Incentives to Encourage Purchases from Local Suppliers Scheme (Umbrella Scheme)
The Incentives to Encourage Purchases from Local Suppliers Scheme, 2017 aims to boost Goa’s local economy by encouraging industries to buy raw materials, components, and tools from local suppliers. By offering a financial incentive on eligible local purchases, the scheme supports MSMEs, ancillary units, and local traders, including those in horticulture and food processing.
Benefits
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Subsidy Rate: 2% of eligible local purchases consumed (GST excluded); max ₹5 lakh/year per unit.
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Duration: Up to 5 consecutive years from first application date.
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Claim Process: Annual application by Dec end of next FY; based on actual purchases consumed in the claim year.
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Budget Limit: Subject to allocation; benefits may discontinue if funds exhaust (no promissory estoppel).
Eligibility
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Category: Be classified as White, Green, or Orange.
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Local Sourcing: Purchase at least 50% (by value) of total raw materials/components/inputs from local suppliers within Goa.
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Exclusions: Items on the Negative List (Schedule A) are not eligible.
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"Local purchase" refers to industrial inputs bought in Goa; services are excluded.
Required Documentation
Self-attested copy of Umbrella Scheme registration
Affidavit/self-declaration in prescribed format
Self-certified copies of local purchase bills with GST and state component details
Statement of local purchases with vouchers showing GST payment
Final accounts of the claim year
Chartered Accountant certified statement confirming local purchase payments, usage as raw material in manufacturing, and compliance with scheme conditions
How to Apply?
Log in to the UDP Goa website.
Select Incentives to Encourage Purchases from Local Suppliers Scheme.
Click on the Apply button.
Site will redirect to the Goa Online Portal to submit your application.