GENERATOR SET SUBSIDY SCHEME

Generator Set Subsidy Scheme – Haryana Enterprises & Employment Policy 2020

Introduction

Ensuring uninterrupted power supply is critical for the success of any enterprise, especially for small and medium businesses located in rural areas. Understanding this need, the Government of Haryana under the Haryana Enterprises and Employment Policy 2020 (HEEP 2020), launched the Generator Set Subsidy Scheme. The scheme aims to empower Small and Medium Enterprises (SMEs) by providing financial assistance for the purchase of generator sets, ensuring seamless operations even during power outages.

This article provides a comprehensive overview of the Generator Set Subsidy Scheme, its benefits, eligibility criteria, application process, and necessary documentation to help businesses make the most of this opportunity.

Objective of the Scheme

The primary objective of the Generator Set Subsidy Scheme is to promote industrialization in the rural and underdeveloped areas of Haryana, categorized as 'C' and 'D' blocks. By offering financial assistance on generator set purchases, the scheme:

Provides SMEs with reliable backup power solutions.
Reduces downtime caused by power failures.
Encourages industrial growth in less developed areas.
Creates more employment opportunities in rural regions.

Scope and Duration of the Scheme

The scheme came into effect on 01 January 2021 and is set to remain operational for a period of five years. Therefore, eligible enterprises can avail of the subsidy benefits up to 31 December 2025.

It specifically targets enterprises located in ‘C’ and ‘D’ category blocks in the rural areas of Haryana.

Quantum of Assistance

The financial assistance under the scheme is structured to provide substantial relief to SMEs investing in generator sets. The quantum of subsidy is:

Rs. 8,000 per KVA of the generator set capacity, subject to the following limits:

35% of the generator cost for Small Enterprises (maximum limit applies).
25% of the generator cost for Medium Enterprises (maximum limit applies).

This generous assistance ensures that enterprises can significantly offset their capital expenditure on installing backup power systems.

Example Calculation

For better understanding, let’s assume:

A Small Enterprise purchases a 20 KVA generator at a total cost of Rs. 5,00,000.
Subsidy = 35% of Rs. 5,00,000 = Rs. 1,75,000 (subject to Rs. 8,000 per KVA limit).

Thus, the enterprise will receive the lower amount between the calculated subsidy and Rs. 1,60,000 (20 KVA x Rs. 8,000), resulting in Rs. 1,60,000 subsidy.

Definition of Generator Set under the Scheme

As per the guidelines, a Generator Set is defined as:

"A compact and robust machine that converts mechanical energy into electrical energy and can function on alternate fuels."

Thus, whether the enterprise uses diesel, gas, or any other alternate fuel generator, it is eligible under the scheme, provided other criteria are fulfilled.

Eligibility Criteria

To avail the benefits of the Generator Set Subsidy Scheme, an enterprise must fulfill the following conditions:

The unit must be categorized as a Small or Medium Enterprise.
The enterprise should be located in a rural area falling under 'C' or 'D' category blocks of Haryana.
The enterprise must have valid registrations, including:

Udyam Registration Certificate (URC) .
Haryana Udhyam Memorandum (HUM) , if applicable.

The enterprise must purchase a new generator set (second-hand/used sets are not covered).
The generator must be installed at the premises of the registered unit.

Ineligible Units

Enterprises located in 'A' and 'B' category blocks.
Units already availing similar subsidy under any other government scheme.

Application Procedure

Eligible enterprises must submit their subsidy applications within a strict time frame to avoid rejection.

Time Limit:

The application must be filed within 03 months from the date of purchase of the generator set.

How to Apply:

Prepare all necessary documents.
Fill out the prescribed application form available on the Haryana Government’s MSME portal.
Upload the scanned copies of the documents.
Submit the application online or through the District Industries Centre (DIC).

It is advisable to keep a physical copy of the submitted application and acknowledgment for future reference.

List of Documents Required

Applicants must provide the following documents to claim the subsidy:

Copy of Udyam Registration Certificate (URC).
Copy of Haryana Udhyam Memorandum (HUM) (if registered).
Incorporation/Registration Documents:

Certificate of Incorporation (for Companies).
Partnership Deed (for Partnership Firms).
Cooperative Society Registration Certificate (for Societies).

Board Resolution or Power of Attorney authorizing a person to file the application.
Undertaking/Declaration in the prescribed format (Annexure-II).
Copy of the GST Return or Audited Balance Sheet of the last financial year.
Copy of Invoice/Bill for the purchase of the Generator Set.
Payment Receipt for the purchase (proof of payment made).
Photographs of the installed Generator Set at the business premises.

Ensuring that all documents are accurate, up-to-date, and properly scanned can significantly enhance the chances of timely subsidy approval.

Important Points to Remember

Only new generator sets are eligible; used or reconditioned sets are strictly disallowed.
Application deadlines are critical ; delayed applications will not be entertained under any circumstances.
Subsidy is disbursed only after physical verification of the generator installation by authorized officers.
Incomplete applications will be summarily rejected without intimation.
Enterprises are advised to retain original bills, receipts, and payment proofs until subsidy is fully disbursed.

Why SMEs Should Not Miss This Opportunity

Investing in a reliable power backup is not just about handling blackouts—it’s a crucial strategy for:

Maintaining production continuity.
Protecting sensitive equipment from power fluctuations.
Enhancing customer satisfaction through timely deliveries.
Increasing business resilience against power crises.

The Generator Set Subsidy Scheme provides an unmatched financial cushion, enabling SMEs to secure their operations at a reduced cost.

With electricity reliability still an issue in many rural belts, especially in 'C' and 'D' category blocks, leveraging this scheme can offer a competitive edge to small and medium enterprises.

How Advice Consultant Can Help

At Advice Consultant, we specialize in assisting businesses across Haryana in availing various government subsidies and incentives. Our team offers: