Incentives to Encourage Consumption of Local Raw Material Scheme, 2008

Incentives to Encourage Consumption of Local Raw Material Scheme (स्थानीय कच्चे माल के उपभोग को प्रोत्साहन योजना), 2008

The “Incentives to Encourage Consumption of Local Raw Material Scheme” was introduced by the Government of Goa to bolster local manufacturing and enhance village economies through the use of locally sourced raw materials. This initiative primarily targets Micro, Small, and Medium Enterprises (MSMEs), providing them with substantial financial benefits such as Sales Tax reimbursement and subsidies on utility bills.

Overview of the Scheme

Initiated in 2008 by the Directorate of Industries, Trade and Commerce, Government of Goa, this scheme sought to stimulate the utilization of local raw materials. The objective was to support local manufacturing units and bolster the economies of villages that produce or supply these materials, particularly in sectors like horticulture, food processing, and cluster businesses. Financial incentives under this scheme included a reimbursement of up to 90% of the Sales Tax paid and a 25% subsidy on annual power and water bills, contingent upon certain eligibility criteria. This scheme was operational until March 31, 2011, and targeted MSMEs that utilized at least 50% of local raw materials in their production processes.

Key Benefits

• Sales Tax Reimbursement: Up to 90% of the Sales Tax paid by the unit, based on the amount of local raw material consumed.
• Subsidy on Power and Water Bills: A 25% subsidy on the total expenses related to power and water tariffs, with a maximum cap of ₹2,00,000 per annum, depending on the proportion of local raw materials utilized.

Eligibility Criteria

To qualify for the benefits under this scheme, applicants must meet the following criteria:

• The unit must have commenced production on or after August 6, 2008.
• Only enterprises categorized under green and specified orange categories are eligible.
• The unit must be permanently registered with the Directorate of Industries, Trade and Commerce or approved by the High Powered Co-ordination Committee (HPCC) or any authority set up for investment clearance in the State.
• This scheme is specifically applicable to Micro, Small, and Medium Enterprises as defined under the MSMED Act.
• The unit must consume at least 50% of its raw materials (in value) from local sources to qualify for pro-rata benefits; those consuming 60% or more will be considered for 100% benefits.

For the purposes of the scheme, local raw materials are defined as:

• Materials manufactured in an approved industrial unit (Micro, Small, or Medium Enterprises, as well as Large Units) within Goa.
• Materials mined or produced in Goa, including agricultural products, marine resources, minerals, and ores.

Beneficiaries must provide documentary proof that the materials were locally sourced. The interpretation of the definitions of local raw materials will be determined by the Director of the Directorate of Industries, Trade and Commerce, whose decision will be final.

Application Process

Offline Application Steps

• Step 1: Obtain the prescribed proforma from the Directorate of Industries, Trade and Commerce, or download it from the official website.
• Step 2: Print and complete the form, including a passport-sized photograph and self-attested copies of required documents.
• Step 3: Submit the completed application along with the necessary documents to the Director of Industries, Trade and Commerce for eligibility verification.

Deadline: Applications must be submitted by September 30th of the financial year. Late submissions will not be considered.

Post-Application Procedures

• On the first working day following the application deadline, the Directorate will display a list of claimants on its notice board and forward a copy to the Government.
• The Director will review and process the application within three months, with a Task Force Committee making recommendations for benefits. Dues will be confirmed by the Directorate with relevant departments within 60 days prior to disbursement.
• Once approved, the eligible units will receive benefits as outlined in the scheme, including Sales Tax reimbursements and subsidies on utility bills.

For further details, please visit the official page at myScheme.gov.in.