GOA-IDC: The Nitty Gritty

INCENTIVES

(i) Goa offers innumerable advantages to investors in terms of social and physical infrastructure. In addition various incentives / subsidy schemes are already in operation.
(ii) To further boost investment in industrial sector, it is proposed to offer a host of incentives and investor friendly measures. These measures would not only provide a competitive advantage to State as an attractive investment destination but also sustain the long term presence of industries.
(iii) The proposals will be given concrete shape by finalizing appropriate schemes within a period of 9 days from the date of publication of the industrial Policy. The following incentives / subsidies and investor friendly measures are proposed:

A. EMPLOYMENT SUBSIDY
This subsidy is an innovative concept of supporting sustainable employment of local youth. The concept lays great stress on generation of employment and not on capital deployed. It also takes into consideration the fact that employment retained is employment created.

All manufacturing SSI units and specified categories in medium and large scale units including sick units under revival plan will be covered under the scheme.
The salient features of the scheme are:-
i) Subsidy would be applicable to employees of all SSI units and in specified categories of medium and large scale units whose gross salary is less than Rs.10,000/- per month while the actual benefit would be restricted to a maximum salary of Rs.6,000/- per month.
ii) There will be a ceiling under maximum subsidy with limits of RS. 6.00 lakhs per annum for SSI units and Rs. 12.00 lakhs per annum to medium and large scale units.
iii) Subsidy will be for a period of 5 years, in case of new units while for existing SSI units and sick units under revival plan, it would be ranging from 2 to 4 years as per criteria laid down.
iv) Subsidy ranges from 10% to 40% depending upon category, location of the unit, etc.
v) New units having 80% of local manpower employed amongst its permanent employees are eligible. However, existing units in SSI sectors and also sick units under revival plan would also be eligible for periods specified in the scheme.

B. CAPTIAL CONTRIBUTION SCHEME

This scheme is designed to support local entrepreneurs, promote industrial units to manufacture goods and also units in tourism sector, except hotels and resorts. The scheme would help the existing functional units to venture out and expand. The salient features will be:-
i) Maximum capital contribution of Rs.1.00 core per unit subject to the equal paid up share capital of the promoters. The restriction of share capital will not be applicable to the sick units and will be governed by norms laid down for individual units under revival plan.

ii) The capital contribution will be for a period of 5 to 10 years with guaranteed return of 6% annually.

iii) Preference will be given to units in SSI, R & D. Technology orientated and those run by women entrepreneurs.

iv) In order to be eligible under the scheme, the unit has to be in operation for a period of at least three years. This scheme is applicable only for Partnership firm and Private Ltd. firms, except those covered under sick unit revival policy.

v) The quantum of contribution under the scheme will be subject to budgetary provisions, except in case of sick units under revival plan. The applications which are not considered during the fiscal year shall lapse and fresh applications are required to be filed during the next financial year.

vi) However, in case of sick units under revival plan, the capital contribution will be subject to:-

a) The unit generates net revenue in VAT / ST to the Government;

b) The actual generation of net tax revenue during the preceding year.

The details for treatment of sick units will be spelt out in the package for sick units.

C. SHARE CAPITAL TO SELF EMPLOYED/LOCAL ENTREPRENEURS

The scheme envisages to encourage local youths born in Goa to start income Generation activities by providing share capital contribution for specified Activities. The salient features are:-

i) Maximum share capital contribution of Rs.2.00 lakhs in case of each individual with professional degree/diploma including ITI and Rs.1.00 lakh in case of individuals with non professional Qualifications. This would be subject to contribution not exceeding 50% of the total capital.

ii) Beneficiary shall be below 40 years of age to be eligible. However, In case of widow and disabled. Other Backward Class, Scheduled Caste, Scheduled Tribe, the age will be relaxed by 5 years.

iii) Group of persons can take benefit under the scheme up to the extent of Rs.10 lakhs subject to condition that the individual limit per head is not exceeded.

iv) The share capital should be paid back to the Government over a Period of 10 years.

v) Co-lateral security will not be consisted upon. Self guarantee by the applicant/parents will be sufficient.

D. INTEREST SUBSIDY SCHEME:

In an effort to boost economic growth in the State, it is proposed to provide Subsidy on interest payable. This will be a great incentive to the investor who could then invest more and seek better returns for himself and for the State.

i) The scheme will be applicable to new SSI and tiny units in manufacturing sector.

ii) Incentives will be to the extent of 11/2 % of the total net turn net over or 30% of the interest paid whichever is less subject to a ceiling of Rs. 5.00 lakh, per annum.

iii) The scheme is applicable in respect of working capital and term loans obtained from Nationalised Banks and other specified financial institutions for purpose of plant machinery required for the manufacturing. The scheme will not cover penal interest/default interest. The eligibility amount of loan shall be subject to parameters as deemed fit.

E. CERTIFICATION/ PATENTING INCENTIVE:

Units which obtain Certification / Accreditation by ISI & ISO or any other International Certification and /or patent right on products and / or processes, need to be specially encouraged. Such units provide a benchmark of excellence and serve as a model for others to emulate. Under the scheme, a subsidy will Be of maximum of Rs. 2.00 lakh per unit. The facility is available only once After permanent registration and all units existing or new are eligible.

F. SCHEME TO ENCOURAGE CONSUMPTION OF LOCAL RAW MATERIALS:

The scheme envisages encouraging consumption of raw materials by the Industrial units by offering incentives. The salient features of the scheme will be:-
i) Applicable to only units in specified categories.

ii) Minimum 30% of the value of raw material used should be from local sources.

iii) The benefit above 30% consumption will be proportionately higher.

iv) Incentives will be in the form of subsidy in power and water bills.

G. MEDICLAIM FACILITIES:

A healthy economic growth is directly linked to a healthy industrial atmosphere. And this in turn depends very much on the health of
The manpower that turns the wheels of growth. Appreciating this reality the policy document proposes mediclaim facilities to employees in all the sectors.
a) All employees those who are not covered under any other medical scheme such as ESI are eligible.

b) Employees drawing a gross salary not exceeding Rs.1.5 lakhs per annum, will qualify for this scheme.

c) The scheme is applicable to regular employees only. (contract / temporary employees shall not be covered).

d) Employees who shall wish to avail the benefits under the scheme will require to register with the designated Authority.

H. PREFERENTIAL PURCHASE INCENTIVES FOR SSIs:

At present the SSI units are given a price preference of 15% in purchases made by government Departments and Public undertakings. This is proposed to be replaced with a new scheme which will ensure protection to SSI’s.

The salient features of the scheme will be:-
i) Those manufacturing SSI units whose quotation is within 155 of the lowest quotation of non-SSI supplier will be allowed to match the lowest quotation and will be given preference for order.

ii) However, in case of contractual tenders involving supply and installation of goods manufactured by SSI’s pro-rata advantage over and above the lowest quotation will be granted.

iii) EMD to be payable by SSI’s will be fixed at a maximum of Rs.500/-

iv) The tender document cost will be fixed at a maximum of Rs.200/-

v) Priority in payment will also be ensured under this scheme so that SSI unit do not face liquidity crunch.

The SSI units having turn over limit not exceeding Rs.5.00 crores and registered in Goa with the Directorate of Industries, Trade & Commerce only are eligible for the benefits of the scheme.

I. INCENTIVES FOR WOMEN
In order encourage the employment opportunities for women and also to provide support to women entrepreneurs, the following benefits are proposed to be extended:-

i. 5% additional benefit under Local Employment Subsidy Scheme. This is over & above what is eligible under the Scheme.

ii. Priority in share Capital contribution and Special Capital Contribution Schemes.

iii. In case of Interest subsidy Scheme, prescribed limit of 11/2 % of turn over will be increased to 2% and 30 % of interest wil be increased to 35 however, subject to overall ceiling of Rs. 5.00 lakh.

J. EXPORT MARKET DEVELOPMENT SCHEME

Inorder to encourage Goan industry to improve export market financial assitance in the form of interest free loan upto to 5 lakhs repayable over 5 years will be granted provided the unit has been in operation for atleast five years, has Import/Export code and its turn over does not exceed 5 crores during preceeding 3 years.

K. EARLY BIRD OFER

Unit which would be set up within one year from the date of publication of the industrial policy will be considered for additional benefits under various incentives/subsidies. The additional incentives shall be detailed in the scheme

H) REDUCTION IN STAMP DUTY:
The Government is remitting 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 agreements, lease deed documents etc, in respect of allotment of sheds and plots by Goa IDC.

Core Information