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Thursday, September 16, 2021

Explained: How Haryana plans to increase job avenues by offering subsidy to industry

The Haryana government has notified an Employment Generation Subsidy Scheme aiming to create job opportunities for all categories of people — unskilled, semi skilled, and skilled — of the state for the industries’ capacity building.

Written by Varinder Bhatia , Edited by Explained Desk | Chandigarh |
Updated: August 5, 2021 7:18:57 am
Haryana Chief Minister Manohar Lal Khattar with Deputy Chief Minister Dushyant Chautala in February 2021. (Express Photo: Jaipal Singh, File)

Under attack from the Opposition Congress in Haryana over rising unemployment rate, the BJP-JJP government in state has come up with an ambitious scheme that promises to increase the job avenues for the unemployed youth. The Indian Express explains the scheme and how the government intends to create job opportunities through it.

What is the Haryana government’s new scheme?

The Haryana government has notified an Employment Generation Subsidy Scheme aiming to create job opportunities for all categories of people— unskilled, semi skilled, and skilled — of the state for the industries’ capacity building.

How will Haryana provide subsidy and which industry will be in focus?

Deputy Chief Minister Dushyant Chautala said, “Under this scheme, ultra-mega projects, cluster establishment/relocation, micro, small, medium, large and mega projects, thrust sector, import substitution, essential sector, bio energy, renewable energy enterprises and data centres & co-location facility will be provided subsidy for employing skilled, semi-skilled and unskilled category persons domiciled in Haryana.”

“Ultra mega projects will be offered customized package of incentives by the Haryana Enterprise Promotion Board (HEPB), which also decide quantum and period of employment generation subsidy. Similarly, any cluster comprising of at least 10 enterprises, engaged in similar economic activity, being established or relocated from other countries or states to Haryana, will be treated as mega project, provided it meets the criteria of FCI and a special package of incentives will be decided by HEPB on the basis of cost benefit analysis,” said Chautala who also holds the portfolio of industries and commerce department.

How will the industry ensure that they get benefit of subsidy?

New industrial units: Those engaging persons belonging to Haryana will be allowed subsidy at the rate of Rs 36,000 per person per year for SC/women category and Rs 30,000 per person per year for general category for seven years in B, C & D category blocks, for direct employment on payroll or contract with ESI/PF number, subject to engaged minimum of 50 per cent belonging to Haryana of the total employment.

MSME, Large/ Mega projects: The thrust sector, import substitution, essential sector, bio energy, renewable energy enterprises would be allowed subsidy at the rate of Rs 48,000 per person for SC/women category and Rs 36,000 per person per year for general category for 7 years in B, C & D category blocks. Same subsidy will be offered to data centres and co-location facilities.

Registered Farmer Producer Organizations(FPOs) and integrated pack house (with facilities like grading, sorting, packaging etc.) will also be eligible for subsidy.

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When will the scheme be considered effective?

The scheme will be considered effective from January 1, 2021 and will be in operation for a period of five years. Industrial units which have gone into commercial production on or after January 1, 2021 and before December 31, 2025 will be eligible under the scheme, said Chautala.

What will the industrial units have to do to claim subsidy?

“Industrial units will file IEM/Udyam Registration Certificate (URC) and Haryana Udyam Memorandum (HUM) on the portal. The unit will be eligible for subsidy only in respect of direct employment on payroll or contract and should have ESI/PF number. It should not have been placed in the restrictive list. Further, the unit should have obtained NOC/CLU and be in regular commercial production at the time of disbursement. Subsidy will not be released to a closed unit. Application on prescribed form for the grant of Employment Generation Subsidy in respect of persons having Haryana Resident Certificate category along with listed documents would be submitted to the director /director general, Industries and Commerce/MSME online within three months from the date of closing of the financial year,” said Chautala.

Will there be a penalty for violators?

Chautala said that an enterprise will forfeit its entitlement for the subsidy scheme, if it does not submit its claim within three months from the date of closing of the financial year or from the date of notification of the scheme, whichever is later. “If at any stage, it is found that the applicant has claimed subsidy on the basis of wrong facts, then the applicant will, besides refunding assistance with compound rate of interest at the rate of 12 per cent per annum and facing legal action, will be debarred from grant of any incentive/assistance from the state government,” he added.

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