Haryana Govt’s draft IT&ESDM Policy proposes many sops, incentives for MSMEs

Chandigarh, Feb 6 (KNN) The Haryana Government has recently put up the draft of State IT and ESDM Policy in which it has a dedicated chapter for the MSME sector.

The policy aims to develop IT and ESDM sectors as key growth drivers for achieving the State’s Vision.

It said, “As India gears up to retrace the high growth path, its MSME sector assumes a pivotal role in driving the growth engine. With 3.6 Cr. units spread across the country, that employ 8.05 Cr. people, Micro, Small and Medium Enterprises (MSME) have a contribution of 37.5 per cent to the country’s GDP.”

The draft policy said, “With a view to providing focused attention on the MSMEs, the need of inclusion of a separate chapter on MSMEs has become imperative.”

Amongst the Fiscal Incentives proposed in the Draft Policy, Vendor units will be treated at par with Anchor units for availing incentives under this policy, provided Vendor is located within same EMC as Anchor unit, and supplies 75% of its end product to Anchor unit. This benefit is only for ESDM enterprises.

The policy proposed to give Interest Subsidy @ 6% for MSMEs on term loan or maximum up to INR 10 Lacs per year for 8 years across State & shall not exceed amount of net VAT/SGST paid during the relevant year.

For making finance accessible to the sector, the Draft Policy proposesCredit Rating expenses exemption (fiscal) under which reimbursement of the expenses incurred towards the credit rating to the extent of 75% or maximum of INR 2 Lacs for Micro and Small enterprises carried out by SIDBI /Govt. accredited credit rating agency would be given.

The State Government shall also contribute an amount of INR 100 Cr. in CGTMSE fund, which will provide window opportunities to new as well as existing Micro and Small Enterprises for availing collateral free loan to the extent of INR 1 Cr. from Lending Institutions.

The draft policy also proposes that the MSME units shall be exempted from payment of Property Tax for a period of 10 years.

On Technology Acquisition, it says, “50% of cost for adopting technology from recognized National Institutes, maximum of INR 1 Cr.. The benefit can be availed only once in a period of three years.”

In order to ensure 'Zero Defect' in the quality of products to make globally competitive, the financial support of 50% as subsidy or maximum of Rs. 5 lac for the purchase of testing equipments shall be provided to Micro and Small Enterprises.

The Draft Policy says that 75% reimbursement or maximum of INR 2 Lacs for conducting energy audit will be given. Also 50% subsidy on cost of capital equipment required for undertaking measures to conserve energy, subject to maximum of INR 20 Lacs will be given.

“This benefit is only for ESDM enterprises,” said the document. 

For Water Audit, “75% reimbursement of cost of Water audit subject to maximum of INR 1 Lacs and also subsidy up to 50% or maximum of INR 20 Lacs on the cost of capital equipment required for Water Conservation/ Harvesting System will be given. This benefit is only for ESDM enterprises.”

The Draft Policy also proposes 75% reimbursement of expenses incurred on safety audit subject to maximum of INR 1 Lacs for conducting safety audit. Also 50% subsidy on cost of capital equipment required for undertaking safety measures, subject to maximum of INR 5 Lacs. This benefit is only for ESDM enterprises.

Government will encourage the MSMEs to participate from industry in various national and international events; exhibitions and conferences for enhance awareness and exposure to leading business practices.

For select exhibitions within the country - complete reimbursement of participation charges for space of maximum size up to 9 sq. m.  II. For select international fairs - 75% space charges, shipment of exhibits, cost of product literature, display material or maximum up to INR 5 Lacs and air fare by economy class up to INR 1 Lacs per year. k. Patent Fee Reimbursement:

The draft policy says 50% assistance in cost of filing of patents subject to a limit of INR 10 Lacs for domestic patents awarded and INR 25 Lacs for international patents awarded will be given.

Quality Certification Fee will be reimbursement, says the Draft Policy adding that 50% reimbursement of cost of quality certification fee within the overall ceiling of INR 6 Lacs in 5 years (with maximum of 3 industry standard quality certifications).

Assistance will be given to Industry Associations for participation in International Trade Fair as Haryana Pavilion outside India @50% of total rent and subject to a maximum limit of INR 10 Lacs.

The State Government will confer Outstanding Entrepreneurship State Awards to Micro and Small Enterprises with Rs. 3 Lacs each separately for growth in production and profit, for innovation & development of new products, quality products and lean manufacturing techniques in ESDM sector. The unit once selected for award shall not be considered again during next 5 years.

The State Government will develop a rules / mechanism to assess the performance of entrepreneurs.  

The State has about 1670 Large and Medium Enterprises which have approx. investments of INR 49,000 Cr. and generated employment for 3.36 Lac persons. Besides, there are around 90,000 MSMEs with total investment exceeding INR 15,000 Cr. and employing more than 8.90 Lacs persons. It is evident that the bulk of employment is generated by MSMEs. With unemployment rate at 4.8%, it is imperative to focus on the MSMEs for creation of employment opportunities and to revitalize economic growth. (KNN Bureau)