Haryana Enterprises and Employment Policy, 2020 (HEEP 2020)

Vision and Objectives

HEEP 2020 aims to position Haryana as a competitive and preferred investment destination by:​

• Attracting investments exceeding ₹1 lakh crore.
• Generating 5 lakh employment opportunities.
• Promoting balanced regional development and resilient economic growth.
• Aligning with national initiatives like ‘Aatmanirbhar Bharat’.​

Key Pillars

1. Industry Competitiveness: Enhancing the business environment to make Haryana more attractive for investors.
2. Balanced Regional Growth: Encouraging industrial development across all regions of the state.
3. Export Development: Boosting exports through infrastructure and policy support.
4. Innovation and Entrepreneurship: Fostering a culture of innovation and supporting startups.
5. Robust Industrial Infrastructure: Developing world-class infrastructure to support industries.

Thrust Sectors

HEEP 2020 identifies the following sectors for focused development:​

• Auto, Auto Components & Light Engineering
• Agro-based, Food Processing & Allied Industries
• Textiles and Apparels
• Electronics System Design & Manufacturing (ESDM)
• Defence and Aerospace Manufacturing
• Pharmaceuticals & Medical Devices
• Chemical and Petrochemicals
• Large Scale Energy and Data Storage​

Incentives and Support

HEEP 2020 offers a range of incentives to promote industrial growth:​Fiscal Incentives: Including SGST reimbursement, interest subsidies, and stamp duty refunds.

1. Capital Subsidy and Infrastructure Support

• Investment Subsidy (SGST Reimbursement):
  • Up to 100% of Net SGST paid for a defined number of years, depending on the type of industry and block category.
  • The reimbursement is capped at a certain percentage of the Fixed Capital Investment (FCI).
• Infrastructure Development Subsidy:
  • Reimbursement of external development charges (EDC) and infrastructure development charges (IDC) in ‘C’ and ‘D’ category blocks.
  • Up to 100% subsidy for setting up Effluent Treatment Plants (ETPs) and captive solar/wind power generation.
• Electricity Duty Exemption:
  • 100% exemption on electricity duty for 5 to 10 years for new industrial units in eligible blocks.

2. Employment Generation Subsidy

• Direct Support per Employee:
  • ₹36,000 per year for general category workers and ₹48,000 per year for women, SC/ST, and differently-abled workers for 7 years.
  • Applicable to new industrial units generating a minimum threshold number of jobs (typically 50 or more).
• EPF/ESI Reimbursement:
  • Reimbursement of the employer’s contribution to EPF and ESI for a specified period, capped per employee per month.

3. Stamp Duty Reimbursement

• Up to 100% stamp duty reimbursement on land purchased or leased for industrial use:
  • 100% in ‘D’ category blocks.
  • 75% in ‘C’ category blocks.
  • 50% in ‘B’ category blocks.
• Applicable for both industrial and warehousing projects.

4. Interest Subsidy

• For MSMEs:
  • Interest subsidy of 5% on term loans up to ₹20 lakh per annum for 5 years.
  • Women entrepreneurs and those in backward blocks may get enhanced subsidy up to 6-7%.

Regional Development Strategy

To ensure balanced growth, Haryana is categorized into four blocks:​

• A Blocks: Industrially developed areas.
• B Blocks: Intermediate development areas.
• C Blocks: Industrially backward areas.
• D Blocks: Industrially most backward areas.

Graded incentives are provided, with maximum benefits in ‘D’ category blocks to encourage investment in less developed regions.​

Implementation Period

HEEP 2020 is effective from January 1, 2021, to December 31, 2025.​