Electricity Duty Exemption

Haryana's Power Incentives for EV Manufacturing: Boosting Energy Efficiency

Introduction :

The Haryana Government has initiated the "Power Subsidy and Incentives(Electricity Duty Exemption)" program as a part of the Haryana Electric Vehicle Policy-2022. This scheme is aimed at promoting the manufacturing of electric vehicles (EVs) and their components by offering substantial energy cost savings through electricity duty exemptions.

‍

Objectives and Quantum of Assistance :

The program provides a 100% exemption from electricity duty for a period of 20years to manufacturers involved in the production of electric vehicles, major components of EVs, batteries, and EV charging infrastructure. This exemption applies only to electricity used directly in manufacturing processes and not to electricity sold to other entities.

Eligibility Criteria :

Eligible participants include manufacturers of electric vehicles, EV components, and charging infrastructure that have started commercial production on or after July 10, 2022. These facilities must be located in designated industrial areas or blocks and comply with specific investment and operational benchmarks. Large and mega projects are also required to establish facilities for battery disposal and recycling.

‍

Application and Documentation :

Applications for electricity duty exemptions must be submitted electronically through the official portal of the Department of Industries & Commerce, Haryana. Required documentation includes the Udyam Registration Certificate, detailed project reports, and proof of investment in plant and machinery.

‍

Procedure for Disbursement and Appeals :

The exemption claim is processed by the Joint Director/Deputy Director of the District Industries Centre, who conducts an inspection of the manufacturing unit. Claims must be filed within three months of the commencement of commercial production. If deficiencies in the application are not rectified within a stipulated period, the claim may be forfeited. Appeals against decisions can be lodged within 30 days of notification.

‍

Penalties and Recourse :

Strict penalties are applied for any misrepresentation or misuse of the incentive, including the requirement to repay the exempted amount with interest. These measures are intended to ensure that the incentives are utilized correctly and effectively.

Conclusion :

The "Power Subsidy and Incentives (Electricity Duty Exemption)" is a crucial element of Haryana's strategy to foster a conducive business environment for the burgeoning electric vehicle industry. By mitigating one of the significant operational costs, the state aims to attract and retain high-value manufacturing projects within the EV sector.

‍

Rapid Consulting's Role in Facilitating the Process :

Rapid Consulting offers expert services to assist various enterprises, including Micro, Small, Medium, Large, and Mega units in Haryana, with the 'Electricity Duty Exemption' scheme under the Power Incentives initiative. They guide these enterprises through understanding the scheme's eligibility requirements, preparing and submitting applications, and ensuring compliance with the scheme’s guidelines to maximize financial benefits from electricity duty exemptions.

Impact of the Scheme on Haryana's Industrial Growth :

The scheme supports Haryana's industrial sector by providing electricity duty exemptions, thereby reducing operational costs for enterprises involved in the manufacturing of electric vehicles and related components. This initiative promotes industrial growth by making Haryana an attractive investment destination for industries in the electric mobility sector, contributing to sustainable development and energy conservation.

‍

Future Prospects and Enhancements :

Future enhancements to the scheme could include extending the exemption duration beyond 20 years, broadening the eligibility to include more industrial sectors, or increasing the exemption benefits. Integrating this scheme with other state or national energy policies could enhance its impact, supporting a broader transition to energy-efficient manufacturing practices.

‍

FAQs?

What is the Electricity Duty Exemption scheme?

This scheme offers a 100% exemption on electricity duty for up to 20 years to eligible manufacturing units in the electric vehicle sector, including those producing major EV components and batteries.

Who is eligible for this scheme?

Manufacturers of electric vehicles, major EV components, batteries for EVs, and related charging infrastructure that have started commercial production on or after July 10, 2022, are eligible.

How does an enterprise apply for this scheme?

Enterprises must apply through the Department of Industries and Commerce's web portal, submitting necessary documents and adhering to specified procedures within three months of the electricity connection release at the unit.

What are the financial benefits of participating in this scheme?

The primary benefit is a 100% exemption from electricity duty, applicable to power used in manufacturing processes, enhancing cost-efficiency and competitiveness.

What happens if incorrect information is provided in the application?

Incorrect information may lead to severe penalties, including the repayment of exempted duties with a 12% compound interest rate, legal actions, and potential exclusion from future state incentives.

How does Rapid Consulting assist in this process?

Rapid Consulting facilitates the entire process, from eligibility verification to application submission and ensuring adherence to compliance requirements, allowing enterprises to maximize their benefits with minimal bureaucratic challenges.

Target Sectors in Haryana :

The "Power Subsidy and Incentives (Electricity Duty Exemption)" under the Haryana Electric Vehicle Policy-2022 is designed to support the manufacturing of electric vehicles (EVs), their major components, batteries, and charging infrastructure. This initiative aims to reduce operational costs by exempting these manufacturers from electricity duty, thereby fostering a conducive business environment for the growth of the EV industry in the state.

‍

Eligibility for Existing Businesses and New Ventures :

Eligibility is extended to both new and existing industrial units that commence commercial production on or after July 10, 2022. These units must be engaged in the manufacturing of EVs or related components and must meet specific investment thresholds depending on their size from micro to ultra-mega projects. The exemption applies only to electricity used directly for manufacturing processes, not for resale or other business uses.

‍

Integration with Other Subsidies and Incentives :

This electricity duty exemption is part of a broader suite of incentives under the Haryana Electric Vehicle Policy, which includes support for capital investment, infrastructure development, and other operational subsidies. By integrating these incentives, the policy aims to create a robust support system that accelerates the development of the EV sector in Haryana.

Application Process :

Applications for the electricity duty exemption must be submitted through the designated online portal of the Department of Industries & Commerce, Haryana. The process requires units to provide detailed information about their operations, including the date of commercial production and the specifics of their electricity usage, to qualify for the exemption.

‍

Geographical Preferences in Haryana :

While the scheme is available statewide, there is a focus on encouraging development in less economically developed areas categorized as B, C, and D blocks, as well as in government-approved industrial estates in Block A. This strategy aims to promote balanced industrial growth throughout the state.

‍

Summary :

The Power Subsidy and Incentives scheme provides significant financial relief to EV manufacturers by exempting them from electricity duty for up to 20 years. This incentive not only reduces the operational costs associated with electricity consumption but also supports the state's strategic goal of becoming a leading hub for electric vehicle production and related technologies.

‍

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.

‍

Our services include :

Consultation and Assessment:

We conduct thorough consultations to understand clients' requirements and assess their eligibility for the Electricity Duty exemption. We provide guidance on compliance with regulations and ensure that the exemption is utilized appropriately.

Documentation Preparation:

Our team assists clients in preparing all necessary documentation required for applying for the Electricity Duty exemption. This includes compiling relevant agreements, power consumption records, and other documentation to support the application process.

Application Management:

We manage the entire application process on behalf of clients, ensuring accurate completion of forms and timely submission of documents to the relevant authorities. We navigate the application process efficiently to streamline approval procedures.

Negotiation and Follow-up:

Our experienced negotiators advocate for favorable terms on behalf of clients during the exemption negotiation process. We engage with government agencies to expedite approval processes and secure optimal outcomes.

Exemption Implementation:

Upon approval of the exemption application, we facilitate the implementation of the Electricity Duty exemption for the designated period. We ensure compliance with regulations and provide ongoing support to clients to maximize the benefits of the exemption.

Post-Exemption Support:

We continue to support clients post-implementation of the exemption, offering guidance on compliance, monitoring usage, and addressing any challenges that may arise during the 20-year period.

In summary, Rapid Consulting provides comprehensive assistance to facilitate the utilization of the 100% exemption on Electricity Duty for units producing captive power in Haryana. Our services cover consultation, documentation preparation, application management, negotiation, exemption implementation, and post-exemption support, ensuring clients maximize benefits while adhering to regulatory requirements.

‍

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.

electricity duty exemption subsidy haryana, electricity duty exemption subsidy hisar