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Haryana State Subsidies & Incentives for MSMEs, Start-ups and Thrust Sectors
The Haryana Enterprises Promotion Policy (HEPP) 2020 is the flagship industrial policy of the Government of Haryana, designed to promote manufacturing, attract new investments, and strengthen the state’s industrial ecosystem. Through a wide range of Haryana State Subsidies, the policy provides financial assistance to MSMEs, start-ups, large industries, rural enterprises, and businesses operating in identified thrust sectors.
Eligible enterprises can access benefits such as investment subsidy through Net SGST reimbursement, interest subsidy on term loans, employment generation incentives, stamp duty refunds, electricity duty exemption, technology upgradation support, quality certification reimbursement, green compliance assistance, and financial support for business expansion. The value of these incentives varies based on the industrial block in which the project is located, with enterprises established in less-developed regions receiving higher levels of support. Additional incentives are also available for women entrepreneurs and Scheduled Caste (SC) and Scheduled Tribe (ST) entrepreneurs under specific components of the policy.
This comprehensive guide explains the Haryana Enterprises Promotion Policy 2020 in detail, including block-wise subsidy rates, eligibility criteria, MSME incentives, start-up benefits, rural enterprise support, thrust sector incentives, and the application process. Whether you are planning a new manufacturing unit or expanding an existing business in Haryana, this guide will help you understand the financial incentives available and identify the benefits your enterprise may be eligible to claim.
Understanding Haryana’s Block Classification
Before applying for any incentive, an enterprise needs to know which block category its location falls under, since almost every subsidy rate and duration scales with this classification.
Block | Development Status | General Incentive Level |
A | Developed | Most industrialised blocks — limited, targeted incentives only. |
B | Intermediate | Moderate support: around 50% SGST subsidy and 7-year duty exemption. |
C | Backward | Strong support: around 75% SGST subsidy, higher interest and duty relief. |
D | Least developed | Maximum benefits: up to 100% SGST subsidy and 12-year duty exemptions. |
FCI = Fixed Capital Investment. Net SGST = State GST net of input tax credit. Benefit levels are indicative and scale by block category.
For a visual understanding of the Haryana MSME Schemes, you may refer to the presentation below, which provides a concise overview of its key provisions, benefits, application process, and compliance requirements.
Core MSME Incentives
These are the foundational Haryana State Subsidies available to eligible MSMEs across capital investment, borrowing costs, and job creation.
Incentive | Rate / Amount | Block-wise Detail |
Investment Subsidy (Net SGST) | Up to 100% of Net SGST | 50% for 5 years in ‘B’ blocks; 75% for 7 years in ‘C’ blocks; first 10 years plus an additional 35% for 3 more years in ‘D’ blocks (capped at 150% of FCI). Enhanced to 75% for 7 years for Women / SC / ST-led micro units. |
Interest Subsidy | 5–6% on term loans, up to ₹20 lakh per year | 5 years in ‘C’ and ‘D’ blocks; 3 years in ‘B’ blocks. Enhanced to 6% for Women / SC / ST-led micro enterprises, for 5 years. |
Employment Generation | ₹36,000 per job per year | ₹36,000/year for SC / Women employees and ₹30,000/year for general category, for 7 years — applicable on payroll or contract staff with valid ESI/PF, for Haryana residents, in ‘B’, ‘C’ and ‘D’ blocks. |
Note: The policy overview lists ‘up to 100% of Net SGST’ as the general block-D ceiling, while the MSME-specific summary highlights 75% as a headline figure with ‘D’ blocks described separately as first 10 years plus 35% for 3 more years (capped at 150% of FCI). Confirm the exact ‘D’-block investment subsidy percentage against the official policy document before publishing or advising a client, as the two summaries in the source presentation are not fully explicit on this point.
Duty & Infrastructure Charge Relief
These incentives reduce the upfront cost of setting up a unit, and scale with block category — deepest in the least-developed ‘D’ blocks.
Incentive | Rate | Condition |
Stamp Duty Refund | 100% in ‘D’ blocks; 75% in ‘C’; 60% in ‘B’ | On land for industrial use, provided commercial production starts within 5 years of purchase. |
Electricity Duty Exemption | Full exemption for 12 years in ‘D’; 10 years in ‘C’; 7 years in ‘B’ | Applies for the stated duration from commencement of operations. |
External Development Charges (EDC) | 100% exemption in ‘D’; 75% in ‘C’; 60% in ‘B’ | Reduces upfront development outlay for setting up the unit. |
Market Development, Technology & Quality Support
Beyond capital and duty relief, the policy funds market access, technology upgrades, and quality certification — helping MSMEs compete on both cost and quality.
Incentive | Rate / Amount | Detail |
Market Development Assistance | 75% of cost, up to ₹4 lakh per fair | Covers space and logistics for international fairs (max ₹4 lakh) and domestic fairs (max ₹3 lakh) — one fair per year. |
Technology Acquisition | 75% of cost, up to ₹50 lakh | For acquiring technology or patented technology from premier institutes or companies. |
Testing Equipment | 50% of cost, up to ₹20 lakh per year | To help units achieve ‘Zero Defect’, globally competitive quality standards. |
Patent Cost Reimbursement | 100% of cost, up to ₹25 lakh | Full reimbursement of filing, consultancy, search and publishing fees for domestic and international patents. |
State MSE Awards | ₹5 lakh per award | Outstanding Entrepreneurship Awards for growth, innovation, quality and lean manufacturing. |
Quality Certification | 75% of cost, up to ₹5 lakh | Per ISO / HACCP / BSI / WHO-GMP / ZED / Hallmark certification. |
Green & Compliance Incentives
These incentives support sustainable, safe and energy-efficient operations.
Incentive | Rate / Amount | Detail |
Environment Compliance | 50% (max ₹50 lakh); up to 75% (max ₹1 crore) for zero-discharge units | Covers effluent-treatment and pollution-control capital expenditure. |
Renewable Energy | 5% interest subsidy, max ₹5 lakh per year for 3 years | For rooftop solar and other renewable energy technologies. |
Energy & Water Conservation | 75% of audit cost, plus 20–50% subsidy on conservation equipment (max ₹20 lakh) | Subsidy percentage on equipment varies by block category. |
Safety Compliance | 75% of safety-audit cost (max ₹1 lakh); 50% on safety equipment (up to ₹20 lakh in ‘D’ blocks) | Supports workplace safety audits and equipment upgrades. |
Finance & Growth Support
These incentives lower the cost of capital and strengthen the balance sheets of growing enterprises.
Incentive | Rate / Amount | Detail |
Credit-Linked Capital Subsidy | 5–6% interest subsidy, max ₹10 lakh per year for 3 years | For technology up-gradation, appraised by HSIIDC / SIDBI. |
Power Tariff Subsidy | ₹2 per unit | For Micro & Small units — up to 40 kW in ‘D’ blocks and 30 kW in ‘C’ blocks, at source. |
Collateral-Free Credit | 100% fee reimbursement | Full reimbursement of the CGTMSE guarantee-cover fee for collateral-free loans to micro units, for 5 years. |
ERP Adoption | 75% of cost, max ₹5 lakh | For adopting an ERP system to improve efficiency and resource optimisation. |
SME Exchange Equity Support | 25% of expenditure, max ₹5 lakh | One-time support for raising equity through the SME exchange platform. |
Credit Rating | 75% of cost, max ₹2 lakh | By SIDBI or an accredited agency, once every 5 years, for MSMEs. |
Rural Enterprises: Haryana Gramin Udyogik Vikas Yojna
This scheme targets rural micro-enterprises located in ‘B’, ‘C’ and ‘D’ blocks.
Incentive | Rate / Amount |
Capital Subsidy | 15%, max ₹20 lakh (₹25 lakh for Women / SC-led units) |
Interest Subsidy | 7%, max ₹8 lakh per year for 7 years |
DG-Set Subsidy | Up to 50% of cost, for micro units |
Special Provisions for Start-ups
Incentive | Rate / Amount |
Interest Subsidy | 8%, up to ₹20 lakh per year for 5 years |
Seed Grant | Up to ₹10 lakh per start-up |
Net SGST Reimbursement | 100%, for 7 years (capped at 150% of FCI) |
Lease Rental Support | 30% (45% for women-founded start-ups), max ₹5 lakh |
Acceleration Support | ₹2.5 lakh for national programs; ₹5 lakh for international programs |
Thrust Sector Benefits
Six sectors are treated as priority (‘thrust’) sectors under the policy and receive enhanced incentives above the standard MSME rates:
- Auto & Light Engineering
- Textiles & Apparels
- Defence & Aerospace
- Pharma & Medical Devices
- Chemicals & Petrochemicals
- Energy & Data Storage
Incentive | Rate / Amount | Block-wise Detail |
Investment Subsidy (Net SGST) | Up to 100% of Net SGST | 100% for 10 years in ‘D’ blocks (cap 150% of FCI); 75% for 8 years in ‘C’ blocks (cap 125%); 50% for 7 years in ‘B’ blocks (cap 100%). |
Employment Generation | ₹48,000 per job per year | ₹48,000/year for SC / Women employees and ₹36,000/year for general category, for 7 years, in ‘B’, ‘C’ and ‘D’ blocks. |
Interest Subsidy | 6%, up to ₹20 lakh per year | On term loans for Micro & Small units — 7 years in ‘C’ and ‘D’ blocks; 5 years in ‘B’ blocks. |
Block-wise Comparison: Core MSME Incentives
Incentive | Block B | Block C | Block D | Remarks |
Investment Subsidy | 50% / 5 yrs | 75% / 7 yrs | Up to 100% / 10 yrs +35% / 3 more yrs (cap 150% FCI)* | Enhanced to 75%/7 yrs for Women / SC / ST micro units |
Interest Subsidy | 5–6%, 3 yrs | 5–6%, 5 yrs | 5–6%, 5 yrs | Enhanced to 6% for Women / SC / ST micro units, 5 yrs |
Employment Generation | ₹36,000/₹30,000 per job/yr, 7 yrs | Same, 7 yrs | Same, 7 yrs | Higher rate for SC / Women employees |
Stamp Duty Refund | 60% | 75% | 100% | On industrial land; production must start within 5 yrs |
Electricity Duty Exemption | 7 yrs | 10 yrs | 12 yrs | Full exemption for the stated period |
EDC Exemption | 60% | 75% | 100% | Reduces upfront development charge outlay |
*See the note under Core MSME Incentives above — confirm the exact Block D investment subsidy percentage against the official policy notification.
Frequently Asked Questions
What is the Haryana Enterprises Promotion Policy, 2020?
It is the Haryana government’s policy framework offering financial incentives — including investment subsidy, interest subsidy, duty exemptions, and employment generation support — to MSMEs, start-ups, rural enterprises and thrust sectors across the state.
How is the level of Haryana State Subsidies decided for a unit?
Primarily by the industrial block in which the unit is located. Blocks are graded A (developed) to D (least developed), and subsidy rates and durations increase as the block becomes less developed.
What interest subsidy is available to MSMEs in Haryana?
MSMEs can get a 5–6% interest subsidy on term loans, up to ₹20 lakh per year, for 3 years in ‘B’ blocks and 5 years in ‘C’ and ‘D’ blocks. Women-, SC- and ST-led micro enterprises get 6% for 5 years.
How much SGST subsidy can a unit claim?
The investment subsidy is based on Net SGST paid and scales by block: 50% for 5 years in ‘B’, 75% for 7 years in ‘C’, and up to 100% for the first 10 years plus 35% for 3 more years in ‘D’ blocks, subject to a cap of 150% of Fixed Capital Investment.
Are there special benefits for Women, SC and ST enterprises?
Yes. Enhanced rates apply across investment subsidy, interest subsidy, employment generation, rural capital subsidy, and start-up lease rental support, among other categories.
Does the policy support technology adoption and quality certification?
Yes — it reimburses 75% of technology acquisition costs (up to ₹50 lakh), 75% of quality certification costs (up to ₹5 lakh) per certification, and 100% of patent filing costs (up to ₹25 lakh).
What incentives are available specifically for start-ups?
Eligible start-ups can access an 8% interest subsidy (up to ₹20 lakh/year for 5 years), a seed grant of up to ₹10 lakh, 100% Net SGST reimbursement for 7 years, lease rental support, and acceleration program support.
Which industries are treated as thrust sectors in Haryana?
Auto & Light Engineering, Textiles & Apparels, Defence & Aerospace, Pharma & Medical Devices, Chemicals & Petrochemicals, and Energy & Data Storage — all of which receive enhanced investment subsidy, employment generation, and interest subsidy rates.
Is there support for environment compliance and renewable energy?
Yes. Units can claim up to 75% (max ₹1 crore) for effluent-treatment and pollution-control capital in zero-discharge units, and a 5% interest subsidy (max ₹5 lakh/year for 3 years) for rooftop solar and other renewable energy installations.
Related Guides
- DGFT Export Benefits: Complete FTP 2023 Guide
- MOOWR Scheme: Benefits, Eligibility & Customs Duty Guide
- EPCG Scheme Explained
- Advance Authorisation Scheme
- RoDTEP Scheme Guide
- Udyam Registration Guide
The earlier draft included ‘Haryana Subsidies & Incentive Schemes for Industries’ as an internal link — removed here since it duplicates this article’s own topic; link to it only if it is a genuinely distinct, separately published page.
Conclusion
The Haryana Enterprises Promotion Policy, 2020 offers one of the more comprehensive state-level incentive packages in India — spanning capital subsidy, interest relief, duty exemptions, technology and quality support, green compliance, and dedicated schemes for rural units and start-ups. Because most rates depend on block category and enterprise profile (Women / SC / ST / thrust sector), the exact benefit for a specific unit needs to be worked out against its location and classification.
Speak to a consultant to map your enterprise against the applicable block category and incentive stack before you finalise your investment plan.
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