Performance Linked Grant Scheme for Smaller Business Units

The Performance Linked Grant Scheme for Smaller Business Units, 2018 is implemented by the Department of Information Technology, Government of Goa under the Goa Information Technology Policy and Roadmap – 2018. The scheme came into force from the date of publication of its notification in the official gazette and remains operational for five years from the notification date. The purpose of this initiative is to encourage smaller IT business units operating in Goa to achieve sustained business growth by rewarding them with performance-based financial grants. If your MSME or startup demonstrates consistent growth in turnover and net income, the Government provides a grant linked to your financial performance, helping your business scale further and strengthen the technology ecosystem in the state.

Key Features
Financial Assistance
Eligibility Criteria
Documents Required
Application Process

Key Features

Performance-Based Financial Incentive - The scheme rewards smaller IT business units that show measurable growth in their business performance. The grant is linked to financial performance indicators such as turnover growth and reported net income.
Encouragement for Smaller IT Units - The scheme is specifically designed for smaller business units in the IT sector. This ensures that emerging enterprises receive financial encouragement to scale their operations and compete with larger firms.
Growth Requirement of 15% Year-on-Year - To qualify for the grant, a business must demonstrate at least 15% year-on-year turnover growth for three consecutive years during the policy period. This requirement ensures that incentives are provided to businesses showing consistent expansion.
Grant Linked to Net Income - The grant amount is calculated as a percentage of the reported net income of the unit. This approach rewards profitable businesses that maintain financial discipline and operational efficiency.
Maximum Grant Limit - The total grant available under the scheme is capped at ₹25 lakh per unit, ensuring equitable distribution of benefits across eligible businesses.
Flexible Claim Frequency - Businesses can submit applications for the incentive on a quarterly, bi-annually, or annual basis, depending on their reporting cycle and financial performance documentation.
Transparent Evaluation Mechanism - Applications are verified by a Due Diligence Committee, and final approval is granted by the Empowered Committee constituted by the Government of Goa.

Financial Assistance

Component	Assistance Provided	Detailed Explanation
Performance Grant	5% of reported net income	Smaller IT business units that achieve the required turnover growth are eligible to receive a grant equal to 5% of their reported net income. For example, if your business reports a net income of ₹2 crore, you may receive up to ₹10 lakh as performance grant, subject to the scheme cap.
Growth Requirement	15% YoY turnover growth for 3 consecutive years	To qualify for the grant, the unit must maintain at least 15% year-on-year growth in turnover for three consecutive years during the policy period.
Maximum Grant Limit	Up to ₹25 lakh per unit	Regardless of the calculated grant amount, the maximum financial assistance provided under this scheme cannot exceed ₹25 lakh per eligible unit.

Eligibility Criteria

To apply under the scheme, the applicant must satisfy the following conditions:

The unit must be a Smaller Business Unit operating in Goa.
The unit must operate within the IT sector under the Goa IT Policy.
The applicant entity must be one of the following:
- Proprietorship Firm
- Private Limited Company (Companies Act, 2013)
- Public Limited Company
- Registered Partnership Firm (Indian Partnership Act, 1932)
- Limited Liability Partnership (LLP Act, 2008)
The bank account of the unit or its partners/directors must be linked with Aadhaar.
The unit must provide Udyog Aadhaar / Udyam Registration.
The business must demonstrate 15% year-on-year turnover growth for three consecutive years.

Non-Eligibility Conditions

Units already receiving similar financial incentives under other Government of Goa policies are not eligible.
Benefits are subject to budget allocation, and incentives may stop if the allocated funds are exhausted.

Documents Required

Certificate of incorporation or business registration
New unit registration certificate
PAN and Aadhaar copies
Memorandum and Articles of Association
Proof of commencement of operations (first bill or relevant document)
Income Tax Returns of the unit for the claimed period
Auditor or Chartered Accountant certified statement verifying reported income and growth figures

Application Process

Option 1: Apply with Bullit, Recommended

Start instantly with our guided application support, where our team verifies eligibility, prepares documentation, and coordinates with the Industries Department on your behalf. Using our business loans and compliance calendar, you can track progress while focusing on project execution, we manage the application end-to-end.

Option 2: Apply Online / Offline (Government Process)

Fill the Common Application Form (Part-1) along with supporting documents.
Submit the form through the official web portal or email to the Department of Information Technology, Goa.
A unique registration number will be generated for each applicant unit.
Submit Common Application Form (Part-2) and incentive-specific forms to claim the grant.
Attach financial documents such as Income Tax Returns and CA-certified financial statements.
The Due Diligence Committee evaluates the application.
The Empowered Committee reviews and approves eligible claims.
The approved grant amount is disbursed to the applicant unit.

Disbursement Timeline

Activity	Timeline
Application receipt	Day 0
Application scrutiny	Within 30 days
Approval by Empowered Committee	Within 60 days
Sanction order and disbursement	Within 90 days

Frequently asked questions

Who can apply for the Performance Linked Grant Scheme?

Smaller IT business units operating in Goa can apply if they meet the eligibility criteria. The unit must be registered as a proprietorship, partnership, LLP, or company and must possess valid Udyam or Udyog Aadhaar registration.

What is the main objective of this scheme?

The scheme aims to encourage smaller IT business units to achieve consistent growth and profitability by providing financial grants linked to measurable business performance indicators such as turnover growth and net income.

What growth requirement must businesses meet to qualify?

Businesses must demonstrate at least 15% year-on-year turnover growth for three consecutive years during the operational period of the policy to qualify for the performance-linked grant.

How is the grant amount calculated?

The grant amount is calculated as 5% of the reported net income of the eligible unit. However, the total grant amount cannot exceed the maximum limit prescribed under the scheme.

What is the maximum grant amount available?

The scheme provides a maximum grant of up to ₹25 lakh per eligible unit, irrespective of the calculated percentage of net income.

Can startups apply for this scheme?

Yes, startups that qualify as smaller business units and operate within the IT sector in Goa can apply if they demonstrate the required financial growth and meet the scheme’s eligibility conditions.