1 - Obtain the specified application form from the Directorate of Industries, Trade and Commerce or download it from their official website.
STEP 2 - Fill in all mandatory fields, attach a recent passport-sized photograph, and gather all required self-attested documents.
STEP 3 - Submit your completed application to the Director of Industries, Trade and Commerce for scrutiny and eligibility verification. Make sure you submit your application by the annual deadline of 30th September. Claims submitted after this date were not accepted.
Post-Application Process
Once the application was submitted, the Directorate displayed the list of claimants on their notice board after the 30th September deadline. A Task Force Committee then reviewed the claim and recommended benefits within three months. Before final payment, the department conducted a 60-day check to make sure there were no outstanding dues to relevant government bodies.
Documents
Applicants needed to keep the following documents ready for their application:
- An affidavit sworn by the promoter confirming all facts in the specified format.
- Self-certified copies of purchase bills for all local raw materials.
- A formal statement from the Department of Commercial Taxes.
- A comparative statement justifying the claim.
- Copies of monthly water and electricity bills from April to March, along with self-certified proof of payment.
References
Goa MSME Unified Digital Portal
FAQ's
What were the categories of units eligible for financial incentives under the scheme?
Only units classified under the green and specified orange categories were eligible for incentives.
How did a unit qualify for permanent registration under the scheme?
A unit had to be permanently registered with the Directorate of Industries, Trade and Commerce or obtain clearance from the High Powered Co-ordination Committee (HPCC) to qualify.
What types of enterprises were covered under the scheme?
The scheme covered Micro, Small, and Medium Enterprises as defined by the MSMED Act.
What was the minimum percentage of local raw material consumption required for eligibility?
A unit must have consumed a minimum of 50% (by value) of its total raw material from local sources to be eligible.
How were benefits calculated for units consuming 50% local raw materials?
Benefits were calculated on a pro-rata basis for those using 50% local materials, while those using 60% or more qualified for 100% of the available benefits.
What was considered as local raw material under the scheme?
Local raw material included items produced, mined, or manufactured in Goa, such as local crops, marine produce, minerals, and goods from approved industrial units within the state.
What documentation was required to prove the use of local raw materials?
Applicants were required to provide self-certified purchase bills and documentary proof showing the origin of the raw materials.
What financial incentives were provided for Sales Tax reimbursement?
Eligible units could claim reimbursement for up to 90% of the Sales Tax paid, depending on the percentage of local materials used.
What subsidies were available for power and water bills under the scheme?
The scheme offered a 25% subsidy on utility costs, capped at ₹2,00,000/- per annum.
How was the subsidy on power and water bills calculated?
The subsidy amount was determined based on the proportion of local raw material consumed by the unit.
What was the deadline for submitting applications under the scheme?
The annual deadline for submitting applications was 30th September.
How were applications scrutinized and processed under the scheme?
The Directorate of Industries, Trade and Commerce, alongside a Task Force Committee, scrutinized applications and processed recommendations within three months.
What was the maximum subsidy amount a unit could receive annually?
A unit could receive a maximum annual subsidy of ₹2,00,000/- towards power and water expenses.
How were monthly water and electricity bills verified under the scheme?
Applicants were required to submit photocopies of their monthly utility bills from April to March along with valid proof of payment.