Incentives to Industrial Units in Haryana by Government

Assistance for technology acquisition:

The objective of the scheme is to identify the areas under technology wherein up gradation is needed in the MSME sector. It involves the use of latest technology acquisition and up gradation of existing technology by the MSME unit. Subsidy @50% on the cost for adopting technology from recognized National Institutes subject to maximum of Rs. 25.00 lakh

Assistance for Environment Compliance:

Industrial development and associated growth should be necessarily carried out in a manner wherein no damage is done to the ecology and to the environment as a whole. To implement the concept of ‘Zero Effect’, a provision of financial assistance has been made in Haryana Enterprises Promotion Policy 2015 for environment compliance on capital cost for setting up of Effluent Treatment Plant and for installation of Air Pollution Control Devices for Micro and Small Enterprises of the State.50% financial support limited to a maximum of Rs. 25.00 lakh on capital cost for setting up of new Effluent Treatment Plant and for installation of Air Pollution Control Devices shall be provided to an eligible Micro and Small Enterprise. The units adopting zero effluent discharge will be considered for higher subsidy on case to case basis.

Credit Linked Interest Subsidy Scheme:

The survival and growth of the Micro and Small Sector is critically dependent on their modernisation and technological up gradation. Up gradation of both the process of manufacture and corresponding plant and machinery is necessary for the small enterprises to reduce the cost of production and remain price competitive at a time when cheaper products are easily available in the global market. Govt. of India has introduced Credit Linked Capital Subsidy Scheme for technology up-gradation of the MSE sector. The State Government has dovetailed this scheme with a provision of Interest subsidy to such assisted units. Under the Credit Linked Capital Subsidy Scheme (CLCSS) for technology upgradation of Ministry of MSME, the Govt. of India provides 15% upfront capital subsidy for facilitating technology up-gradation in specified sectors/products of the industry with a max. of Rs. 15 lakh. The State Government would also provide interest subsidy @5% upto a maximum of 5 lakh per year for a period of 3 years to an eligible unit.

Credit Rating Scheme:

The Micro and Small Enterprises occupies an important position in any developing economy. It is expected that the Rating Scheme would encourage Micro and Small sector in improving its contribution to the economy by way of increasing their productivity, since a good rating would enhance their acceptability in the market and also make access to credit quicker and cheaper and thus help in economizing the cost of credit. A provision of Credit Rating Scheme for Micro and Small enterprises has been made in the Haryana Enterprises Policy 2015. Reimbursement of 75% of the expenses incurred subject to a maximum of Rs. 2 lakh for Credit Rating by Micro and Small Enterprises carried out by the Government agency/ SIDBI and NSIC/ Govt. accredited credit rating agencies. This would be in addition to the support being provided by Government of India.

Design Clinic Scheme:

The Objective of Design Clinic scheme is to enhance the understanding and application of design and innovation in MSMEs. It aims to promote design as a value adding activity and integrating the same into the mainstream business and industrial processes of MSMEs. The State Government has dovetailed this scheme with a provision of Assistance to the enterprises to meet a part of their contribution towards the said scheme of Government of India. Govt. of India provides Rs. 3 lakhs with contribution of Rs. 1 lakh by industries for conducting Design Awareness programme (DAP) in the various clusters by the nodal agency National Institute of Design, Ahmadabad. The State Government would refund the contribution of industries of Rs. 1 lakh per programme to the eligible enterprises. Govt. of India also provides funding support @ 60% of the designing cost upto a maximum of Rs. 15 lakhs under the Design Clinic Scheme. The State Govt. would reimburse 20% of the designing cost out of the 40% contribution to be made by a MSME Enterprise.

Energy Audit Scheme:

The objective of the scheme is to identify areas where excess energy consumption or wastage of energy is taking place. It involves measuring the actual energy consumption of various electrical gadgets used in the premises, comparing it with an estimate of the minimum energy required to undertake the process and establishing technically and economically feasible means to achieve the same & suggest best ways to optimize the energy consumption leading to energy saving and cutting down electricity bills. 75% reimbursement of cost of energy audit subject to a maximum of Rs. 2 lakh and 50% subsidy on cost of capital equipments required for undertaking measures to conserve energy, subject to maximum of Rs. 20 lakh shall be provided to an eligible Micro, Small & Medium Enterprise.

Freight Assistance Scheme:

MSMEs exporting units located in the state must incur additional transportation cost due to large distances from sea ports which make their products uncompetitive in comparison to the exporting units located in the coastal area. To enhance competitiveness of exporting units, this scheme will defray the transportation cost. The freight assistance to the extent of 1% of Free on Board (FOB) value or actual freight excluding government fee and taxes on transportation of goods from place of manufacture to the sea port from where they are shipped, whichever is less and maximum up to Rs. 20 lakh per annum will be provided for export of goods, manufactured by the exporting MSME set-up anywhere in the State.

Interest Subsidy Scheme:

Micro & Small Enterprises other than Thrust Sectors: -The Governor of Haryana is pleased to notify the interest Subsidy Scheme with an objective to provide affordable credit to the Micro & Small Enterprises of any sector and as well medium enterprises of thrust sectors for setting up of their units.
a) @5% for new Micro & Small Enterprises on term loan or maximum up to Rs.10.00 lakh per year for 3 years in B, C & D categories blocks & shall not exceed amount of net VAT/SGST paid during the relevant year.
b) @ 5% for existing micro & Small enterprises on term loan for expansion/diversification/modernization of plant & machinery and technology which are not covered under Credit Linked Capital Subsidy Scheme (CLCSS) of Govt. of India or maximum up to Rs. 10.00 lakh per year for 3 years in .B., C.& .D. Categories & shall not exceed amount of net VAT/SGST paid during the relevant year.

Market Development Assistance Scheme:

Fast changing global economic scenario has thrown up many opportunities as well as challenges to the Micro and Small Enterprises. A need is felt to support Micro and Small enterprises for the sales promotion of products by providing financial support for participation in national/ international level exhibition in the country and abroad. Accordingly, provision has been made in Enterprises Promotion Policy, 2015 to provide Market Development Assistance to Micro and Small enterprises in the State. The reimbursement of participation charges for space of maximum size of stall up to 9 sq m, cost of product literature, display material subject to maximum up to Rs. 3 lakh and actual second-class AC travelling charges/ air fare by economy class & boarding charges @ Rs.1000/- per day per person (maximum two persons) up to Rs. 0.50 lakh shall be made for participating in one exhibition in a year within the country. Further, 75% of total expenditure incurred towards space charges, shipment charges of exhibits, cost of product literature, display material subject to maximum up to Rs. 5 lakh and air fare by economy class up to Rs.1 lakh for maximum two persons will be reimbursed for participation in one international exhibition in a year. This assistance would be in addition to the support being provided by Govt. of India. The assistance shall not exceed the total expenditure incurred for participation in exhibition.

Patent Registration Scheme:

Patent is an exclusive right granted by the State/International Agency for an invention that is new, involves an inventive step and is capable of industrial application. It gives its owner an exclusive right to prevent or stop others from making, using offering for sale, selling or importing a product or a process, based on the patented invention, without the owner¡¦s prior permission. The State Government intends to promote the regulation of patents among the enterprises and protect their innovation in the era of globalization or secure their rights over their traditional product/process and have, thus, made provision for grant of financial assistance on grant of patent registration. Reimbursement of 50% of the actual expenses (including filing fees, consultancy fees, search fees and maintenance fees) with a maximum of Rs. 25 lakhs for both domestic and international patent registration.

Quality Certification Assistance Scheme:

In the changed global scenario, one of the challenges is to increase the competitiveness of Micro, Small and Medium Enterprises in terms of quality of products and improved management system. Therefore, there is a need to support these enterprises to create awareness about the strengths and weaknesses of their existing operations and to provide them an opportunity to enhance their organizational strengths. With the objective of promoting Quality Management systems and for strengthening their products marketing & exports, State Govt. has made provision for Quality Certification assistance. 75% reimbursement of the total expenditure incurred for obtaining certification subject to a maximum of Rs. 1 lakh for obtaining ISO/HACCP/BSI/WHO-GMP/ZED/TS/ Hallmark certifications approved by Quality Council of India. This assistance would be in addition to the support being provided by Government of India.

Safety Audit Scheme:

The objective of the scheme is to promote safety audit which is a tool that can be utilized to improve safety and attitudes in the workplace. A safety audit is an inventory or checklist of items specifically geared to operations of an enterprise. It allows them to take action, correct hazards, and determine the appropriate actions to take to achieve the desired safety goals. Measuring safety performance also provides a baseline to compare future safety initiatives. It documents the effectiveness of safety program, identify compliance deficiencies, suggest safety solutions, improve the environment and personnel safety, reduce incidents and injuries and increase workplace safety. 75% reimbursement of expenses incurred subject to a maximum of Rs. 1 lakh for conducting Safety Audit and 50% subsidy on cost of capital equipment¡¦s required for undertaking safety measures, subject to a maximum of Rs. 5 lakhs.

Stamp Duty Refund Scheme:

The Governor of Haryana is pleased to formulate scheme for grant of Stamp Duty Refund to the various sectors of industries as per details given below:Quantum of Assistance:(i) Mega Projects: 100% refund of stamp duty in ‘D’ category block; 75% in ‘C’ category blocks and 50% in ‘B’ category blocks on the land area meant for industrial use for establishment of mega projects on the land including industrial estates/ parks developed by HSIIDC/Private Developer after commencement of commercial production, within 5 years from the date of filing of IEM.(ii) Large Units: 100% refund of stamp duty in ‘D’ category and 75% in ‘C’ category blocks on the land meant for industrial use for establishment of mega projects on the land including industrial estates/ parks developed by HSIIDC/Private Developer after commencement of commercial production, within 5 years from the date of filing of IEM.(iii) Micro, Small & Medium Enterprises: 100% refund of stamp duty on purchase/leasing of land for establishment of enterprises including industrial Estates/ parks developed by HSIIDC /private developer in ‘D’ category blocks, 75% in ‘C’ category blocks and 50% in ‘B’ category blocks within 5 years from the date of filing of EM/UAM.(iv) Textile Sector (apparel/knitting/embroidery/technical textiles): 100% refund of stamp duty on purchase/leasing of land for establishment of enterprises including industrial Estates/ parks developed by HSIIDC/private developer in ‘C’ & ‘D’, 80% in ‘B’ category blocks after commencement of commercial production, within 5 years from the date of filing of EM/UAM/IEM.(v) Agro Industries and Food Processing Sector: 100% refund of stamp duty on purchase/leasing of land for establishment of enterprises including Industrial Estates/ Industrial parks developed by HSIIDC/private developer in ‘C’ & ‘D’, 80% in ‘B’ category blocks after commencement of commercial production, within 5 years from the date of filing of EM/UAM/IEM.(vi) Footwear Sector (Value Addition Products excluding leather processing): 100% refund duty on purchase/leasing of land for establishment of enterprises including Industrial Estates/ parks developed by HSIIDC/private developer in ‘C’ & ‘D’, 80% in ‘B’ category blocks after commencement of commercial production, within 5 years from the date of filing of EM/UAM/IEM.(vii) Defence/Aero Space/Electronics/Auto Components: 100% Stamp Duty Refund on purchase/leasing of land for establishment of enterprises including Industrial Estates/ parks developed by HSIIDC/private developers in ‘B’, ‘C’ and ‘D’ blocks after commencement of commercial production, within five years from the date of filing of EM/UAM/IEM.(viii) Large Service Enterprises: 50% refund of stamp duty in ‘C’ & ‘D’ category blocks and 30% in ‘B’ category blocks for new enterprises after commencement of service within 5 years from the date of filing of IEM.(ix) Industrial Park: 50% stamp duty refund to the developer of Industrial Estates in ‘C’ & ‘D’ category blocks.

Testing Equipment Assistance Scheme:

In order to ensure .Zero Defect. in the quality of products to make globally competitive, the Micro and small enterprises have to upgrade the quality of the products for which they are required to create testing facilities for testing of raw materials and end products. The Micro and Small entrepreneurs find it difficult to purchase the testing equipment¡¦s because of limited resources. In order to meet this objective, State Govt. has made provision for Testing Equipment Assistance Scheme. The financial support of 50% subsidy limited to maximum of Rs. 5 lakh per year for the purchase of new testing equipment¡¦s shall be provided to an eligible micro and small enterprise.

Water Audit Scheme:

The objective of the scheme is to encourage the conservation of water in industrial units and encourage harvesting of water in the unit. It involves measuring the actual water consumption of various water consumption gadgets used in the premises of the enterprise, comparing it with an estimate of the minimum water required to undertake the process and establishing technically and economically feasible means to achieve the same & suggest best ways to optimize the water consumption leading to water saving and cutting down water consumption bills. 75% reimbursement of cost of water audit limited to a maximum of Rs. 1 lakh and subsidy up to 50% or maximum of Rs. 20 lakh on the cost of capital equipment required for water conservation/ harvesting systems shall be provided to an eligible MSME.