State Profile of Haryana

Haryana Agribusiness & Food Processing Policy -2018

• Department of Industries & Commerce Government of Haryana

• Single Window & Online Single Window System (www.investharyana.gov.in)

• 100% exemption for 10 years in ‘D’ category blocks, 7 years in ‘C’ category blocks and 5 years in 'B' category blocks

• Rs. 2 per unit up to connected load of 40kW in ‘D’ category blocks and 30kW in ‘C’ category blocks at source only for Micro and Small Enterprise. The funds shall be provided by the Government to UHBVN/DHBVN for DBT of subsidy amount.

Capital Investment Subsidy for Agro and Food Processing units:

• 25% Capital Investment Subsidy on FCI (fixed capital investment) limited to Rs. 1 Cr. made available to new units to be set-up in ‘C’ and ‘D’ category blocks

Capital investment subsidy for Farmer Producer Organizations (FPOs) Agro/Food Cooperatives:

• To promote registered Farmer Producer Organizations (FPOs) and Agro/Food Cooperatives, assistance of 25% Capital Investment Subsidy on FCI (fixed capital investment) limited to Rs. 1 Cr. shall be made available to new units to be set-up only by registered FPOs and Agro/Food Cooperatives only in “C” and “D” category blocks

• Agro/Food Cooperatives cover all agriculture and cooperative institution of farmers, milk producers, fishery/poultry/piggery etc.

Assistance for individual units to set-up in Food Parks in “C” and “D” category blocks

• Capital Investment Subsidy: 25% Capital Investment Subsidy on FCI (fixed capital investment) limited to Rs. 1 cr.

• 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)

• The incentives under this provision shall be applicable to new/expansion/diversification units setting up in old food parks and new units to be set-up in Mega Food Parks/Mini Food Parks in “C” and “D” category blocks.

Assistance for individual units to set-up in Food Parks in “A” and “B” category blocks

• Capital Investment Subsidy: 25% Capital Investment Subsidy on FCI (fixed capital investment) limited to Rs. 50 lakhs.

• 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)

• The incentives under this provision shall be applicable to new/expansion/diversification units setting up in old food parks and new units to be set-up in Mega Food Parks/Mini Food Parks in “A” and “B” category blocks

Support for Integrated cold chain and value addition infrastructure:

• 35% Capital Investment Subsidy on project cost limited to Rs. 5 cr. for storage infrastructure, packaging houses, transportation infrastructure, value addition and processing infrastructure and irradiation facilities

• The support for integrated cold chain and value addition infrastructure shall be applicable only to “B”, “C” and “D” category blocks.

• For reefer vehicles and any other movable infrastructure, assistance of 50% of capital investment subsidy will be limited up to Rs. 50 lacs per project and up to 4 reefer vehicles/ movable infrastructure per project.

Special Support to promote milk processing of indigenous breed of cows in Haryana

• The state government shall provide this additional 24 support to the tune of 10% in capital investment subsidy (i.e. 45% capital investment

• Subsidy) up to 5 Cr. to units setting-up infrastructure in form of separate processing and packaging line for milk of indigenous breed of cows in “B”, “C” and “D” category blocks.

Support for establishing Backward Linkage and Forward Linkages in rural areas.

• 50% Capital Investment subsidy on project cost limited to Rs. 2.5 cr. for rural areas across state and 50% Capital Investment subsidy on project cost limited to Rs. 3.5 cr. in rural areas in “C” and “D” category blocks.

Special support to promote integrated packaging of horticulture produce i.e. Fresh Fruits and Vegetables grown in the state

• The state government of Haryana shall promote integrated Pack-house(s) for horticulture produce i.e. fresh fruits and vegetables. The state government shall increase the upper limit of capital investment subsidy) to the tune of up to Rs. 3.5 Cr. (50% capital investment up to the limit of Rs. 3.5 cr.) to units setting-up infrastructure in form of Integrated Pack-house(s) (washing, electronic and mechanized sorting & grading line/ packaging line/ waxing line/ staging cold rooms/cold storage, etc.) for fresh fruits and vegetables grown in the state.

Support for setting up/upgradation of Food Testing and Calibration Labs.

• The state government shall promote setting up of National Accreditation Board for Testing and Calibration Laboratories (NABL)/FSSAI approved full-fledged testing labs, including antibiotic testing facilities, for common usage by food processing units in the state. The assistance limited to 25% of project cost would be provided for setting up/up-gradation of such laboratories focused on food processing sector, limited to a maximum of Rs. 75 lacs.

Haryana Gramin Udyogik Vikas Yojna in B, C and D Category Blocks.

• 15%, maximum of Rs. 20 lakh & max. of Rs. 25 lakhs for Women/ SC for Micro Enterprises on the investment made on Plant & Machinery and building..

State Renewable Energy Scheme:

• State will provide interest subsidy on term loan to the tune of 5% (maximum up to Rs. 5 lakhs per year) for three years for adoption of renewable energy technologies like rooftop solar.

Credit Linked Capital Subsidy for Technology Up -gradation

• State Credit Linked Interest Subsidy for Technology Up-gradation of existing enterprises- @6% in ‘C’ and ‘D’ category blocks and @5% in ‘A’ and ‘B’ category blocks up to a maximum of Rs. 10 lakh per year for a period of 3 years to an eligible unit in specified sectors/products (appraisal by HSIIDC/SIDBI).

Interest Subsidy for MSE

• 5% for Micro and Small Enterprises on term loan or maximum up to Rs. 20.00 lakh per year for 5 years in ‘C’ & ‘D’ Categories Blocks.

• 5% for Micro and Small Enterprises on term loan or maximum up to Rs. 20.00 lakh per year for 3 years in ‘B’ Categories Blocks

• 6% for woman/SC/ST led Micro Enterprise on term loan or maximum up to Rs.20.00 lakh per year for 5 years in ‘B’, ‘C’ & ‘D’ Categories Blocks.

Haryana Gramin Udyogik Vikas Yojna in B, C and D Category Blocks

• 7% for Micro Enterprises on term loan or maximum up to Rs. 8.00 lakh per year for7years.

Special provisions for Start-Ups:

• Interest subsidy of 8%, maximum up to Rs. 20 lakh per year for a period of 5 years.

• 100% refund of stamp duty in ‘D’ category blocks; 75% in ‘C’ category blocks and 60%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.

• 100% exemption from External Development Charges in ‘D’ category blocks, 75% in ‘C’ category blocks and 60% in ‘B’ category blocks

Investment Subsidy on net SGST for Mega Projects.

• 75% of Net SGST for first 5 years, 35% for next 3 years in 'D' category blocks with cap of 125% of FCI.

• 50% of Net SGST for first 5 years, 25% for next 3 years in 'C' category blocks with cap of 100% of FCI.

• 30% of Net SGST for first 5 years, 15% for next 3 years in 'B' category blocks with cap of 100% of FCI

Investment Subsidy on net SGST for Large Projects.

• 75% of Net SGST for first 7 years, 35% for next 3 years in ‘D’ category blocks with cap of 125% of FCI.

• 50% of Net SGST for first 5 years, 25% for next 3 years in ‘C’ category blocks with cap of 100% of FCI.

• 30% of Net SGST for first 5 years, 15% for next 3 years in B category Blocks with cap of 100% of FCI.

Investment Subsidy on net SGST for Micro, Small and Medium Enterprises

• 75% of Net SGST for first 10 years, 35% for next 3 years in ‘D’ category blocks with cap of 150% of FCI.

• 75% of Net SGST for first 7 years, 35% for next 3 years in ‘C’ category blocks with cap of 125% of FCI.

• 50% of Net SGST for first 5 years, 25% for next 3 years in ‘B’ category blocks with cap of 100% of FCI.

• 75% of Net SGST for first 7 years, 35% for next 3 years in ‘B’, ‘C’ and ‘D’ category blocks with cap of 150% of FCI for woman/SC/ST led micro enterprise .

• For capacity building of persons belonging to Haryana (skilled/semi-skilled) [having Haryana Resident Certificate] Subsidy @ Rs 48,000/- per year for SC/ Women and Rs 36,000/- 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.

• Export Award Scheme:2 ‘Outstanding Exporter Awards’ for Agro-based, Food, Horticulture related exporters, 1 each for Large & Medium Industries and Micro & Small Industries with a Award money of INR 3,00,000
• Market Development Assistance Scheme:Reimbursement for participation in one international exhibition in a year upto 75% of the expenses towards space charges, shipment charges, marketing material (Limit: 5 Lakh) and airfare for economy class (Limit: 1 Lakh) for maximum two persons.

Ultra-Mega Projects shall be offered customized package of incentives by Haryana Enterprise Promotion Board throughout the State.

Assistance to promote Women Entrepreneurs

• Women Entrepreneurs/ Women Co-operatives/Women Self Help Groups (SHGs) shall be provided 8% interest subsidy on term loan up to limit of Rs. 12 lakh per year for 5 years per units across state. The subsidy shall not exceed amount of net SGST paid during the relevant year.

Special Assistance for acquisition of Packaging technology.

• Assistance of 50% of project cost for developing/acquiring packaging technologies leading to increase in shelf life of products, limited to Rs. 20 lacs per unit.

Support for Quality and Certification

• Patent and Design Registration: Reimbursement of 50% of expenditure incurred in obtaining patents and other IPR subsidy including the consultant fee, government fee etc. limited to Rs. 2 lakh per patent.

• 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 Rs. 2 lakh per unit

Market Development Assistance

• International fair: 75% space charges, shipment of exhibits, cost of product literature, display material, stall/stand construction/ fabrication/ designing charges or maximum up to Rs. 4 lakh and air fare by economy class up to Rs. 1 lakh (maximum 2 person) will be reimbursed for participation by Micro & Small Enterprise in the international fairs / exhibitions for one fair in a year.

• Domestic fair: 75% space charges, transportation of exhibits, cost of product literature, display material, stall/stand construction/ fabrication/ designing charges or maximum up to Rs. 3 lakh and air fare by economy class up to Rs. 0.50 lakh and boarding charges @ Rs. 5000/- per day per person (maximum two persons) will be reimbursed for participation by Micro & Small Enterprises in the domestic fairs/ exhibitions for one fair in a year.

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.20 lakh per year for the purchase of testing equipment shall be provided.

Assistance for Technology Acquisition

• 75% of cost for acquiring technology from premier National/International Institutes/Patented Technology from domestic/foreign companies, max. of Rs. 50.00 lakh.

Patent Cost

• Financial support by reimbursement of 100% 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 and international patent registrations.

Assistance for Environment Compliance

• 50% financial support or maximum of Rs. 50.00 lakh on capital cost for setting up of Effluent Treatment Plant and for installation of Air Pollution Control Devices for new Micro, Small and Medium Enterprises of all sectors. The Units adopting zero effluent discharge as certified by HSPCB and reusing treated waste water will be considered for higher benefit upto 75% of capital cost, maximum of Rs. 1 crore.

Water Conservation

• 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. No subsidy for water audit in case audit recommendations are not implemented.

Safety Compliance

• 75% reimbursement of expenses incurred on safety audit subject to maximum of Rs.. 1 lakh for conducting safety audit. Further, 50% subsidy on cost of capital equipment and capital expenditure required for undertaking safety measures, subject to maximum of Rs. 20 lakh in ‘D’ category blocks, Rs. 15 lakh for ‘C’ category blocks, Rs. 10 lakh for ‘B’ category blocks and Rs. 5 lakh for ‘A’ category blocks once in every 5 years [for compliance of Safety provisions under Factory Act, 1948]. No subsidy for safety audit in case audit recommendations are not implemented.

Collaborative Industry-Academia Research

• To promote Industry-Academia linkage and development of new technologies, State will provide assistance up to Rs. 50 lakh per project for undertaking R&D activities that should result in emergence of new commercialized technologies through joint industry academia collaboration.

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 and Medium enterprises carried out by SIDBI / Govt. accredited credit rating agency once in every 5 years.

Collateral Free Credit Guarantee Scheme

• Reimbursement @ 100% guarantee cover fee charged by the Financial Institutions/ banks from Micro Enterprises for collateral free term loan/working capital under CGTMSE for the period of 05 years.

SME Exchange Equity

• One-time support of 25% of expenditure, up to Rs. 5 Lakh for raising funds through SME exchange platform after successful raising of equity.

Enterprise Resource Planning adoption

• Financial assistance up to 75% of capital cost up to Rs. 5 Lakh for adopting ERP system. This will help in improving operational efficiency and resource optimisation.

Lean Manufacturing Competitiveness Scheme

• GoI reimburses 80% of the cost of hiring the lean manufacturing consultant (LMC) through National Monitoring and Implementing Units (NMIUs) to SPVs/Units and 20% of the cost is borne by the SPVs/units. The State shall reimburse remaining 20% of the cost of hiring a lean manufacturing consultant maximum up to Rs. 9 Lakh per mini cluster of 10 units under this scheme.

DG Set Subsidy

• Rs. 8000 per KVA, maximum up to 35% for Small enterprises and maximum up to 25%for Medium enterprises of the DG set cost in ‘D’ and ‘C’ category blocks in rural areas.