In a Notification dated 28th May 2019, the Industries and Commerce Department, Government of Haryana (“Department”) has notified the schemes covered under the Haryana Logistics, Warehousing and Retail Policy, 2019 (“Policy”).
Key Highlights of the Policy
- The Notification has given detailed definitions of various terms under the Policy. Some of the importantdefinitions are as follows–
i)Warehouse: A warehouse has been defined as any premise (including any protected place) which includes a place for storage and/or accumulation of goods under controlled conditions and also equipped for providing handling, transportation as well as value added services such as sorting, grading, packaging etc. A warehouse has been characterized as Integrated Inland Container Depots/Custom Bounded Areas, Warehouse for Agriculture Produces/Grain go-downs, Warehouse other than agriculture produces.
For the purpose of this policy, a warehouse storage system must include but not be limited to the following: –
i. Warehousing complex with fixed facilities, moving units, rolling stocks.
ii. Open and closed storage, ambient condition storage for transit period.
iii. Fulfilment centres (in case of e-retailing), distribution centres.
Minimum Area Norms for setting up of warehouses –
a. Warehouses must be developed in minimum of 2 acres in case of warehouses set up for agriculture produce/ grain Godowns and for warehouses set up for other purposes in hyper, high, medium and low potential zones.
b. Warehouses must have a minimum approach road of 30 ft.
Note – As per the provisions laid out by the Town & Country Planning Department, in case the site of warehouse falls in more than one potential zones, then the norms of area will be applicable for the potential zone wherein more than 50% of applied land falls.
ii). Logistics Park: A Logistics park has been defined as an agglomeration of a given set of logistics activities (core, value added, ancillary as well as commercial) at a particular, well-defined location. Such a park must be developed on a minimum area of 25 acres with a total investment of at least 25 Crore and must include but not be limited to the following activities:-
(a) Warehousing storage system
(b) Industrial plots and ready to move in sheds
(c) Logistic services
(d) Infrastructure for value added and ancillary services, commercial activity
(e) Sector specific in-bound and out-bound logistic
(f) Intermodal transfer arrangements/facilities, truck terminals. Logistics Park should be accessible, at minimum by a 2- lane paved road, with a minimum approach road of 60 ft.
A minimum of 85% of the total area to be used for providing logistics services and within this 20% will be permitted for industrial activities and 10% of the remaining area shall be allowed for residential purposes.
For commercial activities, up to 5% shall be allowed in Medium and Low potential zones and up to 2% shall be allowed in Hyper & High potential zones.
Further, new norms for conversion and other charges including for State Infrastructure Augmentation charges will soon be fixed in consultation with Town and Country Planning Department.
- The Notification also lays down theeligibility criteria for getting the incentives sanctioned under the Policy:
(a) Enterprises for which any package of incentives has already been sanctioned under Enterprise Promotion Policy – 2015, shall not be eligible to avail benefits under Logistics, Warehousing and Retail policy.
(b) Enterprises which will commence commercial services/operations/production after the date of notification of Logistics, Warehousing & Retail policy i.e. 09.03.2019 will be eligible for availing of incentives under this Policy.
(c) The Enterprise should have filed Udyog Aadhaar Memorandum/ Industrial Entrepreneur Memorandum.
(d) The Enterprise should be in regular operations at the time of disbursement and the subsidy shall not be released to the closed Enterprise.
(e) The Enterprise must obtain NOC/CLU from competent Authority, if applicable.
(f) The benefits of this policy will also be extended to the existing Enterprises which would make at least 50% additional investment in fixed assets of the original Fixed Capital Investment (FCI).
- Commencement and Applicability: These schemes are applicable w.e.f. the date of issuance of notification of the Policy and will remain in force for a period of 5 years or superseded by the Government.
- Submission and processing of Applications: Applicants are required to apply online on the portal of Industries & Commerce Department. The application shall be examined and processed by the officials of the Department.
The Director General of the Department shall be the competent authority for approving and sanctioning these incentives.
- The different types ofsubsidies/incentivesnotified under the policy:
i). Capital Subsidy:
Quantum of Assistance
- Warehousing: Financial assistance @ 25% of the fixed capital investment subject to maximum of INR 5 Crore.
- Logistics Park: Financial assistance @ 25% of the fixed capital investment up to a maximum of INR 15 Crore for developing infrastructure in Logistics Park.
- Integrated/Multi Modal Logistics Park: Financial assistance @ 25% of the fixed capital investment up to a maximum of INR 25 Crore for developing infrastructure in Integrated/Multi Modal Logistics Park.
Applicability: i) The Enterprises to which loan has been sanctioned on or after the date of issuance of notification of the Logistics, Warehousing & Retail policy shall be admissible for interest subsidy.
ii) Applicable for units setting up in C & D category blocks.
ii). Interest Subsidy:
Quantum of Assistance
Warehousing: Financial assistance in the form of interest subvention @ 5% on loan taken to meet working capital requirements subject to a maximum of INR 10 lakhs per year for 3 years.
Logistics Park: Financial assistance in the form of interest subvention @ 5% on loan taken to meet working capital requirements subject to a maximum of INR 20 lakhs per year for 3 years.
Integrated/Multi Modal Logistics Park: Financial assistance in the form of interest subvention @ 5% on loan taken to meet working capital requirements subject to a maximum of INR 50 lakhs per year for 3 years.
Applicability: (i) The Enterprises to which loan has been sanctioned on or after the date of issuance of notification of the Logistics, Warehousing & Retail policy shall be admissible for interest subsidy.
(ii) Applicable for units setting up in C & D category blocks.
iii) Stamp Duty:
Quantum of Assistance: The Logistics units, Warehousing units, Logistics Park and Integrated/Multi Modal Logistics Park shall be eligible for 100% reimbursement of Stamp Duty.
Applicability: The Enterprises/ developers which/who have purchased the land or taken the land on lease/transfer on or after the date of issue of notification of the Logistics, Warehousing & Retail policy shall be admissible for the refund of Stamp Duty and the Scheme shall be applicable throughout the State.
iv) Electricity Duty Exemption:
Quantum of Assistance: The Logistics units, Warehousing units, Logistics Park and Integrated/Multi Modal Logistics Park shall be eligible for 100% of Electricity Duty exemption for a period of 7 years.
Applicability: The Enterprises which commence commercial services/operations/production and obtain electric connection on or after the date of issue of notification of the Logistics, Warehousing & Retail policy shall be admissible for this incentive and the Scheme shall be applicable throughout the State.
v)External Development Charges(EDC)
Quantum of Assistance:
- For Warehouses, Logistics Park & Integrated/Multi Modal Logistics Park: 50% reimbursement in EDC in C & D category Blocks.
- For Warehousing cum Retail category: Full reimbursement in C&D category Blocks.
Applicability: (i) The Enterprises/ developers which/who have purchased the land on or after the date of issue of notification of the Logistics, Warehousing & Retail policy shall be admissible for the refund of EDC.
(ii) Applicable for enterprises setting up in C & D category Blocks.
(iii) The enterprise should have commenced commercial services/operations/ production.
vi)Commercial License Fee for Warehousing cum Retail category:
Quantum of Assistance: Full reimbursement in C & D category Blocks.
Applicability: (i) The Enterprises/ developers which/who have purchased the land on or after the date of issue of notification of the Logistics, Warehousing & Retail policy shall be admissible for the refund of EDC.
(ii) Applicable for Warehousing cum Retail units setting up in C & D category Blocks.
(iii) The enterprise should have commenced commercial services/operations/ production
vii) Capacity Building incentives:
Quantum of Assistance: Re-imbursement to Logistics and Warehousing units on technical training cost of the worker (mainly in operational, front-line, supervisory roles) subject to a maximum of 50% of the training cost, limited to maximum INR 10,000, which will be provided one time per worker per training program. The training cost shall be claimed by the Entrepreneur within 1 year from the date of commencement of commercial production of the Enterprise. The training must be arranged from any Government recognized/approved institution.
Applicability: (i) Trainings commenced on or after the date of issue of notification of the Logistics, Warehousing & Retail policy shall be admissible for capacity building incentives and the Scheme shall be applicable throughout the State.
(ii) The incentive is only applicable for workers with Haryana domicile.
Source: Industries and Commerce Department, Government of Haryana
