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Business & Entrepreneurship

Incentives to Encourage Consumption of Local Raw Material Scheme, 2008

"Incentives to Encourage Consumption of Local Raw Material Scheme, 2008" promoted the use of local raw materials, supporting local manufacturers and village economies. It offered Sales Tax reimbursement and subsidies on power and water bills to eligible Micro, Small, and Medium Enterprises.

Authority

State/ UT

Region

Goa

Status

Verified 2026

Updated

March 2026

What you get

- Reimbursement to the extent of a maximum of 90% of Sales Tax paid by such unit, subject to the quantum based on the proportion of local raw material consumed. | - Incentives in the form of a subsidy on power and water bills annually. | - 25% subsidy on the total expenditure incurred by the unit on power and water tariffs, subject to a maximum of ₹2,00,000/- per annum, as per the proportion of local raw material consumed.

Who can apply

The Scheme covered units that went into production on or after 6th August 2008.; Only those units under green and specified orange categories were eligible under this Scheme.; Only those units which were permanently registered with the Directorate of Industries, Trade and Commerce or cleared by the High Powered Co-ordination Committee (HPCC) or any Committee or authority formed to grant such clearance for investment in the State were eligible under this Scheme.; This Scheme was applicable only to Micro and Small Enterprises and Medium Scale Enterprises as defined under the MSMED Act.; The unit consuming a minimum of 50% of its raw material (in value) from local sources was eligible for the benefit on pro-rata terms with those consuming 60% and above, which were considered for 100% benefit under this Scheme.; For the purpose of this Scheme, the local raw material meant:; The beneficiary had to prove, by submitting documentary evidence, that the material had been locally produced or mined. In case of any dispute in interpreting the meaning of clauses (a) and (b) above, the decision/interpretation of the Director, Directorate of Industries, Trade and Commerce was final and binding.

Required Paperwork

  • Aadhaar Card
  • PAN Card
  • Income Certificate
  • Residence Proof (Domicile)

Common Questions

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 to receive financial incentives under the scheme.

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 cleared by the High Powered Co-ordination Committee or any other authorized committee to qualify.

What types of enterprises were covered under the scheme?

The scheme covered Micro, Small, and Medium Enterprises as defined under the Micro, Small, and Medium Enterprises Development Act.

What was the minimum percentage of local raw material consumption required for eligibility?

A unit had to consume a minimum of 50% of its raw material (in value) from local sources to be eligible for benefits under the scheme.

How were benefits calculated for units consuming 50% local raw materials?

Units consuming 50% local raw materials were eligible for benefits on a pro-rata basis, while those consuming 60% or more received 100% of the benefits.

What was considered as local raw material under the scheme?

Local raw material included materials manufactured in approved industrial units in Goa or materials mined or produced in Goa, such as agricultural produce, marine produce, and minerals.

What documentation was required to prove the use of local raw materials?

Applicants had to submit self-certified copies of bills of purchase and documentary evidence proving the raw materials were locally produced or mined.

What financial incentives were provided for Sales Tax reimbursement?

Eligible units could receive reimbursement of up to 90% of the Sales Tax paid, based on the proportion of local raw materials consumed.

What subsidies were available for power and water bills under the scheme?

A 25% subsidy was provided on the total expenditure incurred on power and water tariffs, subject to a maximum of [?]2,00,000/- per annum.

How was the subsidy on power and water bills calculated?

The subsidy was calculated based on the proportion of local raw materials consumed by the unit.

What was the deadline for submitting applications under the scheme?

Applications for the financial year had to be submitted by 30th September, and no claims were entertained after this date.

How were applications scrutinized and processed under the scheme?

Applications were scrutinized by the Directorate of Industries, Trade and Commerce and a Task Force Committee, with benefits recommended within three months.

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

The maximum subsidy a unit could receive annually was [?]2,00,000/- for power and water bills.

How were monthly water and electricity bills verified under the scheme?

Applicants had to submit photocopies of monthly water and electricity bills from April to March, along with proof of payment.