Special Incentive Allowance Scheme, 2018 (Goa)

What is the Special Incentive Allowance Scheme, 2018?

Special Incentive Allowance Scheme, 2018 is the largest single incentive in the Goa Information Technology Policy 2018, notified by the Department of Information Technology, Government of Goa. It pays a qualifying IT unit Rs 50 lakh, Rs 1 crore or Rs 2 crore once at the end of every three-year period, depending on the unit's size classification.

The scheme was framed in pursuance of clause 6.2.13 of the Goa IT Policy 2018, which was notified on 18 July 2018, and was published in the Official Gazette, Series I No. 21, dated 23 August 2018. Clause 1.2 says it "shall remain in force for a period of 5 years from the date of notification", so a unit preparing a claim now should confirm the current operative notification with the Department of IT.

The objective is stated in one line; "To provide Special Incentive Allowance to the eligible IT Units", but the real design sits in the eligibility table. This is not a routine subsidy. It is a large lump sum offered to a small number of units that simultaneously grow fast, hire Goans, hire women, certify their people and certify themselves.

How much does the scheme pay?

Clause 5.1 sets the allowance by unit category, payable once at the end of every three year period:

• Smaller Business Units: Rs 50 lakh
• Other Business Units: Rs 1 crore
• Mega Business Units: Rs 2 crore

The categories are those defined in the Goa Information Technology Policy 2018, and the same three-tier structure is used across the policy's other schemes.

What are the five criteria a unit must satisfy?

Clause 5.2 sets minimum criteria that must all be met to draw the allowance:

Clause 4.7 makes it explicit that "All criteria mentioned in section 2.2 of this scheme should be fulfilled concurrently and during the operation period of the policy." A unit that hits the growth target but employs 55 per cent women does not qualify at a reduced rate. It does not qualify at all.

Head count is not counted on the payroll snapshot. Clause 4.5 says the number of employees is calculated on employees on the rolls for more than 12 months during the year, and clause 4.6 adds that in case of expansion, new employees must have been on the rolls for at least one year prior to the date of application.

Who can and cannot claim under this scheme?

A unit can claim if:

• The unit, new or existing, has its operations in Goa.
• It is a proprietorship firm; a private or public limited company incorporated under the Companies Act, 2013 or equivalent; a registered partnership firm under the Indian Partnership Act, 1932 or equivalent; or a limited liability partnership under the LLP Act, 2008 or equivalent.
• The bank accounts of the unit and/or its partners or directors are linked to Aadhaar.
• It can produce Udyog Aadhaar.
• It meets all five criteria in the table above, concurrently.

A unit is not eligible if:

• It has no operations in Goa.
• It is availing similar financial incentives under any other policy of the Government of Goa: clause 4.8 rules such units out.
• It cannot show three consecutive years of 20 per cent or better growth, evidenced by income tax returns and an auditor's certificate.
• Its Goan or Goan-graduate employees are below 75 per cent of total employees, or its female employees are below 60 per cent.
• Any of its Goan employees is uncertified — the requirement is 100 per cent of the Goans, not a majority.
• It has obtained no quality certification during the policy period.

Individuals cannot apply. Special Incentive Allowance is an incentive to the IT unit. An employee, a graduate or a job-seeker cannot apply for a personal benefit, and no part of the allowance is earmarked for payment to employees.

Clause 4.9 records the usual caveat: the policy and the schemes framed under it are not binding representations or assurances on the part of the Government, and promissory estoppel will not apply against the Government if a provision is not implemented.

How to apply for the Special Incentive Allowance

1. File the Common Application Form (Part 1) with the Department of IT, along with the requisite set of documents. The form and documents are to be e-mailed or submitted on the web portal.
2. Note the unique registration number generated for the unit by the Department of Information Technology. It is quoted on every later claim.
3. Complete a full three-year period and assemble the evidence: income tax returns showing net income and annual growth rate for every year claimed, an auditor's certified copy verifying the reported income for that period, copies of every employee certification, and copies of the unit's quality certifications.
4. Fill Annexure 1, the Special Incentive Allowance Form. It asks for the registration number, the period claimed, the reported net income and per cent growth over the previous year for each of years 1 to 4, the percentage of Goan-origin employees and Goan graduates, the percentage of female employees, the percentage certification of Goan employees, and the name, level and date of the unit's quality certification. Several of these fields are auto-generated from the CAF, so the CAF data must already be accurate.
5. Submit the Common Application Form (Part 2), Annexure 1 and the Declaration Form (Annexure 2) to the Due Diligence Committee, with the requisite documents, by e-mail or on the web portal.
6. Track the 90-day timeline, scrutiny and due diligence at D+30 days, supported Committee approval at D+60 days, and sanction order or regret letter with disbursement at D+90 days.

Applications may be filed on a quarterly, half-yearly or annual basis after the relevant expenditure is incurred.

Who evaluates the claim?

Two bodies are named. The Due Diligence Committee receives the Common Application Form Part 2 and the incentive-specific forms and does the scrutiny. The supported Committee is the competent authority to accept or reject any claim filed by a unit, and the scheme states its decision is "final and binding on the applicant". Based on the committee's evaluation, the approved amount is disbursed.

What are the common reasons a claim fails?

• Growth measured on the wrong base. The requirement is 20 per cent or more per annum for three years, evidenced by returns and an auditor's certificate; one strong year does not carry the period.
• Female employment short of 60 per cent. This is the criterion most units miss, and there is no partial credit.
• Partial employee certification. The scheme asks for 100 per cent of the Goans to be certified. Even one uncertified Goan employee breaks the criterion.
• No company-level quality certification obtained during the policy period.
• Counting recent hires. Employees on the rolls for less than 12 months during the year do not count toward head count, and in an expansion case new employees must have completed a year before the application date.
• Double-dipping on a similar incentive under another Government of Goa policy.
• Missing certification metadata. Employee and quality certification copies must clearly show the name, issuing authority, type or level, date obtained and validity period; copies without these details are incomplete.

Where do I raise a query or a grievance?

Claims and queries go to the Department of Information Technology, Electronics and Communications, Government of Goa, whose schemes and policies page lists the IT Policy 2018 schemes. The department's Startup Promotion Cell at IT HUB, 2nd Floor, Altinho, Panaji, Goa 403001 runs a helpline on 1800-233-5060 and the address spc-dit.goa@gov.in, and is the usual fallback contact point.

Key facts to remember

• Special Incentive Allowance Scheme, 2018 is a Department of IT, Government of Goa scheme under the Goa IT Policy 2018.
• Rs 50 lakh, Rs 1 crore or Rs 2 crore once every three years, by unit size.
• Five criteria must be met concurrently: 20 per cent annual growth over three years, 75 per cent Goan employees, 60 per cent female employees, 100 per cent certification of Goan employees, and one company quality certification.
• Head count counts only employees on the rolls for more than 12 months.
• Udyog Aadhaar mandatory; unit and director bank accounts Aadhaar-linked.
• Individuals and employees cannot apply, only the IT unit can.
• Disbursement timeline is 90 days; the supported Committee's decision is final.

How to check your application status

The Department of Information Technology, Electronics and Communications does not publish a self-service online tracker for Special Incentive Allowance claims, so a unit has to follow up through the same channels it applied on.

1. Keep the unique registration number ready. This is the number the Department generated when the unit first filed the Common Application Form Part 1, and it is what every status query is matched against.
2. Confirm receipt of the Common Application Form Part 2 filing. Since the CAF Part 2, Annexure 1 and the Declaration Form (Annexure 2) can be submitted by e-mail or on the web portal, a unit that filed by e-mail should ask for a written acknowledgement of receipt if one was not sent automatically; a unit that filed on the portal should retain the submission reference shown at the time.
3. Map the date of submission against the 90-day cycle. Scrutiny and due diligence are expected around day 30, the supported Committee's review around day 60, and a sanction order or a regret letter with disbursement around day 90. A claim that has not moved past scrutiny well beyond day 30 is worth an active follow-up rather than a wait.
4. Call or write to the Startup Promotion Cell at IT HUB, 2nd Floor, Altinho, Panaji, Goa 403001, on the helpline 1800-233-5060, or by e-mail to spc-dit.goa@gov.in, quoting the registration number and the date the CAF Part 2 and Annexure 1 were submitted.
5. Check the Department's schemes and policies page at the official portal from time to time, since any change to the operative notification period or the claim process is announced there rather than through individual applicant accounts.
6. Treat the supported Committee's communication as final. Once a sanction order or regret letter is issued, the scheme records the Committee's decision as final and binding on the applicant, so a status query after that point is really a disbursement query, not an approval query, and should be directed to the same Startup Promotion Cell contact.