Haryana Govt introduces financial aid program to support startups
The government of Manohar Lal Khattar in Haryana has implemented a financial assistance program to encourage entrepreneurs to create new startups and generate employment opportunities in the state.
The “State Startup Assistance Scheme” notified by the state government under the provisions of its 2020 Haryana Business and Employment Policy offers financial assistance in the form of a start-up subsidy up to Rs 10 lakh, rent subsidy up to Rs 5 lakh, 100% net reimbursement of SGST for seven years, among other incentives to promote startups in Haryana.
As part of this program, the government will provide a start-up grant of up to Rs 10 lakh per startup for 100 startups in category “A” blocks, 200 startups for category “B” blocks, 300 startups for category “C” blocks and 400 startups for “D’category blocks as is.” A five-member state government committee under the administrative secretary of the Ministry of Industry and Commerce, Haryana will be the final authority on the selection of ideas for the seed grant.
Repayment of 30 percent of the rent subsidy for general rentals and 45 percent for startups with only female founders for a period of one year up to Rs 5 lakh will also be offered. The government has also decided to grant an interest subsidy of eight percent, maximum up to Rs 20 lakh per year for a period of five years to the startup registered in the state. Financial support of up to Rs 2.5 lakh will also be offered to startups to participate in national acceleration programs and Rs 5 lakh for international acceleration programs.
Other incentives under the program include 100% net reimbursement of SGST for seven years with a cap of 150% FCI (fixed capital investment) and 100% reimbursement of expenses incurred for cloud computing or cloud computing. storage on Haryana based data centers up to Rs 1 lakh per startup per year for a period of three years.
In order to further strengthen the ecosystem for promoting startups in the State, the Government has decided that the Director or General Manager of Micro, Small and Medium Enterprises, (competent authority) will sanction the grant within 30 days. from the date of completion of the Claim. In accordance with the deadline set for the provision of services, an approval letter will be given within 45 days, the letter of sanction within seven days and the disbursement of grants within seven days to startups.
To benefit from the financial incentives of the state government, start-up units that have filed the Udhyam Registration Certificate (URC) and Haryana Udhyam Memorandum (HUM) will be eligible under the program. The unit must be in production or in commercial operation for the benefits of this program, with the exception of the start-up grant, for which incentives can be used based on the selection of ideas.
In another provision foreseen in the framework of the scheme to fight against fraudsters, in case it turns out at any time that the applicant has requested the aid on the basis of erroneous facts, the applicant will have in addition to reimburse the assistance with an interest rate compounded at 12% per annum and subject to legal action, will be prohibited from granting any inducements or assistance from the state government. And, if the applicant does not repay the aid amount with interest, the amount will be recovered as a backlog of land income.
Notably, Haryana Enterprises and Employment Policy 2020, launched by the state government last year, aimed to generate five lakh jobs, attract investment of over Rs 1 lakh crore, double exports to 2 crore. lakh Rs and strengthen supply chain facilities and infrastructure in 22 districts. The establishment of a competitive incentive framework was a key part of the policy aimed at fostering entrepreneurship and generating employment opportunities in the state.