GOVERNMENT OF GOA
Department of Industries, Trade & Commerce
Notification
1/49/2000/S(IND)/Vol. II
INDUSTRIAL POLICY OF GOA 2003
1. INTRODUCTION
1.1 At the time of Liberation in 1961, there were hardly any industrial activities in
Goa with the exception of mining. Contributing to this was that the State had lost out
on two FiveYear Plans that had provided the rest of the Country a valuable lead in
economic growth.
1.2 Goa today has over 6700 Small Scale Industrial units, 147 Large and Medium
Scale Industries employing over 50,000 people. The State has developed/
established 20 industrial estates; some of them are among the best in the country.
The industrial activities encompass about 50 sub sectors which include tourism,
pharmaceuticals, electrical and automobile accessories etc. Inspite of this, we are yet
to achieve lot in the industrialisation process. The Government is now gearing up for
accelerated industrial development and overall economic growth. While drafting this
policy, proper environmental concern, social infrastructure, well being of its people
and needs of existing industries have been taken into consideration.
1.3 Goa has done fairly well in last two decades on the Industrial fronts inspite of
various handicaps. The explanation for this lies not so much in any planned
development strategy that the State adopted - indeed there was a pointed lack of any
such strategy but in Goa's natural advantages and inherent strengths. The breath-
taking natural beauty of Goa attracts tourists from all over the world creating a
flourishing tourism industry that is a significant source of revenue and employment
generation. The mining sector itself depended - and continues to depend - on the
natural ore resources available in the State.
1.4 Over the years, these advantages have reflected in the socioeconomic indicators
of the State, which are simply among the very best in the country. It has a high total
literacy rate of 82.32%, with female literacy at an admirable 75.51% and male
88.88%. The birth rate (per thousand) is 17.85 and the death rate (per thousand) is
at a low of 7.16. The infant mortality rate too is among the lowest in the country - at
13.99 (per thousand). The State has a wide coverage of public health centres and
educational institutions.
1.5 With a wellspread network of banking and financial institutions, the State is in
an ideal position to attract investments. In fact, Goa has one of the best deposit to
credit ratios, which means that there is ample money with the institutions to advance
for economic development. The per capita deposit is around Rs. 70,915/ per annum,
whereas the per capita income at current prices is around Rs. 61,301/ per annum.
1.6 Goa is the only State in the country which possesses the distinction of achieving
high level of both economic and social development. Average economic growth of
10% per annum, the highest per capita income ( Rs.61,301/ per annum) and high
level of Social Infrastructure Indicators are the testimony for the same. Thus, the
State has extremely favourable climate to aim to become a "Model State".
1.7 Goa is strategically located with good infrastructure facilities with a centrally
located airport, a seaport, connectivity by excellent road network as also other
essential infrastructure like Container Freight Station etc. The State boasts of one of
the country’s highest teledensities. Fibre optic connectivity too has spread its
network across the State, bringing state of art telecommunication to the people.
Every village in the State is electrified. As regards power for the industry, there is
sufficient power reserve and the tariff has been pegged at very reasonable rates.
1.8 Goa is proud of its excellent law and order situation with low crime rate. The
social and communal harmony that is vital for industrial growth is the hallmark of
Goan society. Further the industrial relations in Goa are perhaps one of the best in
the country.
1.9 Despite these impressive figures, the fact cannot be denied that industrial
development over the last decade at least, while not insignificant, has been lopsided.
Certain parts of Goa have developed well, while so many others remain backward.
The fruits of industrial growth too have in the process remained limited to a few
regions and sections of the population.
1.10 Further, the State failed to fully capitalize on its strengths to the extent that it
should and could have. The absence of a focused approach and a lack of direction
coupled with ineffective implementation took a heavy toll. The problem of lack of
adequate and meaningful employment opportunities to the local youth and the
confusion over the sort of industrial growth that would best suit the State, are some
of the fallouts of such a haphazard and directionless approach to crucial issues.
1.11 This policy document draws on the strengths of the State and seeks to provide
for the first time a clear and unambiguous direction for industrial growth. It takes
into account the practical realities, the needs of today and those of the future. It is a
document for the promotion of sustained, environmentfriendly industrial growth.
1.12 Equally important, the policy attempts to set out with utmost clarity a vision of
industrial prosperity that is not at odds with the ethos and temperament of the
people of the State.
1.13 The role of the private sector is also very important in economic development of
our State. There is a need to make our industry globally competitive in this era of
severe competition, economic depression and interdependence.
1.14 Therefore, Government & Industry Partnership in a 'Trust Based System' has also been envisaged. In view of the above and the present Indian economic scenario, the Government of Goa would play the role of a facilitator to ensure accelerated growth of industry so that we are able to contribute to the National GDP growth in some meaningful manner. As regards privatisation, the Central Government Policies would be kept in mind and every effort would be made to ensure Government presence on need basis only.
2. MISSION
The Mission of the Industrial Policy is to ensure accelerated Industrial Development,
catalyze Economic Growth, ensure balanced Regional Growth, protect Environment
and above all create sustainable Employment to local youth of the State.
2.1 The policy document strives to achieve overall economic growth of the State
through accelerated industrial development. The policy document focuses on the
creation of sustainable employment opportunities for the people of the State. This
will be achieved by providing industry an access to high quality infrastructure,
extending institutional support, technology upgradation, deregulating the business
environment for an efficient, proactive and transparent administrative framework
and catalysing the entrepreneurial as well as creative capabilities of the human
resources and providing market support.
2.2 The policy document aims at ensuring a facilitative regime that explores and
unleashes the energies of the private sector to create an environment in which
industry, both existing and new, can prosper.
3. OBJECTIVES
The mission can become a reality with clearly laid down objectives that will provide
both focus and direction. The document lays down the following major objectives:
(i) Promote industries specifically identified as 'Thrust Areas'.
(ii) Promote industries which would consume locally available raw materials, have
consumption pattern within the State and neighbouring areas.
(iii) Develop Goa as the 'Export/Import Hub' and Encourage export oriented
Industries.
(iv) Develop selfemployment opportunities for the local youth especially in rural
and semi urban areas.
(v) Promote and encourage the agrobased industries to give a boost to the rural
economy.
(vi) Promote and encourage development of handicraft products to give boost to
local artisans.
(vii)Create a healthy climate for the growth and promotion of smallscale and
cottage industries.
(viii) Promote and encourage the process of Technological upgradation/
automation in the existing units as well as new industries so that need of
migrant labour is gradually reduced, thereby arresting the influx of migrant
labour.
(ix) Create cluster development centres in rural areas around which traditional
livelihood earning professions can develop and thrive.
(x) Encourage industries which can convert existing and generated industrial
waste such as mining rejects, slag etc., into useful products.
(xi) Encourage participation of women entrepreneurs in the industrial
development of the State.
(xii)Ensure balanced growth to address regional economic and social disparities in
the State.
(xiii) Encourage promotion of all such industries that are environment friendly
and do not indulge in wasteful consumption of resources.
(xiv) Facilitate revival and rehabilitation of sick industrial units by devising
suitable schemes.
(xv) Promote Research and Development (R&D) to enable the industry to have
access to state of art technology.
(xvi) Encourage the participation of Industry Associations in decision making
process and support their initiatives in promoting industrial development .
(xvii) Encourage artistic talents amongst local youth.
4. THRUST AREAS
4.1 The policy document identifies the following as thrust areas for focussed
attention:
Pharmaceuticals, Drugs and Biotech Industries
1.
Food processing and Agro based Industries
2.
IT and ITenabled services
3.
Eco tourism/Heritage tourism/Adventure tourism/Event tourism/Medical
4.
tourism
5. Entertainment Industry
4.2 In order to ensure that thrust areas receive focused attention, setting up of the
following will be encouraged.
Pharma park.
Food park including Wine park.
Software Technology Park (STP).
Agro Economic Zone.
Biotech park.
Apparel park..
Special Economic Zone.
Film City.
5. STRATEGY
The successful achievement of the objectives depends on a clear and well defined
strategy. The strategy is required to take into account the state of the existing
institutional mechanisms and the need for creating new ones and support structures
in order to achieve the objectives. It should also focus on administrative reforms that
aid and support realisation of the objectives. Creating synergy in the local youth
would be one of the most important strategy to ensure their participation in making
the mission a success.
5.1 INSTITUTIONAL NETWORKS
The Government has already established various institutions to cater to the many
sectors of industry, with clearly defined roles and responsibilities. Following
institutions shall have important role to play.
GOA INDUSTRIAL DEVELOPMENT CORPORATION
5.1 (i) Goa Industrial Development Corporation has been established for the purpose
of securing land and assisting in the rapid and orderly establishment of industries in
Industrial Areas and Industrial Estates. 20 Industrial Estates set up by the
Corporation shall be provided with the state of art infrastructure facilities in
stipulated time frame. Uninterrupted electric power, necessary water supply,
network of good roads, easy and fast transportation is available in most areas and
will be made available wherever they do not exist.
The Government will revamp the functioning of the Goa Industrial Development
Corporation, and make efforts to energise the Corporation to provide proper
infrastructure and facilities, for setting up of Industries and attracting investment in
Goa. ECONOMIC DEVELOPMENT CORPORATION LTD.
5.1 (ii) The Economic Development Corporation Ltd. has emerged as a leading
financial institution promoted by the Government but intended to be managed on
professional lines to perform the role of a scheme manager for the Government and
operate, as directed, various financial schemes. Economic Development Corporation
will be made to play a more proactive role and will be revitalised as a leading
Financial Institution.
INFORMATION TECHNOLOGY CORPORATION
5.1 (iii) Realizing the potential of information technology to impact the growth of
every sector of the economy, the Government has set up the Information Technology
Corporation. The Corporation's mandate include development of IT - related
infrastructures, IT - enabled services and implementation of egovernance objectives
of the Government.
GOA HANDICRAFTS RURAL AND SMALL SCALE INDUSTRIES DEVELOPMENT
CORPORATION
5.1 (iv) (a) This Corporation has been set up with an intention to promote the
traditional arts and crafts fashioned by Goan artists/artisans. Besides this the
Corporation performs various other functions such as procurement and distribution of
indigenous and imported raw materials and also assist the SSI Units to procure raw
materials and market their products. Through establishment of Emporia their
products are exhibited and sold.
This Corporation will be further engaged in identifying products from different trades.
Units will be assisted by providing designs and even in laying down the process
parameters, for ensuring better quality. Expertise in packing will be offered in order
to enhance the sale.
(b) Deen Dayal Swayamrojgar Yojana :
Under this scheme, youth avail of opportunity of self employment. The scheme
envisages providing loan assistance to unemployed youth for taking up self
employment activities such as information kiosks, cyber cafes, vending kiosks like
selling vegetables, fruits, flowers, newspapers, magazines etc. Preference is being
given to those who have completed 12th standard vocational qualification and /or
possess I.T.I certificates.
KHADI & VILLAGE INDUSTRIES BOARD
5.1 (v) The Scheme envisages creating employment opportunities by promoting
Khadi and Village Industries in the State through the Goa Daman and Diu Khadi and
ViIlage Industries Board. The Board is a statutory organisation which provides
financial assistance in the form of loan and grants to entrepreneurs. The Board
supports and encourages artisans from rural areas under Rural Employment
Generation Programme (REGP). So far the Board is implementing the schemes
formulated by the Khadi and Village Industries Commission on all India basis and the
Government of Goa has to bear the cost of establishment.
Presently, only one scheme viz. "Margin Money Scheme" is implemented by the
Board in Goa. Generally 25% Subsidy in form of margin money is allowed. In cases
of women and weaker section subsidy is to the tune of 30%. Government
contribution will be provided for furthering the interest
of such artisans.
GOA STATE INFRASTRUCTURE DEVELOPMENT CORPORATION
5.1 (vi) This Corporation has been set up as a special purpose vehicle with the basic
aim to further develop infrastructure in a timebound manner.
GOA TOURISM DEVELOPMENT CORPORATION
5.1 (vii) This Corporation was established to specifically promote tourism and related
activities in the State of Goa. Goa is the first to accord industry status to the Tourism
sector. Special emphasis is being laid to develop Ecotourism, Heritage tourism,
Adventure tourism, Medical tourism and Event tourism.
GOA HORTICULTURE CORPORATION
5.1 (viii) One of the major areas the corporation explores is the possibility to
promote investments in exportoriented projects such as the cultivation of exotic
fruits and vegetables, cut flowers etc. The Corporation also attempts to reduce the
dependence of the hospitality sector for such material on regions outside the State.
The Corporation is also entrusted with development of horticulture estate and
establishment of sale outlets for local produce through Krishi Ghars.
These institutional mechanism will be strengthened and rejuvenated to become
engines of growth and to cater to the industrial policy objectives.
GOVERNMENT INSTITUTIONS
INDUSTRIAL TRAINING INSTITUTES
5.1 (ix) To cater to the requirement of skilled/semi skilled man power for
industries, Government has enhanced the quality of training in all its Government
I.T.I's.
1. I.T.I's are now equipped with latest modern equipments and machinery.
2. The lnstructors/Trainers have been sent for upgradation of their technical
knowledge and enhance their teaching skill.
3. To provide exposure to understand the requirement of industries, Institute
Managing Committee (IMC's) have been formed in many I.T.I’s having
Chairman of these lMC's from industries.
4. Production Oriented Training (POT) will be introduced shortly in all I.T.I's. This
will give the trainees On Job Training (OJT). This will also inculcate timely
delivery and quality consciousness in them.
TRAINING CUM PRODUCTION UNITS
5.1 (x) It is proposed to enhance productivity in all of our units by introducing good
machinery and equipments and also with proper vigilant supervision. A show room in
the building of Directorate of Industries, Trade & Commerce has been set up to
exhibit various products manufactured by the units. It is also proposed to have an
extensive display of our
products on permanent basis at our Design & Development Centre at Neugi Nagar,
Panaji.
It is proposed to enhance marketing of our traditional products likewood carving,
papier mache, Bamboo and Cane work, Pottery and CoirWork. This will give a boost
to our artisans.
These units have been placed under the State Directorate of Craftsman Training,
inorder to enhance its usefulness and effectiveness.
TECHNICAL INSTITUTIONS
5.1 (xi) The State has a well established Government Engineering College, including
two private engineering colleges and various Polytechnic Institutions which cater to
the requirements for qualified technical personnel. Several new courses/programmes
have been introduced in keeping with latest technologies being used in the Industry .
Tool room training centre, which provides precision tools, quality testing and training
to suit the needs of the industry, will be revamped to ensure that the requirements
of the industries are fulfilled.
5.2 ADMINISTRATIVE REFORMS
In order to ensure efficient effective & responsive administration, appropriate
administrative reforms will be carried out to ensure greater amount of transparency
and accountability in the functioning of the Government by simplifying procedures
and enhancing the capabilities of human resources.
5.2 (i) The scope of activities of the erstwhile Department of Industries has been
enhanced by changing it to "Department of Industry, Trade and Commerce"
5.2 (ii) The Government has already initiated steps for simplification of
procedures in various Government Departments. Citizens charters have been
framed by all departments and a system of regular monitoring and review will
be put in place. The existing set up of single window clearance is being
revamped by setting up of statutory bodies with clearly defined objectives and
necessary authority.
5.2 (iii) In order to enhance the capabilities of government employees, suitable
training programmes will be devised and imparted in a phased manner with
special emphasis on skilled development and change in mindset. In this field
of egovernance measures have adopted in simplifying procedures, increasing
transparency and accountability.
5.2 (iv) The Government has already come out with the policy document on
Tourism and is in the process of finalizing policy papers on New Information
Technology, taking into consideration present trends and Biotechnology.
5.3 INVESTMENT PROMOTION
5.3 (i) The policy document strives to promote Goa as a 'Global Investment
Destination' by attracting investments from both local and outside entrepreneurs,
national, multinational companies and international agencies including Non
Resident Indians.
5.3 (ii) In order to create a healthy investment climate, the Government has
proposed to set up an Investment Promotion Board by enacting suitable
legislation. The mandate of the Board will include identifying the investment
requirements of the State, prioritizing public investments in specific projects,
deciding modalities of funding, ensuring timely clearance of the investment
proposals and reviewing the execution of the projects.
5.3 (iii) The Investment Promotion Board would act as a facilitator for investment
promotion and serve as a Single Window Clearance Authority for medium and
large scale industries.
5.3 (iv) Similarly, for Small Scale Industries, it is proposed to set up a Committee
headed by the Minister (Industries) to address the problems/grievances of
industries in a time bound manner. This Committee will meet periodically and
review the functioning of the Small Scale Industries and recommend measures
for strengthening the sector in addition to addressing specific grievances.
5.3 (v) Single Window Clearance for all SSI units for granting permanent
registration a Committee will be constituted under the Chairmanship of the
Secretary (Industries) along with the representatives of the concerned
Departments as members with statutory powers.
5.4 INFRASTRUCTURE DEVELOPMENT
5.4 (i) A sound infrastructure is the backbone of a healthy economy. The State
already possesses excellent infrastructure which include the highest network
density of roads, connectivity by rail to all parts of the country, an international
airport (with another international airport in the pipeline) and a natural port. The
State is also power surplus and has a strong transmission and distribution
network which is being further modernized. The Government has already reduced
the tariff by about 7%. There is ample supply of water. Efforts will be made to
ensure timely and perennial distribution of water throughout the year
5.4 (ii) In keeping with the motto of developing Goa as a ‘State of Excellence’,the
policy document envisages development of world class infrastructure on par with
the developed countries. The State would actively encourage and promote public
private partnership in infrastructure development and invite both Indian and
foreign investments. Financial assistance for industrial development for export
will be provided for strengthening the existing infrastructure.
5.4 (iii) In order to create an appropriate frame work for facilitating investment in
the infrastructure development, an Infrastructure Act is being proposed to
ensure smooth and quick development of infrastructure facilities in the State
of Goa.
5.5 PROCEDURE FOR LAND ALLOTMENT/REGISTRATION
5.5 (i) The existing industrial estates will be further improved and land allotment
process will be expedited by simplifying the procedures. The Government has
substantially reduced the stamp duty payable by the industrial units.
(a) It is also proposed to increase the FSI (Floor Space Index) in industrial
estates and nonurban areas for the benefit of the industries
(b) The computerization of registration formalities that is in the process
will simplify and expedite the registration process.
(c) The existing Industrial Estates have already been notified and kept
outside the purview of local authorities.
5.6 LABOUR REFORMS
5.6 (i) Due to liberalisation of Economy / WTO regime there has been
tremendous impact on the concept of security of job across the world.This has
not left Goa untouched and tendencies for short term employment and contract
labour, as well as retrenchment has become the part of the system. The
Government has considered this and have cushioned the impact of such negative
forces by introducing Retrenchment Benefit scheme and Smart Card scheme,
both of which ensures social security cover. This has already been reflected in
lower rate of labour unrest in the State. The current policy also encourages
employment on sustainable basis and many other benefits to the workers.
5.6 (ii) The emerging economic environment, involving rapid technological
changes, globalisation and liberalization of trade and industry, requires that
industry should become more competitive in terms of price and quality.
Therefore, there is an increasing demand for multiskilled workers and persons
with higher technical qualifications. Government is aware of the need to invest in
skill development, training and education of work force and modernization of
training systems. Government has already taken steps to revamp the Industrial
Training Institutes in the State. We are introducing modular approach to
vocational training, which will aid multiskilling and impart skills to the needs of
the labour market. Two Year Diploma courses in multiskill have already been
introduced in the I.T.I's.
5.6 (iii) The Small Scale Industries, have a pivotal role to play, in the overall
industrial development of Goa. The SSI operations tend to be labour intensive
and it has been the endeavour of the Government to promote SSIs, as they in
turn promote employment.
5.6 (iv) The State will ensure an administrative regime, which is simple,
transparent and responsive to the needs of the industry, a regime which will
ensure harmonious industrial relations and increasing opportunities of
employment. Considering the various problems faced by the Small Scale
Industries, in the matter of regulation of employment by Government
departments, Government of Goa has given support to the Central Government’s
proposal for introduction of a system of self certification, with inspections kept to
the minimum.
5.7 TRANSFERRED UNITS
Any Industrial unit seized under Section 29 of the State Financial Corporation Act,
1951 and thereafter sold to a new entrepreneur shall be treated as a new industrial
unit for the purpose of all concessions as applicable under the policy. Arrears of sales
tax, entry tax, and any other State Government dues payable by previous owners
will not be realised from the transferees of the transferred units. These being public
dues, will be recovered from the previous owners under the alternate legal provisions
like Goa Land Revenue Code and the rules made thereunder.
5.8 INDUSTRIAL SICKNESS
Recognizing the need to revive and rehabilitate those sick industrial units that are
employment oriented, the policy document proposes setting up of appropriate
mechanisms for both SSI and Large & Medium Scale industries to identify and help
the process of rehabilitation. A package of incentives is being provided for their
revival and rehabilitation.
The Government will formulate an "Exit & Closure Policy" for those industries which
are sick and cannot be salvaged.
5.9 INCENTIVES
5.9 (i) Goa offers innumerable advantages to investors in terms of social and
physical infrastructure. In addition, various incentives/subsidy schemes are
already in operation.
5.9 (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.
5.9 (iii) The proposals will be given concrete shape by finalizing appropriate
schemes within a period of 90 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. CAPITAL 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 crore 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 oriented 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 local youths or local entrepreneurs 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) Colateral security will not be insisted 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 over or 30% of
the interest paid whichever is less subject to a ceiling of Rs. 5.00 lakhs 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 Incentives
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 wish to avail the benefits under the scheme will require to
register with the designated Authority.
H. Preferential Purchase Incentives for SSls
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 15% of the lowest
quotation of nonSSI 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, prorata advantage over and above the lowest
quotation will be granted.
iii) EMD to be payable by SSl’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 to 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 paid will be increased to 35%
however, subject to overall ceiling of Rs. 5.00 lakh.
J. Export Market Development Scheme
In order to encourage Goan industry to improve export market financial assistance in
the form of interest free loan upto 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 Offer
Units 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.
6. MONITORING & REVIEW
6.1 (i) A High Powered Cabinet Committee headed by the Chief Minister shall be
constituted to oversee the implementation of the Industrial Policy. The
Committee will periodically review the implementation of the policy from time
to time and issue suitable directions.
6.1 (ii) A Monitoring Committee headed by the Chief Secretary will also, be
constituted to look into the problems arising with respect to implementation
of the policy and will have the powers to provide relief in deserving cases.
This Committee will also act as a ‘Grievance Redressal Machinery’ for the
industries.
6.1 (iii) All Departments and Institutions shall take necessary action to give effect
to the provisions of this policy within 30 days of the declaration of the policy.
6.1 (iv) The performance of the industries will be evaluated on an yearly basis,
and suitable awards for outstanding achievements in areas like sports, social
service, industrial management, pollution control, energy conservation, etc.
will be instituted.
th
Panaji, 4 August, 2003 Smt. Jayshree Raghuraman,
Secretary Industries
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