(2001)

Haryana Government Gazette

EXTRAORDINARY

Published by Authority

No. 942018/Ext.] CHANDIGARH, MONDAY, JUNE 4, 2018 (JYAISTHA 14, 1940 SAKA)

HARYANA GOVERNMENT

INDUSTRIES & COMMERCE DEPARTMENT

Notification

The 4th June, 2018

No. 1/35/2017-41B-I.— Pursuant to the InterDepartment consultation and approval of the Haryana Agri and

Business Policy 2018 by the Cabinet, and also approval by the Empowered Ministerial Committee constituted by the

CMM, the Governor of Haryana is pleased to notify Haryana Agri and Business Policy, 2018 which will be effective

from the date of its Notification.

The Policy details of which are given in Annexure ‘A’ has been concurred by the Finance Department vide

their U.O. No. 11/15/2017IFDIII/32643 dated 21.11.2017.

DEVENDER SINGH,

Chandigarh:

Additional Chief Secretary to Government of Haryana,

The 29th May, 2018.

Industries & Commerce Department.

HARYANA GOVT. GAZ. (EXTRA.), JUNE 4, 2018 (JYST. 14, 1940 SAKA)

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Preamble

Food processing industry plays a significant role in the development of Indian economy through the

integration and synergy it provides between agriculture and industry, the two pillars of economic prosperity. The

growth of food processing sector is essential to meet the twin objective of “inclusive growth” and “food security”.

The Food Processing sector in India is poised for immense growth and higher level of contribution to the

world food trade. Number of initiatives have been taken by Ministry of Food Processing Industries (MoFPI) such as

scaling up infrastructure for storage, transportation, together with tackling the issue of food wastage in the country

and promoting value addition across the entire value chain from farm gate to food plate. These measure will benefit

both farmers and end consumers thus facilitating foreign and domestic investment in the sector. Foreign Direct

Investment (FDI) limits for the Food Processing sector has been maximized to 100% through automatic route.

‘Haryana AgriBusiness and Food Processing policy 2018’ endeavors to give the required impetus to the Food

processing industry in the state. Further by establishing efficient forward and backward linkages, it aims to create

greater employment opportunities across the entire food value chain, thus promoting agriculture and rural prosperity.

Food processing is the bridge between the industry and farming and the policy aims at doubling the farmer’s

income through large scale promotion of fresh produce of Haryana specially fruits, vegetables, milk and fish.

The Enterprise Promotion Policy 2015 has identified Food processing as a thrust sector and has offered

attractive fiscal incentives for sector promotion. In addition, this policy laysequal emphasis on providing skilled

manpower, robust infrastructure and conducive business climate for all round development of sector. New drivers of

growth such as Agromarketing reforms, development of Mega Food Parks and Mini Food Parks, encouragement to

Farmer Producer Organizations, support to agri and food cooperatives, promotion of startups in agribusiness space

have been given due emphasis in the policy. This new policy envisions to redefine the benchmarks of growth for

Food Processing sector in the State and in the country.

2004

HARYANA GOVT. GAZ. (EXTRA.), JUNE 4, 2018 (JYST. 14, 1940 SAKA)

Table of Content

Introduction……………………………………………………………………………………………………... 6

1.1

Haryana Potential as a Food Processing Hub…………………………………………………………… 6

1.2

Haryana Food processing sector………………………………………………………………………… 7

1.3

Snapshot of Haryana Agriculture………………………………………………………………………. 7

1.4

Snapshot of Haryana Horticulture……………………………………………………………………… 8

1.4.1 Initiatives in CropDiversification………………………………………………………………. 8

1.5

SnapShot of Animal Husbandry, Dairy and Fisheries…………………………………………………. 9

1.6

Opportunities for Agro and Food processing…………………………………………………………… 9

Vision, Goals and Objectives………………………………………………………………………………….. 13

2.1

Vision…………………………………………………………………………………………………... 13

2.2

Our 5 year Goals……………………………………………………………………………………….. 13

2.3

Objectives……………………………………………………………………………………………… 13

Policy Purview/Eligibility .................................................................................................................................. 15

Definitions .......................................................................................................................................................... 16

Policy Interventions ........................................................................................................................................... 19

5.1

Fiscal Interventions for Agro and Food Processing Enterprises……………………………………….. 19

5.1.1 Capital Investment Subsidy for Agro and Food Processing units:……………………………... 19

5.1.2 Capital investment subsidy for Farmer Producer Organizations (FPOs)

Agro/Food Cooperatives………………………………………………………………………... 19

5.1.3 Assistance for individual units to setup in Food Parks in “C” and “D” category blocks……… 19

5.1.4 Assistance for individual units to setup in Food Parks in “A” and “B” category blocks……… 20

5.1.5 Assistance to promote Women Entrepreneurs………………………………………………….. 20

5.1.6 Special Assistance for acquisition of Packaging technology…………………………………... 20

5.1.7 Support for Quality and Certification…………………………………………………………... 20

5.1.8 State Awards……………………………………………………………………………………. 21

5.2

Infrastructure Augmentation measures:………………………………………………………………... 21

5.2.1 Mini Food Park scheme:………………………………………………………………………... 21

5.2.2 Support for Integrated cold chain and value addition infrastructure:…………………………... 23

5.2.3 Special Support to promote milk processing of indigenous breed of cows in Haryana………... 23

5.2.4 Support for establishing Backward Linkage and Forward Linkages in rural areas…………….. 24

5.2.5 Special support to promote integrated packaging of horticulture produce i.e.

Fresh Fruits and Vegetables grown in the state………………………………………………… 24

5.2.6 Support for setting up/upgradation of Food Testing and Calibration Labs:……………………. 25

5.2.7 Enhanced Availability of Affordable Land Parcel for Industrial Purpose:……………………... 25

5.2.8 Relaxation in FSI / FAR:……………………………………………………………………….. 25

5.2.9 Establishment of workers hostels/dormitories:…………………………………………………. 26

5.3

Regulatory Simplification for Agro and Food processing industries:…………………………………. 27

5.3.1 Constitution of Haryana Agro and Food processing Advisory Board:………………………… 27

5.3.2 Declaration of Seasonal Industry status to certain food processing units:……………………… 27

HARYANA GOVT. GAZ. (EXTRA.), JUNE 4, 2018 (JYST. 14, 1940 SAKA)

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5.3.3 Environmental Clearance:……………………………………………………………………… 27

5.3.4 Change in Land Use:……………………………………………………………………………. 28

5.3.5 Removal of Milk cess:………………………………………………………………………….. 28

5.3.6 Punjab Security of Land Tenures Act, 1953 (Haryana Amendment Bill 2017):……………….. 28

5.3.7 Agricultural Marketing Reforms……………………………………………………………….. 28

5.4

Promoting Human Capital Development in Agro and Food Processing sector:………………………. 29

5.4.1 Startup Fund for innovation in Agribusiness…………………………………………………. 29

5.4.2 Incubation centers………………………………………………………………………………. 29

5.4.3 Support for Skill development………………………………………………………………….. 30

Annexure 1, 2, 3……………………………..………………………………………… .………31, 32, 33

2006

HARYANA GOVT. GAZ. (EXTRA.), JUNE 4, 2018 (JYST. 14, 1940 SAKA)

Introduction

Haryana is one of the smaller States in India with 4.4 million hectares of land, forming 1.34 percent of the total

geographical area of the country. Despite this, Haryana is one of the largest contributor of food grains to India’s

central pool with a share of around 15.6%. The State has accorded high priority to agriculture & allied sectors since

its creation in 1966. Strong infrastructure facilities coupled with support for agriculture research and efficient network

to disseminate the information related to improved farm practices to farmers have yielded tangible results. The State

has been converted from a food deficient to a food surplus State.

1.1

Haryana Potential as a Food Processing Hub

Agriculture is one of the biggest employment generators providing employment to more than

50% people in State. Even in case of industrial employment, share of agriculture based

industries is more than 31%.

ii.

The state occupies a premier position in the country’s agribusiness industrial scenario with

significant contribution in agriculture, horticulture, dairy, poultry and fisheries.

iii.

Agriculture sector in Haryana contributed around 17.3% to state’s GSDP (constant prices) in

201516.

iv.

Government has created strong agriculture marketing infrastructure in Haryana with a network

of 108 Principal Yards, 177 Sub Yards and 193 Purchase Centers

54 Mandis of state are covered under E National Agriculture Market (ENAM) initiative.

vi.

Food processing sector has been identified as a focus sector in the Haryana Enterprise Promotion

Policy 2015 (EPP 2015).

vii.

To promote Haryana as an investor friendly destination, the government is proactively taking

measures and is fully determined to create an ecosystem in which the ‘Ease of Doing Business’

in the State matches and even exceeds the best global standards. In the recent assessment of

DIPP, Haryana was ranked as 6th best state in country and 1st in North India.

1.2

Haryana Food processing sector

Haryana has more than 3000 operative food processing units.

ii.

The state is equipped with 4 food parks with 2 fully functional food parks at Rai and Saha. Mega

Food Parks at Barhi and Rohtak are being setup with the state of the art common infrastructure

facilities under Ministry of Food Processing scheme of Mega Food Parks.

iii.

9 cold chain projects are currently being implemented under MoFPI assistance. Out of these,

4 projects have already been completed and 5 are ongoing.

1.3

Snap-shot of Haryana Agriculture

The main agricultural crops produced in the state are rice, wheat, sugarcane, cotton, oilseeds,

pearl millet, gram, and barley

ii.

More than 60% export of Basmati Rice from India is taking place from Haryana alone.

iii.

During 201516, the gross sown area in the State was 64.71 lakh hectare. The contribution of

area under wheat and paddy crops to the total gross sown area in the State was 60.73% during

201516. The area under wheat crop was 25.76 lakh hectarewhile that under paddy crop was

13.54 lakh hectare in 201516. The area under commercial crops i.e. sugarcane, cotton and

oilseeds has shown fluctuating trends.

iv.

The total food grain production in the State was 163.33 lakh tons in 201516. The production of

rice was 41.45 lakh tons, wheat was 113.52 lakh tons, while those of oilseeds and sugarcane was

8.67 lakh tons and 69.92 lakh tons respectively during 20152016.

Liberalized contract farming norms have been introduced in Haryana while provision such as

land on long lease for industrial use is under consideration

1.4

Snap-shot of Haryana Horticulture

Haryana is a fast emerging and one of the leading States in the field of horticulture in India.

Almost all type of fruits, vegetables, spices, mushroom & flowers are being grown here. Out of

total area under horticulture, around 85% area is under Vegetables& rest is under fruits, spices,

flowers etc.

ii.

Horticulture produce covers an area of 4.90 lakh hectare, which is 7.58% of the gross cropped

area of the State. Production of horticultural crops in the State was 70.50 lakh MT during the

year 201516.

iii.

Haryana is one of the major pea growing states in India and second largest producer of green

peas. The state is 3^rdlargest producer of button mushrooms in India.

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iv.

More than 13 vegetables are grown in Haryana throughout the year. Cucurbits, cauliflower,

potato and onion occupy highest area under cultivation along with leafy vegetables and radish.

As per production, cucurbit, cauliflower and potato top the list followed by onion, tomato and

radish.

Haryana’s climatic conditions favor the conducive growth of citrus fruits. Kinnow is the most

prominent citrus fruit having maximum production followed by mango and guava.

1.4.1 Initiatives in Crop-Diversification

To encourage cropdiversification, the horticulture departments envisions to bring 14% of

total cropped area under Horticulture crops to achieve optimum crop diversification by

2022.

ii.

Under the latest initiative of state government, a total of 340 villages have been declared

as “Baagwani villages/ Horticulture villages” and are being developed in phased manner

with the development of Infrastructural facilities, provision of funds and extension

services. Currently, in the 1st phase, 140 clusters with horticulture potential have been

selected and work has started for the development of infrastructure facilities.

1.5

Snap-Shot of Animal Husbandry, Dairy and Fisheries

Dairy Farming is an essential part of Haryana’s rural economy.

ii.

Known for its “Murrah” Buffaloes and desi cattle, the state contributes 5% to the national dairy

production.

iii.

The per capita milk availability in Haryana is the second highest in the country; i.e. 805 gm per

capita per day against the national average of 309 gm per capita per day.

iv.

Livestock sector contributes 30% to Haryana’s agriculture GDP.

In egg production, the State occupies 4th position with an annual production of 45,790 lakh

eggs.

vi.

In meat production, the State stands 8th with an annual production of 381 thousand tons.

1.6

Opportunities for Agro and Food processing

The agriculture and allied sector has thrown open tremendous opportunities for the successful

establishment of vibrant and potentially profitable agroprocessing units in Haryana. Being the major producer

of various agriproduce, Haryana offers vast potential in processing of high value added products.

Below provided is an indicative data on agriculture and horticulture produce of Haryana.

Agriculture

Produce

Annual Production

(2015-2016)

Some regions of

growth

Value Added Products

Paddy

41.45 lakh tons

Karnal, Kaithal,

Panipat, Jind, Sonipat,

Sirsa

Rice Flour, Rice Bran Oil,

Parboiled Rice, Rice Flakes

Wheat

113.52 lakh tons

Sirsa, Jind, Sonepat

Hisar

Suji, wheat bread, wheat flour,

bakery products

Sugarcane

8.67 lakh tons

Sonipat, Karnal, Jhajjar

Raw Sugar, Juice

Opportunity: Units producing Cereals for high Fructose, low fat products, Barley for malt purpose.

Horticulture

Produce

Annual Production

(2015-2016)

Some regions of

growth

Value Added Products

Guava

6595 million tons

Sirsa, Hisar, Bhiwani,

Jhajjar

Jam, Jelly, Candy, Pulp, Juice,

concentrate

Mango

6650 million tons

Yamunanagar,

Kurukshetra

Pulp, Concentrate, Juice,

Squash, Pickle, Jam, Jelly,

Candy, Dehydrated Slices,

Mango frozen

Kinnow

32285 million tons

Sirsa, Fatehabad,

Hisar, Bhiwani, Jhajjar

Juice, Squash, Pulp,

Concentrate

Opportunity: Units for drying, dehydration & processing units for canned juices, marmalades,

squash, fruit Juice, Concentrate, Jam, Hitech nurseries for fruit plant sapling production, Agro Food

Parks, Refrigerated warehousing.

2008

HARYANA GOVT. GAZ. (EXTRA.), JUNE 4, 2018 (JYST. 14, 1940 SAKA)

Vegetables

Produce

Annual Production

(2015-2016)

Some regions of

growth

Value Added Products

Cauliflower

85082 million tons

Kurukshetra, Karnal,

Panipat, Sonipat,

Bhiwani, Gurugram,

Faridabad

Diced Cauliflower

Potato

184199 million tons

Ambala,

Yamunanagar,

Kurukshetra, Kaithal,

Sonipat, Jind,

Fatehabad, Hisar,

Rohtak, Faridabad

Chips, Starch Syrup

Tomato

206986 million tons

Panchkula, Ambala,

Yamunanagar,

Kurukshetra, Kaithal,

Karnal, Jind,

Fatehabad, Hisar

Puree, Ketchup, Sauce, Jam,

Paste, Dried Powder, etc.

Onion

64351 million tons

Ambala, Jhajjar,

Mewat, Bhiwani,

Yamunanagar

Onion Flakes, Powder, Paste,

etc.

Carrot

45396 million tons

Sonipat, Fatehabad,

Hisar, Bhiwani,

Faridabad

Diced Radish

Green Peas

10156 million tons

Kurukshetra, Kaithal,

Panipat, Gurugram

Fresh peas export, canned

peas

Mushroom

38370 million tons

Sonipat, Kurukshetra,

Yamunanagar,

Panchkula

Fresh mushroom export,

canned mushrooms

Opportunity: Processing units for vegetables like cauliflower, potato, tomato, Waxing plants, pack

houses and cold chain for fruits and vegetables, Green houses for off season and exotic vegetable

production, Agro Food Parks, Refrigerated warehousing.

Spices

Produce

Annual Production

(2015-2016)

Some regions of

growth

Value Added Products

Ginger

710 million tons

Panchkula

Ginger Powder, Ginger paste

Chili

10587 million tons

Bhiwani, Ambala,

Hisar

Chili Sauce, Pickle, Chili

Powder

Turmeric

330 million tons

Yamunanagar

Powder, Turmeric Dried

Rhizomes, Curcumin.

Opportunity: Setting up of spice processing units for raw seed, powder seed.

Dairy

Produce

Annual Production

(2016-2017)

Some regions of

growth

Value Added Products

Milk

7.04 million tons

Ambala, Bhiwani,

Mewat, Kurukshetra

Cheese, Ice Cream,

Pasteurized and Flavored

Milk, Butter, Paneer, Ghee,

Butter Milk, Curd

Opportunity: Establishment of commercial dairy units,Setting up of processing unit of camel milk

and goat milk which has therapeutic utility.

HARYANA GOVT. GAZ. (EXTRA.), JUNE 4, 2018 (JYST. 14, 1940 SAKA)

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Animal Husbandry

Produce

Annual Production

(2015-2016)

Some regions of

growth

Value Added Products

Poultry

45,790 lakh eggs

Karnal, Panipat, Jind,

Yamunanagar, Ambala

etc.

Egg powder, Processed eggs

Meat

0.3 million tons

Mewat

Chicken/Meat Processing

Fishery

11,11,203

Hisar, Palwal,

Panchkula, Rewari,

Mahendragarh,

Sonipat, Jind etc.

Fish export/Fish processing,

Canned Fish

Piggery

7,000 kilograms

Mewat

Pork

Opportunity: Setting up of Livestock feed units, Establishment of poultry processing units.The

potential of meat processing can be explored in Mewat district of the State.

Vision, Goals and Objectives

2.1

Vision

Government of Haryana envisions to create a prosperous rural economy by achieving accelerated

growth in farm sector throughcreation of strong value chain linkages, thrust on research and establishment of

state of the art infrastructure in agro and food processing sector.

2.2

Our 5 year Goals

2.3

Objectives

To make Haryana a clear destination of choice for investments in Food processing sector

ii.

To promote value addition inAgriculture and allied sectors as Dairy, Horticulture, Livestock,

Fishery and Poultry etc.

iii.

To strengthen infrastructure by investing in Food Processing clusters thus developing strong and

robust value chain.

iv.

To Strengthen Farmer Producer Organizations (FPOs) registered in Haryana and Agro/Food

Cooperatives through market linkages and capacity building initiatives

To promote farmgate processing of Fresh Food specially fruits, vegetables, milk and fish

vi.

To promote startups in agribusiness space

vii.

To enable the farmers to increase their income through new agromarketing reforms

viii.

The industries to be setup would work as Level changer, and the areas having sufficient

production of a particular produce would be considered for the establishment of that kind of

units in that particular area.

2010

HARYANA GOVT. GAZ. (EXTRA.), JUNE 4, 2018 (JYST. 14, 1940 SAKA)

ix.

Since, the Government is working for targeting the NCR and National Capital Delhi for

supplying of fresh horticulture, milk and dairy and allied products to the largest population of

NCR, being the state’s command area nearest to this largest market of NCR for daily needs,

periurban concept, initiated by Government, would be kept in consideration by the units to be

setup.

These units would concentrate on supplying of the produce in international market also, having

advantage of the IGI airport and such units, if setup in vicinity, would help in supplying of fresh

fruits and vegetables and dairy and other allied products to the demanding international markets.

Policy Purview/Eligibility

Haryana AgriBusiness and Food Processing Policy covers the enterprises in Agriculture and allied

sectors such as Horticulture, Animal Husbandry, Dairy / Poultry, Fishery etc.

ii.

Agro and Food Processing Units, All Agriculture and Cooperative Institution of farmers, milk

producers, fishery/poultry etc. , Farmer Producer Organizations (FPOs) are eligible to avail the

incentives in this policy

iii.

Ancillary units such as Food Packaging facilities/Food Packaging companies etc.will also be eligible

for incentives under the policy.

iv.

This policy shall come into effect on the date of its notification in the Government of Haryana official

gazette and shall remain in force till it is amended or superseded by the Government

Unit which commences commercial production during the operative period of this policy post the date

of notification of this policy shall be eligible for incentives under this policy.

vi.

Industrial units not eligible for benefits covered under this policy including market fee exemption given

in Annexure1

Definitions

Agri-business

An agribusiness is a line of business (LOB) that focuses on the processing, warehousing, distribution

and marketing of agricultural produce. Agribusiness activities include setting up of primary processing

centers, collection centers, advanced Tissue Culture Labs etc. These activities are to be treated at par with

Primary Processing centers and any incentives provided to primary processing centers shall be applicable for

agribusiness activities also.

Food Processing

Food processing shall include process under which any raw product of agriculture, dairy, animal

husbandry, meat, poultry or fishery is transformed through a process (involving employees, power, machines

or money) in such a way that its original physical properties undergo a change and the transformed product has

commercial value and is suitable for human and animal consumption. It shall also include processes of value

addition to produce through methods such as preservation, addition of food additives, drying with a view to

preserve food substances in an effective manner, enhance their shelf life and quality.

Food Packaging which enhances the shelf life of food shall also be considered as a part of food

processing and shall be eligible for the all the provisions covered under this policy.

Agro and Food processing units

AgroIndustrial and Food Processing units in subsectors – Agriculture and allied sectors i.e.

Horticulture, Animal Husbandry, Dairy / Poultry, Fishery etc.

Food Safety

As defined in The Food Safety and Standards Act, 2006, Food Safety means assurance that food is

acceptable for human consumption according to its intended use

Food Parks

Food Parks will be a place where food processing units are established predominantly for production of

processable agriculture, horticulture, animal husbandry, meat, poultry, dairy, fisheries etc. products.

HARYANA GOVT. GAZ. (EXTRA.), JUNE 4, 2018 (JYST. 14, 1940 SAKA)

2011

Fixed Capital Investment

Fixed capital investment means original value of investment in Plant & Machinery before a unit

commences expansion/diversification/ modernization

Note: In calculating the investment in Plant & Machinery, cost of pollution control, research and development,

industrial safety devices and such other items as may be specified by notifications shall be excluded.

New Enterprise/ unit

An enterprise which commences commercial production during the operative period of this policy post

the date of notification of this policy. Existing enterprise setting up a new facility with new Plant & Machinery

at new/different location will be considered as new enterprise.

Existing Enterprise

Existing Enterprise means the enterprise which has filed UAM with the concerned DIC or IEM with

Government of India and is implementing expansion/ diversification in the project for carrying out activity

indicated in this resolution.

Expansion/ Diversification

Existing units taking up expansion and/or diversification with or without forward/backward integration,

with at least 50% additional investment in plant and machinery for expansion/diversification as on date of

initiating expansion/diversification and commencing production of said expansion/diversification during the

operative period of the scheme shall be treated as undertaking Expansion/Diversification.

Large Enterprise

Where the investment in Plant & Machinery is more than INR 10 crore (or over and above of limit of

Medium units defined under MSMED Act, 2006 time to time).

MSME

MSME means Micro, Small and Medium Enterprises as defined in the Micro, Small and Medium

Enterprises Development Act, 2006 as amended from time to time shall be applicable.

Policy Interventions

5.1

Fiscal Interventions for Agro and Food Processing Enterprises

5.1.1 Capital Investment Subsidy for Agro and Food Processing units:

25% Capital Investment Subsidy on FCI (fixed capital investment) limited to INR 1 Cr.

made available to new units to be setup in ‘C’ and ‘D’ category blocks.

5.1.2 Capital investment subsidy for Farmer Producer Organizations (FPOs) Agro/Food

Cooperatives

To promote registered Farmer Producer Organizations (FPOs) and Agro/Food

Cooperatives, assistance of 25% Capital Investment Subsidy on FCI (fixed capital

investment) limited to INR 1 Cr. shall be made available to new units to be setup only

by registered FPOs and Agro/Food Cooperatives only in “C” and “D” category blocks.

ii.

Agro/Food Cooperatives cover all agriculture and cooperative institution of farmers, milk

producers, fishery/poultry/piggery etc.

5.1.3 Assistance for individual units to set-up in Food Parks in “C” and “D” category blocks

Capital Investment Subsidy: 25% Capital Investment Subsidy on FCI (fixed capital

investment) limited to INR 1 cr.

ii.

SGST reimbursement: 100% (net tax) reimbursement for a period of 10 years, from the

date of commencement of commercial production with cap of 100% of fixed capital

investment (FCI)

iii.

The incentives under this provision shall be applicable to new/expansion/diversification

units setting up in old food parks and new units to be setup in Mega Food Parks/Mini

Food Parks in “C” and “D” category blocks.

2012

HARYANA GOVT. GAZ. (EXTRA.), JUNE 4, 2018 (JYST. 14, 1940 SAKA)

5.1.4 Assistance for individual units to set-up in Food Parks in “A” and “B” category blocks

Capital Investment Subsidy: 25% Capital Investment Subsidy on FCI (fixed capital

investment) limited to INR 50 lakhs.

ii.

SGST reimbursement: 100% (net tax) reimbursement for a period of 10 years, from the

date of commencement of commercial production with cap of 100% of fixed capital

investment (FCI)

iii.

The incentives under this provision shall be applicable to new/expansion/diversification

units setting up in old food parks and new units to be setup in Mega Food Parks/Mini

Food Parks in “A” and “B” category blocks.

5.1.5 Assistance to promote Women Entrepreneurs

Women Entrepreneurs/ Women Cooperatives/Women Self Help Groups (SHGs) shallbe

provided 8%interest subsidy on term loan up to limit of INR 12 lakh per year for 5 years

per units across state. The subsidy shall not exceed amount of net SGST paid during the

relevant year

5.1.6 Special Assistance for acquisition of Packaging technology

Assistance of 50% of project cost for developing/acquiring packaging technologies

leading to increase in shelf life of products, limited to INR 20 lacs per unit.

5.1.7 Support for Quality and Certification

Patent and Design Registration: Reimbursement of 50% of expenditure incurred in

obtaining patents and other IPR subsidy including the consultant fee, government fee etc.

limited to INR 2 lakh per patent.

ii.

Quality Certification: Reimbursement of 50% of the cost of certifications such as

HACCP, GMP, ISO 9000, ISO 22000, GLP and TQM for food processing units, up to a

limit of INR 2 lakh per unit.

5.1.8 State Awards

The state government shall constitute Haryana State Agro awards to encourage industrial units’

setup in Haryana to nurture organic linkages with farming community thus enabling farmers to prosper

along with industry. The award shall carry a cash price and a citation.

Note:

Enterprises availing a kind of incentive under this policy will not be eligible to avail incentive

under similar head as given in Haryana EPP2015 however will be eligible for other incentive not

specified in this policy. All incentives specified above shall be in addition to incentives available

under any GOI scheme. The maximum limit of the sum of all fiscal incentives shall not exceed

100% of Fixed Capital Investment (FCI).

5.2

Infrastructure Augmentation measures:

To strengthen agro and food processing infrastructure, the benefits covered under infrastructure

augmentation measures will be provided across state.

5.2.1 Mini Food Park scheme:

(a)

The state government shall focus on developing agroprocessing clusters in the form of

MiniFood parks by promoting food processing industry near production areas i.e. rural

and backward regions:

Creating modern infrastructure for food processing closer to production areas.

ii.

Providing integrated and complete preservation infrastructure facilities from the

farm gate to the consumer.

iii.

Creating effective backward and forward linkages by linking groups of

producers/farmers to the processors and markets through wellequipped supply

chain.

HARYANA GOVT. GAZ. (EXTRA.), JUNE 4, 2018 (JYST. 14, 1940 SAKA)

2013

(b)

The Mini Food Park scheme shall be applicable to only “C” and “D” category blocks to

support the growth of backward regions and to promote the balanced regional

development.

(c)

The Mini food park shall be setup on minimum of 10 acre with provision of at least 5

food processing units to be set up in the park.

(d)

To setup Mini Food Park in “C” and “D” category blocks, Government shall provide

assistance to developer/promoter for developing:

Basic enabling infrastructure: It shall include support for site development such as

industrial plots, boundary wall, roads, drainage, water supply, electricity supply

including power backup, effluent treatment plant, parking bay, weigh bridges,

common office space etc. The cost of basic enabling infrastructure not exceeding

40% of the eligible project cost would be eligible for grant under this scheme.

ii.

Core infrastructure/ common facilities:The common facilities will be based on the

needs of the units which will be set up in these clusters. The common facilities of

capital intensive nature may include like testing laboratory, cleaning, grading ,

sorting and packing facilities ,dry warehouse, cold storage , precooling chambers,

ripening chambers, steam generation boilers, IQF, specialized packaging, etc.

iii.

Creation of common facilities in a cluster may vary depending upon requirements

of food processing units existing outside the cluster or to be set up in a cluster.

iv.

The above mentioned facilities are only illustrative and the exact nature of

facilities may vary from project to project based on requirements of the units in

the cluster and surplus agriculture/horticulture produce in the catchment area of

the project.

Units can be set up simultaneously along with creation of common infrastructure.

(e)

Financial assistance: 50% of total project cost with maximum limit of INR 10 crore to be

provided to promoter/developer only for developing any of above given facilities as

approved by the state government.

Note: Maximum of 10 developers/promoters shall be eligible to avail this incentive to set up

Mini food parks in “C” and “D” category blocks during the policy period. Any developer

availing the Government of India SAMPADA Yojana (Scheme for AgroMarine Processing and

Development of AgroProcessing Clusters) under similar head will not be applicable for availing

under this scheme.

5.2.2 Support for Integrated cold chain and value addition infrastructure:

35% Capital Investment Subsidy on project cost limited to INR 5 cr. for storage

infrastructure, packaging houses, transportation infrastructure, value addition and

processing infrastructure and irradiation facilities.

ii.

The support forintegrated cold chain and value addition infrastructureshall be applicable

only to “B”, “C” and “D” category blocks.

iii.

For reefer vehicles and any other movable infrastructure, assistance of 50% of capital

investment subsidy will be limited up to INR 50 lacs per project and up to 4 reefer

vehicles/ movable infrastructure per project.

iv.

List of facilities eligible for assistance is enclosed in Annexure2.

Note: Maximum of 10 projects shall be eligible to avail this incentive during the policy period. Any

developer availing the Government of IndiaSAMPADA Yojana (Scheme for AgroMarine Processing

and Development of AgroProcessing Clusters) under similar head will not be applicable for availing

this scheme.

5.2.3 Special Support to promote milk processing of indigenous breed of cows in Haryana

In addition to point 5.2.2, the state government shall promote the milk processingof

indigenous breed of cows in Haryana. The state government shall provide this additional

support to the tune of 10% in capital investment subsidy (i.e. 45% capital investment

subsidy) up to 5 Cr. to units settingup infrastructure in form of separate processing and

packaging line for milk of indigenous breed of cows in “B”, “C” and “D” category

blocks.

2014

HARYANA GOVT. GAZ. (EXTRA.), JUNE 4, 2018 (JYST. 14, 1940 SAKA)

5.2.4 Support for establishing Backward Linkage and Forward Linkages in rural areas

50% Capital Investment subsidy on project cost limited to INR 2.5 cr. for rural areas

across state and 50% Capital Investment subsidy on project cost limited to INR 3.5 cr. in

rural areas in “C” and “D” category blocks.

ii.

This support is forcreating effective backward & forward linkages for perishable agri

horti produce through setting up of minimum processing facilities such as primary

processing centers/collection centers at farm gate, distribution hub and retail outlets at the

front end.

iii.

The support is applicable to both perishable horticulture and nonhorticulture produce

such as: fruits, vegetables, dairy products and fish.

iv.

For reefer vehicles and any other movable infrastructure, assistance of 50% of capital

investment subsidy will be limited up to INR 50 lacs per project and up to 4 reefer

vehicles/ movable infrastructure per project.

List of facilities eligible for assistance is enclosed in Annexure3.

Note: Maximum of 20 projects will be eligible to avail this incentive under this scheme during the

policy period. Any person availing the Government of India SAMPADA Yojana (Scheme for Agro

Marine Processing and Development of AgroProcessing Clusters) under similar head will not be

applicable for availing this scheme.

5.2.5 Special support to promote integrated packaging of horticulture produce i.e. Fresh Fruits

and Vegetables grown in the state

Food especially fresh fruits and vegetablesis perishable in nature and requires farm gate

infrastructure to process/package and sell at the right time.

ii.

Hence, in addition to point 5.2.4, the state government of Haryana shall promote

integrated Packhouse(s) for horticulture produce i.e. fresh fruits and vegetables. The

state government shall increase the upper limit of capital investment subsidy

(as provided in 5.2.4)to the tune of up to INR 3.5 Cr. (50% capital investment up to the

limit of INR 3.5 cr.) to units settingup infrastructure in form of Integrated Packhouse(s)

(washing, electronic and mechanized sorting & grading line/ packaging line/ waxing line/

staging cold rooms/cold storage, etc.) for fresh fruits and vegetables grown in the state.

5.2.6 Support for setting up/upgradation of Food Testing and Calibration Labs:

The state government shall promote setting up of National Accreditation Board for

Testing and Calibration Laboratories (NABL)/FSSAI approved fullfledged testing labs,

including antibiotic testing facilities, for common usage by food processing units in the

state. The assistance limited to 25% of project cost would be provided for setting up/up

gradation of such laboratories focused on food processing sector, limited to a maximum

of INR 75 lacs.

ii.

All Agro and Food Processing Units, Universities, State Government Institutions,

Government Funded Organizations, R&D laboratories and CSIR recognized units in

private sector are eligible to setup/upgrade labs under this scheme.

5.2.7 Enhanced Availability of Affordable Land Parcel for Industrial Purpose:

To ensure availability of affordable land parcels for industries, Government shall explore the

possibility of making available Panchayat land on long lease basis for industrial development

5.2.8 Relaxation in FSI / FAR:

There shall be a relaxation of up to 150% in FAR. Further, additional FAR beyond 150% may

be purchased by paying premium of up to a limit of 200% with no proportionate increase in EDC. The

amount collected as premium shall be used to create fund for development of critical infrastructure in

that area.

HARYANA GOVT. GAZ. (EXTRA.), JUNE 4, 2018 (JYST. 14, 1940 SAKA)

2015

5.2.9 Establishment of workers hostels/dormitories:

To provide a safe and secured accommodation for the workforce especially in industrial clusters

and Mega Food Parks/Mini Food Parks and Agroprocessing Clusters, HSIIDC/HUDA shall earmark

area in the industrial colonies for affordable labor housing as per rules and regulations of the

Department of Town and Country Planning Haryana

5.3

Regulatory Simplification for Agro and Food processing Industries:

5.3.1 Constitution of Haryana Agro and Food processing Advisory Board:

The State Government shall constitute Haryana Agro processing Advisory Board under the

chairmanship of Hon’ble Agricultural Minister Haryana comprising of Additional Chief Secretary to

Government Haryana Cooperation Department, Additional Chief Secretary to Government Haryana

Animal Husbandry and Diary Department, Principal Secretary to Government Haryana Industries and

Commerce Department, Principal Secretary to Government Haryana Agricultural and Farmer Welfare

department, Chief Administrator State Agriculture Marketing Board Haryana, Vice Chancellor CCS

Haryana Agricultural University Hisar, Vice Chancellor NIFTEM Sonipat along with representatives

from food exporting units, traders association, Farmer Producer Organizations (FPOs), sector experts

etc. The advisory board shall act as an empowered body and shall be instrumental in developing

synergy between primary producers, manufacturers, exporters and researchers. The primary objective

of the board shall be to develop a common vision, strategy and action plan after due consultation with

various stakeholders leading to symbiotic growth of farming community and industry in the state.

5.3.2 Declaration of Seasonal Industry status to certain food processing units:

Government of Haryana shall accord the food processing units the status of seasonal industry on

case to case basis depending on the nature of operation so that such units may be exempted from

payment of fixed electricity demand charges during the closure period/offseason. The approval for the

same will be provided by HEPB (Haryana Enterprise Promotion Board).

5.3.3 Environmental Clearance:

AgroProcessing clusters and Food Processing units using fruits and vegetables as raw materials

will be issued combined CTE and CTO as issued to green category of industries, with industry

submitting an undertaking regarding expected date of startup of production and intimate SPCB at least

15 days in advance before startup of commercial production.

5.3.4 Change in Land Use:

All Food processing units/enterprises will be allowed to establish on agricultural land/

agricultural zone in low, medium and high potential zones. Further, there will be exemption of CLU

charges for all food processing enterprises establishing on agricultural land/agricultural in high,

medium and low potential zones.

5.3.5 Removal of Milk cess:

To improve the viability of milk processing plants, there will be exemption of milk cess to the

enterprises/FPOs/cooperatives who are involved in secondary and tertiary level milk processing i.e.

high value add processing (e.g. manufacturing of cheese, curd, icecream, yogurt, probiotic etc.). The

exemption is applicablefrom the date of enactment of policy.

Note: The units only involved in primary level processing (e.g. milk chilling plants/units involved in

only liquid milk business) will not be eligible for exemption of milk cess.

5.3.6 Punjab Security of Land Tenures Act, 1953 (Haryana Amendment Bill 2017):

The amendment to Punjab Security of Land Tenures act i.e. Punjab Security of Land Tenures

Act, 1953 (Haryana Amendment Bill 2017) is under the process of approval.

The act is being amended to enable legalized long leasing of land to corporate tenants without

the fear of transfer of ownership rights to the tenants. It will be ensured that farmers/land owners will

not be alienated from their ownership rights.

The amendment will ensure:

The land owner will revert back to the owner on expiry of lease period.

ii.

The lessee will have no tenancy rights upon expiry of lease period.

2016

HARYANA GOVT. GAZ. (EXTRA.), JUNE 4, 2018 (JYST. 14, 1940 SAKA)

5.3.7 Agricultural Marketing Reforms

Market Fee exemption:The state government shall provide 100% exemption of market fees in

respect of procurement of agriculture / horticulture produce used as raw material by food processing

industries within state.Industrial units not eligible for market fee exemption covered under this policy

are given in Annexure1.

Note: Finance Department, Haryana has no objection to the shortfall on the account of 100%

exemption of market fee in respect of procurement of agriculture/ horticulture produce used as raw

material by food processing industry within the state being fully reimbursed to HSAMB (Haryana State

Agriculture and Marketing Board) on actual basis.

5.4

Promoting Human Capital Development in Agro and Food Processing Sector:

5.4.1 Start-up Fund for innovation in Agri-business

To give the agricultural startup a much needed technological boost, Government of Haryana has

decided to fund innovations in the agriculture sector.

In order to fuel the growth of innovative ideas in the agritech sector, State has set aside INR

10 crore fund of Haryana Entrepreneur and Startup policy 2017 for agriculture innovation startups.

The fund will be administered by the Haryana IT department and industries department.Funding shall

be provided in the form of Fund of Fundand maximum funding of up to INR 25 lacs shall be provided

to each selected startup under this provision.

State will also connect startups with investors and provide incubation facility to select startups

at NIFTEM and incubation centers at other places.

5.4.2 Incubation centers

To promote entrepreneurship in the food processing sector, the state government envisages

setting up incubation centers in the state.

The state shall collaborate with NIFTEM (National Institute of Food Technology

Entrepreneurship and Management) for utilization of incubation facilities by food processing

enterprises. With NIFTEM facilitation. Government of Haryana shall target 10 business ideas to be

incubated per year including startups formed in agrispace.

The government shall also be utilizing MSME ASPIRE scheme (Scheme for Innovation,

Entrepreneurship and AgroIndustry) to build the Livelihood Business Incubators at district level.

5.4.3 Support for Skill development

To address the shortfall of skilled manpower in the Food processing sector, the state

government shall provide assistance to Agro and Food Processing units/Farmers/FPOs by

reimbursing 50% of the total cost of the training limited to INR 5,000 per trainee on

obtaining industry recognized skill certifications from recognized institutions. The state

government shall specially collaborate with the central institutes, NIFTEM Sonipat for

assistance under this skill training initiative.

ii.

The state government shall also collaborate with newly established Haryana

Vishwakarma skill university at Palwal for providing skill training in food processing

sector especially farm skill training. Skill training would be provided to farmers and rural

youth on grading and sorting techniques, food Safety and hygiene in all food business

etc.

iii.

Universities in the state will be encouraged to commence courses in food packaging, food

testing & quality, procurement, food processing and allied fields.

HARYANA GOVT. GAZ. (EXTRA.), JUNE 4, 2018 (JYST. 14, 1940 SAKA)

2017

Annexures

Annexure-1: Industrial units not eligible for benefits covered under this policy including market fee exemption

given as:

Extraction of oil from different kind of seeds

ii.

Shelling, grading and polishing etc. of rice

iii.

Primary Processing of millets

iv.

All kinds of pulses/dals

Guar and Guargram units

vi.

Manufacturing of flour, suji, and maida etc.

Annexure-2: Facilities identified for assistance under integrated cold chain, preservation and value addition

infrastructure

Integrated Packhouse (washing, electronic and mechanized sorting & grading line/packaging line/

waxing line/ staging cold rooms, etc.)

ii.

Ripening Chamber(s)

iii.

Cold Storage Unit(s)

iv.

Controlled Atmosphere (CA) storage

Frozen Storage/Deep freezers

vi.

IQF line, Tunnel Freezer, Spiral Freezer, Blast Freezer, Plate Freezer

vii.

Vacuum Freeze Drying

viii.

Milk Chilling / Bulk Milk Cooling/ Milk Processing Unit

ix.

Poultry/Meat/Fishery Processing Unit

Packaging line for chilled /frozen/temperature controlled products

xi.

Food Irradiation unit

xii.

Refrigerated/ Insulated transport

xiii.

Pre Cooling Unit(s)

xiv.

Mobile precoolers

xv.

Retail refrigerated carts, temperature controlled solar powered retail carts (maximum 10 numbers to be

assisted per project)

xvi.

Reefer boats (maximum 10 numbers to be assisted per project)

xvii. Refrigerated Containers including multimodal container units

xviii. Modified Atmospheric Packaging (MAP)

xix.

Renewable/ alternate energy technologies (solar, biomass, wind etc.) for the project.

xx.

Accessories/support infrastructure/ utilities such as fixed racking system in Cold/CA storage, fork lifts, reach

trucks, bins, insulated fish boxes, pallets, dock levelers, mezzanine flooring, ETP, boiler, CIP unit, Depodder,

Peeler, Slicer/Dicer, Blancher, sorting/grading line, etc.

xxi.

Inhouse product testing laboratory

xxii. Any other modern technology for temperature controlled storage, processing, value addition and preservation

infrastructure etc.

Annexure-3 Facilities identified for assistance for Backward and Forward Linkages Backward Linkages:

Minimum Processing Facilities for perishable agrihorti produce at the farm level which may include facilities

for weighing, cleaning, sorting, grading, packing, pre cooling, Controlled Atmosphere (CA)/ Modified

Atmosphere (MA), Cold Storage, Dry Warehouses and IQF as :

2018

HARYANA GOVT. GAZ. (EXTRA.), JUNE 4, 2018 (JYST. 14, 1940 SAKA)



Integrated Packhouse(s) (washing, electronic and mechanized sorting, grading line/ packaging line/

waxing line/ staging cold rooms/cold storage, etc.)



Milk Chilling Centre(s) /Bulk Milk Cooler(s)



Pre Cooling Unit(s)/ Chillers



Machinery & equipment for minimal processing and/or value addition such as cutting, dicing, slicing,

pickling, drying, pulping, canning, waxing, etc.



Machinery & equipment for packing/ packaging.

Forward Linkages

Distribution hub and retail outlets for perishable agrihorti produce

ii.

Retail chain of outlets including facilities such as frozen storage/ deep freezers/ refrigerated display

cabinets/cold room/ chillers/ packing/ packaging, etc.

iii.

Distribution center associated with the retail chain of outlets with facilities like cold room/ cold storage/

ripening chamber

Transport

Refrigerated/ Insulated transport / Reefer Vans in conjunction with backward and forward linkages.

Note: The facilities mentioned above are illustrative only. The exact nature of infrastructure will be decided on the

basis of surplus agriculture I horticulture produce in the catchment area of the project.

56322—C.S.—H.G.P., Chd.