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Haryana MSME Policy 2019

Haryana MSME Policy, 2019

Haryana MSME Policy 2019

The Government of Haryana has launched the new MSME policy to promote the growth of MSME sectors in the State. The main objective of the Haryana MSME policy is to increase the competitiveness of MSME and promote entrepreneurship through startup and new industries across Haryana. In this article, we look at the Haryana MSME Policy, 2019 in detail.

Also, read about Andhra Pradesh MSME policy


The objectives of Haryana MSME Policy, 2019 are listed below:

  • To strengthen the industrial infrastructure for MSME units.
  • To enhance the adoption of modernised technology and upgradation.
  • To promote entrepreneurship through startup and innovation support.
  • To increase the credit flow to MSME through incentives and credit facilitation.
  • To provide revival and sickness prevention support to MSME units through policy support.

Policy Framework

The overall policy framework is designed to create an enabling environment for MSME in Haryana. The Haryana MSME policy has adopted a comprehensive approach for skill development, cluster development and institutional strengthening.

Cluster Development

The State Government will provide incentive up to Rs. 2 crores under the Mini cluster development scheme. The scheme will be implemented in phase, with 25 mini-cluster identified in the first phase. The State also promote manufacturing cluster such as electronics manufacturing clusters with a maximum investment of Rs. 50 crore.

The cluster development initiative under this cluster will be implemented as MSE- Cluster Development Project (MSE-CDP). The clusters under MSE-CDP would be eligible for financial support for the creation of common infrastructure.

Enhancing Access to Markets

Under this framework, the State Government will provide marketing platforms such as e-commerce portal for online marketing, trading of MSME, Handicraft, Khadi products.

The Department of Industries and Commerce, in collaboration with other State agencies, will organise annual buyer-seller meet and vendor development programme of industries.

Enhancing Access to Infrastructure

The Department of Industries would identify the existing industrial areas which require upgradation of infrastructure. The infrastructure such as streetlights, roads, drainage and sewerage etc. would be upgraded. To support the creation of infrastructure, the following scheme and additional incentives will be provided by the State Government of Haryana.

S.No Name of the Scheme Proposed contribution under Haryana MSME Policy 2019
1. Cluster Plug and Play To the extent of 50% of the project cost, which is not exceeding Rs. 5 crore will be provided.
2. State Mini Revamped Scheme Fund for Regeneration of Traditional Industries (SFURTI) Scheme

Heritage clusters- To the extent of 90% of the project cost, which is not exceeding Rs. 3 crore will be provided.

Major clusters – To the extent of 90% of the project cost, which is not exceeding Rs. 1.5 crore will be provided.

Mini clusters- To the extent of 90% of the project cost, which is not exceeding Rs. 0.75 crore will be provided.

3. State Renewable Energy Scheme Interest subsidy on loan to the extent of 5% which is subjected to a maximum of Rs. 10 lakhs would be provided.

Enhancing Access to Finance

As per the new SEBI guidelines, SMEs can raise equity capital through the SME Exchange. The NSE’s SME exchange platforms provide an innovative platform for capital raising to high potential SMEs.

The onetime support of 20% of the expenditure incurred on raising of fund towards registration on NSE’s SME exchange platform up to a maximum of Rs. 5 lakh would be provided by the Government after the successful raising of equity.

Entrepreneurship and Skill Development

The Government would promote entrepreneurship in the State through financial assistance under the Entrepreneurship Development Programme (EDP). For imparting training to the workers of existing MSME, a scheme for skill development and training is being proposed as a part of Haryana MSME policy. Under this scheme, the existing infrastructure available within the Governments, industry, the educational institution will be utilised to set up the training workshops and classrooms.

Scheme Component of the Scheme Quantum of Assistance
Skill Development and Training for Potential/Existing Workers in MSMEs Training cost reimbursement The financial assistance of 50%, which is limited to a maximum of Rs.5000/- will be provided to the MSME for training cost.

Sick Unit Revival Support

The Government has created a Sick Unit Revival and Rehabilitation Support Cell for sick unit revival and rehabilitation in the State. The State Government would identify and assist the viable sick MSME units with incentives admissible under this policy. The Committee has been set up to monitor the credit flow to MSME for viable sick units as identified on a quarterly basis.

Institutional Strengthening and Capacity Building

The State Government has proposed Grievance Redressal Cell to effectively resolve the grievances and complaints of micro and small enterprises and industry issues related to delayed payments, registration, approvals, clearances, etc. The Grievance Redressal Cell is an online grievance management portal and 24X7 grievance helpline for MSEs.

Fiscal Incentives

The Haryana Government under the Enterprise Promotion Policy has made provisions for sharing the cost of the project with the Special Purpose Vehicles (SPV). The Government would contribute 20% of the project cost up to Rs. 15 crores. Some of the incentive provided for the MSME units, as explained below:

Stamp Duty Refund

To the extent of 100% reimbursement on purchase of stamp duty or leasing of land for the establishment of the enterprise, including Industrial Estates developed by a private developer or HSIIDC.

CLU or EDC charges

Under the CLU or EDC charges, 50% exemption of conversion charges and External development charges will be provided.

Electricity Duty Exemption

Under electricity duty exemption, 100% exemption for up to 7 years will be provided from the date of release of electricity connection.