Government of Goa through Industries Department provides number of incentives for setting up and running of industries to generate employment, in the form of capital contribution; loan interest subsidy; for consumption of local materials as raw materials; medi-claim facilities to employees; interest free export loans; reduction in stamp duty; special preference on government purchases for local small scale industries; subsidy for employment of local youth; low rate interest loans under Chief Ministers Rozgar Yojana and many others.
However, many eligible entrepreneurs fail to take benefit of these very useful schemes either due lack of information or neglect in carrying out necessary compliance requirements. There is need for business, trade and industry associations and social organisations like Rotary, Lions, Jaycees and other organisations to conduct work-shops to educate young entrepreneurs about incentive Schemes and guide them in compliance requirements for availing these benefits.
I give below gist of some useful incentive schemes available for industrial entrepreneurs to set up units in Goa.
Chief Ministers Rozgar Yojana: Financial assistance upto maximum of Rs 15-20 lakh is available to unemployed persons who desire to start their own venture but lack proper financial assistance. Out of the total fund requirements, Government provides 50% by way of interest free share capital, 40% is granted by EDC by way of term loan at interest of 8% for males and 6% for females. Promoter has to contribute 10% as his share. Additional benefits are available to women/disabled/ OBC/ SC/ST promoters.
Incentive for consumption of local materials: To encourage consumption of locally manufactured goods as raw materials in their manufacturing unit and also to encourage rural areas to produce such raw materials this subsidy is granted. Out of the total raw material requirements, 50-60% should be from local sources. The eligible unit gets subsidy of 90% of VAT paid subject to maximum of Rs 10 lakh per anum; 25% subsidy on total expenditure incurred on electricity and water bills subject to maximum of Rs 2 lakh per anum.
Employment Subsidy: To encourage employment of local youths, subsidy is given for employees with salary less than Rs 10,000 per month subject to maximum of Rs 6 lakh per anum for SSI units and Rs 12 lack to medium and large scale units for a period up to 5 years. To avail this subsidy, 80% of the permanent employees should be local youth. Subsidy available per employee is Rs 6,000 per month or actual salary whichever less.
Plots on Long term lease basis: Goa IDC has established over 22 industrial estates in different parts of Goa. Plots ranging from 600 square meters to 20,000 square meters are available either for long term lease or sale. These plots can either be acquired on long term lease basis upto 90 years or can be purchased in seven annual installments.
Interest Subsidy Scheme: Micro and small enterprises gets subsidy on interest payable to financial institutions at 1½ % of the total net turnover or 30% of the interest paid by the unit, whichever is less subject to a ceiling of Rs 5 lakh per anum.
Certification / Patenting Incentives: To provide benchmark in excellence, any existing or new unit is eligible to avail subsidy upto maximum Rs 2 lakh per unit to get certification by ISI and ISO or any other international certification or certification to get patent rights on products and processes.
Capital Contribution to Industries: Government provides interest free financial assistance up to Rs 1 crore repayable over a period of 5 years to local entrepreneurs to promote local industrial units in expanding and developing special products based on locally developed technology. For this, promoter has to contribute equal or more amount than the capital contribution by the Government.
Goa State Market Development Export Scheme: To support the Goan Industries, to establish their goods in foreign markets, interest free loan up to Rs 5 lakh is granted for participating in exhibitions outside India or for market study tour outside India.
ISO Certification: Industrial enterprises, hospitals, educational Institutions or co-operative banks or any other service sector can obtain ISO certification to provide a benchmark of excellence at Government cost. Expenditure upto Rs 2 lakh is reimbursed.
Incentives to Women Entrepreneurs: Women entrepreneurs get assistance in the form of 5% additional benefit under Local Employment Subsidy Scheme and preference in Capital Contribution Scheme. In case of Interest Subsidy Scheme, the prescribed limit of 1½ % turnover is increased to 2% and 30% of interest paid is increased to 35% subject to overall ceiling of Rs 8 lakh.
Environmental Management Certification: Micro, small and medium enterprises can obtain ISO 14000 Certificates. Hospitals, educational Institutions, co-operative or any other approved industry or enterprise gets financial assistance by way of reimbursement of expenditures incurred upto Rs 3 lakh.
Occupational Health and Safety Certification: For industries, hospitals, educational institutions, co-operative banks, government gives financial assistance upto Rs 3 lakh.
Credit Rating Certification: Financial institutions can get reimbursement of expenditure upto Rs 1 lakh/ 2 lakh for micro, small and medium enterprises.
Seed Capital Loans for Self-Help Groups: Self Help groups in non-farm sectors can avail a non-recurring grant of 50% of its project cost upto maximum of Rs 50,000.
Rehabilitation of Sick Industrial Units: Sick industrial units can get financial assistance and managerial assistance for re- scheduling of loans from financial institutions, relief and concession from electricity, commercial taxes and water supply department and also free managerial counseling.
Medi-claim Facilities: Regular employees in all sectors who are not covered under any medical scheme and whose salary does not exceed 1.5 lakh per anum is eligible for the benefit of the scheme.
Preferential Purchase Incentives for SSI’s: The SSI units with turnover less than 5 crore are eligible to get preference in purchases made by government departments and public sector undertakings within certain specified price difference limits.
Reduction on Stamp duty: The government remits 50% of the stamp Duty payable under the Stamp Act, 1899. This facility is available to SSI units for executing legal documents like hire purchase etc in respect of allotment of sheds and plots of Goa IDC.
Goan entrepreneurs should take benefits of these useful schemes after properly studying and complying required conditions.
