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Business & Entrepreneurship; Banking,Financial Services and Insurance

Incentives To Encourage Purchases From Local Suppliers Scheme

The scheme aims to encourage consumption through local purchases and support the economies of ancillary units, local Micro, Small and Medium Enterprises, and traders. It provides a reimbursement of 2% (up to ₹5,00,000/- annually) on eligible local purchases to eligible manufacturing units in Goa.

Authority

State/ UT

Region

Goa

Status

Verified 2026

Updated

March 2026

What you get

- Reimbursement to the extent of 2% of the cost of local purchases consumed by the eligible unit. | - The maximum reimbursement is limited to ₹5,00,000/- per year. | Intended Use/Definition of Purchase | - The local purchases mean every industrial input, including consumables, purchased from Goa (whether manufactured in Goa or not) except service. | - The value excluding Goods and Services Tax (GST) shall be considered for the calculation. | Frequency and Validity | - The unit may avail benefit under this scheme for five consecutive years from the date of the first application. | Benefit Disbursement | - The benefits under this scheme are subject to budgetary allocation. | - No Promissory Estoppel shall be applicable if benefits are discontinued in case allocation is exceeded. | Conditions | - _The applicant shall allow and/or grant free access to any official authorized by the Directorate of Industries, Trade and Commerce for conducting inspection/supervision of the unit or the registers or holding discussions with the employed employees for ensuring proper utilisation of the financial incentives/subsidies granted by the State Government._ | - _The applicant shall time to time or as and when required submit to the Directorate of Industries, Trade and Commerce all the necessary reports, information and documents specified under the scheme or as required or directed by the Directorate of Industries, Trade and Commerce (DITC)._ | - _If it is found that the information and documents submitted are incorrect, or the financial incentive was obtained by misrepresenting facts or submitting furnishing false information, the Government of Goa/Directorate of Industries, Trade and Commerce shall revoke the subsidy._ | - _The applicant shall pay back to the government the financial incentives received, or the same shall be recoverable as arrears of land revenue under the provisions of the Land Revenue Code 1968 and/or the Goa, Daman, Diu Public (Recovery & Dues) Act 1986._ | - _In the event of breach of any of the terms and conditions of this Declaration, the Government shall be entitled to recover the said financial incentives as arrears of land revenue under the provisions of the Land Revenue Code 1968 and/or the Goa, Daman, Diu Public (Recovery & Dues) Act 1986._

Who can apply

The industrial unit must be under the white, green, or orange category.; The industrial unit must be a micro/small or medium manufacturing unit.; The applicant must purchase a minimum 50% (in value) of its raw material/ component/ tools etc. (input requirement for production) from local sources/ manufacturers.; The applicant must be registered under the Umbrella Scheme (Goa State Incentives to Encourage Investments Scheme).; The applicant must not have claimed similar benefit under any other scheme/program of the Government of Goa.

Required Paperwork

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

Common Questions

If my manufacturing input requirements involve components or materials related to tobacco, will those purchases count towards the local sourcing percentage?

Purchases involving tobacco and tobacco products are explicitly listed in the negative list (Schedule 'A') and are thus not considered eligible inputs for the purpose of the scheme calculation.

Is it necessary for the applicant unit to possess an existing registration under another comprehensive financial support framework to be considered eligible?

Yes, the scheme is governed by and requires the unit to be registered under the Goa State Incentives to Encourage Investments Scheme, 2017, also known as the Umbrella Scheme.

What specific pollution classification categories must my manufacturing facility fall under to qualify for financial incentives under this program?

Your manufacturing facility must be categorized specifically as a white, green, or orange category unit to meet the mandatory requirements of the scheme.

What is the maximum duration, in terms of years, that an eligible manufacturing unit is permitted to receive financial benefits under this particular program?

The eligible unit may avail the financial benefit under this scheme for a period of five consecutive years, starting from the date when the unit submits its first successful application.

Does the list of excluded items for calculating the required percentage include raw materials classified as major or minor mineral products?

Yes, major and minor minerals, such as ore or sand, are specifically excluded and shall not be considered eligible as local raw material for the purposes of this scheme.

Should I include the value of all purchased raw materials when calculating the minimum local procurement percentage required for meeting the eligibility threshold?

No, you should exclude the value of any items that are specifically listed in the designated 'negative list' (Schedule ‘A’) when calculating the required percentage of local purchases.

What is the minimum required scale of operation for a business, in terms of size classification, to be considered a viable applicant for these purchasing benefits?

The applicant must be categorized as a micro, small, or medium enterprise, and must be primarily operating as a manufacturing unit to qualify for the scheme benefits.

Am I required to submit ongoing documentation or reports to the Directorate of Industries, Trade and Commerce even after the initial application and sanction of the benefit?

Yes, you must submit all necessary reports, information, and documents specified under the scheme, or as required and directed by the Directorate of Industries, Trade and Commerce (DITC), from time to time.

Are purchases involving basic environmental inputs, such as resources like water or air, eligible to be counted toward the local purchase subsidy claim?

No, purchases of natural resources, which includes items such as water and air, are explicitly listed in the negative list and are therefore ineligible for the subsidy calculation.

If I have previously received, or am currently receiving, comparable financial assistance from another program offered by the Government of Goa, can I still apply?

The scheme is not applicable if you have already claimed or are receiving a similar financial benefit under any other scheme or program of the Government of Goa.

How exactly is the term "local purchases" defined for the purposes of calculating the reimbursement amount based on industrial inputs?

Local purchases encompass every industrial input, including consumables, purchased from within Goa, regardless of where the item was originally manufactured, but explicitly excludes any service.

When calculating the total cost of purchases eligible for reimbursement, should the calculation include the amounts paid for Goods and Services Tax?

No, for the specific purpose of calculating the subsidy, only the value of the purchase excluding the Goods and Services Tax (GST) shall be considered by the Directorate of Industries, Trade and Commerce.

If my manufacturing process involves components or materials related to alcoholic beverages, will those purchases count towards the local sourcing percentage?

No, items related to alcoholic beverages are listed in Schedule 'A' and are ineligible for inclusion when determining the total value of eligible local raw material purchases.

After receiving the financial incentive, what continuing obligation do I have regarding inspection of the unit or registers by the implementing authority?

You shall allow free access to any official authorized by the Directorate of Industries, Trade and Commerce for conducting inspection, supervision, or holding discussions to ensure proper utilization of the financial incentives granted.