Govt announces major sops to set up vehicle scrapping, recycling units
The Haryana Government has announced a slew of incentives for industrialists setting up vehicle scrapping and recycling units, aiming to phase out old and unfit vehicles in an environment-friendly manner. The newly launched “Haryana Registered Vehicle Scrappage and Recycling Facility Incentive Policy-2024” includes capital subsidies, stamp duty exemptions, venture capital funding, and GST refunds.
What new policy offers
- Capital subsidy ranging from Rs 5 crore to Rs 20 crore
- Stamp duty exemption from 75% to 100%
- Venture capital fund for startups, women and SCs
- SGST rebate for the new units
- 6.5 lakh vehicles up for grabs for scrappage, recycling by 2025
The policy, notified on October 21, anticipates that Haryana will have around 6.5 lakh end-of-life vehicles (ELVs) by 2025 and 8.25 lakh by 2030, ensuring a substantial scale of operations for scrapping units. The goal is to promote state-of-the-art recycling facilities within the state while reducing the cost of doing business. For mega industries, the capital subsidy will be 20% (up to Rs 20 crore) for units in Block C and D areas, and 20% (up to Rs 15 crore) in Block B. For large industries, the subsidy will be 10% (up to Rs 10 crore) for Block C and D areas, and 10% (up to Rs 5 crore) for Block B.
In addition, the policy offers net SGST reimbursement to entrepreneurs. The Haryana State Industrial and Infrastructural Development Corporation (HSIIDC) will explore leasing models for these units for a period of 10 years. A notable feature of the policy is the establishment of a Venture Capital Fund, designed to provide financial support to start-ups, women entrepreneurs, and Scheduled Caste (SC) groups.
Developers creating eco-parks or recycling parks on 15-50 acres of land will also receive special treatment. An eco-park developed in hyper/high potential zones on 50 acres with a minimum investment of Rs 150 crore will qualify for financial assistance equivalent to 10% of the investment, capped at Rs 20 crore. This assistance will cover the development of core infrastructure.
The policy also offers 100% reimbursement of stamp duty for land purchase or lease in Block D and 75% reimbursement in Blocks B and C for eco-park development.
To ensure a skilled workforce, the policy encourages government organisations, public sector undertakings (PSUs), and private entities to establish centres of excellence for training. These centres will receive a 50% grant of project costs, up to Rs 5 crore.
