Frieght Assistance Scheme

Haryana's Freight Assistance Scheme for Micro and Small Exporting Units: On the Move with Haryana's ZED-Certified Units Freight Aid

Introduction :

Ina move to bolster the competitiveness of micro and small exporting units in Haryana, the state government introduced the Freight Assistance Scheme as part of the Haryana Enterprises and Employment Policy-2020. This initiative aims to mitigate the transportation cost burdens faced by exporting units due to their geographical distance from international borders and sea ports, thereby making their products more competitive globally.

Objective :

The scheme specifically addresses the additional transportation costs incurred by exporting units within Haryana, aiming to defray these costs and enhance the units' competitiveness on the international stage.

Quantum of Assistance :

The scheme provides freight assistance of 1% of the Free on Board (FOB) value or the actual freight cost (excluding government fees and taxes on transportation)from the manufacturing site to the seaport, air cargo, or international border, whichever is less. The maximum assistance is capped at INR 10 lakh per annum for units in C and D category blocks and INR 5 lakh for those in A and B category blocks. Eligibility for this assistance is extended to new micro and small exporting enterprises with an annual turnover of less than INR 10 crore and possessing ZED certification, located anywhere in the state.

Eligibility :

Eligible units for the Freight Assistance Scheme include new exporting micro and small enterprises entitled to freight assistance for a period of 5 years from the start of their export activities. These units must demonstrate direct export of manufactured goods, possess Udyam Registration Certificate (URC), Haryana Udhyam Memorandum (HUM), registration-cum-membership certificate from Export Promotion Council, and Importer-Exporter code from DGFT.

Procedure :

Applications for freight assistance must be submitted via Annexure-I on the department's web portal within three months from the end of the financial year of export activities or from the date of the scheme's notification, whichever is later. The application process includes scrutiny and inspection by District MSME Centre officials, with a provision for addressing and rectifying any identified deficiencies within a stipulated period.

Competent Authority for Sanction :

The Additional Director is designated as the competent authority to sanction the Freight Subsidy under this scheme.

Time Limit for Application :

Enterprises must submit their freight assistance claims within three months from the financial year-end in which the products were exported or from the scheme's notification date, failing which they forfeit their entitlement to the assistance.

Appeals and Penal Action :

Appeals against the decisions of the competent authority can be made to the Director/Director General of MSMEs and, subsequently, to the Administrative Secretary of Industries & Commerce, Haryana. False claims detected at any stage will result in the recovery of the assistance with a 12% compound interest rate per annum, legal action, and barring from any future incentives or assistance from the state government.

Service Delivery Timeline :

The scheme outlines specific timelines for the approval, sanction, and disbursement of the freight assistance, ensuring a transparent and efficient process for the benefit of eligible exporting units in Haryana.

Rapid Consulting's Role in Facilitating the Process :

Rapid Consulting provides specialized services to help new micro and small exporting units in Haryana navigate the Freight Assistance Scheme. They assist with understanding the eligibility criteria, preparing and submitting applications, and ensuring compliance with the scheme’s guidelines to maximize the potential benefits. This includes helping businesses calculate the freight assistance based on the Free on Board (FOB) value and coordinating with necessary governmental and logistical processes.

Impact of the Scheme on Haryana's Industrial Growth :

The Freight Assistance Scheme enhances the competitiveness of micro and small exporting units in Haryana by subsidizing a portion of their transportation costs. This support helps level the playing field against enterprises located closer to major ports and international borders, thereby encouraging more businesses in Haryana to engage in international trade. The scheme contributes to increased export activities, which in turn stimulates economic growth and job creation within the state.

Future Prospects and Enhancements :

The scheme could see future enhancements such as increasing the percentage of freight assistance or expanding eligibility to include medium-sized enterprises. Improvements might also focus on simplifying the application process or increasing the cap on annual assistance, making it easier for more businesses to benefit from the scheme and further boosting the state's export capabilities.

FAQs?

What is the Freight Assistance Scheme in Haryana?

The scheme provides financial support to new micro and small exporting units to cover part of their transportation costs to international borders or ports. The assistance is capped at 1% of the FOB value or actual freight costs, up to INR10 lakh per annum in 'C' and 'D' blocks and INR 5 lakh in 'A' and 'B' blocks.

Who is eligible for this scheme?

New exporting micro and small enterprises with a turnover less than INR 10 crore and holding ZED certification are eligible. The support is provided for a maximum of five years from the start of the export operations.

How is the freight assistance calculated?

The assistance is calculated as 1% of the FOB value of the exports or the actual cost of transporting goods from the place of manufacture to the seaport, air cargo complex, or international border, whichever is less.

What is the process for applying for freight assistance?

Enterprises must apply through the designated web portal within three months from the end of the financial year in which the goods were exported. The application must include all required documents, such as Udyam Registration, IEC, and proof of export activities.

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

False information leads to severe penalties, including the repayment of the subsidy with a 12% compound interest rate, legal action, and exclusion 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 "Freight Assistance Scheme" targets new micro and small exporting units throughout Haryana. This scheme is designed to alleviate the additional transportation costs incurred by these units due to their distance from international borders and sea ports, thereby enhancing their competitiveness.

Eligibility for Existing Businesses and New Ventures :

Eligibility is limited to new exporting micro and small enterprises that have commenced exporting after January 1, 2017. These enterprises must have a turnover less than INR 10 crore and possess ZED certification. The assistance is applicable for a maximum of 5 years per unit.

Integration with Other Subsidies and Incentives :

This scheme complements the broader objectives of the Haryana Enterprises and Employment Policy 2020 by supporting exporters specifically, aiming to boost the state’s export volumes and competitiveness on an international scale.

Application Process :

Applications for freight assistance must be submitted via the designated web portal of the Department of Micro, Small and Medium Enterprises within three months from the end of the financial year in which the products were exported. The process involves detailed documentation and scrutiny by district MSME centers, which approve or reject claims based on compliance with the scheme's criteria.

Geographical Preferences in Haryana :

The scheme provides more significant assistance to units in 'C' and 'D' category blocks compared to those in 'A' and 'B' category blocks, encouraging enterprises in less economically developed areas to engage in export activities.

Summary :

The "Freight Assistance Scheme" under the Haryana Enterprises & Employment Policy 2020 offers financial support to new micro and small exporting units by subsidizing a portion of their freight costs. This initiative helps these units overcome geographical disadvantages and compete more effectively in international markets.

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 services include :

Consultation and Eligibility Assessment:

We assess clients' eligibility based on their turnover and ZED certification status, ensuring alignment with the scheme criteria.

Documentation Preparation:

Our team assists in preparing all necessary documentation required for the freight assistance application, including turnover records, ZED certification documents, and transportation invoices.

Application Management:

We manage the entire application process, ensuring accurate completion of documents and timely submission to the relevant authorities.

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 assistance approval.

Assistance Disbursement:

Upon approval, we facilitate the disbursement of freight assistance to our clients, ensuring all procedural formalities are completed efficiently for timely receipt of funds.

Post-Assistance Support:

Our support extends beyond assistance acquisition. We provide ongoing assistance, including compliance management, reporting obligations, and addressing any post-assistance concerns.

With our expertise, manufacturing units in Haryana can optimize their transportation costs, enhance their competitiveness, and expand their market reach. By leveraging freight assistance, they can strengthen their supply chain operations and drive growth in the region.

For manufacturers in Haryana with ZED certification and turnover less than Rs 10crore, Rapid Consulting offers a pathway to reduce transportation costs and boost competitiveness in the global market.

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.