Haryana offers incentives for industry in new policy
With a slew of incentives, the Haryana government on Tuesday unveiled its much delayed industrial policy on Tuesday with a focus on small and medium enterprises.
The government announced that no enhancement on account of land acquisition cost increase will be loaded on the allottees of industrial plots floated by the Haryana State Industrial and Infrastructure Development Corporation (HSIIDC) in future. The land cost enhancement will be borne by the HSIIDC by way of an indemnity cover created from the allotment money.
The policy puts in place a two-tier system for project clearances. The government will create the Haryana Enterprise Promotion Board (HEPB) having a governing council headed by the CM for overseeing time-bound clearances, sanctioning special packages for mega projects and clearing further policy initiatives. The council would comprise the finance minister, industries minister, tourism minister, public works minister, labour minister, environment and forests minister and chief secretary. Projects with an investment of more than `10 crore and involving change of land use (CLU) cases of more than 1 acre will be cleared by the empowered executive committee under the chairmanship of the principal secretary to the chief minister. Projects with an investment up to `10 crore and CLU cases up to 1 acre in conforming zones will be cleared by the district-level clearance committee headed by the deputy commissioner.
A system of online clearances will be also put in place by creating an e-biz Haryana portal from October 1. The government has notified 85 services under the Right to Services Act under the revised Industrial Promotion Act for ensuring deemed clearances and 36 services are proposed to be notified. The government has identified 68 most-critical services for industries which will go online on e-Biz portal by December 31.
A special infrastructure corpus of about `100 crore will be created for provision of last-mile road, water and power connectivity as decided by the Haryana Enterprise Promotion Board (HEPB), especially for mega projects and clusters in backward blocks for projects in aerospace, defence, electronics manufacturing and clusters under thrust areas and rural functional clusters or any other areas/sectors as decided by the HEPB.
The state government will also set up a skill development university in collaboration with the Union ministry of skill development through identified training providers using existing infrastructure of government institutes on nominal lease with minimum 70% placement guarantee. The new policy proposes creation of innovation campus at cost of `4 crore and operational expenditure support of `1 crore for three years along with creation of additional seven incubation centres at the cost of `30 lakh each in seven universities in Haryana.
The policy lays down setting up of rural business process outsourcing (BPO) centres in university towns like Rohtak, Hisar, Kurukshetra, Sonepat and Sirsa where skill development training will also be provided to youngsters. The policy also envisages connecting 6,000 villages with a broadband speed of 100 mbps with 99.9% reliability.
STATE DIVIDED INTO 4 BLOCKS
The state will be divided into four categories of development blocks: A, B, C and D for incentive support. There will be mapping of the district based on Union ministry of MSME survey to identify the potential of each district and to encourage local entrepreneurs to jointly establish or cooperative society in each district to set up manufacturing units.
A district-level committee will be set up at the level of the deputy commissioner to meet once a month and an administrative secretary-level committee headed by the principal secretary, industries, will meet once in two months to resolve investor grievances. There will also be a bureau of industrial promotion for policy outreach, investment promotion, road shows, summits, inter government interface, FDI, NRI issues etc. The enterprise assistance group will be set up to provide all necessary support to the industry particularly the MSMEs.
A special purpose vehicle would be formed for DMIC projects. It will be headed by executive chairpersons and professional CEOs with Board comprising representatives of Government of India, government of Haryana and financial institutions.
Emphasis on small industries
Chief minister Manohar Lal Khattar said the Enterprises Promotion Policy-2015 will lay a special focus on the micro, small and medium enterprises (MSME) sector. Listing out the incentives for the MSME sector, he said there would be a power tariff subsidy at the rate of `2 per unit only for micro and small enterprise in backward areas for three years from the date of release of the power connection.
Under a special scheme PRANETA (professionals and new entrepreneurs tax assistance) for start-up enterprises by the first generation professionally and technically qualified youth (CA/MBAs. BTech) with a five-year work experience, no state taxes will be levied up to a turnover of `3 crore or three years, whichever is earlier. Flatted factory complexes of the HSIIDC will provide built-up space on hire-purchase/leasehold basis to such entrepreneurs. The panchayat land will be made available on long-term lease for such entrepreneurs and industrial units located in rural functional clusters.
There will be creation of a `1,000 crore fund under the credit guarantee fund trust for micro and small enterprise (CGTMSE) scheme of the Union government for collateral free loans, tool rooms, technology development centres, revamped quality marking centres as quality certification and skill development centres.
The chief minister said the fiscal incentives would include value added tax (VAT) refund, stamp duty refund, interest subvention, power tariff rebate, amounting to `1000 crore.