|| Govt. Grants for Textile Units || Subsidy on Textile Units in Haryana ||

A. Good news for Textile Industry

The Department of Industry and Commerce of Haryana Govt. has notified the “Haryana AtamNirbhar Textile Policy 2022-25” dated on 19^th December 2022.

If you are going to set up a Textile Units or want to expand your Existing Units then you can take the benefits of subsidy or incentives under this policy.

Let’s know the Subsidy Benefits available under this policy.

B. Some Key Point Meaning:

New Industrial Enterprise:

Means an enterprise start commercial production after notification of this policy. The existing enterprise undertaking Expansion/Diversification at different location shall also be considered as New Enterprise.

Expansion/Diversification/Modernization:

Any Existing Enterprise who makes investment more than 25% of its existing gross fixed capital investment shall be considered as Expansion/Diversification/Modification Units.

Fixed Capital Investment:

Means original value of investment made in plant & machinery, technical civil works such as factory sheds and buildings, Laboratories for research and quality testing, laboratory equipment, utilities for power, fuel and water supply and other misc. fixed assets before a unit commences expansion/ diversification/ modernization.

(Excluded Items: Cost of Land, Land Development, Pre-operative & preliminary expenditure, Working Capital, Interest during Construction and general civil works such as roads, drains, office infrastructure etc.)

C. Subsidy Benefits:

1. Capital Subsidy:

For all Categories of Textile Enterprises:

Capital investment subsidy @35% up to a maximum of INR 2.5 Crore in ‘B’ category blocks and 40% up to a maximum of INR 3.5 Crore in ‘C’ &‘D’ category blocks on eligible capital investment.
For Technical Textile Units/Import Substitution/ Backward Integration:
Capital investment subsidy @35% up to a maximum of INR 3.5 Crore in ‘B’ category blocks and 40% up to a maximum of INR 5 Crore in ‘C’ &‘D’ category blocks on eligible capital investment.
For Textile units engaged in Open End Spinning and Waste to Fibre:
Capital investment subsidy @40% up to a maximum of INR 4 Crore in ‘B’, ‘C’ and ‘D’ category blocks on eligible capital investment.
For Textile Machine Manufacturing Units:
Capital investment subsidy @ 30% up to a maximum of INR 2 Crore in ‘B’, ‘C’ and ‘D’ category blocks on eligible capital investment.

2. Stamp Duty Refund:

Reimbursement of 80% of stamp duty in ‘B’ category blocks and 100% in ‘C’ & ‘D’ category blocks.

3. Interest Subsidy on Term Loan:

Interest subsidy on term loan for MSMEs @6% or maximum up to INR 20 lakh per year in ‘B’ category blocks, 7% or maximum up to INR 30 lakh per year in ‘C’ category blocks and 7% or maximum up to INR 50 lakh per year in ‘D’ category blocks for 7 years.

For textile machine manufacturing MSMEs @6% or maximum up to INR 25 lakh per year in ‘B’ and ‘C’ category blocks and INR 40 lakh per year in ‘D’ category blocks for 7 Years.

4. Refund of State GST Paid:

25% of Net SGST for 8 years in ‘B’ category blocks with cap of 100% of Fixed Capital Investment.

50% of Net SGST for 10 years in ‘C’ &‘D’ category blocks with cap of 125% of Fixed Capital Investment.

5. Employment Generation Subsidy:

@ INR 48,000/- per year for SC/ Women and INR 36,000/- per year for General Category for 7 years in ‘B’, ‘C’& ‘D’ category blocks.

6. Electricity Duty Exemption:

100% exemption for 10 years in ‘B’ category blocks
100% exemption for 15 years in ‘C’ category blocks
100% exemption for 20 years in ‘D’ category blocks

To know the block category for your units and subsidy planning, connect with us.

8683898080

KIP: Business Subsidy Consultant.