Haryana to offer Rs. 25 lac freight subsidy to MSMEs to even competitive advantage with coastal states

Sonipat, July 6 (KNN) The Haryana Cabinet under the chairmanship of Chief Minister Manohar Lal on Thursday approved amendment in the Freight Assistance Scheme notified under the Haryana Enterprise and Employment Policy (HEEP) - 2020.

This brings major relief to various industrial associations and exporters of the state who requested the state government to revise the scheme for all MSMEs and review the block wise capping to motivate exporters.

According to the new amendment Rs 25 lakh will be provided as subsidy in view of freight reimbursement for transportation cost from the unit's premises to port / air cargo / international borders. 

Along with other non-financial incentives this move aims to make MSME exports competitive in the global market. 

The effective date of implementation of the scheme will be 1 July, 2023 which means that the actual export should be made on or after 1July, 2023, to be determined on the basis of bill of lading.

Freight assistance to the extent of 1% of Free on Board (FOB) value or actual freight, whichever is less, on transportation of goods from manufacturing site to seaport/air cargo/road to international border, excluding government duties and taxes will be decided based on the level of ZED certification.

For thrust sector (notified under HEEP), a maximum of Rs 25 lakh to a manufacturer exporter engaged in thrust sector located in 'C' and 'D' category blocks and a manufacturer exporter engaged in thrust sector 'A' and 'B' category blocks Rs 15 lakh will be assured subsidy.

For all other eligible manufacturer exporter units (non-thrust sector), a maximum of Rs 20 lakh for a manufacturer exporter located in 'C' and 'D' category blocks and Rs 10 lakh for a manufacturer exporter located in 'A' will be provided as subsidy. 

For ZED Gold certified units 100% subsidy and Free on Board (FOB) for ZED Bronze certified units for transportation from manufacturing site to seaport/air cargo/road to international border. 

Out of 1% of the value or actual freight, excluding government duties and taxes, 33% subsidy will be ensured.

As per the amendment, the applications of all eligible units shall be submitted on the web portal of the department within a period of 6 months from the date of closure of the financial year and Director General/Director, MSME for sanction of freight subsidy above Rs 10 lakh shall be the competent authority.

The policy was notified with an aim to attract Rs 1 lakh crore investment in the state and create 5 lakh jobs.  

The Haryana Enterprises and Employment Policy (HEEP), 2020, identifies five pillars for the overall socio-economic development of the state to promote industrial competitiveness, balanced regional development, exports, innovation and entrepreneurship and strong industrial infrastructure. (KNN Bureau)