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Footwear Sector

Incentives Available

As per

Enterprises Promotion Policy-2015

 

Footwear Sector (Value Addition Products excluding Leather processing):

 

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% of VAT/SGST net paid for first 7 years and 35% 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 footwear rural functional clusters.

 

Interest Subsidy

@6% for Micro, Small & Medium Enterprises or maximum upto Rs.10.00 lakh per year for 5 years limited to amount of net VAT/SGST paid 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 IEM.

 

EDC Charges

50% exemption of External Development Charges will be charged.

 

Power Tariff Subsidy

No power tariff subsidy is in this category.

 

Electricity Duty Exemption

No Electricity Duty Exemption subsidy in this category.

 

Reduced VAT

5% VAT in place of existing 12.5% on the footwear above Rs.500/-

 

Note: The other incentives specified for MSME sector would also be permissible for Footwear MSME units.

 

Category Block ‘C’

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% 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 footwear rural functional clusters.

 

Interest Subsidy

 

@6% for Micro, Small & Medium Enterprises or maximum upto Rs.10.00 lakh per year for 5 years limited to amount of net VAT/SGST paid 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 IEM.

 

EDC Charges

50% exemption of External Development Charges will be charged.

 

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 Exemption

100% exemption for 10 years only for new enterprise 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

 

Reduced VAT

5% VAT in place of existing 12.5% on the footwear above Rs.500/-

 

Note: The other incentives specified for MSME sector would also be permissible for Footwear 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 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 footwear rural functional clusters.

 

Interest Subsidy

@6% for Micro, Small & Medium Enterprises or maximum upto Rs.10.00 lakh per year for 5 years limited to amount of net VAT/SGST paid 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 IEM.

 

EDC Charges

50% exemption of External Development Charges will be charged.

 

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 Exemption

100% exemption for 10 years only for new enterprise 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

 

Reduced VAT

5% VAT in place of existing 12.5% on the footwear above Rs.500/-

 

Note: The other incentives specified for MSME sector would also be permissible for Footwear MSME units.