HARYANA ENTERPRISES PROMOTION POLICY (HEPP ), 2020

Department of Industries and Commerce, Govt. of Haryana.

Special Benefits/Incentives/Subsidy Scheme to MSME Units in Haryana.

Dear Businessman,

Department of Industries and Commerce of Haryana Govt has issued new “Haryana Enterprises Promotion Policy, 2020” with the following major  Objectives:

• Fostering ease of doing business in Haryana
• Balanced Regional Development
• Enhancing Export
• Developing Industrial Infrastructure
• Boost up MSME Unit

Thrust Area:

Further, The State has identified the seven thrust sectors on which give special focus. These Thrust sectors are as:

1. Auto, Auto Components & Light Engineering
2. Agro-based, Food Processing & Allied Industry
3. Textiles and Apparels
4. Electronics System Design & Manufacturing (ESDM)
5. Defense and Aerospace Manufacturing
6. Pharmaceutical & Medical Devices
7. Chemical and Petrochemicals

 

So if you are running a business or going to start your own business then you should be aware of major reforms of Haryana Govt prosed in Haryana Enterprises Promotion Policy, 2020.

Since all specific benefits proposed under the said policy are linked with MSME Registered Units, so we are describing in this blog particularly those specific benefits which are directly linked with MSME Unit.

A. Special Benefits/Incentives/Subsidy Scheme to MSME Units:

The Policy of HEPC, 2020 has emerged with so many benefits to specially MSME Unit. So if you obtained Udyam Registration (Known as MSME Registration) then you can plan for following benefits for your business.

(Note: These benefit shall not be applicable on restrictive business as notified in said policy. To know more restrictive business,Click Here )

1. Investment Subsidy on SGST:

Many times, being a businessman you have felt that too much GST need to paid by you. But don’t worry about this. Under this scheme State will refund you up to 75% of Net SGST paid during the year. Amount of subsidy shall be determined as per your block location.

To know about your block, click here.

 

Phase	Period	Block B	Block C	Block D	Women/SC/ST led MSME in B, C and Block
First	First 10 Years	–	–	75%	–
	First 7 Years	–	75%	–	75%
	First 5 Years	50%	–	–	–
Second	Next 3 Years	25%	35%	35%	35%
Max. CAP	% of FCI	100%	125%	150%	150%

 

Expansion/Diversification- These benefits shall be also be applicable to units undergoing 50% additional investment in plant and machinery for expansion/ diversification of existing unit with cap of 100% of new fixed capital investment on expanded FCI.

2. Interest Subsidy:

• 5% for Micro and Small Enterprises on term loan or maximum up to Rs. 20.00 lakh per year for 5 years in ‘C’ & ‘D’ Categories Blocks.

• 5% for Micro and Small Enterprises on term loan or maximum up to Rs 20.00 lakh per year for 3 years in ‘B’ Categories Blocks.
• 6% for woman/SC/ST led Micro Enterprise on term loan or maximum up to Rs. 20.00 lakh per year for 5 years in ‘B’, ‘C’ & ‘D’ Categories Blocks.

3. Employment Generation Subsidy:

For capacity building of persons belonging to Haryana (skilled/semi-skilled) [having Haryana Resident Certificate] Subsidy @ Rs 36,000/- per year for SC/ Women and Rs 30,000/- per year for general category for 7 years in B, C & D category blocks for direct employment with ESI/PF Number.

4. Testing Equipment Assistance:

In order to ensure ‘Zero Defect’ in the quality of products to make globally competitive, Financial support of 50% as subsidy or maximum of Rs. 20 lakh per year for the purchase of testing equipment shall be provided to Micro and Small Enterprises.

5. Assistance for Technology Acquisition:

HARYANA ENTERPRISES PROMOTION POLICY

75% of cost for adopting/acquiring technology from premier National/International Institutes/Patented Technology from Private Companies, max. of Rs. 50.00 lakh.

6. Patent Cost:

Financial support by reimbursement of 100% of the actual expenses (including filing fees, consultancy fees, search fees, maintenance fees and Publishing fees) with a maximum of Rs. 25 lakhs for domestic patent registration and international patent registration.

7. Assistance for Environment Compliance:

50% financial support or maximum of Rs. 25.00 lakh on capital cost for setting up of Effluent Treatment Plant and for installation of Air Pollution Control Devices for Micro, Small and Medium Enterprises of all sectors (The Units adopting zero effluent will be considered for higher subsidy up to 75% of Cost, max. of Rs. 1.00 Crore.

8. State Renewable Energy Scheme:

State will provide interest subsidy on term loan to the tune of 5% (maximum up to INR 5 lakhs per year) for three years for adoption of renewable energy technologies like rooftop solar.

9. Energy Conservation:

75% reimbursement or maximum of Rs. 2 lakhs for conducting energy audit. Also 50% subsidy on cost of capital equipment required for undertaking measures to conserve energy for D Block, 40% for C Block, 30% for B Block and 20% for A Block, subject to maximum of Rs. 20 lakhs once in every 5 years.

10. Water Conservation:

75% reimbursement of cost of Water audit subject to maximum of Rs. 1 lakh. Also, subsidy up to 50% or maximum of Rs. 20 lakhs on the cost of capital equipment required for Water Conservation/ Harvesting System.

11. Safety Compliances:

75% reimbursement of expenses incurred on safety audit subject to maximum of Rs. 1 lakh for conducting safety audit. Also 50% subsidy on cost of capital equipment and capital expenditure required for undertaking safety measures subject to maximum of Rs. 20 lakh for D Block, Rs. 15 Lakh for C, Rs. 10.00 Lacs for B and Rs. 5.00 Lacs for A Category once in every 5 years [for compliance of Safety provision under Factory Act, 1948].

12. Credit Linked Capital Subsidy for Technology Up-gradation:

State Credit Linked Interest Subsidy Scheme for Technology Up-gradation of existing enterprises- @ 6% in C & D Category and 5% in A & B Category up to a maximum of INR 10 lakh per year for a period of 3 years to an eligible unit in specified sectors/products (appraisal by HSIIDC/SIDBI).

13. Stamp Duty Refund:

100% refund in ‘D’ category blocks; 75% in ‘C’ category blocks and 60% in ‘B’ category blocks on the land meant for industrial use after commencement of commercial production, within 5 years from the date of purchase of land.

14. Power Tariff Subsidy:

Rs. 2 per unit up to connected load of 40kWat source only for Micro and Small Enterprise in ‘D’ Category blocks and 30 KW for C Block from the date of release of electricity connection. The funds shall be provided by the Govt to UHBVN/DHBVN for DBT of subsidy amount.

15. Credit Rating:

Reimbursement of the expenses incurred towards the credit rating to the extent of 75% or maximum of Rs. 2 lakhs for Micro & Small enterprises carried out by SIDBI / Govt. accredited credit rating agency after every 5 years.

16. Quality Certification:

75% reimbursement of the total expenditure incurred for obtaining certification and logistics charges thereof subject to a maximum of Rs. 5 lakhs for obtaining ISO/ HACCP/BSI/ WHO-GMP/ ZED/TS/ Hallmark certifications and Rs. 10.00 Lacs for other country specific certifications fand would be in addition to the support being provided by Government of India.

17. Enterprise Resource Planning adoption:

Financial assistance up to 75% of capital cost up to INR 5 Lakh for adopting ERP system. This will help in improving operational efficiency and resource optimization.

18. DG Set Subsidy:

INR 8000 per KVA, maximum up to 35% for Small enterprises and maximum up to 25% for Medium enterprises of the DG set cost in ‘D’ and ‘C’ category blocks in rural areas.

19. MSME State Awards:

Outstanding Entrepreneurship State Awards shall be provided to Micro and Small Enterprises of Rs. 5 lakh each separately for growth in production and profit, for innovation & development of new products, quality products and lean manufacturing techniques in the field of Agro and Food processing, Automobiles and auto parts, Textiles, Engineering, Pharmaceuticals, IT & Electronics etc. The unit once selected for award shall not be considered again during next 5 years.

20. EDC charges:

100% refund of External Development Charges in D Category blocks, 75% for C Block and 60% for B Category Block.

21. Electricity Duty Exemption/ Open Access Charges:

100% exemption for 12 years in ‘D’ category blocks,

10 years in ‘C’ category blocks

and 7 years in ‘B’ category blocks.

HARYANA ENTERPRISES PROMOTION POLICY, 2020

22. Collateral Free Credit Guarantee Scheme:

Reimbursement @ 100% guarantee cover fee charged by the Financial Institution/banks from Micro Enterprises for collateral free term loan/working capital under CGTMSE for the period of 05 years.

23. Price Preference to MSMEs:

Haryana Government has formulated a public procurement policy for the MSEs in the state under which the micro and small enterprises (MSEs) will get several benefits such as exemption on payment of tender fee, earnest money deposit and concession on performance security. The purchase preference would be 50% of the total tendered quantity by the Supplies and Disposal Department.

B. Haryana Gramin Udyogik Vikas Yojna (For B, C and D Category block):

Special Benefits for Units located (Falling under the Jurisdiction of Village Panchayat) in B, C and D Category Blocks as:

• Capital Subsidy: 15%, maximum of Rs. 15 lakh & max. of Rs. 25 lakhs for Women/ SC/ST on the investment made on Plant & Machinery and building for setting up of Micro Enterprises outside the municipal limits in rural areas.
• Interest Subsidy: 7% for Micro Enterprises on term loan or maximum up to Rs. 8.00 lakh per year for 7 years.
• DG Set Subsidy: @ 8000 per KVA, max. up to 50% of the cost of the DG Set purchased from authorized dealer for Micro enterprises.

Note:- The other incentives specified for MSME sector shall also be permissible.

C. Special provisions for Start-Ups / First Generation Entrepreneurs:

• Interest subsidy of 8%, Maximum Rs. 20.00 Lacs per year for a period of 5 years.
• Reimbursement of 30% of lease rental subsidy for General (and 45% for women founder) period of 1 year up to Rs. 5 lakh per annum.
• Seed Grant up to INR10 Lakh per start-up for 100 start-ups in ‘A’ category blocks, 200 start-ups for ‘B’ category blocks, 300 start-ups for ‘C’ category blocks and 400 start-ups for ‘D’ category blocks (idea selection by special committee to be formulated by State Government)
• 100% Net SGST Reimbursement for 7 years with cap of 150% FCI.
• Support start-ups up to INR 2.5 lakh to attend national acceleration programs and INR 5 lakh for international acceleration programs.
• Mentoring assistance of INR 1 lakh per incubator will be given to Government sponsored incubators up to a maximum of INR 15 lakhs per annum.
• 100% reimbursement of expenses incurred for cloud computing/ storage on Haryana based Data Centers up to INR 1 lakh per start-up per annum for a period of 3 years.

To know more, how your business will be benefited from the Haryana Enterprises Promotion Policy, kindly share your business with us at:

Jitender Kumar (90171-51780) (jitender@kipfinancial.com)

KIP Financial Consultancy Pvt. Ltd

DSB – 38, KIP Complex, Red Square Market, Hisar – 125001.

www.kipfinancial.com