Industrial Policy

Over the years, these advantages have reflected in the socio-economic 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.

With a well-spread 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. 70,9151- per annum, whereas the per capita income at current prices is around Rs. 61,301/- per annum.

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".

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 tele-densities. 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.

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.

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.

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.

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, environment-friendly industrial growth.

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.

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. Therefore, Government & Industry Partnership in a Trust rust 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.

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.

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.

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.

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:­

Promote industries specifically identified as 'Thrust Areas'.

Promote industries which would consume locally available raw material have consumption pattern within the State and neighbouring areas.

Develop Goa as the `Export/Import Hub' and Encourage export oriented Industries.

Develop self-employment opportunities for the local youth especially in rural and semi urban areas.

Promote and encourage the agro-based industries to give a boost to the rural economy.

Promote and encourage development of handicraft products to give boost to local artisans.

Create a healthy climate for the growth and promotion of small-scale and cottage industries.

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.

Create cluster development centres in rural areas around which traditional livelihood earning professions can develop and thrive.

Encourage industries which can convert existing and generated industrial waste such as mining rejects, slag etc., into useful products.

Encourage participation of women entrepreneurs in the industrial development of the State.

Ensure balanced growth to address regional economic and social disparities in the State.

Encourage promotion of all such industries that are environment friendly and do not indulge in wasteful consumption of resources.

Facilitate revival and rehabilitation of sick industrial units by devising, suitable schemes.

Promote Research and Development (R&D) to enable the industry to have access to state of art technology.

Encourage the participation of Industry Associations in decision making process and support their initiatives in promoting industrial development.

The policy document identifies the following as thrust areas for focussed attention:

Pharmaceuticals, Drugs and Biotech Industries

Food processing and Agro based Industries

IT and IT-enabled services

Eco tourism/Heritage tourism/Adventure tourism/Event tourism/Medical tourism

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.

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 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 in 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.

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 b : rrade to play a more proactive role and will be revitalised as a leading Financial Institution.

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 e-governance objectives of the Government.

(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 121 standard vocational qualification and /or possess I.T.I. certificates.

The Scheme envisages creating employment opportunities by promoting Khadi and Village Industries in the State through the Goa, -Daman: and Diu Khadi and Village Industries, Board. The Board is a statutory organisation which provides financial assistance in the for ni 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.

This Corporation has been set up as a special purpose vehicle with the basic aim to further develop infrastructure in a time-bound manner.

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 Eco-tourism, Heritage tourism, Adventure tourism, Medical tourism and Event tourism.

One of the major areas the corporation explores is the possibility to promote investments in export-oriented 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.

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.

I.T.I's are now equipped with latest modern equipments and machinery.

The Instructors /Trainers have been sent for upgradation of their technical knowledge and enhance their teaching skill.

To provide exposure to understand the requirement of industries, Institute Managing Committee (IMC) have been formed in many I.T. I's having Chairman of these 1MC's from industries.

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.

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 like wood carving, papier mache, Bamboo and Cane work, Pottery and Coir Work. 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.

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

In order to ensure efficient effective & responsive administration, appropriate administrative refoi ins 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.

The scope of activities of the erstwhile Department of Industries has been enhanced by changing it to "Department of Industry, Trade and Commerce".

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.

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 e-governance measures have adopted in simplifying procedures, increasing transparency and accountability.

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 Bio-technology.

The policy document strives to promote Goa as a Global Investment Destination' by attracting investments from both local and outside entrepreneurs, national, multi-national companies and international agencies including Non-Resident Indians.

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.

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.

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.

Single Window Clearance for all SSI units for granting, permanent registration a Committee will be constituted under the Chair manship of the Secretary (Industries) along with the representatives of the concerned Departments as members with statutory powers.

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.

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.

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.

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.

It is also proposed to increase, the FSI (Floor Space Index) in industrial estates and non-urban areas for the benefit of the industries.

The computerization of registration foi inalities that is in the process will simplify and expedite the registration process.

The existing Industrial Estates have already been notified and kept outside the purview of local authorities.

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.

The emerging economic environment, involving rapid technological changes, globalisation and liberalization of trade and industry, requires that industry should become more competitive in teniis of price and quality. Therefore, there is an increasing demand for multi-skilled 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 multi-skilling and impart skills to the needs of the labour market. Two Year Diploma courses in multi-skill have already been introducedin the I.T.I's.

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.

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.

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.

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.

Goa offers innumerable advantages to investors in teens of social and physical infrastructure. In addition, various incentives/subsidy schemes are already in operation.

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 tenn presence of -industries.

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:

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.

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.

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.

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.

Subsidy ranges from 10% to 40% depending upon category, location, of the unit, etc.

New units having 80% of local manpower employed amongst its pennanent 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.

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.

The capital contribution will be for a period of 5 to 10 years with guaranteed return of 6% annually.

Preference will be given to units in SSI, R&D, Technology oriented and those run by women entrepreneurs.

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 fig in and Private Ltd. firms, except those covered under sick unit revival policy.

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.

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.

The scheme envisages to encourage local youths born in Goa 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)

Co-lateral security will not be insisted upon. Self guarantee by the
applicant/parents will be sufficient.

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 1.5% of the total net turnover or 30% of the interest paid whichever is less subject to a ceiling of Rs. 5.00 lacs 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 the 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.

Units which obtain Certification/Accreditation by ISI and 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 model for others to emulate. Under the scheme, a subsidy will be of maximum of Rs. 2.00 Lacs per unit. The facilities available only once after permanent registration and all units existing or new are eligible.

The scheme envisages encouraging consumption of raw materials by the industrial units by offering incentives.

(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 benifit above 30% consumption will be proportionately higher.

(iv)

Incentives will be in the form of subsidy in power and water bills.

A healthy economic growth is directly linked to a healthy industrial atmosphere. And this in turn depends very much on the health of the man power that turns the wheel 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 lacs 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 benifits under the scheme will require to register with the designated Authority.

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 non-SSI 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. pro-rata advantage over and above the lowest quotation will be granted.

(iii)

EMD to be payable by SST'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
S S I 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.

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.

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 1'/z % of turn over will be increased to 2% and 30% of interest paid will be increased to 35% o however, subject to overall ceiling of Rs. 5.00 lakh.

Inorder to encourage Goan industry to improve export market financial assistance in the foi iii 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.

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.

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.

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.

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.

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.

The Government of Goa is hereby pleased to amend the Deendayal Swayam Rozgar Yojana Scheme to provide Self Employment opportunities in the State of Goa, as under

1.

Short title and commencement

1)

This amended Scheme may be called as "Goa Youth Rojgar Yojana Scheme." instead of Deendayal! Swayam Rojgar Yojana.

2)

The amended Scheme shall deemed to have come into force with immediate effect.

2.

Objectives of Scheme:- Self employment has been identified as one of the effective and acceptable means of reducing unemployment on a permanent/semi permanent basis. Since the last decade, there has been an overall increase in the level of awareness amongst individuals on account of education and also to the growth in viewer ship of the television resulting in mutual respect for professionals, be it in the field of coolers. hairdressers or general traders. This general awareness could be encashed by encouraging unemployed youth into trading and provision of service sector. This Scheme envisages provisions for self employment( opportunity by providing all the necessary infrastructure to Physically commence the self employment ventures.

This Scheme shall be implemented through the Goa Handicrafts. Rural and Small Scale Industries Development Corporation Ltd (hereinafter called "GHRSSIDC)

Cashew Processing Units to be supported through GHRSSIDC's sale outlets located at various towns/places in the States of Goa.

(ii)

Vending Kiosks for the purpose of selling vegetables fruits /flowers, newspapers/ magazines cold drinks/ aerated waters tender coconuts, coffee/tea vending machines, services such as Xeroxing machine, STD booths, etc. Information Kiosks including cyber cafes, servicing centres for Plumbing /electrical works, typing, computer operation, tour booking/tour operations and authorizes vendors for various Government functions. Vending Kiosks/ Stalls of SGPDA AT Margao and Stalls at Panaji Market Complex.

This Scheme will be open for all residents of Goa with minimum 15 years of domicile and upto 40 years of age having minimum educational qualification of Std VIII in any medium of instruction. In case of handicapped / widows and deserving cases, age relaxation of over 5 years and educational qualification upto III, may be considered only in case of widows and deserving cases. The scheme shall also be Open for the Women Groups/Self help Groups of women to sell their products and a maximum of 30% of the total number of kiosks shall be reserved for such groups including Scheduled Caste/ Handicapped/ Scheduled Tribe / and also OBC.

The location of the unit/project will be at KTC Bus stands, various Government Offices, Goa Tourism Development Corporation (GTDC) properties / public places of tourist importance, Collectorates/RTO Offices, etc., or any other suitable Government properties where such activities could be undertaken subject to availability of Govt. sites. The project can also be located in private property provided the owner of the property issue a NOC in favour of the allottee and to the satisfaction of the Corporation permitting the placing of kiosks at least for 6 years. Futher provided that the said private property falls in the commercial zone when such activities are permitted under the Municipal/ Panchayat Laws

Financial back up shall be provided by Government for the Unit/project Including subsidy for erection of Kiosks through GHRSSIDC. Apart fromthe Capital assistance, 90% of the working capital requirement, total not exceeding Rs.1 lakh, based on the actual need of the project, would be made available.

The Govt. shall subsidize the cost of kiosk / stall to the maximum extent of Rs.10,000/- for kiosk / stall costing Rs.30,000/- to Rs.35,000/-(PVC) Rs. 15,000/- for kiosk / stall costing above Rs.35,000/- to Rs. 60,000/- and Rs.20,000/- for kiosk / stalk costing more than Rs.60,000/- (FRP kiosk)

Capital Component - The cost of kiosk (after the subsidy portion is taken out), the repayment starts after 12 months from the date of release of financial assistance, at the rate of 10% simple interest in 60 monthly installments, starting from the 13th month

(ii)

Working Capital - No interest will be livable on the working capital for the first 6 months from the date of release. After the initial period of 6 months, interest @

10% to be paid monthly. The repayment of the principal amount of working capital shall start from the 13th month from the month of release and shall be payable in 60 monthly installments

(iv)

GHRSSIDC will collect 60 monthly post-dated cheques towards repayment of capital and working capital component

(1)

The Unit/Project holder shall hypothecate the machines/ equipments etc. in favour of GHRSSIDC. Further, the beneficiary of the Scheme shall provide a guarantee, either of himself or from a person who owns a residential premises or 500 sq. metres of land in the State of repayment of financial assistance or any such guarantee including guarantee of Government/Public Sector Employees drawing pay of over Rs.5,000/- per month as may be considered adequate and approved by the Appraisal Committee.

(2)

The allottee of the kiosk (beneficiary) shall enter into a lease agreement with the department / agency / owner in whose land the kiosk is permitted to be erected. The trade and occupation Licence fees or such other fees as prescribed by the local authorities shall be payable by the beneficiary.

(3)

Change of Trade -- No change from one trade to another nor any change in location shall be made without the prior approval of the Appraisal Committee.

(4)

The colour of the kiosk shall not be altered or modified under my circumstances by the beneficiary.

(5)

Advertisement right on the kiosk shall be that of the Corporation. However, the beneficiary is permitted to display his name and type of business on the kiosk.

Electricity Connection would be in the name of GHRSSIDC However, beneficiary will pay the monthly consumption bill / charges

The beneficiary shall carry on the trade on a regularbasis. Non operation of the kiosk for a period exceeding 45 days without written permission from GHRSSIDC shall be sufficient ground for cancelling the allotment.

In case of default in repayment, the balance sum shall he recovered by the GHRSSIDC through normal process of law. The penal interest Ch 2% is chargeable from the date of default. However, in case the amount is due to death of the beneficiary, the full loan account shall be frozen from such date and balance principal amount maybe recovered through legal process and all interest due from such deceased beneficiary shall be written off.

ii)

In case of default in three consecutive installments. Corporation reserves the right to seal and take over the kiosk along with all stock/goods and accessories.

iii)

In case of death of Beneficiary, if the post dated cheques are not bounced for 3 consecutive months, provided proper intimation is made to GHRSSIDC as regards to the non-operation of the kiosk/stall due to health of the beneficiary, kiosk may be transferred to the legal heir.

12.

There shall be an Appraisal Committee consisting of Chairman/M.D of GHRSSIDC, One Director to be nominated by the Board of GHRSSIDC and a representative of Government of Goa to be nominated by the Minister for Industries. The Committee shall scrutinize the Units/projects for approval.

13.

(a)

Proximity to the place of work - 40...marks. An important aspect in self-employment Schemes is the flexibility of work timings. Keeping this point in view, for Talukawise allotment of Units/projects, the physical distance of the applicant's residence from the place of work is an important point for evaluation.

Grade wise evaluation shall be directly proportional to the distance but inversely which means that residents within a distance of 5 kms will be allocated full marks whereas distance beyond 5 kms but limited to 10 kms will fetch 80% marks.

Distance beyond 10 kms limited to 20 kms shall fetch- 40% marks and beyond 20 kms zero marks, this will however not debar the applicant from his eligibility. This will ensure that where unemployment is on the lower side, that particular Taluka shall absorb the unemployed from, the neighbouring Taluka.

For this purpose, the family shall be considered as a unit as given in the concerned applicant's ration card. If applicant is unmarried. the ration card of an individual will be clubbed alongwith that of his parents to represent the true state of affairs and income.

INCOME

(a)

I

(b)

II

(c)

III

(d)

IV

This evaluation criteria shall carry 20....marks and allocations shall be as under

(iii)

Though the scheme is meant for less educated unemployed youth, it shall not debar highly educated unemployed. The minimum eligibility is an applicant having educational qualifications of standard VIII or equivalent. This will carry 10 marks and distribution of marks shall be as follows

(A)

(B)

(C)

(D)

(E)

Personal interview of the applicant shall be conducted to bring out the urge of the applicant for

the capacity to encash on the opportunity to become an entrepreneur.
The weightage allocated to interview shall be ..30.. marks.
The interview shall be conducted by the Apprisal Committee.

(i)

The Self Help Group shall be registered under, the Societies Registration Act and shall be operating in the field el self employment ventures.

i)

As per the guidelines. a list of selected applicants shall be prepared Taluka wise as per the availability of the spot, if any. Within. the overall list of applicants, categorization shall be done according to the proposed trade. In the entire process, more stress shall be laid towards the applicant's integrity and his ability to cope with reality. Averments in the affidavit sworn by the applicant will be taken as valid and true Any false information/affidavit shall automatically debar the applicant iron the selection process, even if completed.

ii)

Allotment letter issued by GHRSSIDC to the selected Candidates shall be valid for six months only and selected candidates should clear all formalities within this period.

Kiosks are to be operated by the allottee. All beneficiaries shall be Issued a photo identity card by the GHRSSIDC, Which is non transferable. The GHRSSIDC shall carry out inspection of the units/projects once in 6 months and certify that the person whom the project is sanctioned is carrying out the business as authorized. A copy of the Identity Card shall be displayed in the kiosk. If on inspection it is established that the kiosk is operated by any other person, it shall be sufficient ground for termination of lease/ allotment.

The subsidy component under the Scheme shall be reimbursed by the Government to the GHRSSIDC as per the actuals. The subsidy shall be released by the Government to the Corporation every six months on receipt of progress report from GHRSSIDC. The reports are to be submitted by 1" January and 1" June.

The Government reserves its right to modify any clause of this Scheme or issue directions and the GHRSSIDC shall abide by the directions of the Government.

18.

This issues with the concurrence of the Finance Dept vide V.O. No-FS/1282/F dated 07/04/2006

19.

This order supercedes order No. 15/12/2001-1ND dated 7/12/01 and order no 15/12/04-IND dated 18/2/04.

By Order and in the name of
the Governor of Goa.

(Hanumant. T Toraskar)
Under Secretary (Industries)

3/40/2003-IND(II)

Whereas vide Notification No.1/49/2000/S(IND)Vol.II dated 4/8/2003, published in the Official Gazette, Extraordinary No.4, Series I No.18, dated 6/8/2003, the Government of Goa notified the Goa Industrial Policy, 2003 (hereinafter referred to as the "said Policy").

Now, in pursuance of Clause 5.9 (iii) of the said Policy, the Government of Goa is pleased to frame the following scheme, namely

(1)

This Scheme shall be called the SHARE CAPITAL TO LOCAL ENTREPRENEURS- AND SELF EMPLOYED SCHEME, 2003'.

(2)

This Scheme shall be deemed to have come into force from 6-08-2003 and shall remain into force for 5 years. However, the benefit under this Scheme will continue for the,period as specified in this scheme.

For effective implementation of the said policy, the Government of Goa is pleased to introduce this Share Capital to local entrepreneurs and Self-Employed Scheme, 2003. The Scheme is framed to encourage local youths preferably of Goan origin to start income generating activities by providing Share Capital Contribution for all activities related to Industrial and other self employment opportunities except those which are covered under Red category under the Industrial Policy and related to tobacco and liquor.

The main-objective of this Scheme is to encourage local youths to start income generating activities and to encourage self employment.

Individuals or Group of individuals can avail this facility. Individuals who are born and residents for 15 years in Goa shall be given, preference under this Scheme, though the Scheme do not bar others, who are Resident of the State of Goa for at least 15 years prior to the application under this Scheme and have passed graduation or XII or X or schooling from the State of Goa.

In case of group of individuals, all persons in the group should satisfy the above criteria. Self help groups of women and disabled persons shall be given priority.

This Scheme shall also cover those who are covered under subsidy Scheme framed for black and yellow taxi/motorcycle/rickshaw drivers/owners for balance 75% of requirement. The age criteria will not apply for those who are applying for replacement of old taxis/motorcycle/rickshaws. Age criteria is also not applicable incase of self-help groups.

Applicant shall be below 40 years of age to be eligible under this Scheme. In case of group (except incase of registered Selp-help Group), all the individuals shall be below 40 years of age. However, incase of women, disabled person. Scheduled Caste/scheduled Tribe and Other backward class person, the age limit shall be relaxable by 5 years. Also, those applicants eligible for age relaxation under CMRY shall be considered under this Scheme automatically and no separate order of relaxation is required.

Applicants shall be minimum VIIth pass. However, this requirement may be relaxed in deserving cases by a specific order of Director of Industries, Trade and Commerce. Also, those granted relaxation under the CMRY Scheme shall be considered under this Scheme automatically and no special order of relaxation is required.

The income of the applicant along with spouse shall not exceed Rs.80,000/- per annum.

The benefit under this Scheme shall not be available if the applicant has availed subsidy of more than 15% of project cost under any other Scheme, and/or if any Scheme debars him specifically for receiving benefit under this Scheme. Those who can be covered under Kamdhenu Scheme shall not be covered under this Scheme except for setting up of dairy/chilling unit.

Priority will be given to women entrepreneurs to the extent of 30% of budgeted outlay on the Scheme incase applicants exceeds total budgetary provision.

All beneficiaries covered under CMRY Scheme are automatically covered under this Scheme and no separate order to that effect will be required. Certification by Managing Director, Economic Development Corporation to that effect is adequate.

Incase if any difficulty arises in implementation of this scheme particularly in case of women self help group/disabled persons/SC/ST/OBC, the Scheme may be modified by the Government.

Contribution under this Scheme shall be Rs. l lakh per individual subject to the condition that it is 50% of total project cost. However, in case of applicant having professional qualification, degree or diploma in Engineering including qualification like I.T.I., Vocational XII or any other Government recognized Certificate course/training programme, the contribution may be increased up to 2 lakhs per individual, provided the business activity shall be linked/connected to his qualification in broad sense and subject to the condition that the contribution do not exceed 50% of the project cost.

The Scheme does not debar individual/group of individuals from availing additional loan from Economic Development Corporation or banks but the same shall be separately applied for and approved by Economic Development Corporation or banks concerned.

In case of group of individuals, the maximum extent of capital contribution shall be Rs.10 lakhs subject to condition that the individual limit per head is not exceeded. There is no restriction on number of members of the group.

Those trained by the Goa Handicrafts Rural and .Small Scale Industries Development Corporation or by Khadi Village and Industries Board or Training cum Production Centre or from approved Non Government Organisations or under Scheme of Directorate of Education and have obtained Certificate of successful completion of training shall be covered under this Scheme and will be treated as professional for purpose of benefit under this Scheme.

Applicants who are eligible for assistance under CMRY will be provided capital contribution under this Scheme subject to the condition that the contribution under this Scheme do not exceed 50% of the project cost. The eligibility criteria for such persons shall be governed by the CMRY Scheme.

The self guarantee by the applicant/parents/spouse/parents of spouses alongwith one guarantor owning a residential accommodation or plot of land or any other property in the State, shall be adequate security for the purpose of availing benefit under this Scheme. However, where the assets financed are fixed assets as, tangible security and where-the capital contribution is below 50,000/- only personal guarantee by the applicant and additionally by his parents or spouse or parents of spouse (even though they do not have any fixed assets or property) is adequate. In such cases; first-charge of ortgage/hypothecation of fixed or current assets will be held by Director of Industries;. Trade and Commerce /Economic Development Corporation or as decided by the Government.

(a)

The Capital Contribution given under this Scheme should be paid back to the Government in equal monthly installments, within 10 years, with moratorium as may be decided not exceeding period of one year and the first installment shall be due after the date of-release of the capital contribution to the beneficiary. However; the Directorate of, Industries, Trade and Commerce, reserves the right to reduce the total repayment period to upto 5 years depending on the nature of business.

If the beneficiary fails to pay the installments within the stipulated time period, then the amount will be recovered as per laws in force including as arrears of land revenue.

The Individual or group of individual eligible under this Scheme shall file their application in the prescribed proforma. alongwith required documents from any Competent Authority for this purpose.

The applications addressed to the Director of Industries, Trade and Commerce. shall be submitted in the Office of the Directorate of Industries, Trade and Commerce, Udyog Bhavan Panaji, Goa.

Beneficiaries who are eligible for assistance under CMRY shall apply in combine form available with Economic Development Corporation, Ltd.

Such beneficiaries shall be exempted from filling in separate form and payment of form fees and application fees provided under this Scheme.

(d)

The applicant shall pay Rs. 200 (Non-refundable) as fee and enclose the receipt of the same alongwith the application (once only).

(e)

(f)

There will be special insurance cover wherein the beneficiary shall be absolved of his outstanding dues/payments incase of death or permanent disability. In such cases, the Director of Industries, Trade & Commerce, with approval of Government shall write off such balance outstanding dues. For purpose of this Scheme, permanent disability will be one that makes the beneficiary incompetent to carry on the business for which he has availed the benefit. Insurance premiums at the rate of Rs.200/- per lakh or part thereof once before disbursal shall be recovered from beneficiary.

(e)

Insurance premiums will be as follows Total Gross loan Amount including Share Contribution is Re.1/- to Rs.1,00,000/- ... Insurance premium shall be Rs. 200/- For Rs.1,00,001/- to Rs.1,49,999/- Insurance premium shall be Rs. 300/- For-Rs. 1,50,000/- to Rs,1,99,999/- Insurance premium shall be Rs. 400/-

For the purpose of implementation of this Scheme, the Task Force Committee (TFC), set up by the Director of Industries, Trade and Commerce (or any authority under the Chief Minister's Rozgar Yojana) shall scrutinize, the applications, received and recommend the same for disbursement. TFC under CMRY shall be the sanctioning authority for applications under CMRY, duly appraised by the Appraisal Committee under the CMRY Scheme. Directorate of Industries, Trade and Commerce will work out suitable modalities in this regard.

The Director of Industries, Trade and Commerce may relax any provision of this Scheme after taking Government approval, if need arises.

For the purpose of this Scheme, there shall be a task force committee, consisting of following members

If any question arises as to the interpretation of any of the provisions of this Scheme or if there is dispute relating to fulfillments of conditions, then the decision of the Director of Industries Trade and Commerce, thereon, shall be final

In view of the extreme flexibility in financial parameters, granted by the Government of Goa, appraisal and feasibility of the project is very important aspect and application shall be rejected if found not feasible, after taking into consideration,

training/qualification of the persons involved or for any other reasons including the need of regulating a specific activity for overall economic benefit and decision of the Director of Industries, Trade and Commerce in this respect shall be final.

This has been issued with the concurrence of Finance Department vide U.O. No.Fin(Exp)/1471-F/2003 dated 3/11/2003.

By Order and in the name of the Governor of Goa.
Smt. Jayshree Raghuraman, (Secretary (Industries).
Panaji, 20th November, 2003.

3/40/2003-Ind(III)

Whereas vide Notification No. 1/49/2000/S(IND)IVo1.II dated 4/8/2003, published in the Official Gazette, Extraordinary No.4, Series I No.18, dated 6/ 8/2003, the Government of Goa notified the Goa Industrial Policy, 2003 (hereinafter referred to as the "said Policy").

Now, in pursuance of Clause 5.9 (iii) of the said Policy, the Government of Goa is pleased to frame the following scheme, namely

1.

Short title and Commencement

(2)

To give effect to the provisions of said Policy, the Government of Goa has decided to formulate a Preferential Purchase Incentives Scheme for Small Scale Industries.

This Scheme is intended to encourage and give boost to Small Scale Industrial Sector and needs to be complied with utmost care. Non¬compliance of provisions of this Scheme shall be viewed seriously and the Officer concern shall be personally held liable.

Under this Scheme, Small Scale units registered in the State of Goa shall be given special treatment in any tender floated by Government Department or any purchases made by any Government Department, as under:

(1)

Small Scale Units shall be allowed to match to lowest tender price floated by. non Small Scale units provided its quoted price is within 15% of lowest quoted price floated by Non-Small Scale Industrial unit;

In case of contractual tenders for installation, commissioning of machinery/items, etc. the preference of quoted price, the pro-rata percentage over and above the lowest quotation shall be granted to Small Scale Industrial units for being qualified to match the lowest one.

For the purpose of availing benefit under this Scheme, the Small Scale Industrial unit shall be required to match standard of quality as required by State Government Department.

The Scheme shall be applicable even to purchase of computer hardware and other electronic items except in cases of purchases of Education Department under their Schemes.

Earnest money shall be required to be deposited and the same shall be to the maximum of Rs.500/-

Priority in payment shall be ensured to Small Scale Industrial units and the payment, shall be effected, by the concern department within 60-lays from the delivery of goods or completion of tendered,, work, failing which the Department shall-be liable to pay an interest at the rate of, 0.75% per month,.

Only those Small Scale Industrial units having turnover not exceeding Rs: 5' crores per annum for last preceding 3 years and registered in the State with the Directorate of Industries, Trade and Commerce shall be eligible for the benefit under this scheme.

In view of this Scheme, the instructions issued under Circular No. 3/37/8 I-ILD dated 14/3/1991 and Circular No. 3/37/81-ILD dated 5/6/1991 stands cancelled.

This has been issued' with- the concurrence of Finance Department vide UFO. No.Fin(Exp)/1471-F/2003. dated 3/11/2003

Department of Industries

Directorate of Industries, Trade & Commerce

No. 3140/2003-IND(XV)

Whereas vide Notification No. 1/49/2000/S (IND)/Vol. II dated 4-8-2003, published in the Official Gazette, Extraordinary No.4 Series I No. 18 dated 6-8-2003, the Government of Goa notified the Goa Industrial Policy, 2003 (hereinafter referred to as the "said Policy").

Now, in pursuance of "said Industrial Policy" the Government of Goa is pleased to classify he Industrial s under

Manufacturing of Granules . Synthetic fibre including rayon, tyre cord

polyester filament yarn Surgical and medical products involving prophylactics and latex

Chemical, petrochemical and electrochemicals including manufacturing of

acids such as Sulphuric Acid, Nitric Acid, Phosphoric Acid, etc Chlorates, perchlorates and peroxides

Steel and steel products including coke involving use of any of the equipments

such as blast furnaces, open hearth furnace, induction furnace or arc furnace, etc or any of the operation or process such as heat treatment, acid pickling, rolling or galvanizing, etc. Lime manufacturing

Industry or process involving metal treatment or process such as picking, surface coating, paint baking, paint stripping, heat treatment, phosphating or finishing, etc

Ice-cream or Ice -making

Tailoring and garments making

Cotton and woolen hosiery

Apparel making

Handloom weaving

Shoelace manufacturing

Gold and Silver smithy

Leather footwear and leather products excluding tanning and hide processing

Musical instruments manufacturing

Sports goods

Bamboo and cane products (only dry operation)

Cardboard or corrugated box and paper products( Paper or pulp manufacturing excluded)

Insulation and other coated papers( Paper or pulp manufacturing excluded)

Scientific and Mathematical instruments

Furniture (Wooden and steel)

Assembly of domestic electrical appliances

Radio assembling

Fountain pens

Ropes ( Cotton, Fishnet and Synthetic)

Carpet Weaving

Assembling of air coolers, conditioners, refrigerators and other Home

appliances Assembling of bicycles, baby carriage and other small non-motorised vehicles

Plastic, processed goods. and goods manufactured from garments like nylon, plastic, polyesters, PVC by process of moulding and /or extrusion including filaments and fibre

Leather footwear-and leather product's-excluding tanning and-hide-processing

Note:- Any Industry/industrial activity which°do not fall. under any of the above mentioned four categories (i.e. Red, Orange; Specific,:.Orange and Green), decision-with regards ta-their categorization/classifrcation, will be taken by the Government from time to time when such need-arises either suo Moto or on the specific request by the Industrial. unit or Industrialist. {Industrial unit or Industrialist may apply to the Director of Industries in this respect for-necessary action).

This issues after considering the guidelines/suggestions given by the Goa State Pollution, Control Board and Department of Science, Technology and Environment.