ASHLEY DO ROSARIO
PANAJI
The Goa government is set to roll out a new regime to attract large-scale manufacturing investments, replacing the existing mechanism under the Investment Promotion Board (IPB) which has failed to clinch any notable investment in 10 years.
The proposed 'Goa Customized Packaged Scheme of Incentives for Large-Scale Manufacturing Projects 2026' was fine-tuned and finalised at a high-level meeting chaired by Chief Secretary Dr V Candavelou on Monday and is expected to be placed before the State Cabinet shortly.
The scheme seeks to draw substantial new investment in the manufacturing sector while encouraging expansion, diversification and modernisation of existing industries. It centres on creating jobs, strengthening local supply chains, boosting exports and promoting environmentally sustainable manufacturing.
It proposes a customised incentive package for projects that make a minimum eligible fixed capital investment of Rs 200 crore or generates significant employment.
New manufacturing units can qualify either by investing at least Rs 200 crore or creating 500 direct jobs, provided at least 60 per cent of the employees are Goans.
Existing industries undertaking expansion projects can qualify with an additional investment of Rs 200 crore or 200 new jobs, again subject to the 60 per cent local employment condition.
It is proposed to keep the scheme operational for two years after notification, although projects approved during the period will continue receiving benefits for the approved duration.
One of the key incentives proposed is a capital subsidy of up to 15 per cent of eligible fixed capital investment, excluding land costs.
The subsidy will be disbursed after the project achieves committed investment targets and begins commercial production with annual disbursal capped at Rs 20 crore.
The government also plans to offer a production-linked incentive (PLI) of up to 3 per cent on net incremental eligible turnover. The incentive can be claimed for up to five years but will not be available to units already availing benefits under any Central government's PLI scheme.
Additional incentives proposed include reimbursement of electricity duty paid on manufacturing operations, capped at Rs 1 crore annually for five years.
A one-time reimbursement of stamp duty and registration fees of up to Rs 5 crore has also been proposed for land and property transactions linked to approved projects is also proposed.
The Department of Industries will serve as the administrative department to implement the regime, while the Directorate of Industries, Trade and Commerce will act as the nodal agency.
The department may also engage a 'Project Management Agency' for appraisal, monitoring and claim verification.
To strengthen oversight, a 'Scrutiny Committee' chaired by the Chief Secretary will evaluate proposals before they are placed before the State Level Approval Committee, which will be headed by the Chief Minister. This State-level panel will also include ministers, senior bureaucrats and representatives of leading industry bodies.
Mining, quarrying, tobacco products, real estate, hospitality services and activities involving only repackaging or relabelling without substantial manufacturing have been excluded from the eligible list.
Under the regime, projects will face strict performance conditions and units failing to achieve committed investment, employment or production targets could face reduction of benefits, suspension of incentives, withdrawal of approval or recovery of incentives already disbursed.
Approved projects will also have to maintain operations in Goa for at least five years from the start of commercial production.
Officials said, the new framework is designed to provide a transparent, accountable and outcome-driven system to attract high-value manufacturing investments while ensuring tangible economic benefits and jobs for Goans.
