bureau of industrial
policy & promotion
HR-Govt
हरियाणा सरकार government of Haryana

Policy support by GoH at a glance

The State has taken lead in terms of planned Industrial and Urban growth, which has resulted in development of vibrant urban and industrial complexes close to the National Capital. It is envisioned that the industrial policy will catalyse Haryana's Position as a pre-eminent Investment destination and facilitate balanced regional and sustainable development supported by a dynamic governance system, wide scale adoption of innovation & technology, and skill development for nurturing entrepreneurship and generating employment opportunities.

(A) Haryana Enterprises and Employment Policy 2020

Major incentives under HEEP 2020 are as mentioned below:

Incentive Head Provision as per HEEP 2020
Ultra Mega Enterprises
  1. Customized Package of incentives
Mega and Large Enterprises
  1. SGST Reimbursement
  2. Employment Subsidy
  3. Electricity duty exemption
  4. Stamp duty refund
  5. EDC Refund
MSMEs
  1. SGST Reimbursement
  2. Electricity duty exemption
  3. Stamp duty refund
  4. Interest subsidy
  5. Testing Equipment Assistance
  6. Assistance for Technology Acquisition
  7. Assistance for Environment Compliance
  8. Energy and Water Conservation
  9. Safety Compliance
  10. Patent Cost
  11. Power Tariff Subsidy
Key sectoral policies launched by Government of Haryana:

(B) IT/ITeS & ESDM Policy:

The IT Industry has led the economic transformation of India and put the country on the global map. The cost effective IT solutions & services continue to lure the world to India’s shores. With Gurgaon becoming the global BPM hub, Haryana is best poised to deliver on the goals set by the central Government.

Major Incentive heads under the IT/ITeS& ESDM Policy are as mentioned below:

Incentive Head for ESDM Sector
  1. SGST Reimbursement
  2. Employment Subsidy
  3. Electricity duty exemption
  4. Stamp duty refund
  5. Capital Subsidy

Incentive Head for IT/ITeS Sector
  1. SGST Reimbursement
  2. Employment Subsidy
  3. Electricity duty exemption
  4. Stamp duty refund
  5. Property tax at Industry rate
  6. CLU charge exemption

(C) Entrepreneur & Startup Policy 2017:

Haryana is the home land of various new age entrepreneurs and is birth place of the many successful business magnets and large industrial houses of India. The core objective of this policy is to provide distinct levels of government support at every stage and to create a holistic and sustainable ecosystem.

The Pillars of the Policy are:

  1. Infrastructure Augmentation
  2. Fiscal Support
  3. Fund of Fund
  4. Regulatory Easing
  5. Student Entrepreneurship

State Government has initiated a number of measures to improve the start-up ecosystem in Haryana

  1. Start-up Warehouse: Haryana State Electronic Development Corporation Limited (HARTRON) is introducing a start-up warehouse on 10,000 Sq. ft. of land in Gurugram in association with NASSCOM Initiating with forty seater and eventually become an eighty seater. The Startup warehouse shall offer shared office space to startups and entrepreneurs in a plug and play format which will include physical space, meeting space.
  2. Mobile Application Centre: The idea behind is to develop a center of excellence of App development in much structured way & creating a platform for amateurs to interact with industry experts who shall mentor the budding developers.
  3. United Nation Technology & Innovation Lab (UNTIL): State would be setting up UNTIL in collaboration of United Nation to promote the women entrepreneurship & digital literacy in the State.
  4. IoT Centre: The aim is to provide platform for Design, prototype to realizing product by harnessing creative capability of Academia, Industry, start-ups and entrepreneurs
  5. Entrepreneurs’ Centre (Plug & Play Infrastructure): The purpose of these centers would be to provide holistic infrastructure support to startups. The establishments will be a unique public/private partnership between the government of Haryana, renowned academic institutes &key private sector leaders. It stands at the intersection of the start-up, academic, corporate, research and government sectors.

Major Incentive heads under the Startup Policy are as mentioned below:

Incentive Head for Entrepreneur & Start-Up Policy
  1. Capital Subsidy
  2. SGST refund
  3. Exemption on rental charge
  4. Assistance for program/app development
  5. Stamp duty refund

(D) Agro & Food Processing Policy

Fiscal Incentives as per Food Processing policy are:

  1. Capital Investment Subsidy: 25% Capital Investment Subsidy on FCI (fixed capital investment) limited to INR 1 cr.
  2. SGST reimbursement: 100% (net tax) reimbursement for a period of 10 years, from the date of commencement of commercial production with cap of 100% of fixed capital investment (FCI)
  3. Assistance of 50% of project cost for developing/acquiring packaging technologies leading to increase in shelf life of products, limited to INR 20 lacs per unit
  4. Reimbursement of 50% of expenditure incurred in obtaining patents and other IPR subsidy including the consultant fee, government fee etc. limited to INR 2 lakh per patent
  5. Reimbursement of 50% of the cost of certifications such as 21 HACCP, GMP, ISO 9000, ISO 22000, GLP and TQM for food processing units, up to a limit of INR 2 lakh per unit
  6. Reimbursement of 50% of the total cost of the training limited to INR 5,000 per trainee on obtaining industry recognized skill certifications from recognized institutions

Regulatory Ease proposed:

  1. There shall be a relaxation of up to 150% in FAR. Further, additional FAR beyond 150% may be purchased by paying premium of up to a limit of 200% with no proportionate increase in EDC
  2. Agro-Processing clusters and Food Processing units using fruits and vegetables as raw materials will be issued combined CTE and CTO as issued to green category of industries
  3. All Food processing units/enterprises will be allowed to establish on agricultural land/ agricultural zone in low, medium and high potential zones.
  4. There will be exemption of CLU charges for all food processing enterprises establishing on agricultural land/agricultural in high, medium and low potential zones

(E) Textile Policy:

Major Incentive heads under the Textile Policy are as mentioned below:

Key Fiscal incentives
  1. Interest subsidy at upto 8% (on term loan for 7 years)
  2. Capital subsidy @25%, maximum up to INR 50 crore (Anchor unit) (within and even outside Parks in C & D blocks)
  3. Employment generation subsidy (in C & D blocks) upto INR 36,000/- per year per employee for 5 years
  4. Stamp duty Reimbursement upto 100%
  5. Interest Free Loan equivalent to the net SGST paid by the unit for a period of 7 years
Infrastructure Augmentation
  1. Support for Common Effluent Treatment Plant (CETP)- Financial assistance @50% of project cost to a max of INR 2 crore
  2. Establishment of Carpet Research & Development Centre at Panipat
  3. Establishment of International Quality Testing Centre at Panipat
  4. Establishment of International Trade & Exhibition Centre at Panipat
  5. Financial assistance for Zero Liquid Discharge (ZLD) - Financial assistance @75% of project cost to a max of INR 3 crore

(F) Pharmaceutical Policy:

Major Incentive heads under the Pharmaceutical Policy are as mentioned below:

Fiscal incentives (for units setting up in Pharma Park Karnal)
  1. Capital subsidy: Reimbursement of 25% of cost of plant and machinery subject to a maximum of INR 50 lakh
  2. Employment generation subsidy (if applicable): For capacity building of persons belonging to Haryana (skilled/semi-skilled, the subsidy @ Rs. 36,000 per year for SC/ Women and Rs. 30,000 per year for General category for 5 years.
  3. Interest subsidy: To the extent of 5% per annum for 5 years in the form of reimbursement of interest paid on loan taken to meet the working capital requirements, subject to annual ceiling of INR 25 lakh per annum per unit.
Regulatory simplification
  1. Auto/deemed renewal of licenses- Omitted the word “renewal” and made the drug manufacturing licenses/approvals for entrepreneurs to remain valid in perpetuity unless and until suspended or cancelled.
  2. Approval for manufacturing and sale of all rational drugs that have been approved by neighboring state licensing authorities/expert committees

(G) MSME Policy :

Fiscal incentives

  1. Grant in aid of 50% of project cost up to a maximum of INR 5 Cr. for developing flatted factories on minimum 5 acres of land.
  2. Grant in aid of 50% (up to INR 5,000) per worker per training, as re-imbursement to the MSMEfor supporting on the job training cost for unskilled workers.
  3. Grant in aid of 50% or max. up to INR 15 lakhs of advanced machinery cost for adoption of advanced technologies approved by Government of India under CLCSS.
  4. Grant in aid of 80% (up to INR 2 lakhs per unit) for a cluster of minimum 8 units for adopting lean manufacturing practices for enhancing operational efficiency.
  5. Grant in aid of 20% (up to INR 5 lakhs) per unit on cost of listing and registration on SME exchange platform for encouraging SMEs to raise capital through dedicated exchange platforms of BSE and NSE.
  6. Interest subsidy of 5% on term loan (up to INR 10 lakhs per year for three years) for adoption of renewable energy based technologies like Solar PV/Thermal/Biomass gasifiers etc
  7. Grant in aid of 75% (up to INR 3 lakhs) per unit for two years for adoption of Information and Communication Technology solutions such as MIS or ERP.
  8. Grant in aid of 90% of project cost for setting up CFCs for upliftment of artisan based enterprises
    i. Heritage clusters: Up to Rs. 3 Cr.
    ii. Major clusters: Up to Rs. 1.5 Cr.
    iii. Mini clusters: Up to Rs. 0.75 Cr.

(H) Logistics and Warehousing Policy:

Major Incentive heads under the Logistics and Warehousing Policy are as mentioned below:

Fiscal incentives
  1. Capital Subsidy (C&D blocks):
    i. Warehousing: Financial assistance @ 25% of the fixed capital investment subject to maximum of INR 5 Crore.
    ii. Logistics Park: Financial assistance @ 25% of the fixed capital investment up to a maximum of INR 15 Crore for developing infrastructure in Logistics park.
    iii. Integrated/Multi Modal Logistics Park: Financial assistance @ 25% of the fixed capital investment up to a maximum of INR 25 Crore for developing infrastructure in Integrated/ Multi Modal Logistics park.
  2. 100% reimbursement of Stamp Duty
  3. 100% of Electricity Duty exemption for a period of 7 years.
  4. Full EDC & Commercial license fee reimbursement (Warehousing cum Retail Category in C&D blocks)
Regulatory simplification
  1. Self certification of Fire Fighting Scheme
  2. Increased Fire Exit Travel Distance from 90mts. to 135 mts.
  3. Land Availability for setting up of industrial Warehouses/Logistics Parks in Industrial Model Townships- IMT (HSIIDC): HSIIDC shall reserve 5% of the area for setting up logistic infrastructure in Industrial Model Townships.
  4. Permission to set up Warehousing-cum-Retail facilities in agricultural zones (in Medium and Low potential zones)
  5. Ground coverage- Maximum permissible ground coverage for all units is 60% as per Haryana Uniform Building Code.