Capital Subsidy incentive under the Pharmaceutical Policy

Haryana's Pharmaceutical Policy 2019: Fostering Growth in Pharma Industry

Introduction :

The Government of Haryana has introduced the Haryana Pharmaceutical Policy-2019 to boost investments in the pharmaceutical sector, aiming to make the state a leading hub for pharmaceutical manufacturing and development. Effective from March 6, 2019, this policy provides a framework to enhance the infrastructure, streamline regulatory measures, and offer significant incentives for new and existing pharmaceutical businesses.

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Objectives and Quantum of Assistance :

The policy's goals include attracting an investment of INR 2000 Crore, generating25,000 new jobs, and establishing a state-of-the-art Pharma Park in Karnal. It aims to solidify Haryana’s status as a pharmaceutical manufacturing leader by fostering an industry-academic and research and development ecosystem. Fiscal incentives are provided based on the scale of investment, with special packages for units in Pharma Parks, including subsidies for capital investment and interest, along with employment generation incentives. This scheme offers a subsidy of up to 25% on the cost of plant and machinery and technical civil works, capped at INR 50 lakhs, to encourage investments in the Pharma Park at Karnal under the Haryana Pharmaceutical Policy 2019.

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Eligibility Criteria :

Eligible entities under this policy include new and existing pharmaceutical manufacturers that invest in sectors outlined in the policy, such as APIs, formulations, and medical devices. These units must meet specific investment thresholds and operational standards, contribute to local employment, and comply with environmental regulations.

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Application and Documentation :

Applications must be submitted electronically through the state's industry portal within a stipulated timeframe post the fiscal year-end. Required documentation includes incorporation certificates, investment details, and compliance certificates related to environmental and labor standards.

Procedure for Disbursement and Appeals :

The processing of applications involves rigorous scrutiny by the district industry centers, with an inspection to ensure adherence to policy standards. Subsidies are disbursed following the successful verification of compliance, and enterprises have the right to appeal against any decision within a defined period.

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Penalties and Recourse :

Strict penalties are imposed for any misrepresentation or non-compliance, with possible repercussions including the repayment of subsidies with interest, legal action, and potential disqualification from future incentives.

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Conclusion :

The Haryana Pharmaceutical Policy-2019 is a strategic initiative to enhance the competitiveness of the pharmaceutical sector in the state. By reducing the financial burden on enterprises and encouraging substantial investments in technology and infrastructure, the policy aims to establish a robust and sustainable pharmaceutical industry in Haryana.

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Rapid Consulting's Role in Facilitating the Process :

Rapid Consulting offers specialized services to assist enterprises in Haryana with the 'Capital Investment Subsidy Scheme' outlined in the Haryana Pharmaceutical Policy 2019. They help businesses navigate through eligibility criteria, application submission, and compliance adherence. Their guidance ensures that enterprises leverage the financial benefits effectively, promoting growth in the pharmaceutical sector.

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Impact of the Scheme on Haryana's Industrial Growth :

The scheme bolsters the industrial sector in Haryana by offering a capital subsidy for new units established in the Pharma Park at Karnal. By reducing the initial investment burden on pharmaceutical companies, the scheme not only fosters job creation but also positions Haryana as a favorable destination for pharmaceutical manufacturing. This initiative is expected to attract significant investments and create numerous job opportunities, enhancing the state's economic landscape.

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Future Prospects and Enhancements :

Future enhancements might expand the scheme's reach by including additional sectors or increasing the subsidy cap to encourage more significant investment. Extending the duration of the scheme could provide sustained support for the burgeoning pharmaceutical industry in Haryana. Aligning this scheme with broader national health initiatives could further enhance its impact and support the state's vision of becoming a pharmaceutical hub.

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FAQs?

What is the Capital Investment Subsidy Scheme?

This scheme offers a subsidy of up to 25% on the cost of plant and machinery and technical civil works, capped at INR 50 lakhs, to encourage investments in the Pharma Park at Karnal under the Haryana Pharmaceutical Policy 2019.

Who is eligible for this scheme?

New units set up in the Pharma Park post-notification of the Haryana Pharmaceutical Policy 2019, with necessary approvals and operational status at the time of subsidy disbursement, are eligible.

How does an enterprise apply for this scheme?

Applications must be submitted online through the Industries & Commerce Department portal within three months from the start of commercial production.

What are the financial benefits of participating in this scheme?

The scheme significantly reduces the financial burden on eligible enterprises by subsidizing the cost of establishing facilities, thereby enhancing their ability to invest and expand.

What happens if incorrect information is provided in the application?

Misrepresentations or incorrect information can lead to penalties, including subsidy repayment with a 12% compound interest, legal actions, and potential exclusion from future incentives.

How does Rapid Consulting assist in this process?

Rapid Consulting ensures a smooth application process, helping enterprises meet all requirements to fully benefit from the scheme without any complications.

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Target Sectors in Haryana :

The Haryana Pharmaceutical Policy 2019 aims to establish the state as a hub for the pharmaceutical industry, with a particular focus on the production of generic drugs, active pharmaceutical ingredients (APIs), and medical devices. This initiative seeks to leverage Haryana's existing industrial base and strategic geographic location to enhance its role in both domestic and international pharmaceutical markets.

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Eligibility for Existing Businesses and New Ventures :

Eligibility for incentives under this policy includes new and existing pharmaceutical manufacturing units in Haryana. These units must comply with local regulations and standards, including environmental and safety norms. Additionally, to qualify for specific subsidies or benefits, pharmaceutical manufacturers need to meet certain investment and employment thresholds, promoting job creation within the state.

Integration with Other Subsidies and Incentives :

The pharmaceutical policy integrates with broader economic initiatives, such as the Haryana Enterprises Promotion Policy, to provide a comprehensive support framework for the industry. This includes fiscal incentives, infrastructure development support, and a simplified regulatory environment aimed at encouraging investment in the pharmaceutical sector.

Application Process :

The application process for benefits under the Pharmaceutical Policy involves submitting detailed documentation through a designated online platform managed by the state. This includes business plans, environmental compliance reports, and details of the technological and operational aspects of the manufacturing units.

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Geographical Preferences in Haryana :

The policy prioritizes development in less economically developed regions of the state, categorizing blocks into A, B, C, and D zones, with specific incentives tailored to encourage investments in the lower-tier blocks. This geographical targeting aims to balance industrial growth across the state and promote regional development.

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Summary :

The Haryana Pharmaceutical Policy 2019 offers significant incentives to stimulate the pharmaceutical sector's growth in the state, aiming to attract INR 2000 Cr in investments and create 25,000 new jobs. By providing support for the establishment of a state-of-the-art Pharma Park in Karnal and enhancing the regulatory and operational framework, the policy seeks to position Haryana as a leading destination for pharmaceutical manufacturing and innovation.

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Why Choose Rapid Consulting?

Specialized Expertise:

Our team at Rapid Consulting boasts in-depth knowledge of subsidy scheme, 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.

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Our comprehensive assistance includes: 

Consultation and Assessment:

Rapid Consulting conducts in-depth consultations with clients to understand their objectives and eligibility for subsidies. We assess the project requirements and identify opportunities for leveraging capital and interest subsidies.

Documentation Preparation:

The firm assists clients in preparing all necessary documentation for subsidy applications. This includes compiling financial statements, project proposals, and other relevant documents required by the subsidy scheme.

Application Management:

Rapid Consulting manages the entire application process on behalf of clients, from filling out forms to submitting documentation to the appropriate authorities. We ensure compliance with all regulatory requirements and expedite the approval process.

Negotiation and Follow-up:

Skilled negotiators from Rapid Consulting advocate on behalf of clients to secure favorable subsidy terms. We engage with government agencies and follow up persistently to accelerate the approval process.

Subsidy Disbursement:

Upon approval of subsidy applications, Rapid Consulting facilitates the disbursement of funds to clients. We ensure timely processing of payments and provide assistance in navigating administrative procedures.

Post-Subsidy Support:

Rapid Consulting continues to support clients even after subsidy disbursement. We offer guidance on utilizing the funds effectively, monitoring project progress, and addressing any post-implementation challenges that may arise.

In summary, Rapid Consulting empowers units setting up in and outside Pharma clusters and parks in Haryana to capitalize on capital and interest subsidies. Our comprehensive services cover consultation, documentation preparation, application management, negotiation, subsidy disbursement, and post-subsidy support, ensuring clients maximize benefits for sustainable growth.

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How to Reach Us? 

Website :

Visit our official website for detailed information, service offerings, and to schedule an online consultation.

Direct Contac t:

Call us at +91-9467248028/9416506136or 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.