Launched in 2008 by the Directorate of Industries, Trade and Commerce, Government of Goa, this scheme aimed to: • Encourage industrial growth and revival of sick units
• Generate local employment opportunities
• Provide incentives and a positive environment for setting up industrial units
Validity: The scheme remained in force until 31st March 2011.
Implementation Authority:
• Directorate of Industries, Trade and Commerce
• Evaluated by a Task Force Committee
Benefits
Subsidy Rates Based on Unit Type & Location:
• New units in developed talukas: 25% subsidy
• New units in less developed talukas: 35% subsidy (additional 10%)
• Existing micro/small units in developed talukas: 10% subsidy
• Existing micro/small units in less developed talukas: 15% subsidy
• Sick units under revival plan: Up to 25% subsidy (as determined by authority)
Total Subsidy Limit: Not exceeding 40% including all additional benefits
Disbursement Method:
• 50% paid on agreement signing
• 50% paid in bonds bearing 6% interest, redeemable after 5 years if the unit remains functional and employs 80% local youth
Additional Benefits:
• 5% extra under the Local Employment Subsidy Scheme
• Preference in Capital Contribution schemes
• Increased interest subsidy: 35% of interest paid (up from 30%), capped at ₹8,00,000/-, and limited to 2% of turnover
Eligibility
• Only manufacturing units were eligible
• Applicable to:
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New & existing Micro/Small Enterprises (registered with Directorate)
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Medium & Large units approved by High-Powered Coordination Committee post 01-Apr-2008
• Minimum 80% local manpower required
• Employees must be regular staff (no contract/daily wage/temporary workers)
• Units must fall under “Green”, “Orange”, or specified “Orange” categories
Relatives Not Counted as Employees:
Spouse, father, mother, son/daughter, grandparent, son-in-law, daughter-in-law, brother, sister, and first cousins of promoters/directors/partners
Preference for Women-Owned Units
• 100% woman-owned proprietary firms
• Partnership firms with 51% woman ownership (excluding immediate male family members as additional partners)
Application Process
Offline Submission
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Register the unit with the Directorate of Industries using prescribed forms
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Submit half-yearly claims for:
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Jan–June (by 30th September)
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July–Dec (by 31st March)
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Claims verified by the Task Force Committee within 2 months of submission
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Final decision lies with the Chief Secretary in case of disputes
Documents Required
• Registration certificate with Directorate of Industries
• Proof of commercial production start date
• Salary records (half-yearly)
• Declaration before Magistrate on employee eligibility
• Green Social Security Cards (effective from Jan 2009)
• Revival Plan approval (for sick units, if applicable)
Frequently Asked Questions (FAQs)
Q: What was the required percentage of local employees to qualify?
A: 80% of the workforce had to be local manpower.
Q: Which relatives were excluded from being counted as employees?
A: Spouse, parents, children, grandparents, in-laws, siblings, and first cousins of the promoter/owner.
Q: Were women-owned businesses given preference?
A: Yes, 100% woman-owned proprietary units and woman-majority partnerships received priority.
Q: What environmental categories qualified?
A: Units in “Green”, “Orange”, and specific “Orange” categories were eligible.
Q: What were the subsidy differences based on location?
A: Developed talukas: 25%, Less developed talukas: 35% for new units.
Q: What was the subsidy for existing small units in less developed talukas?
A: 15% (10% base + 5% additional).
Q: How much subsidy could sick units receive?
A: Up to 25%, as decided by the appropriate authority.
Q: What were the added benefits under local employment subsidy?
A: 5% additional subsidy for employing local youth.
Q: What was the interest subsidy benefit?
A: 35% of interest paid (capped at ₹8,00,000), up from 30%, limited to 2% of turnover.
Q: What documentation proved local manpower status?
A: Green Social Security Cards and magistrate-verified declarations.
Q: How was the full application processed?
A: From registration, claim submission, review by Directorate, and final approval by the Task Force Committee.
Q: Who reviewed and approved applications?
A: The Task Force Committee (under the Directorate) reviewed and verified all claims.
Q: How soon were claims disbursed?
A: Within 15 days of finalizing the claim.
Q: What approval was needed for medium units post-April 2008?
A: Approval from the High-Powered Coordination Committee.