Haryana Links Industrial Incentives To Environmental Compliance Under New Policy

Chandigarh, Aug 17 (KNN) Haryana's new industrial policy has made environmental compliance a key condition for availing state incentives, with the government planning physical verification of industrial units before releasing benefits.

The Haryana Progressive MSME & Export Promotion Policy 2026, notified on August 8, targets Rs 55,000 crore in investment and five lakh jobs over the next five years.

The policy provides incentives including capital subsidies, SGST reimbursement and stamp duty refunds, with benefits varying across different zones, reported The Tribune.

16 Categories Barred From Incentives

Under Clause 6.1 and Annexure I of the policy, 16 categories of industries have been placed on a restrictive list and will not be eligible for incentives due to concerns related to pollution, water scarcity and land-use planning.

The excluded categories include stone crushers and washeries, lime and brick kilns, certain copper and zinc smelters, tanneries, sulphuric acid and electroplating units, used-oil refining, and dyeing and dye-intermediate units without Zero Liquid Discharge (ZLD) systems.

Firecracker manufacturing and poultry units, except hatcheries, are also excluded.

The policy further bars units discharging trade effluents or air emissions from residential areas and industries located in groundwater-stressed Dark Zones.

Physical Verification Before Incentive Release

The move comes amid concerns over industrial pollution in parts of the state, particularly in the National Capital Region.

According to Haryana State Pollution Control Board data as of June 30, 2026, 956 of 968 industries across NCR Haryana lacked basic Air Pollution Control Devices (APCDs).

Additional Chief Secretary, Industries, Amit Agrawal, said the government would move beyond paperwork and self-declaration while assessing compliance.

He said industrial units would undergo physical verification and that the department was planning to require an independent third-party inspection report before incentives are released.

The approach marks a shift towards linking industrial incentives with actual environmental compliance rather than relying solely on documentation submitted by applicants.

Gurugram and Faridabad, among Haryana's major export-contributing districts, are expected to be significant beneficiaries of the new policy. The state recorded exports worth around USD 19.10 billion in FY2025.

The effectiveness of the new compliance mechanism will depend on how consistently third-party inspections and physical verification are implemented when industrial units begin submitting incentive claims.

(KNN Bureau)