Renewable Energy Scheme
Eco-Friendly Finance
RENEWABLE ENERGY SCHEME - Introduction
The Government of Haryana, aiming to foster sustainable industrial growth, has revised the State Renewable Energy Scheme under the Haryana Enterprises & Employment Policy-2020. This initiative seeks to encourage Micro, Small, and Medium Enterprises (MSMEs) to adopt renewable energy-based applications, aligning with global missions to enhance the utilization of renewable energy resources and reduce dependency on fossil fuels.
Objective
The primary goal is to promote the implementation of renewable energy in the MSME sector, covering a wide array of technologies such as solar PV power generation, solar thermal applications, biomass gasifiers, biogas plants, and any other machinery based on renewable energy. This move is expected to bolster the state’s MSMEs by improving energy efficiency and reducing energy costs.
Quantum of Assistance
To support the adoption of renewable energy technologies, the scheme offers an interest subsidy on term loans for renewable technology applications at a rate of 5%, capped at INR 10 lakh per annum for three years for eligible industries.
Commencement and Applicability
Launched with the Haryana Micro, Small, and Medium Enterprise (MSME) Policy-2019 on February 26, 2019, the scheme will be active for five years, until February 25, 2024. It covers term loans for new renewable energy equipment or technology sanctioned within this period.
Eligibility Criteria
Eligibility extends to all existing MSMEs in Haryana that have availed term loans for new renewable energy technology applications from recognized financial institutions. Units must have filed Haryana Udhyam Memorandum (HUM), not be in the restrictive list, possess necessary CLU/NOC, and be in commercial production. Importantly, the replacement of existing technology or use of second-hand machinery does not qualify under this scheme.
Procedure
Applications for interest subsidy must be submitted online within three months of the financial year’s end for which the incentive is claimed. The process includes physical verification of the new renewable energy technology application by concerned officials, and a set of documents is required to accompany the application.
Timelines for Processing
The scheme outlines specific timelines for the approval process, including periods for conveying deficiencies to the applicant, removal of deficiencies, and notice before the rejection of the application.
Appeals and Penal Actions
Appeals against decisions can be made to the Administrative Secretary, Industries & Commerce, Haryana, within 30 days from the order’s communication.
False claims will result in the refund of assistance with interest and legal actions. Beneficiaries must operate for at least three years post-subsidy disbursement, failing which the subsidy amount will be recovered.
Rapid Consulting’s Role in Facilitating the Process
Rapid Consulting provides expert guidance to Micro, Small, and Medium Enterprises (MSMEs) in Haryana aiming to implement renewable energy technologies. They assist in understanding the State Renewable Energy Scheme, help with application processes, ensure compliance with eligibility criteria, and maximize financial incentives such as interest subsidies on term loans for renewable technology implementation.
Impact of the Scheme on Haryana’s Industrial Growth
The State Renewable Energy Scheme significantly boosts Haryana’s industrial sector by encouraging MSMEs to adopt renewable energy technologies. This shift not only reduces the reliance on fossil fuels but also lowers energy costs, enhances sustainability, and improves the market competitiveness of these enterprises. The introduction of renewable technologies such as solar PV, biomass gasifiers, and biogas plants supports the state’s environmental objectives and contributes to a greener economy.
Future Prospects and Enhancements
Looking forward, the scheme could see enhancements such as increased subsidy rates, inclusion of newer and more diverse renewable technologies, and simplified application procedures to attract more enterprises. Expanding the scheme’s coverage to include larger industries or offering additional incentives for exceeding certain energy efficiency benchmarks could further amplify its impact.
FAQs ?
What is the State Renewable Energy Scheme in Haryana?
This scheme provides a 5% interest subsidy on term loans up to INR 10 lakh per year for three years to MSMEs implementing renewable energy technologies.
Who is eligible for this scheme?
Existing MSMEs in Haryana that have availed term loans for new renewable energy technologies from recognized financial institutions are eligible. The technologies must be newly installed, and the units must not have availed similar subsidies for the same technology from other government schemes.
What renewable energy technologies are supported by this scheme?
Supported technologies include solar PV power generation, solar thermal applications (like hot water generators), biomass gasifiers, biogas plants, and other renewable energy-based industrial applications.
What is the application process for the State Renewable Energy Scheme?
Applications must be submitted online within three months of the financial year-end for which the incentive is claimed. Documentation such as Udyam Registration, financial institution certificates, and installation verification must accompany the application.
What happens if false information is provided in the application?
If an applicant provides false information, they must refund the assistance with a 12% compound interest rate and may face legal actions. Additionally, they will be barred from receiving any future incentives from the State Government.
How does Rapid Consulting assist in this process?
Rapid Consulting facilitates the entire process, from application to sanction, ensuring enterprises fully benefit from the scheme with minimal hassle.
Target Sectors in Haryana
The State Renewable Energy Scheme, updated in 2023, aims to promote the adoption of renewable energy technologies within the Micro, Small, and Medium Enterprise (MSME) sector in Haryana. This initiative supports the installation of solar PV power generation systems, solar thermal applications (like solar hot water generators and air generators), biomass gasifiers, biogas plants, and upgrades to biomass-based boilers among other renewable technologies.
Eligibility for Existing Businesses and New Ventures
The scheme is open to all existing MSMEs in the state that have availed a term loan for new renewable energy technology from recognized financial institutions under RBI guidelines. These enterprises must have registered under the Haryana Udhyam Memorandum (HUM), not be on the restrictive list as notified by the state, and must be in commercial and regular production at the time of subsidy disbursement.
Integration with Other Subsidies and Incentives
The scheme is designed to complement other government initiatives aimed at promoting renewable energy usage in industrial applications, aligning with global environmental goals. It provides an interest subsidy on term loans used for purchasing and installing renewable technologies.
Application Process: Applications must be submitted online through the Department’s portal within three months of the financial year end for which the incentive is claimed. The process involves the verification of the installed technology by local MSME officials to ensure compliance and functionality.
Geographical Preferences in Haryana: This scheme is applicable to MSMEs across all regions of Haryana, ensuring widespread access to renewable energy solutions and promoting environmental sustainability throughout the state.
Why Choose Rapid Consulting ?
Specialized Expertise: Our team at Rapid Consulting boasts in-depth knowledge of subsidy schemes, ensuring you get the most out of your investment.
End-to-End Assistance: From initial assessment to final application, we manage the entire process, making it seamless and hassle-free for your business.
Maximized Benefits: We ensure that you fully leverage the financial incentives available, boosting your company’s growth and profitability.
Our comprehensive service includes
Consultation and Assessment: We conduct thorough consultations with MSMEs to evaluate their eligibility and suitability for the Interest Subsidy scheme. Our experts assess the potential benefits and feasibility of incorporating renewable energy solutions into their industrial processes.
Documentation Preparation: Our team assists clients in preparing all necessary documentation required for the subsidy application process. This includes compiling loan documents, financial statements, project proposals, and other relevant paperwork in accordance with scheme guidelines.
Application Management: We manage the entire application process on behalf of our clients, ensuring accurate completion of forms and timely submission of documents to the relevant authorities. We streamline the application process to expedite approval procedures.
Negotiation and Follow-up: Our experienced negotiators advocate for favorable terms on behalf of clients during the subsidy negotiation process. We engage with financial institutions and government agencies to secure optimal interest subsidy rates and terms.
Subsidy Disbursement: Upon approval of the subsidy application, we facilitate the disbursement of funds to our clients. We ensure prompt processing of subsidies and provide assistance in navigating administrative procedures related to subsidy disbursement.
Post-Subsidy Support: We continue to support clients post-subsidy disbursement, offering guidance on utilizing funds effectively and maximizing the benefits of renewable energy adoption. Our services include monitoring loan utilization, compliance, and providing assistance with any issues that may arise during the subsidy period.
In summary, Rapid Consulting provides comprehensive assistance to promote the implementation of renewable energy-based industrial applications in MSMEs through the Interest Subsidy scheme. Our services cover consultation, documentation preparation, application management, negotiation, subsidy disbursement, and post-subsidy support, ensuring clients maximize benefits while complying with regulatory requirements.
How to Reach Us ?
Website: Visit our official website for detailed information, and service offerings, and to schedule an online consultation.
Direct Contact: Call us at +91-9467248028 / 9416506136 or email info@rapidconsulting.in to discuss your needs directly with our experts.
Office Visit: Our offices are open for in-person consultations at 134, Rapid Consulting, First floor Below Paysam Restaurant, Near Samsung Care. Lajpat Nagar, Rajgarh Road Hisar, Haryana-125001.
Here, you can meet with our consultants who can provide personalized guidance tailored to your business’s specific circumstances. Engage with Rapid Consulting today to leverage their expertise in enhancing your business’s financial and operational performance through the Collateral Free Credit Guarantee Scheme and other beneficial state initiatives. Whether online, over the phone, or in person, Rapid Consulting is ready to assist you in advancing your business goals in Haryana.