Share Capital to Local Entrepreneurs and Self Employed Scheme, 2008

What was the Share Capital to Local Entrepreneurs and Self Employed Scheme, 2008?

Share Capital to Local Entrepreneurs and Self Employed Scheme, 2008 was a self-employment finance scheme of the Industries Department, Government of Goa, administered through the Directorate of Industries, Trade and Commerce. It was notified on 31 December 2008 under notification No. 3/40/2003/IND(Part), framed in pursuance of clause 5.9(iii) of the Goa Industrial Policy, 2003.

The scheme was devised to encourage local youths, preferably of Goan origin, to start income-generating activities by providing a share capital contribution for industrial and other self-employment opportunities, excluding activities covered under the Red category of the Industrial Policy and anything related to tobacco and liquor. Its stated objective was to encourage local youths to start income-generating activities and to encourage self-employment.

What made the scheme distinctive was its instrument. This was not a subsidy and not a bank loan. The Government put in share capital on an interest-free basis, repayable over ten years, taking guarantees rather than commercial collateral. For a young person in Goa with a viable idea and no credit history, that was a very different proposition from approaching a bank.

Important status note. Clause 1(2) of the notification stated that the scheme would come into force from the date of its publication in the Official Gazette and "shall remain in force up to 31st March 2011". The Directorate of Industries, Trade and Commerce continues to host the scheme text on its website under Share Capital Category, but the notified life of the scheme has expired. Nothing on this page should be treated as a live offer without confirmation from the Directorate.

Who was eligible for the scheme?

An applicant could apply if:

• The applicant was an individual or part of a group of individuals.
• The applicant was a resident of Goa for at least 15 years before the application and had passed graduation, Class XII, Class X or schooling from the State of Goa. Individuals born and resident in Goa for 15 years were given preference, though the scheme did not bar others meeting the residence and schooling test.
• The applicant was below 40 years of age, relaxable by 5 years for women, disabled persons, Scheduled Caste, Scheduled Tribe and other backward class applicants. Applicants eligible for age relaxation under the Chief Minister's Rozgar Yojana (CMRY) were considered under this scheme automatically, without a separate relaxation order.
• The applicant had passed at least Class VII, relaxable in deserving cases by a specific order of the Director of Industries, Trade and Commerce.
• The income of the applicant along with the spouse did not exceed Rs 80,000 per annum.

For a group, all persons in the group had to satisfy the same criteria. Self-help groups of women and disabled persons were given priority, and the age criteria did not apply to them. Registered self-help groups were also exempt from the requirement that every individual be below 40.

An applicant was not eligible if:

• The applicant had already availed a subsidy of more than 15% of the project cost under any other scheme, or was specifically debarred by another scheme from receiving benefits under this one.
• The applicant could be covered under the Kamdhenu Scheme, except for the setting up of a dairy or chilling unit.
• The proposed activity fell in the Red category under the Industrial Policy, or related to tobacco or liquor.
• The project was found not feasible. Clause 13 gave the Director an express power to reject a claim on feasibility, taking into account the training or qualifications of the persons involved, or the need to regulate a specific activity for overall economic benefit.

Two special provisions widened the reach. The scheme covered those under the subsidy scheme framed for black and yellow taxi, motorcycle and rickshaw drivers or owners, for the balance 75% of the requirement, with no age criteria applied to those replacing old vehicles. And all beneficiaries covered under CMRY were automatically covered under this scheme, with certification by the Managing Director of the Economic Development Corporation being adequate.

Priority was given to women entrepreneurs to the extent of 30% of the budgeted outlay where applications exceeded the total budgetary provision.

How much capital did the scheme give?

A professional qualification meant a degree or diploma in engineering, including qualifications such as ITI, Vocational XII, or any other government-recognised certificate course or training programme. The scheme also treated as "professional" anyone trained by the Goa Handicrafts, Rural and Small Scale Industries Development Corporation, the Khadi and Village Industries Board, a Training-cum-Production Centre, an approved non-governmental organisation, an Entrepreneurship Development Programme, or under a scheme of the Directorate of Education, provided they held a certificate of successful completion.

The scheme did not stop an applicant from taking an additional loan from the Economic Development Corporation or from banks, that had to be applied for and approved separately.

How to apply for the scheme

1. Buy the application form at the Directorate of Industries, Trade and Commerce. The cost of the form was Rs 25.
2. Pay the processing fee of Rs 200, which was non-refundable and payable once only, and enclose the receipt with the application.
3. Complete the prescribed proforma with the required documents from the competent authorities; residence, schooling, age, income, and any professional qualification.
4. Arrange the security. A self guarantee by the applicant, parents, spouse or the spouse's parents, together with one guarantor owning residential accommodation, a plot of land or other property in the state. The latest house tax receipt or the latest Form I/XIV was adequate proof of property.
5. Submit the application addressed to the Director of Industries, Trade and Commerce at the office of the Directorate, Udyog Bhavan, Panaji, Goa.
6. CMRY-eligible applicants used the combined form available at the Economic Development Corporation Limited, and were exempted from filing a separate form and from the form fee and application fee under this scheme.
7. Await the Task Force Committee. The TFC set up by the Director, or the authority under the Chief Minister's Rozgar Yojana — scrutinised applications and recommended them for disbursement.

What were the security and repayment terms?

Security. A self guarantee by the applicant, parents, spouse or the spouse's parents, along with one guarantor owning property in the state, was adequate. Where the assets financed were fixed assets given as tangible security and the capital contribution was below Rs 50,000, a personal guarantee by the applicant plus one from a parent, spouse or the spouse's parents was enough even if those guarantors held no property at all. In such cases the first charge of mortgage or hypothecation of fixed or current assets was held by the Director of Industries, Trade and Commerce or the Economic Development Corporation, or as decided by the Government.

Repayment. The capital contribution was to be repaid to the Government in equal monthly instalments within 10 years, with a moratorium not exceeding one year, the first instalment falling due after the date of release. The Directorate reserved the right to reduce the total repayment period to 5 years depending on the nature of the business. The capital was interest-free. If a beneficiary failed to pay instalments within the stipulated period, the amount was recoverable under the laws in force, including as arrears of land revenue.

Insurance. A special insurance cover absolved the beneficiary of outstanding dues in case of death or permanent disability, in which case the Director, with Government approval, wrote off the balance. Permanent disability for this purpose meant that the beneficiary was rendered incompetent to carry on the business. The premium was recovered once, before disbursal, on the following scale:

Who decided applications?

A Task Force Committee scrutinised and recommended benefits under the scheme, constituted as:

1. General Manager (DIC), Directorate of Industries, Trade and Commerce; Chairman
2. Assistant Director (Administration), Directorate of Industries, Trade and Commerce: Member
3. Under Secretary (Finance / Expenditure): Member
4. One person nominated by the Government from the Goa Chamber of Commerce and Industry
5. One person nominated by the Government from the Goa State Industries Association

The Committee could co-opt additional members from financial institutions or associations if needed. For CMRY applications, the Task Force Committee under CMRY was the sanctioning authority, after appraisal by the CMRY Appraisal Committee.

Any dispute about the interpretation of the scheme or the fulfilment of its conditions was decided by the Director of Industries, Trade and Commerce, whose decision was final and binding on all. The Director could also relax any provision of the scheme after taking Government approval, and the Government could modify the scheme where difficulties arose, particularly in the case of women's self-help groups, disabled persons, SC, ST or OBC applicants.

Where to check the current position

• Directorate of Industries, Trade and Commerce, Udyog Bhavan, Panaji, Goa
• Public Grievance Officer: Deputy Director (Administration), contact number 2420787, email dir-indu.goa@nic.in, as listed on the Directorate's contact page
• Scheme text: published under Share Capital Category on ditc.goa.gov.in

Anyone in Goa looking for self-employment finance today should ask the Directorate which scheme has replaced this one, and should also look at the Chief Minister's Rozgar Yojana route through the Economic Development Corporation, with which this scheme was closely interlinked.

How to check your application status

The Share Capital to Local Entrepreneurs and Self Employed Scheme, 2008 never had an online tracking portal, an SMS status service, or a helpline number dedicated to it. Every application moved on paper through the Directorate of Industries, Trade and Commerce, so checking status has always meant a direct follow-up with that office, not a website login.

For anyone who filed under this scheme while it was operational (up to 31 March 2011) and is still trying to trace an old file:

• Visit the Directorate in person at Udyog Bhavan, Panaji, Goa, and ask the General Manager (DIC) section, since the General Manager chaired the Task Force Committee that scrutinised these applications. Carry the original application receipt or the Rs 200 processing fee receipt if it survives; the Directorate indexes old files by receipt number and applicant name, not by any online reference ID.
• Write a formal letter addressed to the Director of Industries, Trade and Commerce describing the application (date filed, activity proposed, amount sought) and ask for the current status or the reason a file was closed. A written request creates a paper trail the office can act on, which a phone call alone does not.
• Use the Public Grievance Officer as the escalation point if the general office cannot locate a file quickly. The Deputy Director (Administration) handles grievances for the Directorate, reachable on 2420787 or dir-indu.goa@nic.in, as listed on the Directorate's own contact page.
• File an RTI application if the case is old enough that routine correspondence has not worked. Since the scheme's notified life ended in 2011, records may have moved to archival storage, and an RTI request compels a documented response with a statutory timeline, which informal enquiries do not.
• Route CMRY-linked applications through the Economic Development Corporation instead of the Directorate, since applicants covered under the Chief Minister's Rozgar Yojana used the Corporation's combined form and its Task Force Committee, not a separate filing with the Directorate.

Because the scheme's notified window has lapsed, the more useful status question today is usually not "where is my file" but "what has replaced this scheme," and that question is also best put to the Directorate at the same Udyog Bhavan address.

Common reasons for rejection

Applications under this scheme were turned down for reasons rooted directly in its eligibility clauses and its Task Force Committee's discretion, not for vague paperwork lapses. The concrete reasons, and what would have fixed each one, were:

• Household income above Rs 80,000 a year. The scheme capped combined income of the applicant and spouse at Rs 80,000 per annum. An applicant over that line was rejected outright, and there was no waiver clause for this particular limit, so the only fix was to apply through a different scheme with a higher income ceiling.
• Age above 40 without a valid relaxation ground. The general cutoff was 40 years, relaxable by 5 years only for women, persons with disability, and SC/ST/OBC applicants, or automatically for anyone already eligible for relaxation under the Chief Minister's Rozgar Yojana. An applicant who was over 40 and did not fall into one of those categories was rejected on age alone; registered self-help groups of women or disabled persons were the one class exempted from the age test entirely.
• Activity fell in the Red category, or involved tobacco or liquor. The notification excluded Red category industrial activities and anything connected with tobacco or liquor from the outset. Proposals in these categories were never going to be sanctioned regardless of the applicant's personal eligibility, so the fix was choosing a different, permissible activity, not resubmitting the same proposal.
• Project found not feasible under clause 13. The Director had an express power to reject an application on feasibility grounds, weighing the applicant's training or qualification against the activity proposed, or the need to regulate a particular trade for the state's overall economic benefit. A proposal with no demonstrated skill or training behind it, or one crowding an already saturated local trade, was vulnerable here; a stronger case attached certificates from a recognised training body, an ITI, a Training-cum-Production Centre, or an approved NGO programme.
• Prior subsidy already exceeding 15% of project cost. An applicant who had already received a subsidy worth more than 15% of the same project's cost under another scheme was disqualified from this one, since the two benefits were not meant to stack. Applicants also lost eligibility if a scheme they had already benefited under specifically debarred them from claiming this one as well.
• Overlap with the Kamdhenu Scheme. Anyone whose proposal fell within the coverage of the Kamdhenu Scheme was excluded from this one, except specifically for setting up a dairy or a chilling unit, which the two schemes did not treat as overlapping.
• Security and guarantor documents falling short. The scheme needed either a self guarantee plus one guarantor owning property in Goa, evidenced by a current house tax receipt or Form I/XIV, or, for contributions below Rs 50,000 against fixed assets, guarantees from close family members without a property requirement. A guarantor who could not produce current property proof, or a family guarantee offered where the contribution exceeded the Rs 50,000 threshold, meant the security fell short of what the notification required.
• Processing fee or form fee not paid or not enclosed. The Rs 25 form cost and the Rs 200 non-refundable processing fee had to accompany the application, with the receipt enclosed. A file missing that receipt was incomplete on its face and would not move to the Task Force Committee for scrutiny, though CMRY-eligible applicants using the combined form were specifically exempted from both fees.
• Filed after the scheme's notified closing date. Clause 1(2) fixed 31 March 2011 as the date the scheme ceased to be in force. Any application submitted after that date fell outside the scheme's own life, and no eligibility on the merits could revive it; this remains the reason any fresh application today would not be entertained, since the scheme itself is no longer open.