haryana industries Archives - The Mentor Group

Industrial Area in Haryana

The Industrial area of Haryana has taken immense care of developing itself to pioneer the industrial revolution in the state. The exemplary exemptions and ease of setting up business and industry now rank among the top 3 states in India for ease of doing business. The industries in Haryana have sprouted with a decadent growth in the past few years. With land easily accessible for an industrial area in Haryana, the state is for bearing the name of India as a lead potential manufacturer of goods. The systematic infrastructure development especially in improving the connectivity to other cities in India via national highways and state highways has played a role in featuring Haryana as the choicest place for the setup of units.

Haryana Industrial Area | How has Haryana Risen its portfolio?

The government of Haryana has earmarked several zones as Haryana Industrial Area. The area claims that in the past year over 1000 industries of various scales have forayed into Haryana. This has also raked up the employment opportunities for the youth catapulting economic growth. The boost to the business by the state both in fiscal and policy have been instrumental in carving the way to a future of growth in the Haryana. Promoting the MSME (Micro, Small & Medium Enterprise), it has understood the value addition of these setups in a planned growth of the area. Taking these benefits into consideration, projects by the Mentor group provide land units to the entrepreneurs. These require much less capital than large scale industry and provide effective employment to the people in the area.

The vigorous spread of industries forms a large portfolio that privileges a multitude of manufacturing clusters. Some of these are Agriculture implements, Pharmaceutical, Textile, Plywood, Stainless Steel units, Print & Packaging for modern usage, Heavy Engineering Machinery, Auto Parts and much more.

Industrial Area in Haryana, Let’s take a look at how various industries have broadened the state’s portfolio:

Agriculture:

Haryana hasn’t left out agriculture from its roots and is still one of the four largest producers of cotton in the nation. Haryana is somewhat self-sustained in matters of food and milk products and is also supplying it to other areas in India.

Auto Sector:

The state has a strong portfolio in automobile manufacturing. The plants’ setup in Manesar by big auto companies such as Honda, Maruti, and Hero has been the catalyst to the growth of this sector. These have provided thousands of jobs for labor and technical works. Also, the economy around these sectors has improved as they provide an opportunity for local traders too.

IT:

Gurugram has emerged as the leading hub of Information & Technology in the whole Northern region. Earlier only the states in the South were credited to the advancement of IT in India. The state of art IT-friendly policy has forayed the state to become the leader in the BPM sector with innovative zeal.

Pharma & Chemical

The refinery projects and the big setup by various Pharma companies and developing the necessary infra for them has been a big achievement in its own accord. The disposal mechanism to contain the waste is also a part of the management system. The state plans to open up new chemicals parks for more advanced approach in the area. However, it has brought huge investments to the state.

Defense Manufacturing

The area has allowed for foreign investment in the defense technology and weaponry sector inducting industrial units for the production of defense weapons. Haryana provides land, special provisions to clear the way for it to become a strong contender.

Clean Energy

Apart from being invested in varied industrial gamuts, the state is also professing it’s forward-thinking of a cleaner future with large projects of solar energy. The major solar parks of over 400 acres of land are aimed at making the state self-sustainable in the matters of consumption of energy and saving resources whilst providing the opportunity for business in the sector.

Choosing the Zones

Taking a considerable lead in the growth of a dynamic cluster, the development of the state basing it on manufacturing requires an agile licensing policy and quick clearance from the concerned departments. The industrial area in Haryana has been divided into various zones which are earmarked in accordance with their capacity and potential.

These zones are basically classified as Hyper, High potential, Medium potential, and Low potential. This segregation implied after ascertaining many points. The Hyper areas are the ones with the highest potential due to proximity with NCR. This majorly includes the area of Gurugram and its nearing urban vicinity. The major role of these marked zones is to minimize the hassle of Change Of Land Use (CLU) Law which took a lot of time and resources making the whole process complex. Relaxing this tedious process has proved to be an advantage.

The High potential zone marks selective lands in Faridabad, Panchkula, Kalka, Sonepat & Panipat, etc. The medium zones are Karnal, Ambala, Yamuna Nagar, Hodal, Kurukshetra, Bahadurgarh, Jagadhari, Rohtak, Rewari Palwal, etc. and the low areas cover all of the remaining areas. This step helps in ease of granting the license to the manufacturers and these zones are marked for what type of benefits can be availed in these. The Mentor group has secured land in these prime areas for the development of industry clubbed with incentives of the government and top-notch amenities planned in the land units.

What is the advantage of Industrial Area Haryana?

Haryana’s natural resources, manpower, and agriculture base have thrived many sectors that use these resources. The infrastructure os state grants alluring incentives to a plethora of business. The huge exemptions on IT an automobile sector have kept Haryana at the helm of affairs pertaining to modern growth per se.

The state also boosts Textile, agro and commerce sectors by the force of its key strategies giving a fiscal as well as initial setup advantage. This is the main reason why it is constantly raising interest among the investors from India as well as overseas. To ensure the smooth operations of it industrial endeavors the state has structured a premier body i.e Haryana & Infrastructure Development Corporation Limited (HSIIDC) to regulate and promote the smooth and efficient amenities for industrialists and entrepreneurs alike. The reliability of it’s functioning has had a positive effect upon the surge of cluster setups all across the city.

Haryana area has to it credits the mega projects like petrochemical refinery of IOC, coal power projects, Tata Tele projects, Automobile for manufacturing and assembly. These projects showcase the capacity of the state to handle these key projects in a professional and efficient manner.

What Connects development and success?

The Haryana Industrial area has received unprecedented momentum due to many factors. These include the incentives and the infrastructural policy of the state government. Industries in Haryana are ideally located connecting them by a marvelous network of road transport. The National Highways connecting the state to the neighboring cities have proved to be a boon for the boom.

The closeness of hubs like Gurugram and Faridabad to international airports, and it’s industrial units to the other cities in India have eased the woes of manufacturers and suppliers. They help in the booming growth of the transport sector as well as the industries concerned. Haryana has turned itself into a Global Industrial Park with its avant grade approach for the business.

The statewide roads of over 24218 km are connected to National Highways like NH 1, NH 2, NH 8, NH 10 & NH 22 covering some 1512 km of it. This connectivity also ranks it among a few of the cities in the country that links all it’s rural and urban areas via better roads. Another factor that pays off is the interweb of Railway Network which helps in connecting the Areas of Haryana to rest of the cities in India.

Development by Incentives

Haryana is persistent in its efforts to continue bringing industries in Haryana. After the state announced a special policy for the development of the industrial area in Haryana in the year 2005, the state hasn’t looked back. The development of infrastructure by Haryana have brought desired results. Thriving industries are a prime witness to the accessibility of state as a favored land for units.

plots for sale in Haryana have registered a surmounting growth since the notification. The relaxed norms play their role as well. In a nutshell, the Haryana area has pioneered its policies to help the growth and sustainment of business and is planning to nurture this growth in the coming times with friendly norms and ease of doing business.

Not only does it boast of over 11 billion dollars in investments but also has widespread interest in spending on developing the infrastructure. The single-window approval for small and medium business and ease of norms for clearances make it clear that the government is clear in its objectives and wants the state to progress on a definite roadmap to success.

Self Structured Development | Haryana Industrial Area

According to the government, the state development agencies have been provided self-governance in the matters of framing the policy for internal management of affairs in the Haryana. This includes marking and allotting the land, it’s leasing and defining the terms for its usage. These have catered to carve the way for an investor-friendly area. The nodal agency acquires land from the government and develops it to suit the needs. The agency undertakes sewage facilities, construction of roads, draining and disposal systems and other basic infrastructural facilities. This is done in accordance with the requirements of other agencies like environmental clearance and pollution monitoring board so that the end project is clear of any obstacle and is ready to set up. This reduces the time for investors drastically and saves them a lot of resources which can be directed to begin their operations as soon as possible.

These corporations also facilitate loan and finance to assist the projects. They are not only limited to Haryana industrial area for setups but also extend financial assistance to the service sectors. This includes hospitals and warehousing units. This somewhat broadens the perspective of investment and also helps in the development of basic infrastructure for industries.

The new Enterprise Promotion Policy announced by the government in 2015 targets a growth rate of 8 percent and seeks jobs creation for more than 4 lakh people. This factored in by the policy that makes it an easy business place, investor-friendly, reducing the cost of setting up and running an enterprise. Also, the route map for development is envisioned to evenly spread the development across the state by marking various zones for various businesses. This has brought Haryana on the world map of the investor’s favorite destination.

GST Council & Changes in GST for Real Estate Sector

Good & Services Tax Council is the legal authority for making any recommendations to the Union and State Government on issues related to GST. This government body is a one-stop solution for taxpayers, tax consultants, tax officials, finance experts, trade and industry, etc. The council provides transparency, efficiency, and speed in implementation and administration of taxes, especially for the real estate sector. On the recommendations by GST Council in the 34th Meeting held in March 2019 – a new composition tax scheme for Real Estate Sector has been brought in with effect from 1st April 2019. The council has introduced a common GSTN portal which fills the gap between taxpayer and the tax administration. The portal enables the real estate and other taxpayers to cater to registration, return filing, payments, refunds, bill generations and, etc. The following changes have brought to the real estate sector: The builders of the projects will get a one-time option to choose between the new and old rates. This is for constructions which started before the due date. Along with this without the input tax credit, the real estate will be taxed at 5% and 1% for affordable housing. The new scheme states that the registered individuals will procure 80% of the input services for construction. In case it is below that the limit, the developer has to pay the tax at the rate of 18% on RCM basis (and 28% for cement and capital goods). The recent amendments have been done to help the buyers and as well the developers. The services via FSI or long term lease or transfer of development rights that are provided to developers by the landowner have got some exemptions that include all the flats should be sold prior to OC and reverse charge for the residential projects. The taxation would be applicable to the residential property which treated when up to 15% of commercial development is done. The basis for calculating the proportion of construction services (credit attributable to taxable, exempt supplies) will be the area of construction only. As per the meeting held in September 2019 under the Chairmanship of Union Finance & Corporate Affairs Minister Smt. Nirmala Sitharaman the new changes are introduced which will streamline the process for all sectors. To authenticate the identity of the promoters, developers, and buyers the GST registration linkage with Aadhar is mandatory. GST council has decided to link the Aadhar with taxpayers in phases. For all new registrations, the taxpayers will be asked to provide their Aadhar details. The facility of auto-approval of registration will not be available and the physical verification process will be made mandatory to confirm their identity using other documents in case Aadhar is not provided. The real estate taxation is a matter of concern for both buyers to understand the GST and SGST laws of the state and as well as for the developers who plan to buy land from the owners and get it register at their name. The GST Council website is the one-stop solution for every notification, schemes, FAQ’s, and etc. The transparency of the process will provide information on GST, GST support, MSME information, acts, circulars, forms and rules and etc.

MSME Sector in Haryana

Haryana is one of the emerging leaders in terms of commercial production and a major contributor in export as well. From passenger cars, two-wheelers, mobile cranes, tractors in the automobile sector to becoming the 2nd largest of food grains and its export. The Micro, Small and Medium Enterprises (MSME) sector is considered as a model that focuses on the socio-economic growth of the Indian economy. The sector provides a sizeable share of employment opportunities, especially for the agriculture sector. As per the MSME annual report for 2016-17, the contribution of this sector is around 6% of the country’s GDP. Along with this 45% of the exports, and 33% of the manufacturing output.

The industrial transformation has been possible specifically due to the manufacturing and tertiary sector. This has, in turn, led to the Haryana’s economic growth. The state is the leading state in terms of manufacturing GSDP contribution which is higher than the national average. Especially, the states like Gujarat and Maharashtra are gradually becoming the tough competitors to Haryana. Not just limited to the manufacturing, the tertiary sector – real estate, professional services, finance, defense, public administration, and other services have also contributed much to the economic growth.

The industrial growth in the state could not have been possible without the support of globalization of markets, flexible economy and infrastructural creations. Since 57% of the state area falls under the National Capital Region (NCR) with 21 national highways and well-connected rail and land transportation routes has given a competitive edge to the State. With the introduction of the Haryana Enterprise Promotion Policy (EPP), 2015 has benefited the state by supporting the manufacturing and services enterprises with a transformational roadmap. The number of efforts been put up on the regulatory schemes and policies by the government shows the enthusiasm and growth-oriented approach of the State. The government bodies are working hard in improving the ease of doing business in the State.

Investment in industrial units, machinery and the equipment required is what categorizes an enterprise into micro, small and medium enterprises. The categorization is as follows:

In Manufacturing the investment (in plant and equipment):

Micro Enterprises:  should not exceed 25 lakh rupees

Small Enterprises: should be more than 25 lakh rupees but does not exceed 5 crore rupees

Medium Enterprises: should be more than 5 crore rupees but does not exceed 10 crore rupees

In the Services Sector the investment (in equipment):

Micro Enterprises:  should not exceed 10 lakh rupees

Small Enterprises: should be more than 10 lakh rupees but does not exceed 2 crore rupees

Medium Enterprises: should be more than 2 crore rupees but does not exceed 5 crore rupees

Haryana enjoys more than 1 lakh MSMEs with a total investment of more than 20,000 crore rupees. This has generated more than 10 lakh jobs for the state with the majority of being placed in automobiles, food & beverages, textiles, engineering, and the metals sector. The constant efforts and initiatives of the government have made it possible for them to lead national industrial projects like Amritsar-Kolkata industrial corridor, Kundli-Manesar-Palwal global corridor and etc. Along with this in order to provide a conducive industrial environment, the government has set up co-work spaces, incubation centers. The recent “Haryana MSME Policy 2019” aims to give a boost to the MSME sectors.

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