Haryana has always been the front-runner in agriculture and industrial development in the country. The state is considered a leader in planned industrial and urban growth as compared to other major states. The Enterprise Promotion Policy has brought a revolutionary transformation in the commercial sector of Haryana. The prime focus of the policy is to give a platform to developers, consumers, and others in which ease of doing business could be improved. The highlights of the policy have been NIRBAADH (New Industrial Regulation By Automatic Approval and Delegation in Haryana) and PRANETA (Professionals & New Entrepreneurs Tax Assistance).
The vision of this policy is to make Haryana as the perfect destination for investment in industrial, regional and sustainable development. This can only be possible with the support of all departments of the state, adoption of technology and innovation and skill development and also by promoting entrepreneurship which further generates employment opportunities. While ease of doing business and infrastructural development majorly support the development of any industrial sector but incentives provided to the investors is of equal importance. The reduction in the cost of doing business helps for sustainable and competitive industry growth. Few of these incentives provided by the government of Haryana for Ultra Mega, Megaprojects and MSMEs are as follows:
Subsidy in VAT\GST – The state provides investment subsidy across different sectors Micro, Small, Large and Megaprojects. This is in lieu of net VAT\SGST paid through the internet to reduce its transaction cost.
Interest Subsidy – The small units are unable to set up, expand and utilize modern techniques due to the high cost of capital. It becomes unaffordable for enterprises to meet the modern age competition. The government provides interest subsidy for Micro and Small units which provide alternate opportunities for employment in rural areas. This will help the units to scale up, grow in size and improve the manufacturing process by using high-tech equipment which further reduces the cost of production.
Contribution to fund for MSE – The government of Haryana shall contribute an amount of 100 crore rupees in the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE). This will open up new opportunities for the upcoming and existing Micro and Small enterprises for availing collateral-free loans from lending institutions.
Employment Generation Subsidy – Various incentives will be provided for the MSMEs which generate employment for the regional people. The government will provide financial support and procurement reservation schemes for the enterprises.
Encouraging Start-Ups – The first generation entrepreneurs will be offered a special refund package of 100% VAT\SGST up-to turnover of 3 crore rupees. Further, special provisions are created and incentivized for the incubation centers, warehouses, mobile development centers and etc.
Relief for the industrial plot – The government has decided to exempt the industrial plot holders with no enhanced compensation in the future. The land cost will also get impacted by way of reduced EDC charges i.e 50% and Stamp duty refunds i.e 50-100%.
The state government is committed to promoting the MSME sector by providing support and schemes by all possible means. The aforementioned incentives just show the planned goal of the government to become the leader in the industrial sector.