IECLRMS

Incentives to Encourage Consumption of Local Raw Material Scheme, 2008

6.0/10

"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.

State Cash

States / UT: Goa

Nodal department: Commercial Taxes Department

Scheme for: Infra

Scheme profile

DBT (direct benefit transfer): No

Scheme open date: 2009-01-15

Categories: Business & Entrepreneurship

Sub-categories: Setting up / start-up / entrepreneurship, Waste and environmental impact

Target beneficiaries: Business Entity

Tags: Incentive, MSME, Industry, Manufacturing, Business

Details

Launched in 2008, the scheme "Incentives to Encourage Consumption of Local Raw Material Scheme, 2008" by the Directorate of Industries, Trade and Commerce, Government of Goa aimed to encourage the consumption of local raw materials, thereby supporting units manufacturing such materials and promoting the economies of villages supplying or producing these raw materials, including those in horticulture, food processing, and cluster businesses. The scheme provided financial incentives such as reimbursement of up to 90% of Sales Tax paid and a 25% subsidy on power and water bills, subject to certain conditions. Eligible units included Micro, Small, and Medium Enterprises (MSMEs) under the green and specified orange categories, which consumed a minimum of 50% local raw materials. The scheme was implemented by the Directorate of Industries, Trade and Commerce, Government of Goa. The scheme remained in force until 31st March, 2011.

Benefits

  • - 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
  • 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.

Eligibility

  • 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:

(a) Material, which was manufactured in an approved industrial unit (Micro and Small Enterprises, Medium, Large Unit) in the State of Goa.
(b) Material, which was mined or produced in the State of Goa (for example, agricultural produce, marine produce, mineral and ore, etc.).

  • 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.

How useful is this scheme?

Public benefit analysis

A practical look at this scheme for citizens

AI-generated insights showing how useful, accessible, and practical this scheme may be — combining deterministic scoring rules with a public-policy LLM analyst.

6.0
/ 10
Public Benefit Score
Accessibility 6.0/10 Moderate
Rural usefulness 6.0/10 Moderate
Application complexity 8.0/10 Challenging
Financial impact 9.0/10 Good
Literacy barrier 6.0/10 Moderate
Women inclusivity 5.0/10 Moderate
Awareness 4.5/10 Moderate
Implementation reliability 7.0/10 Good
Bigger shape means a better fit for citizens
  • Accessibility6.0
  • Financial impact9.0
  • Rural utility6.0
  • Awareness4.5
  • Simplicity2.0
  • Inclusivity5.0

What problem does this scheme solve?

The scheme provides significant incentives for local businesses to utilize local raw materials, promoting economic growth in rural areas.

Key challenges addressed

  • Encourages local manufacturing
  • Supports village economies
  • Reduces dependency on imported materials

Most beneficial for

  • Micro, Small, and Medium Enterprises (MSMEs)
  • Local manufacturers
  • Businesses using local raw materials

Likely challenges

  • Complex application process
  • Limited awareness among potential beneficiaries
  • Eligibility criteria may exclude some businesses

Practical insights for citizens

The scheme is practical for eligible businesses but may be underutilized due to complexity and lack of awareness.

Rural challenges

  • Limited access to information about the scheme
  • Transportation issues to reach application offices

Digital challenges

  • Low digital literacy among target beneficiaries
  • Limited online resources for application

Implementation bottlenecks

  • Delays in application processing
  • Verification challenges

Awareness challenges

  • Low awareness of the scheme among potential beneficiaries
  • Limited outreach efforts by the government

Application analysis

Application mode
Offline office
Documents burden
Moderate, requires several documents for proof of eligibility
Verification complexity
Moderate, involves scrutiny by the Directorate
Office dependency
High, requires physical submission
DBT dependency
None
CSC support
Limited
Estimated citizen effort
High, due to multiple steps in the application process

Estimated beneficiary reach

  • Rural / urban reach Moderate
  • Gender reach Moderate
  • Target income group Low to middle-income business owners
  • Occupation reach Business owners in manufacturing and agriculture

Benefit analysis

Benefit type
Cash
Benefit frequency
Annual
Benefit practicality
High, as it provides significant financial support
Financial meaningfulness
High, especially for small businesses relying on local materials
Long-term impact
Positive, as it encourages sustainable local production and economic growth

Plain-language guidance

This scheme helps local businesses in Goa by providing cash incentives for using local raw materials. It supports small manufacturers and promotes village economies.

Who should apply
Micro, Small, and Medium Enterprises that use local raw materials.
Who may struggle
First-time applicants and those unfamiliar with the application process.
Best application route
Apply directly at the Directorate of Industries, Trade and Commerce in Goa.

This intelligence section is generated by an AI policy analyst combined with rule-based scoring. Scores and narrative are estimates derived from the publicly available scheme information shown on this page; actual experience may vary by state, district, and department. Always confirm details on the official portal before you apply.

Application Process

Offline

Step 1: The interested applicant had to obtain the specified proforma from the Directorate of Industries, Trade and Commerce. Alternatively, the prescribed format could also be downloaded from the official website of the Directorate.
Step 2: The applicant was required to take a print of the form, fill in all the mandatory fields, paste a passport-sized photograph, and attach copies of all the mandatory documents (self-attested, if required).
Step 3: The duly filled and signed application form, along with the documents, had to be submitted to the Director, Directorate of Industries, Trade and Commerce. The Director of Industries, Trade and Commerce would scrutinize the application and verify the eligibility of the unit.
Deadline: The applications for the financial year had to be submitted by 30th September. No claim was entertained after this date.

Post-Application Processes

Step 1: The Directorate of Industries, Trade and Commerce displayed the list of claimants under the Scheme on the notice board on the first working day after 30th September. A copy of this list was forwarded to the Government immediately.
Step 2: Upon receipt of the application, the Director of Industries, Trade and Commerce scrutinized and disposed of the application within three months. A Task Force Committee scrutinized and recommended the benefits. No dues were confirmed by the Directorate of Industries, Trade and Commerce with concerned departments under the deemed provision basis within 60 days before disbursement.
Step 3: Once approved, the eligible unit received the benefits as per the Scheme, including reimbursement of Sales Tax and subsidies on power and water bills.

Clarifications

Additional points from the scheme information published on myScheme (not legal advice).

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.

References

Guidelines (Page No. 7)
https://ditc.goa.gov.in/sites/default/files/Preferential-Purchase-Incentives-for-Micro-and-Small-Enterprises.pdf

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Frequently asked questions

What is the purpose of Incentives to Encourage Consumption of Local Raw Material Scheme, 2008?
Incentives to Encourage Consumption of Local Raw Material Scheme, 2008 is a government welfare initiative designed to support Infra, Business Entity through benefits related to Business & Entrepreneurship, financial assistance, subsidies, social welfare, healthcare, education, or livelihood support.
Who can apply for Incentives to Encourage Consumption of Local Raw Material Scheme, 2008?
Eligibility for Incentives to Encourage Consumption of Local Raw Material Scheme, 2008 may depend on factors such as income category, age, gender, occupation, state of residence, social category, and government-defined beneficiary criteria.
What benefits are offered under Incentives to Encourage Consumption of Local Raw Material Scheme, 2008?
Benefits under Incentives to Encourage Consumption of Local Raw Material Scheme, 2008 may include financial assistance, subsidies, scholarships, insurance support, healthcare benefits, pension support, training assistance, or welfare services depending on the scheme guidelines.
Which department manages Incentives to Encourage Consumption of Local Raw Material Scheme, 2008?
Incentives to Encourage Consumption of Local Raw Material Scheme, 2008 is managed by Commercial Taxes Department and may be implemented through district offices, online portals, CSC centres, banks, or authorised government agencies.
Can users apply online for Incentives to Encourage Consumption of Local Raw Material Scheme, 2008?
Yes, eligible applicants may be able to apply online for Incentives to Encourage Consumption of Local Raw Material Scheme, 2008 through official government portals, authorised service centres, or digital application systems depending on the implementation process.
Is Aadhaar mandatory for Incentives to Encourage Consumption of Local Raw Material Scheme, 2008?
Many government schemes may require Aadhaar verification, identity proof, or linked bank account details for beneficiary validation and direct benefit transfer processing.
Where can users apply for Incentives to Encourage Consumption of Local Raw Material Scheme, 2008?
Applications for Incentives to Encourage Consumption of Local Raw Material Scheme, 2008 may be submitted through government departments, official scheme portals, CSC centres, district offices, welfare departments, or authorised service centres.
What documents may be required for Incentives to Encourage Consumption of Local Raw Material Scheme, 2008?
Applicants may need Aadhaar card, income certificate, residence proof, bank account details, caste certificate, photographs, educational records, or occupation-related documents depending on scheme eligibility requirements.
Is Incentives to Encourage Consumption of Local Raw Material Scheme, 2008 available in all states?
No, Incentives to Encourage Consumption of Local Raw Material Scheme, 2008 is primarily available for eligible residents of Goa and may be implemented through state government departments and local administrative offices.
Can residents outside Goa apply for Incentives to Encourage Consumption of Local Raw Material Scheme, 2008?
Eligibility for Incentives to Encourage Consumption of Local Raw Material Scheme, 2008 is generally limited to residents of Goa unless otherwise specified in the official scheme guidelines.
Does Incentives to Encourage Consumption of Local Raw Material Scheme, 2008 provide business loan or startup assistance?
Incentives to Encourage Consumption of Local Raw Material Scheme, 2008 may support entrepreneurs, startups, self-employed individuals, MSMEs, or small businesses through financial assistance, subsidies, credit support, or training initiatives.
Is collateral required under Incentives to Encourage Consumption of Local Raw Material Scheme, 2008?
Collateral requirements may vary depending on the loan amount, implementing agency, financial institution, and government subsidy structure.
Can CSC centres help users apply for Incentives to Encourage Consumption of Local Raw Material Scheme, 2008?
Many government schemes may be accessible through nearby CSC centres, authorised digital service centres, or welfare facilitation offices.
How can users check the latest updates for Incentives to Encourage Consumption of Local Raw Material Scheme, 2008?
Users should verify official notifications, department announcements, application deadlines, and eligibility updates through authorised government portals or implementing agencies.
Are there deadlines for applying to Incentives to Encourage Consumption of Local Raw Material Scheme, 2008?
Some schemes may operate through fixed application windows, annual registration cycles, or department-specific deadlines depending on scheme implementation policies.
Can beneficiaries track application status for Incentives to Encourage Consumption of Local Raw Material Scheme, 2008?
Certain schemes may provide online application tracking, beneficiary verification systems, or status-check facilities through official portals.
Where can users get help for Incentives to Encourage Consumption of Local Raw Material Scheme, 2008 in Goa?
Users in Goa may seek assistance through CSC centres, district welfare offices, government departments, agriculture offices, social welfare departments, or authorised facilitation centres.
Which nearby public services may help with Incentives to Encourage Consumption of Local Raw Material Scheme, 2008 applications?
Depending on the scheme, users may require support from Aadhaar centres, CSC centres, banks, hospitals, post offices, or government welfare offices for document verification and application assistance.