IECLRMS

"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.

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.

• 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.

• 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.