Interest Subsidy Scheme, 2017

Description
The scheme "Interest Subsidy Scheme, 2017” was launched by the Directorate of Industries, Trade and Commerce DITC , Government of Goa. The scheme aims to incentivize units for making their enterprises financially viable. The scheme provides interest subsidy on term loan and/or working capital loan availed from specified financial institutions. The subsidy is subject to minimum engagement of 60% Goan manpower, with maximum benefits up to ₹25,00,000/- per annum or ₹27,50,000/- for all women and Scheduled Caste/Scheduled Tribe applicants .

Exclusions
• The scheme is not applicable to cases which have claimed similar benefit under any other scheme/program of Government of Goa.
• The enterprises must not be taking or have taken any benefit under any policy of the Department of Information Technology, Government of Goa.
• Loans of Economic Development Corporation Limited, if covered under the Modified Interest Rebate Scheme, 2012, are not eligible for the purpose of this scheme.
• Interest paid under Chief Minister Rojgar Yojana Scheme or any other employment generation scheme of Government of India/Government of Goa is not eligible.
• Units under Goa State Financial Relief Scheme for Sick Industrial Units, 2016, are not eligible.
• Charges/overdue and penal interest shall not be eligible for the purpose of this scheme.

Benefits
• For claims of interest paid on term loan, subsidy will be calculated to the extent of 30% of the interest paid, subject to the scheme ceiling.
• For claims of interest paid on working capital loan, subsidy will be calculated to the extent of 1½% of the total turnover or 30% of the interest paid by the units/enterprise, whichever is less.
• The subsidy payable shall not exceed the ceiling of ₹25,00,000/- per annum, calculated on pro-rata basis for part of the year as claimed.
• The subsidy payable shall not exceed the ceiling of ₹27,50,000/- per annum for all women and Scheduled Caste/Scheduled Tribe applicants, calculated on pro-rata basis for part of the year as claimed.
• The period of grant of subsidy shall not exceed seven years, that is 27 continuous quarters subsequent to the quarter in which the subsidy is first claimed.
• The benefits under this scheme shall be disbursed to eligible applicants beyond the validity of this scheme, provided, application for at least one claim is submitted to the Directorate of Industries, Trade and Commerce (DITC) during the validity of this scheme.
• In case the unit fails to file the yearly claim after the first claim within the stipulated time frame, the unit shall be eligible to file the delayed claim in the subsequent year within the time frame as specified in the Umbrella Scheme.
• The facility of filing delayed claims shall not be available for the last claim.
• The lapsed claim shall not be revived by any authority.
• In case the unit fails to include any portion of interest that cannot be claimed due to non-payment before filing of application, the unit shall be eligible to claim such interest subject to payment of the same in the subsequent year.
• In case of default in payment of term loan (i.e. not paid as per schedule of repayment) reimbursement of interest shall be reduced to the extent of default.
• Only the limit of original loan granted and not rescheduled loan shall be considered for interest reimbursement.

Eligibility Criteria
1. - The applicant must represent one of the following -
2. (a) A Micro, Small and Medium manufacturing industry.
3. (b) A project of Hinterland Eco tourism in lesser developed talukas registered with/recognized by the Department of Tourism/Goa Investment Promotion Board/Town & Country Planning/Planning & Development Authority/Eco Sensitive Zone Authority.
4. - The industry must be listed under White category, Green category and Orange category.
5. - The industry must have commenced production after 01-10-2017.
6. - The industry must engage a minimum of 60% of Goan manpower on regular employment.
7. - The industry must have availed loan as term loan and/or working capital loan for conducting business of the unit claiming the benefit.
8. - The loan must be availed from any nationalized bank, scheduled private bank, Co-operative Bank, Economic Development Corporation Limited, or any Non-Banking Financial Institutions recognized by the Reserve Bank of India.
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Application Process
Step 1: Step 1: The interested applicant should take a printout of the prescribed format of the application form.
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Step 1: The interested applicant should take a printout of the prescribed format of the application form.

Step 2: Step 2: In the application form, fill in all the mandatory fields, paste the passport-sized photograph (signed across, if required), and attach copies of all the mandatory documents (self-attest, if required).
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Step 2: In the application form, fill in all the mandatory fields, paste the passport-sized photograph (signed across, if required), and attach copies of all the mandatory documents (self-attest, if required).

Step 3: Step 3: Submit the duly filled and signed application form along with the documents, within the prescribed period (if any), to the Directorate of Industries, Trade and Commerce (DITC), Goa.
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*If the applicant has more than one unit with a consolidated balance sheet, a Chartered Accountant certificate giving interest details unit-wise must be submitted, and the claim should only be made for the eligible unit.
The Task Force Committee is responsible for the scrutiny and recommendation of the applications under this scheme.
This committee includes the Director, Department of Tourism, as a Member, in addition to the members specified in the Umbrella Scheme.
Upon approval, the benefits under this scheme shall be disbursed to eligible applicants, which may occur even beyond the scheme's validity, provided at least one claim application was submitted to the Directorate of Industries, Trade and Commerce during the scheme's period of force.

Required Documents
• A Self-Attested Copy Of Registration Under Umbrella Scheme.
• A Self-Declaration In The Format Provided.
• The Certificate Issued By The Nationalized Banks/Specified Financial Institutions In Respect Of Total Interest Paid By The Units.
• The Financial Statements Certified By A Chartered Accountant, Of The Financial Year.
• Chartered Accountant Certificate Certifying The Amount Of Interest Paid (With A Break Up Of Interest Paid On Working Capital Loan And Term Loan) And The Annual Turnover Of The Claim Year. (The certificate should also indicate the extent to which the loan is defaulted and whether the loan is rescheduled. In case the loan is rescheduled, the interest on rescheduled component and original component should be clearly indicated).
• A Copy Of Payroll Of The Unit Highlighting The Number Of Total Employees, And The Number Of Goan Employees.
• Certificate From Chartered Accountant Stating That No Claim From The Department Of Information Technology, Government Of Goa, Has Been Made For Any Incentives.
• A Chartered Accountant Certificate Certifying That No Other Claim For Similar Benefit Has Been Made Under Any Other Scheme/Program Of Government Of Goa.
• For Applications Under Hinterland Eco Tourism, The Certificate Of Registration/Or Approval Issued By The Department Of Tourism/Coastal Regulation Zone Authority/Investment Promotion Board/Eco Sensitive Zone Authority Shall Be Submitted.
• Chartered Accountant Certificate Showing Net Turnover.
• Copy Of Loan Certificate.
• Bank Detail Showing Therein The Account Number, Magnetic Ink Character Recognition And Indian Financial System Code Which Has Been Linked To The Beneficiary/Unit Aadhaar Card.
• Copy Of Aadhaar Card.
• Pollution Certificate Provided By Goa State Pollution Control Board.
• Proof Of Stake Holding Of Scheduled Caste, Scheduled Tribe, Other Backward Class, Women Partner/Promoter (In Case Of Seeking Additional Benefit Under These Categories).
• A Copy Of Partnership Deed, Memorandum Of Association/Articles Of Association, As The Case May Be.

Frequently Asked Questions
Q: What is the mandatory minimum percentage of Goan manpower that my enterprise must employ on a regular basis to remain eligible for these financial benefits?
A: Your enterprise must engage a minimum of 60% of Goan manpower on regular employment, meaning those employees must be continuously on the unit’s payroll during the claim year.
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Q: To qualify for the subsidy, what is the minimum business category I must belong to, and what commencement date must I meet?
A: You must be a Micro, Small, or Medium manufacturing industry listed under the White, Green, or Orange category, and you must have started production after 1st October 2017.
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Q: If I have availed a term loan or working capital loan for my business, from which specific types of financial organizations must this loan originate for the interest paid to be considered?
A: The loan must be from a nationalized bank, scheduled private bank, Co-operative Bank, Economic Development Corporation Limited, or any Non-Banking Financial Institution recognized by the Reserve Bank of India.
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Q: When applying for reimbursement on interest paid for a working capital loan, what is the method used to determine the maximum subsidy amount I can receive?
A: The subsidy is calculated as the lesser amount between 1.5% of your total turnover or 30% of the interest amount you paid on the working capital loan.
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Q: If my enterprise has previously received financial benefits or incentives through any policy administered by the Department of Information Technology, can I still apply for this interest subsidy?
A: No, enterprises currently receiving or having previously received any benefit under any policy of the Department of Information Technology, Government of Goa, are ineligible for this subsidy.
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Q: Am I permitted to claim financial support under this scheme if I have already received a similar interest subsidy benefit through another Government of Goa scheme or program?
A: No, this scheme does not apply if you have claimed a similar benefit under any other scheme or program provided by the Government of Goa.
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Q: What is the total maximum period during which my enterprise is eligible to continuously receive the grant of this interest subsidy?
A: The total period for receiving the subsidy cannot exceed seven years, which amounts to 27 continuous quarters following the quarter in which you submit your first claim.
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Q: Does the interest reimbursement cover all charges associated with my loan repayment, including any overdue fees or punitive interest levied by the financial institution?
A: No, charges, overdue interest, and penal interest (punitive interest) are explicitly not eligible for reimbursement under this scheme.
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Q: What is the maximum amount of subsidy an applicant can receive in one financial year under this scheme, and are there any exceptions to this limit?
A: The maximum annual subsidy is ₹25,00,000/-, calculated on a pro-rata basis, but this limit is increased to ₹27,50,000/- for applicants who are women, Scheduled Caste, or Scheduled Tribe.
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Q: How will the subsidy be precisely calculated when submitting a claim for the interest that has been paid specifically on a sanctioned term loan?
A: The subsidy calculation for term loans is calculated to the extent of 30% of the interest paid, restricted by the overall maximum annual ceiling defined by the scheme.
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Q: If my term loan repayment schedule is defaulted or the loan is officially rescheduled, how will these actions impact the calculation of my eligible interest reimbursement?
A: If you default on the term loan, the interest reimbursement will be reduced proportionally; only the limit of the original loan, not the rescheduled loan, will be considered for reimbursement.
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Q: What is the official date of commencement for this scheme, and until what date is the scheme currently stipulated to remain in effect?
A: The scheme commenced on 1st October 2017, and is scheduled to remain in force until 30th September 2022.
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Q: Which specific types of interest payments or scheme participation, such as those related to the Economic Development Corporation Limited or employment programs, will render me ineligible for this subsidy?
A: You are ineligible if the loans from Economic Development Corporation Limited are covered under the Modified Interest Rebate Scheme, 2012, or if the interest was paid under the Chief Minister Rojgar Yojana Scheme or similar employment schemes, or if your unit is covered under the Goa State Financial Relief Scheme for Sick Industrial Units, 2016.
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Q: Are units involved in the tourism sector eligible for financial support, and if so, what specific conditions apply to their registration?
A: Yes, projects related to Hinterland Eco tourism in lesser developed talukas are eligible, provided they are registered with/recognized by the Department of Tourism, Goa Investment Promotion Board, Town &amp; Country Planning, Planning &amp; Development Authority, or Eco Sensitive Zone Authority.
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