EM PROJECTINCENTIVES AND SUBSIDIES

OFFERED BY THE STATE GOVRRNMENT.

JONLEN DESA T.Y.B.COM A

CO8-312

INCENTIVE

• INCENTIVE means encouraging productivity. It is a motivational force which makes an entrepreneur take a right decision & act upon it. Incentives include concessions, subsidies & bounties.

SUBSIDY

• SUBSIDY denotes a single lump-sum which is given by the Government to the entrepreneur to cover the cost.

1) CAPITAL CONTRIBUTION SCHEME,2008

• The scheme is designed to support local entrepreneurs & to promote industrial units.

Objectives: 1)To give financial assistance to local entrepreneurs.2)To support locally developed technology.3) To support existing functional units to venture out &expand.

Quantum of assistance: It is subject to the budgetary provisions.

2)Preferential Purchase Incentives for Micro & Small Enterprise Scheme, 2008.

• To give effect to the provisions of the said policy, the Govt of Goa has decided to formulate the Preferential Purchase Incentives Scheme for Micro & Small Enterprises.

• Objective:To encourage & boost the Micro & Small Enterprises.

3)State Financial Incentives to the Industries for Certification and Patenting Scheme, 2008.

• Units that obtain ISI & ISO certification or patent right on products need to be specially encouraged. Such units provide a benchmark of excellence & serve as a model for others to emulate.

• Objectives:• 1. To encourage units to obtain ISI & ISO certification or patent rights in

order to maintain good quality standard of products.• 2. To promote healthy qualitative industrial growth in Goa.• 3. To give a boost to the industrial units to achieve the benchmark of

excellence & serve as a model for others to emulate.

• Quantum of assistance: Rs. 200000 or the actual expenditure incurred, whichever is less.

4) Incentives to Encourage Consumption of Local Raw Material Scheme, 2008.

• The main objective of this scheme is to encourage consumption of local raw material and thereby encouraging units, manufacturing such raw materials & to encourage the villages supplying such raw materials.

• Eligibility: Only those units under green and specified orange category

shall be eligible under this scheme.

5)Goa State Export Market Development Scheme,2008

• Assistance is given through this scheme for industrial units engaged in exports & set up in Goa by providing assistance in the form of interest free loan.

• Objectives: To encourage the Goan industries to improve their export market.

• Quantum of loan: Maximum interest free loan will be provided up to Rs.5 lakhs under this scheme.

6) Interest Subsidy Scheme, 2008

This scheme is introduced for the Micro & Small Enterprises to boost the economic growth in Goa. A subsidy is provided on the interest payable by them.

• Objectives:• 1) To encourage & boost the Micro & Small Enterprises.• 2) To provide incentives to small investors.• 3) To promote industrial growth in Goa. Quantum of subsidy:1.5% of total net turnover or 30% of

interest paid by the units, whichever is less, subject to a ceiling of Rs 5 lakhs.

7) Incentive to Women Entrepreneurs Scheme, 2008.

• This scheme is for the benefit of those units which have been set up by women entrepreneurs in Goa & to give them additional incentives.

• Objective: To encourage women entrepreneurship & encourage women to start industries for self- employment.

• Incentives:5 additional benefit + preference in capital contribution.

8) Goa State Employment Subsidy Scheme for Industries,2008.

• This scheme has been introduced for the effective implementation of the new industrial policy & also for the benefit of the new as well as the existing units in Goa.

• Objectives: To promote industrial growth in Goa. To revive the sick industrial units in Goa. To create a healthy environment for setting up new industrial units in

Goa. To provide employment to the local youth.

Subsidy: For Developed talukas-25% (In Red color) For Less Developed talukas-35% (In Green color) For sick units, subsidy is 25%(whole state)

9) Other incentives & subsidies offered by the Goa Government

1. Employment subsidy.2. Share capital to self employed/ local

entrepreneurs.3. Medical facilities scheme.4. Early bid offer.