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Investment Subsidy on VAT/SGST Scheme

The State Renewable Energy Scheme

Name of the scheme

Investment Subsidy on VAT/SGST Scheme

Ministry/Department

Directorate of MSME, Haryana

Description

To provide financial support to new/expansion/diversification MSME units in Haryana through reimbursement of investment Subsidy on VAT/SGST.

Nature of assistance

1. MSMEs, MSMEs of Textile Sector (apparel/knitting/embroidery/ technical textiles/ginning, cotton spinning/power loom), MSMEs in Footwear Sector (value addition products excluding leather processing)

a)For new enterprise:

‘C’ & ‘D’ category blocks: 75% of VAT/SGST net paid for first 7 years, 35% for next 3 years;
B’ category blocks: 50% for first 5 years, 25% for next 3 years;
From the date of commencement of commercial production with cap of 100% of new fixed capital investment for new enterprises

b) For existing enterprise:
‘C’ & ‘D’ category blocks: 75% of VAT/SGST net paid for first 7 years, 35% for next 3 years;
 ‘B’ category blocks: 50% for first 5 years, 25% for next 3 years;
Provided at least 50% additional investment in plant & machinery for expansion/diversification of existing unit with cap of 100% of new fixed capital investment of the expanded FCI

2. MSMEs in Agro & Food Processing Sector, MSMEs in Defence/Aerospace/Electronics/Auto/Auto Components Sector

a) For new enterprise:

‘B’, ‘C’ & ‘D’ category blocks: 75% of VAT/SGST net paid for first 7 years, 35% for next 3 years from the date of commencement of commercial production with cap of 100% of new fixed capital investment for new enterprise

b)  For existing enterprise:
‘B’, ‘C’ & ‘D’ category blocks: 75% of VAT/SGST net paid for first 7 years; 35% for next 3 years provided at least 50% additional investment in plant & machinery for expansion/diversification of existing unit with cap of 100% of new fixed capital investment of the expanded FCI

Who can apply?

  •  All eligible medium, small and micro industrial units in category B, C & D blocks in Haryana.

  •  The units must comply with the following criteria:

    The unit shall have Udhyam Memorandum/Haryana Udhyam Memorandum

    The new investment in land, building, plant & machinery shall only be considered while working out eligible Fixed Capital Investment

    The unit should not have been placed in the restrictive list as notified by the State government from time to time

    The unit should have obtained NOC/CLU from competent Authority if applicableThe unit should be in commercial production

    The unit should be in regular production at the time of disbursement and the subsidy shall not be released to the closed unit

  • New List Item

    The unit shall have Udhyam Memorandum/Haryana Udhyam Memorandum

    The new investment in land, building, plant & machinery shall only be considered while working out eligible Fixed Capital Investment

    The unit should not have been placed in the restrictive list as notified by the State government from time to time

    The unit should have obtained NOC/CLU from competent Authority if applicableThe unit should be in commercial production

    The unit should be in regular production at the time of disbursement and the subsidy shall not be released to the closed unit

How to apply?

Application in prescribed form for grant of Investment subsidy along with supporting document to be submitted to the Director Industries & Commerce on the department’s web portal within three months of closing of the financial year or date of notification of the scheme, whichever is later.

*Note: The above information is indicative. Please refer to the scheme guidelines for more details.

Frequently asked questions (FAQ)

All the existing Micro, Small & Medium Units located in the State, who have filed Haryana Udhyam Memorandum (HUM) and have availed term loan for new renewable energy technology application from any of the nationalized scheduled banks, shall be eligible under the scheme. Replacement of existing renewable energy equipment/technology with the same equipment/technology will not qualify for subsidy under this scheme, nor would the scheme be applicable to units upgrading with second hand machinery. The eligible units must also comply with
the following conditions:

  • The unit must install and commission renewable energy based technologies in their manufacturing unit/enterprise.
  • The scheme is applicable for all MSME industries/sectors in the state of Haryana.
  • The unit should not have been placed in the restrictive list as notified by the State government from time to time
  • The unit must have CLU/NOC, as applicable.
  • Only loans obtained from any of the nationalized or scheduled commercial banks in India are eligible for interest subsidy under this scheme.
  • The unit should be in commercial production.
  • The unit should be in regular production at the time of disbursement and the subsidy shall not be released to a closed unit.

The Director General, Micro, Small and Medium Enterprise (MSME), Haryana shall be competent authority for approval and sanction of these incentives.

Appeal against orders passed by the Competent Authority shall lie with the Administrative Secretary, Industries & Commerce, Haryana within a period of 30 days from the date of communication of orders appealed against and orders passed by the Administrative Secretary shall be final.

The power to condone the delay in late submission of application by the applicant for availing the benefits under the scheme will be as under:

  • The Director General, Micro, Small and Medium Enterprise (MSME), Haryana shall be competent to condone the delay upto a period of 03 months after the prescribed time limit
  • The Administrative Secretary, Industries & Commerce Department, Haryana shall be competent to condone the delay for a period more
    than 03 month but upto a period of 06 months after the prescribed limit

Provided that the competent authority is satisfied with the reasons of late submission of the application on the basis of the substantial evidence/documents/arguments presented by the applicant.

In case, it is found at any stage that the applicant has claimed the assistance on the basis of wrong facts, the applicant shall besides refunding assistance with compound rate of interest @ 12% per annum and facing legal action, will be debarred from grant of any incentives/assistance from the State Government.

The industry should be in operation for a period of three years from the date of disbursement of subsidy otherwise the entire amount of subsidy on pro rata basis shall be recovered from the unit.

  • That the Beneficiary will allow the officers of the Government of Haryana or any other person or persons authorized by Government of Haryana to inspect the machinery for which the interest subsidy has to be granted and will furnish such information concerning the machines, plant implements, etc., or concerning any matter connected with the interest subsidy or incidental thereto, as the Government of Haryana or their nominees may, from time to time require.
  • That the Beneficiary will not change the place or location of the industrial unit entirely or partly, nor enter into partnership with any one, or change its
    constitution by merger, amalgamation or in any manner nor the Beneficiary effect disposal of fixed capital investment without the express prior permission of the Government of Haryana in writing. This is applicable for cases within
    three years of disbursement of subsidy.
  • The Beneficiary unit shall remain in commercial production for a period of at least three years from the date of disbursement of subsidy otherwise the
    entire amount of subsidy on pro rata basis shall be recovered from the unit.

The Administrative Secretary, Industries & Commerce, Haryana shall be competent to make interpretation and removal of difficulties in provisions of this scheme.

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