The Incentives to Encourage Consumption of Local Raw Material Scheme, 2008 was launched by the Directorate of Industries, Trade and Commerce, Government of Goa. The scheme aimed to promote the consumption of locally sourced raw materials, thereby supporting local industries and businesses. It encouraged the growth of Micro, Small, and Medium Enterprises (MSMEs) and bolstered the local economy by aiding units that utilize raw materials produced within the state. The scheme offered financial incentives such as Sales Tax reimbursement and subsidies on power and water bills for eligible units. The scheme was active until March 31, 2011.
Scheme Key Highlights (Short Summary)
• Launched by: Directorate of Industries, Trade and Commerce, Government of Goa
• Duration: Launched in 2008 and ended on March 31, 2011
• Maximum Loan Amount: Up to 90% reimbursement of Sales Tax paid
• Subsidy on Power and Water Bills: 25% subsidy on power and water bills with a cap of ₹2,00,000 per annum
• Eligibility: MSMEs consuming 50% or more local raw materials
Benefits
• Sales Tax Reimbursement: Up to 90% of the Sales Tax paid, based on the proportion of local raw material consumed.
• Power and Water Subsidy: A 25% subsidy on power and water bills with a maximum cap of ₹2,00,000 per annum.
• Pro-rata Benefit: Units consuming 60% or more local raw material are eligible for 100% benefit, while those consuming 50% can avail of proportional benefits.
Eligibility
• The scheme is applicable to Micro, Small, and Medium Enterprises (MSMEs).
• The unit must be permanently registered with the Directorate of Industries, Trade and Commerce or cleared by the High Powered Co-ordination Committee (HPCC) or another authorized committee.
• The unit must consume a minimum of 50% of raw materials from local sources.
• The unit must be involved in manufacturing activities, utilizing raw materials produced or mined in Goa.
• Only units in the green and specified orange categories are eligible.
• The scheme is not available to new units set up after 6th August 2008 or to units that are not registered or cleared by the relevant authorities.
Exclusions
• Units not consuming at least 50% of raw materials from local sources are not eligible.
• Units that have already availed benefits under this scheme are not eligible for further claims.
Application Process
Offline
Step 1: Obtain the specified proforma from the Directorate of Industries, Trade and Commerce or download it from their website.
Step 2: Fill out the form, attach a passport-sized photograph, and submit the self-attested documents as required.
Step 3: Submit the completed application and documents to the Director, Directorate of Industries, Trade and Commerce.
Deadline: Applications must be submitted by September 30th for each financial year. No claims will be entertained after this date.
Post-Application Process
• The Directorate will display the list of approved claimants on the first working day of October.
• The Director will scrutinize applications and disburse benefits after confirmation.
• The eligible units will receive benefits, including Sales Tax reimbursements and power and water subsidies.
Documents Required
• Affidavit sworn by the promoter in the specified format
• Self-certified copies of Bills of Purchase for local raw materials
• Statement from the Department of Commercial Taxes
• Comparative Statement to support the claim
• Photocopies of monthly water and electricity bills from April to March, with proof of payment
• PAN card copy and other relevant documents
• Collateral security in the required form, if applicable
Frequently Asked Questions (FAQs)
Q: What were the categories of units eligible for financial incentives under the scheme?
A: The scheme applied to green and specified orange categories of units under MSMEs.
Q: How did a unit qualify for permanent registration under the scheme?
A: Units had to be registered with the Directorate of Industries, Trade and Commerce or cleared by the High Powered Co-ordination Committee (HPCC) or equivalent authorities.
Q: What types of enterprises were covered under the scheme?
A: Micro, Small, and Medium Enterprises (MSMEs) involved in manufacturing and consuming local raw materials.
Q: What was the minimum percentage of local raw material consumption required for eligibility?
A: The unit had to consume a minimum of 50% local raw material, with units consuming 60% or more eligible for full benefits.
Q: How were benefits calculated for units consuming 50% local raw materials?
A: Units consuming 50% local raw materials were eligible for pro-rata benefits, while units consuming 60% or more received 100% benefits.
Q: What was considered as local raw material under the scheme?
A: Local raw material referred to materials produced or mined in Goa or manufactured in approved industrial units within the state.
Q: What documentation was required to prove the use of local raw materials?
A: Units had to submit self-certified copies of purchase bills and other documents proving local sourcing of raw materials.
Q: What financial incentives were provided for Sales Tax reimbursement?
A: The scheme provided up to 90% reimbursement of the Sales Tax paid, based on the proportion of local raw material consumed.
Q: What subsidies were available for power and water bills under the scheme?
A: A 25% subsidy on power and water bills, with a maximum limit of ₹2,00,000 per annum.
Q: How was the subsidy on power and water bills calculated?
A: The subsidy was calculated based on the proportion of local raw materials consumed by the unit.
Q: What was the deadline for submitting applications under the scheme?
A: Applications had to be submitted by 30th September for each financial year.
Q: How were applications scrutinized and processed under the scheme?
A: The Directorate reviewed the applications, verified eligibility, and approved them within three months. The Task Force Committee recommended the benefits.
Q: What was the maximum subsidy amount a unit could receive annually?
A: The maximum subsidy for power and water bills was ₹2,00,000 per annum.
Q: How were monthly water and electricity bills verified under the scheme?
A: Monthly bills needed to be self-certified by the applicant, along with proof of payment.