Electricity Duty Scheme

Haryana's Electricity Duty Exemption Scheme: A Catalyst for Diverse Industrial Development

Introduction :

Haryana's evolution from an agrarian to a diverse industrial economy is significantly influenced by government initiatives aimed at promoting industrial growth and investment. The Electricity Duty Exemption Scheme, announced in the Haryana Government Gazette on June 8, 2021, is a notable effort in this direction, offering substantial financial incentives to various sectors within the industrial landscape.

Quantum and Period of Exemption :

The scheme delineates exemptions across different categories of enterprises, ranging from Ultra-Mega to Micro, Small, and Medium Enterprises (MSMEs), and including specialized sectors like Electronics System Design &Manufacturing (ESDM) and Data Centres. Exemptions vary in duration and extent, with 100% exemption for up to 20 years for specific categories in designated blocks, reflecting a tiered approach to encourage investments across the state.

Scope and Applicability :

Commencing from January 1, 2021, and intended to operate for five years, the scheme targets units that begin commercial production post-commencement, ensuring abroad scope that includes new and expanding enterprises. It encompasses a wide range of sectors, from traditional manufacturing to emerging industries, aligning with the state's industrial policy's focus areas.

Eligibility Criteria :

Eligibility is broad, encompassing micro to mega projects that meet specific investment thresholds and comply with regulatory conditions, including NOC/CLU requirements and adherence to environmental and other state-mandated guidelines. The initiative excludes units in restrictive categories, underscoring a commitment to sustainable and responsible industrial expansion.

Procedure and Documentation :

The application process is streamlined, requiring the submission of prescribed documents for claiming exemptions. The Directorate of Industries & Commerce manages the evaluation process, emphasizing transparency and efficiency. A distinct timeline for submission and rectification of deficiencies is outlined, ensuring clarity and accountability.

Authority and Oversight :

The scheme assigns clear roles to various levels within the Department of Industries & Commerce, from the Joint Director to the Additional Director, for sanctioning exemptions. This hierarchical structure ensures orderly processing and sanctioning of claims, with provisions for appeal to ensure fairness.

Penalties and Compliance :

Stringent penalties for fraudulent claims safeguard the scheme's integrity, coupled with a clear recourse for recovery of undue benefits. This deterrence mechanism underscores the state's commitment to ethical practices and the judicious allocation of incentives.

Rapid Consulting's Role in Facilitating the Process :

Rapid Consulting provides expert services to assist businesses in understanding and navigating the "Electricity Duty Exemption" scheme in Haryana. They help enterprises prepare and submit applications, ensure compliance with the eligibility criteria, and facilitate the process to maximize the benefits of the exemption. Their guidance is invaluable for businesses looking to reduce operational costs through electricity duty savings.

Impact of the Scheme on Haryana's Industrial Growth :

The Electricity Duty Exemption scheme has a significant positive impact on Haryana's industrial growth by lowering the operational costs of enterprises, especially in sectors with high electricity consumption. This incentive makes Haryana an attractive location for both new and expanding businesses, enhancing competitiveness, fostering job creation, and stimulating economic activities in the state.

Future Prospects and Enhancements :

Potential future enhancements to the scheme could include extending the exemption period, broadening the eligibility to include additional sectors, or increasing the exemption rates to further promote energy-intensive industries. These changes would enhance the attractiveness of the scheme and encourage more sustainable energy practices among industries.

FAQs?

What is the Electricity Duty Exemption in Haryana?

This scheme offers exemptions from electricity duty to various sectors of enterprises to reduce their energy costs. The exemption period varies by project type and location, with some sectors like the Thrust Sector and ESDM enjoying longer exemption periods.

Who is eligible for this exemption?

Eligibility extends to Ultra-Mega, Mega, Large, and MSMEs, including specific sectors like Thrust Sectors, ESDM, and Data Centres. Each category has different exemption durations and conditions based on their investment scale and operational characteristics.

How is the exemption period determined?

The exemption period varies :

Up to 20 years for Thrust Sector Enterprises in D blocks, 12 years for Essential Sector Enterprises, and shorter periods for other categories, depending on the block classification (B, C, or D).

What is the process for applying for the Electricity Duty Exemption?

Enterprises must submit an application through the designated web portal, accompanied by necessary documentation such as IEM/Udyam Registration Certificates and details on the connected load used for production. Applications are reviewed by the district MSME Centre or Industries Centre, depending on the enterprise size.

What happens if an enterprise provides false information to claim the exemption?

Providing false information can result in severe penalties, including the repayment of the exempted amount with a 12% compound interest rate, legal action, and barring from future state incentives.

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 "Electricity Duty Exemption" scheme in Haryana is designed to support a wide array of enterprises, including Ultra-Mega projects, Mega Projects, Large Units, Micro, Small and Medium Enterprises, as well as specific sectors like Electronics System Design & Manufacturing (ESDM), Data Centres, and Import Substitution Enterprises. The scheme provides a varied period of electricity duty exemption depending on the category of the enterprise and its geographical location.

Eligibility for Existing Businesses and New Ventures :

Eligibility extends to all enterprise sizes from micro to ultra-mega projects that commence commercial production after January 1, 2021. To qualify, enterprises must not fall under the restrictive list as notified by the State Government, should have appropriate registrations like IEM/Udyam Registration Certificate, and must utilize electricity primarily for production purposes.

Integration with Other Subsidies and Incentives :

This electricity duty exemption is part of the broader Haryana Enterprises and Employment Policy 2020. It aims to reduce operational costs and promote industrial growth by making it more financially viable for enterprises to operate, especially in less developed regions.

Application Process :

Enterprises must apply through the state's web portal, submitting required documents such as the IEM/Udyam Registration and proof of commercial production. The application is processed and examined by district industry centers or MSME centers, which conduct inspections and approve or reject the exemption claims.

Geographical Preferences in Haryana :

The exemption period varies by geographical location:

enterprises in 'D' category blocks can receive longer exemption periods compared to those in 'B' and 'C' blocks. This stratification encourages enterprises to set up in less developed areas, promoting balanced economic development across the state.

Summary :

The "Electricity Duty Exemption" scheme under the Haryana Enterprises& Employment Policy 2020 offers significant financial incentives to reduce the cost of electricity for enterprises, thereby encouraging greater investment in industrial activities across various sectors within the state. This initiative not only supports economic growth but also aims at sustainable development by incentivizing energy efficiency and lower operational costs in industries.

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 services include:

Consultation and Eligibility Assessment:

We conduct thorough consultations to assess clients' eligibility for the Electricity Duty Exemption scheme. We review their manufacturing operations and ascertain alignment with the eligibility criteria.

Documentation Preparation:

Our expert team assists in preparing all necessary documentation required for the exemption application. This includes compiling manufacturing details, electricity consumption data, and other relevant information.

Application Management:

We manage the entire application process, ensuring accurate completion of documents and timely submission to the relevant authorities. We liaise with government departments to streamline the application process and address any queries during the review.

Negotiation and Follow-up:

We handle negotiations and follow-ups with authorities on behalf of our clients to ensure a smooth application review process and maximize the chances of exemption approval.

Exemption Implementation:

Upon approval, we assist in implementing the exemption, ensuring seamless integration with clients' electricity billing processes and compliance with regulatory requirements.

Post-Exemption Support:

Our support extends beyond exemption acquisition. We provide ongoing assistance, including compliance management, reporting obligations, and addressing any post-exemption concerns, to ensure our clients fully leverage the benefits of the scheme.

By leveraging our expertise, manufacturing industries and clusters in Haryana can optimize their electricity costs and enhance their competitiveness in the market, driving economic growth and development in the region.

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.