Special Incentive Allowance Scheme — Up to ₹2 Cr for Goa IT Units
Goa's Special Incentive Allowance Scheme pays IT units operating in the state a performance-linked subsidy of ₹50 lakh to ₹2 crore, released once after every three-year cycle.
- Funding amount
- ₹50L – ₹2Cr (subsidy)
- Funding type
- Subsidy
- Provider
- Department of Information Technology, Government of Goa (Government)
- Application deadline
- Rolling
- Eligible stage
- Any stage
- Location
- Open to startups registered in India
Overview
The Special Incentive Allowance Scheme is a subsidy window under Goa's Information Technology Policy, administered by the Department of Information Technology, Government of Goa. It was introduced in 2018 as one of the Information Technology Policy Schemes, with the stated aim of establishing Goa as a leading geographical and human resource hub for IT units — pulling in fresh investment and helping businesses already in the state expand.
The payout is performance-linked rather than a flat grant. A unit is measured against growth and employment benchmarks across a three-year cycle, and the allowance is released in a single instalment once that cycle closes. Smaller Business Units can receive up to ₹50 lakh, Other Business Units up to ₹1 crore, and Mega Business Units up to ₹2 crore.
Qualifying once does not guarantee payment. Every award is subject to an annual evaluation, and disbursement also depends on the budget the department has available for the scheme.
Highlights
- Allowance of up to ₹2 crore for Mega Business Units, ₹1 crore for Other Business Units and ₹50 lakh for Smaller Business Units
- Open to both new and existing IT units operating in Goa
- Paid once after each three-year cycle, not annually
- Tied to growth and employment benchmarks: 20% annual growth, 75% Goan employees, 60% female employees, full Goan employee certification and a quality certification
- Aadhaar-linked bank accounts of the unit, partners or directors are mandatory
- Rolling window — there is no fixed last date to apply
Who can apply
New and existing IT units with operations in Goa can apply under this scheme.
- The applicant must be a proprietorship firm, a private limited company, a public limited company, a registered partnership firm, or a limited liability partnership.
- Bank accounts held by the unit, or by its partners or directors, must be linked to Aadhaar.
Beyond registration, the unit has to clear a performance test measured across a three-year period:
- Annual growth of 20% or more
- Goan residents making up at least 75% of the workforce
- Women making up at least 60% of the workforce
- Certification covering all Goan employees
- Holding one or more quality certifications
Because these thresholds are assessed over three years and reviewed each financial year, units should be able to back them up with records rather than only at the time of applying.
Special Incentive Allowance Scheme — Up to ₹2 Cr for Goa IT Units is open to startups at any stage. It is open to startups registered anywhere in India.
- Eligible stage
- Any stage
- Location
- Open to startups registered in India
Deadline & timing
Special Incentive Allowance Scheme — Up to ₹2 Cr for Goa IT Units accepts applications on a rolling basis — there is no fixed cut-off date, so eligible startups can apply at any time. Because rolling programmes can pause without notice, confirm the window is still open on the official site before you start.
What the funding covers
The scheme pays a cash allowance, and the ceiling depends on the category the unit falls into:
- Smaller Business Units: a maximum of ₹50 lakh
- Other Business Units: a maximum of ₹1 crore
- Mega Business Units: a maximum of ₹2 crore
The allowance is not an annual payout. It is released once at the close of each three-year period, so a unit that clears the growth and employment benchmarks for that cycle receives a single consolidated amount.
Two conditions sit on top of the entitlement. Each award is subject to annual evaluation, and funds are released within the department's budgetary allocation.
The money is intended to offset operational expenditure and support expansion, helping IT companies in Goa grow and create employment within the state.
About the provider
Special Incentive Allowance Scheme — Up to ₹2 Cr for Goa IT Units is offered by Department of Information Technology, Government of Goa, a government body. As a government-backed subsidy, it is publicly funded and open to eligible startups across India.
How to apply
Applications are submitted on the . Confirm the current deadline and document checklist there before you start.
Selection process
Applications are scrutinised against a defined checklist, and this initial screening is completed within 30 days of the application being received.
Applications that clear the checklist are then forwarded to an Empowered Committee for approval. The committee stage typically takes up to 60 days from the date the application was received.
Once a decision is made, the department issues either a sanction order or a letter of regret. Where a sanction order is granted, the allowance is released within 90 days.
Receiving the allowance is not the end of the assessment. A unit is reviewed annually at the close of each fiscal year to confirm it still satisfies the criteria and remains eligible for the subsidy.
Documents you’ll need
Before you apply to Special Incentive Allowance Scheme — Up to ₹2 Cr for Goa IT Units, keep the following documents ready:
- A pitch deck or short business plan describing the problem, product and traction
- Company registration documents and PAN
- Founder identification (PAN / Aadhaar) and brief profiles
- Recent financial statements or projections
- Product details — a demo, prototype or working link if available
Exact requirements are confirmed on the official application portal — treat this as a preparation checklist.
Who this is best for
Special Incentive Allowance Scheme — Up to ₹2 Cr for Goa IT Units is best suited for startups in India seeking non-dilutive funding of ₹50L – ₹2Cr. If that describes your startup, review the eligibility criteria above before applying.
Frequently asked questions
How much funding can an IT unit get under this scheme?
The amount depends on the size category of your unit. Smaller Business Units can receive up to ₹50 lakh, Other Business Units up to ₹1 crore, and Mega Business Units up to ₹2 crore. The figure is a ceiling, and payment is also subject to annual evaluation and the department's budgetary allocation.
Who is eligible to apply for the Special Incentive Allowance Scheme?
Your unit must be an IT business operating in Goa, and it can be either newly set up or already running. It also needs to be a registered entity — a proprietorship firm, private limited company, public limited company, registered partnership firm, or LLP — with the bank accounts of the unit, its partners or its directors linked to Aadhaar.
Is there a deadline to apply?
No. The scheme runs on a rolling basis with no fixed last date. Applicants are allowed to apply quarterly, half-yearly or yearly, after the relevant expenditure has been incurred.
What performance criteria does a unit have to meet?
Across a three-year period, your unit must show annual growth of 20% or more, Goan residents forming at least 75% of your workforce, women forming at least 60% of the workforce, certification for every Goan employee, and at least one quality certification. These are checked over the full three-year window rather than at a single point in time.
When is the allowance actually paid out?
It is released once at the close of each three-year period, not every year. After a sanction order is issued, the funds are disbursed within 90 days.
Does the scheme take equity in my company?
No. This is a cash subsidy from the Goa government, not an investment, so it is non-dilutive — the department does not take a stake in your business in return for the allowance.
How long does the approval process take?
The first-level scrutiny against the checklist is done within 30 days of your application being received. It then goes to the Empowered Committee, which usually takes up to 60 days from the date of receipt. You are then issued either a sanction order or a regret letter, and sanctioned amounts are paid within 90 days.
Do I have to keep proving eligibility after I get the money?
Yes. Every unit is evaluated annually at the close of each fiscal year to confirm it still meets the criteria and continues to qualify for the subsidy under the scheme.
How do I apply for this scheme?
Applications are made online through the Goa Online portal at goaonline.gov.in. You register with your email and mobile number using OTP verification, create a login name and password, accept the declaration and terms, and log in. From the top ribbon select Services, then IT Services, and click the scheme name to open the application form. Fill in all mandatory fields, upload the required documents and submit — you will receive a unique registration number for future reference. Detailed scheme provisions are set out in the government's IT Policy Schemes document at https://www.goa.gov.in/wp-content/uploads/2020/08/ITPolicySchemes2018.pdf.
Is DPIIT recognition required for Special Incentive Allowance Scheme — Up to ₹2 Cr for Goa IT Units?
No. DPIIT (Startup India) recognition is not listed as a mandatory requirement for Special Incentive Allowance Scheme — Up to ₹2 Cr for Goa IT Units, though having it can strengthen your application and unlock other benefits.
Who offers Special Incentive Allowance Scheme — Up to ₹2 Cr for Goa IT Units?
Special Incentive Allowance Scheme — Up to ₹2 Cr for Goa IT Units is offered by Department of Information Technology, Government of Goa, a government body. It is provided as non-dilutive funding.
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