Haryana is offering Rs. 25 Lac freight subsidy for MSMEs to gain competitive advantage over coastal states

Haryana’s cabinet, chaired by Prime Minister Manohar Lal, on Thursday approved an amendment to the Freight Assistance Scheme announced under the Haryana Enterprise and Employment Policy (HEEP) – 2020.

This brings great relief to various industry associations and state exporters, who have called on the state government to revise the system for all MSMEs and review the block-by-block cap to motivate exporters.

Under the new amendment, 25 lakh rupees will be provided as a freight reimbursement subsidy for the cost of transportation from the unit’s premises to the port/air freight/international borders.

Together with other non-financial incentives, this move aims to make MSME exports competitive on the global market.

The effective date of the regulation will be July 1, 2023, which means that the actual export should take place on or after July 1, 2023, to be determined on the basis of the bill of lading.

It is exempted via freight support of 1% of Free On Board Value (FOB) or actual freight, whichever is less, for goods transportation from manufacturing site to seaport/air freight/road to international border government duties and taxes decided based on the level of ZED certification.

For the Push Sector (reported under HEEP): maximum Rs. 25 lakh to a manufacturer-exporter operating in the Push Sector in Category “C” and “D” Blocks and to a manufacturer-exporter operating in the Push Sector of Categories “A” and “B” operating blocks will receive a subsidy of 15 lakh rupees.

For all other Eligible Producer-Exporter Units (Non-Push Sector) a maximum of Rs. 20 lakh for a Producer-Exporter based in categories ‘C’ and ‘D’ and Rs. 10 lakh for a Producer-Exporter based in “A”. granted as a grant.

For ZED Gold certified units 100% subsidy and Free on Board (FOB) for ZED Bronze certified units for transportation from manufacturing site to seaport/air freight/road to international border.

From 1% of the value or actual freight, excluding government levies and taxes, 33% subsidy will be given.

As per the amendment, the applications of all eligible entities must be submitted within a period of 6 months from the date of the financial year closing and the Director General/Director of MSMEs on the department web portal to approve a freight grant of Rs. 10 lakh is the competent one Authority.

The policy was announced with the aim of attracting Rs 1 million in investment to the state and creating 5 million jobs.

The 2020 Haryana Enterprises and Employment Policy (HEEP) identifies five pillars for overall state socio-economic development to promote industrial competitiveness, balanced regional development, exports, innovation and entrepreneurship, and strong industrial infrastructure.

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