Interest Subsidy Scheme, 2008

Interest Subsidy Scheme, 2008 supports micro and small enterprises by offering financial incentives on interest payments to encourage industrial growth and sustainable business operations within the region.

Scheme has been closed or it was a one time scheme which has been closed by the government.

Interest Subsidy Scheme, 2008 - Introduction

Interest Subsidy Scheme, 2008 helped the local economy by giving interest subsidies to micro and small enterprises in Goa. The scheme extended financial support to new businesses so their operations stayed viable and competitive while building a strong industrial environment.

Launched during 2008 by the Directorate of Industries, Trade and Commerce, Government of Goa, this scheme focused on speeding up economic development. It supported new enterprises that started commercial production after the scheme began. The program helped industrial growth until it closed on 31st March, 2011.

Key Information

Benefits

Eligible business units could receive financial support calculated on their performance. The benefit followed these rules:

Units could get this benefit for a total period of 5 years, which covered 20 quarters from the first quarter of applicability.

Eligibility

To qualify for this support, a business had to meet the following conditions:

• The business had to be a new micro or small enterprise that started commercial production after this scheme began.
• The unit had to hold a permanent Entrepreneur Memorandum II registration issued by the Directorate of Industries, Trade and Commerce.
• The industry had to fall under the approved Green list or the specified Orange list. Units classified under Orange II and II B were not eligible.
• The business should not have been part of any revival plan defined under the sick unit revival policy.
• The unit had to have term loans or working capital from nationalized banks, scheduled banks, co-operative banks, the Economic Development Corporation Ltd, or another government-notified financial institution.

Application Process

Applicants had to follow these steps to file their claim:

STEP 1 - Obtain the official application form from the Directorate of Industries, Trade and Commerce website or their local office.

STEP 2 - Complete the form accurately, attach a passport-sized photograph, and include all required self-attested documents.

STEP 3 - Submit the signed application to the designated Task Force Committee. This had to be done every year by the 31st May deadline.

Processing Details - The Task Force Committee scrutinized the application within 3 months of receipt. Once approved, funds were paid out within 6 months.

Documents

Applicants had to keep the following documents ready for the process:

• Certificate from the nationalized bank or financial institution stating the total interest paid by the unit.
• Documentary proof showing the date of start of commercial production, as verified by the Directorate of Industries, Trade and Commerce.
• Entrepreneur Memorandum II registration certificate.
• Financial statements showing the net turnover, calculated after excluding taxes like sales tax and excise, and deducting any applicable discounts.

References

View Official Guidelines (Page 10)

FAQ's

For how long were units eligible to receive benefits under the scheme?

Units remained eligible for support for a duration of 5 years or 20 quarters, starting from the quarter in which commercial production began.

Which industries were covered under the scheme for eligibility?

The scheme covered industries categorized under the Green list and specific entities in the Orange list, excluding those in categories Orange II and II B.

Were units under a revival plan eligible for benefits under the scheme?

No, businesses operating under a revival plan as per the sick unit revival policy were ineligible.

What types of loans made units eligible for benefits under the scheme?

A unit qualified if it held term loans or working capital from nationalized banks, scheduled banks, co-operative banks, Economic Development Corporation Ltd., or government-notified financial institutions.

What was the maximum subsidy amount a unit could receive annually under the scheme?

A unit could receive up to ₹5,00,000 per year, based on the lower value between 1% of net turnover or 30% of interest paid.

How was net turnover calculated for determining the subsidy amount?

Net turnover was determined by taking the total turnover and subtracting taxes like sales tax and excise along with any provided discounts.

Were women entrepreneurs eligible for additional benefits under the scheme?

Yes, women entrepreneurs could get any extra benefits provided by the government through separate applicable schemes.

Who scrutinized and recommended the applications under the scheme?

A Task Force Committee comprising officials from the Directorate of Industries, Trade and Commerce, the Finance Department, and industry association representatives handled the scrutiny process.

What was the timeline for the Task Force Committee to process applications?

The committee evaluated applications within 3 months and made sure payment happened within 6 months after receipt.

What happened if a claim was not filed by the specified deadline?

If the 31st May deadline was missed, that specific year's claim would lapse, though eligibility for the remaining years of the scheme continued.

Who chaired the Task Force Committee responsible for processing applications?

The General Manager of the District Industries Centre under the Directorate of Industries, Trade and Commerce chaired the committee.

Which government departments were represented in the Task Force Committee?

The committee included members from the Directorate of Industries, Trade and Commerce, the Finance Department, and industry association members.