IEPLSS-GOA

Incentives To Encourage Purchases From Local Suppliers Scheme

6.2/10

The Incentives To Encourage Purchases From Local Suppliers Scheme is designed to bolster local economies in Goa by promoting consumption through local purchases. It specifically targets manufacturing units categorized as micro, small, or medium enterprises, which must source at least 50% of their inputs from local suppliers. Eligible businesses can receive a reimbursement of 2% on their local purchases, with a maximum benefit of ₹5,00,000 per year for up to five consecutive years. This initiative not only supports local Micro, Small and Medium Enterprises (MSMEs) but also encourages the growth of ancillary units and traders in the region. To qualify, applicants must be registered under the Goa State Incentives to Encourage Investments Scheme and must not have claimed similar benefits from other government programs. The scheme aims to enhance the sustainability and competitiveness of local businesses by ensuring they have the necessary financial support to thrive.

State Cash

States / UT: Goa

Nodal department: Commercial Taxes Department

Scheme for: Individual

Scheme profile

DBT (direct benefit transfer): No

Categories: Business & Entrepreneurship, Banking,Financial Services and Insurance

Sub-categories: Setting up / start-up / entrepreneurship, Sales of goods, services & data protection, Taxes

Target beneficiaries: Business Entity

Tags: Manufacturer, MSME, Enterprise, Horticulture, Subsidy, Incentive

Details

The scheme "Incentives To Encourage Purchases From Local Suppliers Scheme" was launched by the Directorate of Industries, Trade and Commerce (DITC), Government of Goa. The scheme aims to encourage consumption through local purchases and encourage economies of ancillary units, local Micro, Small and Medium Enterprises (MSMEs) as also traders including those in Horticulture business/Food Processing. The scheme provides reimbursement to the extent of 2% of the cost of local purchases consumed by the eligible unit, up to a maximum of ₹5,00,000/- per year, and the unit may avail benefit for five consecutive years from the date of first application. The applications for this scheme are accepted annually, requiring the unit to apply in the specified format after the closure of every financial year.

Benefits

  • - 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
  • 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.

Eligibility

  • 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.

Exclusions

The items listed in the (Schedule ‘A’) of the scheme guidelines shall not be considered eligible as “local raw material” for the purpose of this scheme:

  • Natural resources (e.g., water, air, and the like).
  • Major and Minor minerals (e.g., ore, sand, etc).
  • Alcoholic beverages.
  • Tobacco and tobacco products.

*The list given above is only indicative, not exhaustive.

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.

6.2
/ 10
Public Benefit Score
Accessibility 5.0/10 Moderate
Rural usefulness 6.0/10 Moderate
Application complexity 5.0/10 Moderate
Financial impact 9.5/10 Good
Literacy barrier 2.0/10 Good
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
  • Accessibility5.0
  • Financial impact9.5
  • Rural utility6.0
  • Awareness4.5
  • Simplicity5.0
  • Inclusivity5.0

What problem does this scheme solve?

The scheme provides financial incentives to local manufacturing units in Goa, promoting local sourcing and supporting MSMEs.

Key challenges addressed

  • Encourages local purchases
  • Supports local MSMEs and traders

Most beneficial for

  • Micro, small, and medium enterprises in Goa

Likely challenges

  • Complex application process
  • Need for continuous compliance and reporting

Practical insights for citizens

The scheme is practical for eligible businesses but may be underutilized due to awareness and application complexities.

Rural challenges

  • Limited awareness of the scheme
  • Access to application forms and submission points

Digital challenges

  • Low digital literacy among target beneficiaries
  • Limited online application options

Implementation bottlenecks

  • Potential delays in benefit disbursement
  • Strict eligibility criteria may exclude some applicants

Awareness challenges

  • Low outreach and communication about the scheme

Application analysis

Application mode
Offline office
Documents burden
Moderate, requires multiple documents and self-attestation
Verification complexity
Moderate, involves inspection and compliance checks
Office dependency
High, requires submission to DITC
DBT dependency
Low, not directly linked to DBT systems
CSC support
Limited, primarily offline
Estimated citizen effort
High, due to paperwork and compliance requirements

Estimated beneficiary reach

  • Rural / urban reach Moderate
  • Gender reach Moderate
  • Target income group Low to middle-income business entities
  • Occupation reach Manufacturing and trading sectors

Benefit analysis

Benefit type
Cash
Benefit frequency
Annual, for five consecutive years
Benefit practicality
Moderate, as it provides significant support but requires compliance
Financial meaningfulness
High, with a maximum benefit of ₹5,00,000 annually
Long-term impact
Positive, as it encourages sustainable local business practices

Plain-language guidance

This scheme helps local businesses in Goa by giving them cash back on purchases from local suppliers. Eligible manufacturing units can get 2% of their local purchase costs reimbursed each year.

Who should apply
Micro, small, and medium manufacturing units in Goa that source locally.
Who may struggle
First-time applicants and those unfamiliar with government processes.
Best application route
Apply via the Directorate of Industries, Trade and Commerce office 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 should take a printout of the prescribed format of the application form. Alternatively, the applicant can obtain the specified application form and the Affidavit cum Declaration format, typically provided by DITC or accessible via official channels.
Step 2: In the application form, fill in all the mandatory fields, and attach copies of all the mandatory documents (self-attest, if required).
Step 3: Submit the duly filled and signed application form along with the documents, within the prescribed period (if any), to the Directorate of Industries, Trade and Commerce. The application form must be signed by the authorized representative, dated, and sealed.
*The application must be filed after the closure of every financial year.

Benefit Disbursement

Following the review by DITC, and subject to budgetary allocation, the eligible unit shall be considered for reimbursement.

Grievance Redressal / Help & Support

Feedback/Comments on the Scheme may be sent on dir-indu.goa@nic.in with the subject "Feedback/Comments on Incentives to Encourage Purchases From Local Suppliers Scheme".

Clarifications

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

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.

References

Guidelines
https://www.goa.gov.in/wp-content/uploads/2019/07/Incentives-to-encourage-purchases-from-local-supplies-scheme-2017.pdf

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Frequently asked questions

What is the purpose of Incentives To Encourage Purchases From Local Suppliers Scheme?
Incentives To Encourage Purchases From Local Suppliers Scheme is a government welfare initiative designed to support Individual, 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 Purchases From Local Suppliers Scheme?
Eligibility for Incentives To Encourage Purchases From Local Suppliers Scheme 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 Purchases From Local Suppliers Scheme?
Benefits under Incentives To Encourage Purchases From Local Suppliers Scheme 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 Purchases From Local Suppliers Scheme?
Incentives To Encourage Purchases From Local Suppliers Scheme 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 Purchases From Local Suppliers Scheme?
Yes, eligible applicants may be able to apply online for Incentives To Encourage Purchases From Local Suppliers Scheme through official government portals, authorised service centres, or digital application systems depending on the implementation process.
Is Aadhaar mandatory for Incentives To Encourage Purchases From Local Suppliers Scheme?
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 Purchases From Local Suppliers Scheme?
Applications for Incentives To Encourage Purchases From Local Suppliers Scheme 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 Purchases From Local Suppliers Scheme?
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 Purchases From Local Suppliers Scheme available in all states?
No, Incentives To Encourage Purchases From Local Suppliers Scheme 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 Purchases From Local Suppliers Scheme?
Eligibility for Incentives To Encourage Purchases From Local Suppliers Scheme is generally limited to residents of Goa unless otherwise specified in the official scheme guidelines.
Does Incentives To Encourage Purchases From Local Suppliers Scheme provide healthcare or insurance support?
Incentives To Encourage Purchases From Local Suppliers Scheme may provide healthcare assistance, insurance coverage, cashless treatment support, medical reimbursement, or hospital-related benefits depending on the scheme structure.
Can beneficiaries use Incentives To Encourage Purchases From Local Suppliers Scheme at government hospitals?
Eligible beneficiaries may be able to access services at empanelled hospitals, government healthcare facilities, or authorised healthcare providers depending on scheme participation rules.
Does Incentives To Encourage Purchases From Local Suppliers Scheme provide business loan or startup assistance?
Incentives To Encourage Purchases From Local Suppliers Scheme 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 Purchases From Local Suppliers Scheme?
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 Purchases From Local Suppliers Scheme?
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 Purchases From Local Suppliers Scheme?
Users should verify official notifications, department announcements, application deadlines, and eligibility updates through authorised government portals or implementing agencies.
Can beneficiaries track application status for Incentives To Encourage Purchases From Local Suppliers Scheme?
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 Purchases From Local Suppliers Scheme 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 Purchases From Local Suppliers Scheme 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.