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Textile Sector

Incentives Available

As per

Enterprises Promotion Policy-2015

 

TEXTILE SECTOR(apparel/knitting/embroidery/technical textiles):

 

Category Block ‘A’

There is no incentive in Block ‘A’ for MSME.

 

Category Block ‘B’

 

Investment Subsidy on VAT

50% for first 5 years and 25% for next three years from the date of commencement of commercial production with cap of 100% of fixed capital investment.

50% for first 5 years and 25% for next three years provided atleast 50% additional investment in plant and machinery for expansion/diversification with cap of 100% of fixed capital investment of the expanded FCI.

 

Employment Generation Subsidy

One-time support of Rs.10,000/- for capacity building of persons belonging to Haryana(skilled/semi-skilled) engaged in apparel rural functional clusters in ‘B’ category blocks.(Any other category notified by the Government).

 

Interest Subsidy

@6% or maximum upto Rs.10 lakh per year for Micro, Small & Medium Enterprise on term loan for new/expansion/diversification in addition to interest incentive under RTUFS of GOI for 5 years for garments/knitting/embroidery/technical textiles and 5% for ginning, cotton spinning and power loom MSMEs maximum of Rs.10 lakh for 5 years in ‘B’ block and shall not exceed the amount of net VAT/SGST paid in the state by the enterprise during the relevant year.

 

Stamp Duty 

80% refund of stamp duty on purchase/leasing of land for establishing of enterprise including Industrial Estates developed by HSIIDC/private developer after commencement of commercial production, within 5 years from the date of filing of EM/IEM.

 

EDC Charges

50% exemption of External Development Charges.

 

Mandi Fees Exemption

100% exemption in case of ginning enterprises.

 

Power Tariff Subsidy

There is no Power Tariff Subsidy.

 

Electricity Duty Exemptions

100% exemption for 10 years only for new enterprisess from the date of release of electricity connection.

 

VAT Exemption on cotton yarn

100% VAT exemption of VAT@5.25% on cotton yarn manufactured in the state.

 

Transfer Property Tax

Exemption from Transfer Property Tax in case of Dyes & Chemicals purchased from outside the state being used in process house.

 

Note: The other incentives specified for MSME sector would also be pemissible for these categories of Textiles MSME units.

 

Category ‘C’ Block

Investment Subsidy on VAT

75% of VAT/SGST net paid for first 7 years and 35% for next three years from the date of commencement of commercial production with cap of 100% of fixed capital investment.

75% of VAT/SGST net paid for first 7 years and 35% for next three years provided atleast 50% additonal investment in plant and machinery for expansion/diversification with cap of 100% of fixed capital investment of the expanded FCI.

 

Employment Generation Subsidy 

One-time support of Rs.10,000/- for capacity building of persons belonging to Haryana(skilled/semi-skilled) engaged in apparel rural functional clusters in ‘C’ category blocks.(Any other category notified by the Government).

 

Interest Subsidy

@6% or maximum up to Rs.10 lakhs per year for Micro, Small & Medium Enterprise on term loan for new/expansion/diversification in addition to interest incentive under RTUFS of GOI for 5 years for garments/knitting/embroidery/technical textiles and 5% for ginning, cotton spinning and power loom MSMEs maximum of Rs.10 lakh for 5 years in ‘C’ block and shall not exceed the amount of net VAT/SGST paid in the state by the enterprise during the relevant year.

 

Stamp Duty

100% refund of stamp duty on purchase/leasing of land for establishing of enterprise including Industrial Estates developed by HSIIDC/private developer after commencement of commercial production, within 5 years from the date of filing of EM/IEM.

 

EDC Charges

50% exemption of External Development Charges.

 

Mandi Fees Exemption

100% exemption in case of ginning enterprises.

 

Power Tariff Subsidy

Rs.2 per unit only for Micro and Small Enterprise in ‘C’ Category blocks for 3 years from the date of release of electricity connection and exemption from open excess charges of 93 paisa per unit in case of Medium and Large units.

 

Electricity Duty Exemptions

100% exemption for 10 years only for new enterprisess from the date of release of electricity connection.

 

VAT Exemption on cotton yarn

100% VAT exemption of VAT@5.25% on cotton yarn manufactured in the state.

 

Transfer Property Tax

Exemption from Transfer Property Tax in case of Dyes & Chemicals purchased from outside the state being used in process house.

 

Note: The other incentives specified for MSME sector would also be pemissible for these categories of Textiles MSME units.

 

Category Block ‘D’

 

Investment Subsidy on VAT

75% of VAT/SGST net paid for first 7 years and 35% for next three years from the date of commencement of commercial production with cap of 100% of fixed capital investment.

75% of VAT/SGST net paid for first 7 years and 35% for next three years provided at least 50% additional investment in plant and machinery for expansion/diversification with cap of 100% of fixed capital investment of the expanded FCI.

 

Employment Generation Subsidy

One-time support of Rs.10,000/- for capacity building of persons belonging to Haryana(skilled/semi-skilled) engaged in apparel rural functional clusters in ‘D’ category blocks.(Any other category notified by the Government)

 

Interest Subsidy

@6% or maximum up to Rs.10 lakh per year for Micro, Small & Medium Enterprise on term loan for new/expansion/diversification in addition to interest incentive under RTUFS of GOI for 5 years for garments/knitting/embroidery/technical textiles and 5% for ginning, cotton spinning and power loom MSMEs maximum of Rs.10 lakh for 5 years in ‘D’ block and shall not exceed the amount of net VAT/SGST paid in the state by the enterprise during the relevant year.

 

Stamp Duty 

100% refund of stamp duty on purchase/leasing of land for establishing of enterprise including Industrial Estates developed by HSIIDC/private developer after commencement of commercial production, within 5 years from the date of filing of EM/IEM.                      

 

EDC Charges

50% exemption of External Development Charges.

 

Mandi Fees Exemption

100% exemption in case of ginning enterprises.

 

Power Tariff Subsidy

Rs.2 per unit only for Micro and Small Enterprise in ‘C’ Category blocks for 3 years from the date of release of electricity connection and exemption from open excess charges of 93 paisa per unit in case of Medium and Large units.

 

Electricity Duty Exemptions

100% exemption for 10 years only for new enterprises from the date of release of electricity connection.

 

VAT Exemption on cotton yarn

100% VAT exemption of VAT@5.25% on cotton yarn manufactured in the state.

 

Transfer Property Tax

Exemption from Transfer Property Tax in case of Dyes & Chemicals purchased from outside the state being used in process house.

 

Note: The other incentives specified for MSME sector would also be pemissible for these categories of Textiles MSME units.