Incentives to Encourage Consumption of Local Raw Material Scheme, 2008
By Directorate of Industries, Trade and Commerce, Government of Goa
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Quick Answer
A Goa government scheme offering financial incentives like Sales Tax reimbursement and power/water subsidies to MSMEs that use at least 50% local raw materials.
- Funding amount
- Up to ₹2L
- Funding type
- Subsidy
- Application deadline
- —
- Location
- Goa
- Registrations needed
- Udyam registration
Results & next round
Applications for this round are closed. The organiser has not published a selection list that we can verify yet.
Selections for this programme are announced by Directorate of Industries, Trade and Commerce, Government of Goa. Official links are listed under Sources below.
We update this page when results are published, and when the next round opens.
About this subsidy
The Incentives to Encourage Consumption of Local Raw Material Scheme, launched in 2008 by the Directorate of Industries, Trade and Commerce, Government of Goa, was a pivotal initiative designed to bolster the local economy by promoting the use of indigenous raw materials within manufacturing units. This scheme specifically targeted Micro, Small, and Medium Enterprises (MSMEs) operating in Goa, providing them with crucial financial incentives. The primary objective was twofold: first, to support the units that manufactured or produced raw materials within Goa, thereby fostering local industries and employment; and second, to uplift the economic conditions of villages and rural areas involved in the supply or production of these materials, covering sectors such as horticulture, food processing, and various cluster businesses. By encouraging a minimum of 50% local raw material consumption, the scheme aimed to create a robust circular economy within the state, reducing dependency on external supply chains and strengthening the self-reliance of Goan enterprises. The financial support offered included significant reimbursement of Sales Tax and a subsidy on essential utilities like power and water, making it economically attractive for businesses to source locally. The scheme was active for a limited period, from its launch until March 31, 2011, making it a historical program that influenced Goan industrial policy.
Eligibility
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Full eligibility criteria — entity type, stage, sector, founder profile and registration requirements — plus your fit for this program. Sign up to view.
Subsidy providers
Benefits & Funding
- Amount
- Up to ₹2L
What You Get
The scheme provided substantial financial incentives to eligible units, structured as reimbursements and subsidies. Sales Tax reimbursement was available to the extent of a maximum of 90% of the Sales Tax paid by the unit. The quantum of this reimbursement was directly linked to the proportion of local raw material consumed, with units consuming 60% or more local raw material being eligible for 100% of the benefit. Additionally, units could receive incentives in the form of a subsidy on power and water bills annually. This subsidy amounted to 25% of the total expenditure incurred by the unit on power and water tariffs, with a maximum cap of ₹2,00,000/- per annum. This subsidy was also proportional to the consumption of local raw materials. These benefits aimed to reduce operational costs for MSMEs and incentivize their shift towards local sourcing, thereby strengthening the regional supply chain and promoting economic sustainability within Goa.
- Disbursement
- Reimbursement
- Bootstrap friendly
- Yes
Timelines & Process
Selection Process
Following the application submission, a structured post-application process was in place to evaluate and approve claims.
- Initial Scrutiny and Public Display: On the first working day after September 30th, the Directorate of Industries, Trade and Commerce would display a list of all claimants under the Scheme on its notice board. A copy of this list was also immediately forwarded to the Government. This step provided transparency and a public record of applications.
- Detailed Scrutiny and Recommendation: The Director of Industries, Trade and Commerce was mandated to scrutinize and dispose of each application within three months of receipt. A dedicated Task Force Committee played a crucial role in thoroughly examining the applications and recommending the eligible benefits. This committee ensured that all conditions related to local raw material consumption, unit category, and documentation were met.
- Verification of Dues: Prior to the disbursement of benefits, the Directorate of Industries, Trade and Commerce undertook a critical verification step. They confirmed that there were no outstanding dues with other concerned government departments, under deemed provision basis, within 60 days. This ensured financial compliance and prevented the disbursement of incentives to units with pending liabilities.
- Disbursement of Benefits: Once an application was approved following the scrutiny by the Director and the Task Force Committee, and after the no-dues verification, the eligible unit received the specified benefits. These benefits included the reimbursement of Sales Tax and the subsidy on power and water bills, providing direct financial relief to the compliant MSMEs.
Application Process
- 1
Obtain Application Proforma
Applicant obtains the specified application form from DITC or downloads it from their website.
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How to apply
Four steps from draft to disbursement — one action each.
- 1
Submit on the official portal
Use the official application link and verify all details before final submission.
- 2
Follow up
Reach out 5–7 days after submitting to confirm receipt and ask about the review timeline.
Frequently Asked Questions
What was the primary objective of this scheme?
The scheme aimed to encourage the consumption of local raw materials by MSMEs in Goa, thereby supporting local manufacturing units and promoting the economies of villages involved in raw material production, including horticulture and food processing.
What financial incentives were offered?
Eligible units could receive reimbursement of up to 90% of Sales Tax paid and a 25% subsidy on power and water bills, capped at ₹2,00,000/- per annum, both proportional to local raw material consumption.
Which types of businesses were eligible?
Only Micro, Small, and Medium Enterprises (MSMEs) as defined under the MSMED Act were eligible, specifically those in the green and specified orange categories. They had to be permanently registered with the Directorate of Industries, Trade and Commerce.
What was the requirement regarding local raw materials?
Units had to consume a minimum of 50% of their raw material (by value) from local sources. "Local raw material" included materials manufactured in an approved industrial unit in Goa or mined/produced within the state (e.g., agricultural, marine, mineral).
When was the application deadline for the scheme?
Applications for the financial year had to be submitted by September 30th. No claims were entertained after this date.
Was this scheme still active?
No, the scheme remained in force until March 31st, 2011, and is therefore discontinued.
How long did the application scrutiny process take?
The Director of Industries, Trade and Commerce was expected to scrutinize and dispose of applications within three months of receipt, with recommendations from a Task Force Committee.
