Special Benefits to MSME in Haryana

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



Department of Industries and Commerce, Govt. of Haryana.

Dear Businessman,

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

  • Fostering ease of doing the 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. Defence 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.


22’s Special Benefits/Incentives/Subsidy Scheme to MSME Units:


The Draft Policy of HEPC, 2020 has emerged with so many benefits to specially MSME Unit. So if you take 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
First First 7 Years 75% 75%
First 5 Years 50%
Second Next 3 Years 25% 35% 35%
Max. CAP % of FCI 100% 125% 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.


  1. Interest Subsidy:


(A) 5% for Micro and Small Enterprises on term loan or maximum up to Rs.

10.00 lakh per year for 5 years in ‘C’ & ‘D’ Categories Blocks.

(B) 5% for Micro and Small Enterprises on term loan or maximum up to Rs.

10.00 lakh per year for 3 years in ‘B’ Categories Blocks


  1. 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 5 years in ‘B’ & ‘C’ category blocks for direct employment with ESI/PF Number. However, the employment subsidy shall be provided for all the persons employed by the units in D Category Blocks.


  1. 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. 10 lakh per year for the purchase of testing equipment shall be provided to Micro and Small Enterprises.


  1. Assistance for Technology Acquisition:


50% of cost for adopting/acquiring technology from premier National/International Institutes/Patented Technology from Private Companies, max. of Rs. 25.00 lakh.


  1. Patent Cost:


Financial support by reimbursement of 50% 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.


  1. 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 on case to case basis).


  1. Energy Audit:


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, subject to maximum of Rs. 20 lakhs once in every 5 years.


  1. Water Audit:


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.


  1. Safety Audit:


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. 10 lakh once in every 5 years [for compliance of Safety provision under Factory Act, 1948].


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


State Credit Linked Interest Subsidy Scheme for Technology Up-gradation of existing enterprises- @5% 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).


  1. Stamp Duty Refund:


100% refund in ‘D’ category blocks; 75% in ‘C’ category blocks and 50% 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.


  1. Power Tariff Subsidy:


Rs. 2 per unit up to connected load of 40kWat source only for Micro and Small Enterprise in ‘C’ and ‘D’ Category blocks for 5 years from the date of release of electricity connection. The funds shall be provided by the Govt to UHBVN/DHBVN for DBT of subsidy amount.


  1. 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.


  1. 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/ other country specific certifications for export etc. after every 3 years and would be in addition to the support being provided by Government of India.


  1. 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.


  1. CLU/EDC charges:


50% refund of Conversion Charges and EDC in ‘B’, ‘C’ & ‘D’ category blocks.


  1. Electricity Duty Exemption/ Open Access Charges:


100% exemption for 10 years in ‘D’ category blocks,

7 years in ‘C’ category blocks

and 5 years in ‘B’ category blocks.


Exemption from open excess charges maximum up to Rs. 1.00 per unit (Wheeling Charges, Transmission Charges, Cross subsidy Surcharge and Additional Surcharge in case of Medium and Large units in Thrust sectors.


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


  • Interest subsidy of 8% per annum for a period of 5 years
  • Reimbursement of 25% of lease rental subsidy period of 1 year up to Rs. 3 lakh per annum
  • Seed Grant up to Rs.3 Lakh per start-up
  • 100% Net SGST Reimbursement for 7 years


  1. 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.


  1. 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.


  1. Haryana Gramin Udyogik Vikas Yojna:


Special Benefits for Units located in B, C and D Category Blocks as:

  • Capital Subsidy: 15%, maximum of Rs. 15 lakh & max. of Rs. 20 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: 6% for Micro Enterprises on term loan or maximum up to Rs. 8.00 lakh per year for 5 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.

Click here to Check:

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.

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