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Incentives to Encourage Consumption of Local Raw Material Scheme, 2008

IECLRMS

2026 โœ“๐Ÿ“ˆ BusinessLaunched: 2009๐Ÿ–๏ธ Goa

Published: Oct 2026

7 min read

Published by Navin, Editor · First published: 15 Oct 2026

Incentives to Encourage Consumption of Local Raw Material Scheme, 2008
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Published by Navin · Editor, tsmpb.inUpdated: 17 Oct 2026 · Text from the official listing, not yet reviewed · How we prepare pages

About this business scheme

"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.

Benefits at a glance

Scheme nameIncentives to Encourage Consumption of Local Raw Material Scheme, 2008 (IECLRMS)
Launched byCommercial Taxes Department
Launch year2009
Benefit typeCash (money paid to your bank account)
CategoryBusiness
Level / StateState ยท Goa
Official portalditc.goa.gov.in (link at the end of this page)

Key facts

Scheme forInfra
Application modeOffline
Last dateNot given in the official listing
DBT (direct bank transfer)No
Age18 to 80 years

Who can apply (quick check)

  • ๐Ÿ‘คAll genders
  • ๐ŸŽ‚Age 18 to 80 years
  • ๐Ÿ“Offline

Quick check from official data. Full conditions are in the Eligibility section.

What you receive

  • 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 Rs. 2,00,000/- per annum, as per the proportion of local raw material consumed.

Who qualifies

  • 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.

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Registration walkthrough

Offline

Step 1: The interested applicant had to obtain the specified proforma from the Directorate of Industries, Trade and Commerce. Alternatively, the prescribed format could also be downloaded from the official website of the Directorate.

Step 2: The applicant was required to take a print of the form, fill in all the mandatory fields, paste a passport-sized photograph, and attach copies of all the mandatory documents (self-attested, if required).

Step 3: The duly filled and signed application form, along with the documents, had to be submitted to the Director, Directorate of Industries, Trade and Commerce. The Director of Industries, Trade and Commerce would scrutinize the application and verify the eligibility of the unit.

Deadline: The applications for the financial year had to be submitted by 30th September. No claim was entertained after this date.

Post-Application Processes

Step 1: The Directorate of Industries, Trade and Commerce displayed the list of claimants under the Scheme on the notice board on the first working day after 30th September. A copy of this list was forwarded to the Government immediately.

Step 2: Upon receipt of the application, the Director of Industries, Trade and Commerce scrutinized and disposed of the application within three months. A Task Force Committee scrutinized and recommended the benefits. No dues were confirmed by the Directorate of Industries, Trade and Commerce with concerned departments under the deemed provision basis within 60 days before disbursement.

Step 3: Once approved, the eligible unit received the benefits as per the Scheme, including reimbursement of Sales Tax and subsidies on power and water bills.

Important dates

Launch / start15 Jan 2009

Frequently asked questions

What were the categories of units eligible for financial incentives under the scheme?

Only units classified under the green and specified orange categories were eligible to receive financial incentives under the scheme.

How did a unit qualify for permanent registration under the scheme?

A unit had to be permanently registered with the Directorate of Industries, Trade and Commerce or cleared by the High Powered Co-ordination Committee or any other authorized committee to qualify.

What types of enterprises were covered under the scheme?

The scheme covered Micro, Small, and Medium Enterprises as defined under the Micro, Small, and Medium Enterprises Development Act.

What was the minimum percentage of local raw material consumption required for eligibility?

A unit had to consume a minimum of 50% of its raw material (in value) from local sources to be eligible for benefits under the scheme.

How were benefits calculated for units consuming 50% local raw materials?

Units consuming 50% local raw materials were eligible for benefits on a pro-rata basis, while those consuming 60% or more received 100% of the benefits.

What was considered as local raw material under the scheme?

Local raw material included materials manufactured in approved industrial units in Goa or materials mined or produced in Goa, such as agricultural produce, marine produce, and minerals.

What documentation was required to prove the use of local raw materials?

Applicants had to submit self-certified copies of bills of purchase and documentary evidence proving the raw materials were locally produced or mined.

What financial incentives were provided for Sales Tax reimbursement?

Eligible units could receive reimbursement of up to 90% of the Sales Tax paid, based on the proportion of local raw materials consumed.

What subsidies were available for power and water bills under the scheme?

A 25% subsidy was provided on the total expenditure incurred on power and water tariffs, subject to a maximum of Rs. 2,00,000/- per annum.

How was the subsidy on power and water bills calculated?

The subsidy was calculated based on the proportion of local raw materials consumed by the unit.

What was the deadline for submitting applications under the scheme?

Applications for the financial year had to be submitted by 30th September, and no claims were entertained after this date.

How were applications scrutinized and processed under the scheme?

Applications were scrutinized by the Directorate of Industries, Trade and Commerce and a Task Force Committee, with benefits recommended within three months.

What was the maximum subsidy amount a unit could receive annually?

The maximum subsidy a unit could receive annually was Rs. 2,00,000/- for power and water bills.

How were monthly water and electricity bills verified under the scheme?

Applicants had to submit photocopies of monthly water and electricity bills from April to March, along with proof of payment.

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