Chandigarh, Oct 24 (KNN) Haryana Government’s draft IT & ESDM Policy, 2016, has a separate chapter on micro, small and medium enterprises (MSMEs) under which includes fiscal incentives like exemption from payment of Property Tax for a period of 10 years, 6% interest subsidy for MSMEs on term loan or maximum up to INR 10 Lacs per year for 8 years across State and more.

Haryana Government recently released the draft of IT & ESDM Policy, 2016. It has sought comments and suggestions from public on the draft policy.

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

It says the policy aims to make Haryana a clear destination of choice for investments in IT and ESDM sector; make IT and ESDM sector as the key enabler of equitable growth to spread prosperity and development across the State; Develop MSMEs as the growth engine of economy; Become recognized leaders in availability of high quality talent pool in the sector and more.

Under the draft policy the fiscal incentives would be given to the Mother-Vendor unit linkages.

“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,” said the draft.

An Interest Subsidy would be given at the rate of “6% for Micro, Small & Medium Enterprises 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.”

Giving access to finance to the MSMEs, the draft policy proposes, “Credit Rating expenses exemption (fiscal): 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.”

“The State Government shall contribute an amount of INR 100 Crore 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 Crore from Lending Institutions,” it adds.

Further, the MSME ESDM units shall be exempted from payment of Property Tax for a period of 10 years and 50% of cost for adopting technology from recognized National Institutes, maximum of INR 1 crore would be extended. The benefit can be availed only once in a period of three years.

Under the policy 75% reimbursement or maximum of INR 2 Lacs for conducting energy audit would be given. “Also 50% subsidy on cost of capital equipment required for undertaking measures to conserve energy, subject to maximum of INR 20 Lacs. This benefit is only for ESDM enterprises,” the draft policy suggests.

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

Also, under the policy, 75% reimbursement of expenses incurred on safety audit subject to maximum of INR 1 Lacs for conducting safety audit would be given and 50% subsidy on cost of capital equipment required for undertaking safety measures, subject to maximum of INR 5 Lacs would also be given. This benefit is only for ESDM enterprises.

Under the policy, 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 this the draft policy proposes several incentives for the MSME units.

The State has about 1670 Large and Medium Enterprises which have approx. investments of INR 49,000 Crore and generated employment for 3.36 Lac persons. Besides, there are around 90,000 MSMEs with total investment exceeding INR 15,000 Crore and employing more than 8.90 Lacs persons. (KNN Bureau)