Goa Local Raw Material Scheme 2008 — MSME Subsidy Up to ₹2L
A historic Goa government subsidy that reimbursed up to 90% of Sales Tax and paid 25% of power and water bills for MSMEs buying at least half their raw material inside the state.
- Funding amount
- ₹2L (subsidy)
- Funding type
- Subsidy
- Provider
- Directorate of Industries, Trade and Commerce, Government of Goa (Government)
- Application deadline
- Rolling
- Eligible stage
- Any stage
- Location
- Open to startups registered in India
Overview
The Incentives to Encourage Consumption of Local Raw Material Scheme came into being in 2008 under the Directorate of Industries, Trade and Commerce, Government of Goa. It was a state subsidy built around a single behavioural ask: manufacture using inputs sourced from within Goa rather than from outside it.
The policy had two ends in view. One was to keep Goa's own raw material producers busy — the units that manufacture, mine or otherwise produce inputs inside the state. The other was to put money back into the villages and rural areas that supply or produce those materials, spanning activities such as horticulture, food processing and various cluster businesses. Requiring a minimum of 50% local raw material consumption by value was the mechanism that tied the two together, with the broader aim of building a circular economy inside Goa and reducing dependence on external supply chains.
For the units that qualified, the scheme softened operating costs through Sales Tax reimbursement and a subsidy on power and water tariffs — support that was deliberately scaled to how much the unit sourced locally.
The programme did not run indefinitely. It stayed in force until 31 March 2011, after which it closed. It is therefore a historical programme that shaped Goan industrial policy, not a scheme a founder can apply to today.
Highlights
- Goa state subsidy scheme notified in 2008
- Up to 90% of Sales Tax paid reimbursed
- 25% power and water bill subsidy, capped at ₹2,00,000 per year
- Requires at least 50% of raw material by value sourced locally
- Open to green and specified orange category MSMEs only
- Closed on 31 March 2011 — a historic programme
Who can apply
A unit had to clear several filters at the same time to qualify.
- MSME status: it had to be a micro, small or medium scale enterprise as defined under the MSMED Act.
- Production start date: the unit must have gone into production on or after 6 August 2008.
- Pollution category: only units falling under the green category and the specified orange categories were covered.
- State registration: permanent registration with the Directorate of Industries, Trade and Commerce was necessary, or alternatively clearance from the High Powered Co-ordination Committee (HPCC).
- Local sourcing threshold: a minimum of 50% of raw material by value had to be bought from local sources. Once that floor was met, benefits were granted on a pro-rata basis.
- What counted as local: material manufactured in an approved industrial unit in Goa, or mined or produced within the State of Goa — agricultural, marine, mineral and ore-based inputs among them.
Goa Local Raw Material Scheme 2008 — MSME Subsidy Up to ₹2L 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
Goa Local Raw Material Scheme 2008 — MSME Subsidy Up to ₹2L 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
Support came in two forms, and both were linked to how much raw material the unit purchased locally.
- Sales Tax reimbursement: up to a maximum of 90% of the Sales Tax the unit had paid. The exact quantum depended on the proportion of local raw material consumed.
- Full benefit at 60% sourcing: a unit consuming 60% or more local raw material became eligible for 100% of that benefit.
- Power and water subsidy: 25% of the unit's total annual expenditure on power and water tariffs, subject to a ceiling of ₹2,00,000 per annum. This too was proportional to local raw material consumption.
Together these measures lowered running costs for MSMEs and made local sourcing the financially sensible choice, which in turn was intended to strengthen Goa's regional supply chain and keep the state's manufacturing spend circulating locally.
About the provider
Goa Local Raw Material Scheme 2008 — MSME Subsidy Up to ₹2L is offered by Directorate of Industries, Trade and Commerce, 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
Once the application window shut, a defined administrative sequence decided who was paid.
- Public list of claimants: on the first working day after 30 September, the Directorate of Industries, Trade and Commerce displayed a list of all claimants under the scheme on its notice board. A copy was forwarded to the Government immediately, creating a transparent public record of who had applied.
- Scrutiny and recommendation: the Director of Industries, Trade and Commerce was required to scrutinise and dispose of each application within three months of receipt. A dedicated Task Force Committee examined the applications closely and recommended the benefits that were due, checking conditions around local raw material consumption, unit category and documentation.
- Verification of dues: before any benefit was released, the Directorate confirmed that the unit had no outstanding dues with other concerned government departments, under deemed provision basis, within 60 days.
- Disbursement: after the Director and the Task Force Committee cleared the claim and the no-dues check was complete, the unit received its Sales Tax reimbursement and its power and water subsidy.
Documents you’ll need
Before you apply to Goa Local Raw Material Scheme 2008 — MSME Subsidy Up to ₹2L, 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
Goa Local Raw Material Scheme 2008 — MSME Subsidy Up to ₹2L is best suited for startups in India seeking non-dilutive funding of ₹2L. If that describes your startup, review the eligibility criteria above before applying.
Frequently asked questions
How much money did this scheme actually give a unit?
There were two components. The first was reimbursement of Sales Tax, capped at a maximum of 90% of the tax the unit had paid. The second was a subsidy covering 25% of the unit's annual power and water tariff expenditure, subject to a ceiling of ₹2,00,000 per annum. Both were scaled according to how much of the unit's raw material was sourced locally, and a unit consuming 60% or more local raw material could receive 100% of the available Sales Tax benefit.
Who was eligible to apply?
Only micro, small and medium scale enterprises as defined under the MSMED Act could apply. Beyond that, a unit had to have entered production on or after 6 August 2008, had to fall under the green category or the specified orange categories, and had to hold permanent registration with the Directorate of Industries, Trade and Commerce or be cleared by the High Powered Co-ordination Committee (HPCC).
How much of the raw material had to come from Goa?
At least 50% of the unit's raw material, measured by value, had to be sourced locally. Meeting that floor made the unit eligible on a pro-rata basis, meaning the benefits grew along with the local sourcing share. Material qualified as local if it was manufactured in an approved industrial unit in Goa or mined and produced within the state, including agricultural, marine, mineral and ore-based inputs.
What was the application deadline?
Applications for a given financial year had to be submitted by 30 September, and no claim was entertained after that cutoff. The scheme itself no longer accepts applications at all, since it ceased to operate after 31 March 2011, so there is no current deadline to work towards.
Is this scheme still running?
No. The scheme remained in force until 31 March 2011 and is now discontinued. It is best understood as a historic piece of Goan industrial policy rather than a live funding opportunity.
How did a unit apply?
The process was entirely offline. An applicant first obtained the prescribed application proforma, either directly from the Directorate of Industries, Trade and Commerce or by downloading it in the set format from the Directorate's official website. The form then had to be printed, filled in completely, and accompanied by a passport-sized photograph and the supporting documents. The signed form and self-attested papers were submitted to the Director, Directorate of Industries, Trade and Commerce, whose office carried out the initial scrutiny.
Which documents were typically needed?
The application required the completed proforma, a passport-sized photograph, proof of the unit's registration, evidence of local raw material consumption, and Sales Tax payment receipts. Any document that needed attestation had to be self-attested by the applicant.
Did the scheme take equity in the business?
No. This was a subsidy programme, not an investment one. The support came as Sales Tax reimbursement and a utility bill subsidy, both of which were non-dilutive — the government took no stake in the unit and the money did not have to be repaid.
Was DPIIT recognition needed to qualify?
The scheme's eligibility was anchored in MSME status under the MSMED Act and state-level registration with the Directorate of Industries, Trade and Commerce, or alternatively clearance by the High Powered Co-ordination Committee. Central DPIIT recognition did not form part of the stated criteria.
What happened after the application was submitted?
On the first working day after 30 September, the Directorate displayed the list of all claimants on its notice board and sent a copy to the Government. The Director then had three months from receipt to scrutinise and dispose of each application, with a Task Force Committee examining the papers and recommending the benefits due. Before disbursement, the Directorate confirmed within 60 days that the unit had no outstanding dues with other government departments. Only then were the reimbursements and subsidies released.
Why did the state run a scheme like this?
The objective was to keep Goa's manufacturing spend inside the state. By rewarding units that bought locally, the government sought to support the units producing raw material within Goa and to improve the economic conditions of villages and rural areas involved in supplying or producing those materials, including horticulture, food processing and cluster businesses.
Who offers Goa Local Raw Material Scheme 2008 — MSME Subsidy Up to ₹2L?
Goa Local Raw Material Scheme 2008 — MSME Subsidy Up to ₹2L is offered by Directorate of Industries, Trade and Commerce, Government of Goa, a government body. It is provided as non-dilutive funding.
How do I apply for Goa Local Raw Material Scheme 2008 — MSME Subsidy Up to ₹2L?
Apply directly through the official application link on this page. Review the eligibility criteria and prepare your startup documents before you begin.
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