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Haryana Government Gazette

EXTRAORDINARY

Published by Authority

No. 204–2019/Ext.] CHANDIGARH, TUESDAY, DECEMBER 3, 2019 (AGRAHAYANA 12, 1941 SAKA)

HARYANA GOVERNMENT

INDUSTRIES AND COMMERCE DEPARTMENT

Notification

The 3rd December, 2019

No.25/04/2019-4IB-I.— In pursuance to the Haryana Pharmaceutical Policy 2019 notified vide

No. 25/04/2019-4IB-I dated 06.03.2019, the Governor of Haryana is pleased to notify the Capital Investment

Subsidy Schemes for the units to be set up in Pharma Park at Karnal, covered under the Haryana Pharmaceutical

Policy 2019 as per the details given below:-

Introduction

The State Government is proactively involved in promoting and boosting the Pharmaceutical sector in

Haryana. Haryana is strategically located, characterised by its geographical confluence with economic

corridors and its close proximity to the National Capital Region. Further, several key initiatives have also

been taken by the State Government in developing enabling industrial infrastructure to support new

entrepreneurs. Through its Enterprise Promotion Policy 2015, the State Government lists the Pharmaceutical

sector as one of the focus sectors for development. Given its strong locational advantage, robust industrial

infrastructure and lucrative policies, Haryana is an ideal destination for new businesses to flourish.

Objective of the scheme

The Government of Haryana envisages to transform Haryana in to a hub for the Pharmaceutical industry to

do business and thrive; by facilitating a conducive and holistic industrial ecosystem comprising robust

infrastructure, financial assistance and a simplified regulatory regime. The primary objectives of the Haryana

Pharmaceutical Policy 2019 are to attract investments in the Pharma sector in Haryana to the tune of

Rs. 2000 Crores, generate 25,000 new jobs in the Pharmaceutical sector, successfully establish a state-of-the-

art Pharma Park at Karnal and develop Haryana into a hub for pharmaceutical manufacturing by facilitating

and creating a holistic industry, academia and R & D ecosystem.

Eligibility Criteria:

(a)

In addition to incentives offered under the Haryana Enterprises Promotion Policy 2015, all new units

to be set up in the Pharma Park in the State will be eligible for the incentive.

(b)

Enterprises which will commence commercial production/ operations post the date of notification of

the Haryana Pharmaceutical Policy 2019 will be eligible for availing of incentives under this Policy.

(c)

The Enterprise should have filed Udyog Aadhaar Memorandum (UAM)/ Industrial Entrepreneurs

Memorandum (IEM).

(d)

The Enterprise should be in regular operations at the time of disbursement and the subsidy shall not be

released to the closed Enterprise.

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HARYANA GOVT. GAZ. (EXTRA.), DEC. 3, 2019 (AGHN. 12, 1941 SAKA)

(e)

The Enterprise should have obtained NOC/CLU from competent Authority, if applicable.

(f)

The Enterprise will obtain the applicable approval/consent as per the guidelines of the State Pollution

Control Board.

Commencement and Applicability:

These schemes are applicable w.e.f. the notification of the Haryana Pharmaceutical Policy 2019

i.e. 06.03.2019 and will remain in force for a period of 5 years or till the time any new policy/amendment is

introduced by the Government, whichever is earlier.

Submission and processing of Applications:

The applicant shall apply online on the portal of Industries & Commerce Department. The application shall

be examined and processed by the Department.

Sanctioning Authority:

The Director, Department of Industries & Commerce, Haryana, shall be competent authority for approval and

sanction of these incentives.

Time limit to apply:

The applicant shall apply within 03 months from the date of start of commercial production.

Timelines for processing of applications (working days):

Time limit for approval in case where no deficiency is found – 30 days.

Time limit for approval in case where additional information is required – 45 days.

Time limit for conveying the deficiencies, if any and removal thereof:

(i)

Joint Director/Deputy Director, District Industries Centres shall convey the deficiencies to the

applicant unit – 10 days.

(ii)

Time limit for removal of all deficiencies to the applicant unit – 15 days.

(iii)

Notice period to the applicant unit before rejection of application – 07 days.

Interpretation of Rules:

Administrative Secretary, Department of Industries & Commerce shall be competent to make interpretation

of provisions of these schemes.

Appeals:

Appeal against orders passed by the Competent Authority shall lie with Administrative Secretary,

Department of Industries & Commerce within a period of 30 days from the date of communication of orders

appealed against. The order passed by the Administrative Secretary in appeal shall be final.

Penal Action:

In case, it is found at any stage that the applicant has claimed the assistance on the basis of wrong facts, the

applicant shall besides refunding assistance with compound rate of interest @ 12% per annum and facing

legal action, be debarred from grant of any incentive/assistance from the State Government.

Power to condone the delay:

(i)

The power to condone the delay upto a period of 03 months after the prescribed time limit shall lie

with the Director, Industries & Commerce Department.

Provided that the competent authority is satisfied with the reasons of late submission of the

application on the basis of the substantial evidence/ documents/arguments presented by the applicant.

The claim application so filed may be reopened with the orders of Administrative Secretary Industries &

Commerce provided request for the same is received within a period of 30 days from the date of rejection of

the claim by the designated Competent Authority.

In case it is found that the basic character/nature of industry, to which the units setting up in an earmarked

facility (Park, Cluster etc.), is changed, all the incentives granted by the State Government shall be recalled.

The Government of India is in the process of formulating a comprehensive policy concerning Bulk Drug

manufacturing. In this light, provisions pertaining to the promotion of Bulk Drug manufacturing will be

introduced after the launch of the aforementioned Policy by Government of India.

HARYANA GOVT. GAZ. (EXTRA.), DEC. 3, 2019 (AGHN. 12, 1941 SAKA)

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The Administrative Department (Industries & Commerce) would ensure that for all fiscal support pertaining to

infrastructure creation, the guidelines of Government of India will be followed.

Capital Subsidy:

1.1

Quantum of Assistance

25% of cost of plant and machinery and technical civil works subject to a maximum of Rs. 50.00 lakh.

1.2

Applicability

The Scheme shall commence with effect from the issue of notification of the Pharmaceutical policy,

and will be applicable throughout the State, for 5 years or till the time Government decide otherwise.

1.3

Procedure, Time Limit, Interpretation/Clarification, Appeal & Penal Action

1.3.1 All the eligible Enterprises shall apply on the portal of the department in the prescribed

application form (Annexure-I) available on portal along with attachments within three months

from the date of start of commercial production/operations. The copy of following documents

shall be required to be enclosed/ uploaded on-line, duly signed by the lead promoter/ authorized

signatory with the application form:

Detailed Project Report (DPR) in the prescribed template as at Annexure-II.

ii.

CA/Statutory Auditor certificate as per Annexure-III for the proposed project cost and

means of finance.

iii.

The proposed component wise cost breakup of technical and other civil work by the

Chartered Engineer (Civil) as per Annexure-IV.

iv.

The proposed component wise cost breakup of Plant & Machinery by the Chartered

Engineer (Mechanical) as per Annexure-V.

In-principle or Final term loan sanction from the Bank/ Financial Institution for availing

term loan for an amount not less than 20% of the project cost.

vi.

Valid manufacturing licence from the State Drug Controller Haryana.

vii.

A detailed appraisal note from the lending Bank / Financial Institution.

viii.

Certificate of incorporation/ registration of the applicant firm, Memorandum and Articles

of Association in case of Company/ Bye laws of the Society, Co-operative, Self Help

Group/ Registered partnership deed, etc.

ix.

Copy of conveyance deed of the land.

Certificate from lending Bank/ FI that the unit has not commenced commercial

operations as on the date of application for grant-in-aid or the date of bank certificate,

whichever is later. Also stating that the applicant has not defaulted in its term loan

repayments and the project has not been classified as Non- Performing Asset.

xi.

Mandate form as per Annexure-VI in respect of the applicant firm.

xii.

Self-attested copy of a PAN card of applicant firm.

DEVENDER SINGH,

Additional Chief Secretary to Government of Haryana,

Industries and Commerce Department.

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Declaration

Undertaking/Declaration (to be submitted on non-judicial stamp paper of Rs. 50/-(Min) duly sworn before a

Notary Public (duly affixed with Notarial Stamp; and with Notary Seal & Notary Registration Number) or First Class

Magistrate):

I / We, _____________do hereby solemnly state that I am proprietor/ partner/ director/_______________of

M/s____________________Located ___________________which is engaged in the manufacture of______________

(if applicable) and I have been authorized to file the Capital Subsidy Refund claim with the Department of Industries

& Commerce, Haryana.

I / We hereby confirm that all requisite clearances / approvals / NOCs for running the industry have been

obtained and that failure to comply with the requisite clearances / approvals / NOCs shall may make us liable for

legal action as specified under the respective Acts / Codes and Rules including withdrawal of incentives.

I / We do hereby affirm that the particulars given in the application are correct. In case any of the statement/

information furnished in the application/ documents later found to be wrong or incorrect or misleading, I do hereby

undertake to Refund the entire amount of assistance under the head of Capital Subsidy of Rs.______________

(Rupee______________) granted to me at the compound rate of interest @12% per annum, besides facing legal

action in case facts contained in this application are proved to be wrong at the time of verification/ checking or

otherwise at any stage. I, also further undertake to refund the entire amount of Capital Subsidy availed till date, in

case the enterprise closed its industrial activity before 10 years from the date of commencement of production/

operations.

Dated:

Signature of the applicant(s)

(With seal)

HARYANA GOVT. GAZ. (EXTRA.), DEC. 3, 2019 (AGHN. 12, 1941 SAKA)

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Annexure-I

Application form to avail Capital Subsidy incentive under the Pharmaceutical Policy

Name of the applicant (Authorized person of the

unit)

Aadhaar Number

Name and Address of the enterprise/developer

Complete address of the enterprise

Correspondence address

E-Mail address of the enterprise

Contact Number of the enterprise

Constitution of the Unit [Proprietary, Partnership,

Pvt. Ltd., Public Ltd., LLP (Limited Liability

Partnership)]

Total FCI (Land, Building, Plant/Machinery)

Eligible FCI (Building, Plant/Machinery)

Item

Value

Building

Plant/Machinery

Date of Commencement of production/ operations

IEM/EM-II/UAM No. and date

Aadhar number of sole proprietor/ partners/

Directors of the enterprise

Name of the Bank and Account number along

with IFSC/RTGS code.

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HARYANA GOVT. GAZ. (EXTRA.), DEC. 3, 2019 (AGHN. 12, 1941 SAKA)

Annexure – II

Template of DPR

Name of the applicant/ company / firm with details of registration no. of company / firm along with names of

the directors/promoters in the prescribed format:

S. No.

Particulars

Details

Name of Applicant

ii.

Legal Status of Applicant (Company/ partnership firm/

proprietorship etc.)

iii.

Registration No. of Applicant/CIN

iv.

PAN of Applicant

Contact details of the Promoter(s)/Partner(s) including addresses, telephone, mobile, fax, e-mail, website, PAN

etc.

S. No. Name of Promoter(s)/

Partner(s)

Address

Tel. No.

Mobile No. E-mail Id PAN No.

Any other

details

Please add additional rows, if needed.

Experience of the lead Promoter(s)/Partner(s)/ Applicant Entity in Pharmaceuticals (Pl. enclose documentary

evidence regarding experience and turnover)

S. No.

Name of lead Promoter(s)/

Partner(s)/ Applicant Entity

Details of Experience Details of

Turnover

(year-wise)

Supporting Document

attached, If any

(Yes/No)

4. Project Details:

Components under the scheme as applicable to the project:

S. No.

Components

Numbers Proposed

Formulation manufacturing

ii.

API manufacturing

Sector of Project (Formulation manufacturing/API manufacturing): …………………………

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Land Details.

(i)

Proposed Locations of Land for all project facilities and status of their acquisition along with

longitude & latitude coordinates

Location of Land

Facility (Formulation

manufacturing unit/API

manufacturing unit)

Area (Sqm)

Connectivity Details. Distance

(in kms.) from:

a. National Highway

b. State Highway

c. Freight corridor

d. Golden Quadrilateral

Distance from Catchment Area

(kms.)

Coordinate Details (Longitude

& Latitude)

Ref. Pg. no. in DPR*

Land 1

Land 2

DPR should have a detailed chapter on proposed land, raw material production and supply statics

for the catchment area.

Proposed facilities

S. No. Type of facilities

proposed to be

created

No. of Units

Total Capacity

(wherever

applicable)

Location

No. of Days of

operation of each

facility in a year

Formulations

APIs

Proposed Project Financials

Estimated Project cost details

Item

Amount (In Rs. Lakh)

Land

Site Development

Technical Civil Work (TCW)*

Other Civil Works

Plant & Machinery (P&M)**

Common Utilities like Water/ETP/ STP, etc.***

Pre-operative Expenses

Interest During Construction

Margin Money for Working Capital

Contingencies

Add other items not listed above

Total Project Cost

The component wise cost breakup of technical and other civil work should be provided in

the Chartered Engineer (Civil) certificate in the prescribed format as enclosed as

Annexure-IV.

The component wise cost breakup of P&M should be provided in the Chartered Engineer

(Mechanical) certificate in the prescribed format as enclosed as Annexure-V.

***

The cost of common utilities may be provided in Chartered Engineer (civil) and Chartered

Engineer (Mechanical) certificate where ever applicable.

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Means of finance

Item

Amount (In Rs. lakh)

Promoter’s Equity

Term loan

Eligible grant

Unsecured loan

Total

Basic Revenue Projections

Item

Year 1

Year 2

Year 3

Year 4

Year 5

Turnover

Cost of Operations

Gross Profit

Earnings Before Interest,

Tax, Depreciation and

Amortization (EBITDA)

Profit before taxation

Profit after taxation

Financial Parameters (as per Bank Appraisal Note)

S. No.

Particulars

Details (Ratio/%)

Ref. Page No. in DPR*

Internal Rate of Return (IRR) [(a) With

and (b) without grant]

ii.

Avg. Debt Service Coverage Ratio

(DSCR)

iii.

Break Even Point (BEP)

iv.

Debt-Equity Ratio

Rate of interest (RoI)

To be provided for section under the bank appraisal note highlighting the aforementioned detail.

Availability of Raw Material in the Catchment Area - provide details such as Adequate Volume, Wider Mix of

Raw Materials, Days of Operation in a Year along with supporting data.

Details of the catchment area of the project.

S. No. Location of the

Catchment (Primary/

Secondary)

Name Village/ Distt./

APMC

Commodities to

be sourced

Quantities to

be sourced

(per annum)

Ref. Pg. No. in

DPR*

DPR should comprise of detailed chapter on proposed catchment (production and supply statistics).

10.

Employment Generation projections

Direct Employment: …………………

Contractual Employment with no. of days: …………………

Indirect Employment (specify): …………………

11.

Details of renewable/ alternate energy sources including solar energy, if any, proposed to be used for operating

the project including inter alia, details of power generation.

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12.

Details of adoption of modern technology for reducing the carbon footprints and increasing operational

efficiency: -

Sl. No. Name of

technology/ item

Basic cost (excluding

taxes etc.)

How the technology will help in reducing carbon

footprint and/or increase in operational efficiency

13.

List of Manufacturers/ Suppliers of P&M (enclose quotations)

Date: ________________________

Signature of the Applicant/Lead Promote

Place: _______________________

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HARYANA GOVT. GAZ. (EXTRA.), DEC. 3, 2019 (AGHN. 12, 1941 SAKA)

Annexure-III

Certificate from Chartered Accountant (With membership No. and firm registration No. of CA)

regarding New Fixed Capital Investment

(on a CA letter head)

To whom it may concern

The records of M/s ............................................. with their regd. Office at ……..................... and factory

located at .............................. in respect of investment in new Fixed Capital Investment (original purchase value) of

the company has been verified in accordance with criteria mentioned in the scheme. It is certified that the investment

in new Fixed Capital Investment as on date of commencement of production/operations............ stands as

Rs................... as per detail given below:

Project Cost:

Sl. No. Name of the Component/Item

Amount (Rs. in lakh)

Land/development charges

Civil works



Technical civil works



Other civil works

Plant & Machinery

Misc. Fixed Assets

Others

TOTAL

ii.

Means of Finance:

Sl. No.

Item

Amount (Rs. in lakh)

Promoter’s Equity

Term Loan

Grant from Industries Department Haryana

Unsecured loan*

Others

* Details of unsecured loans along with PAN No. of lenders, if any, duly certified by CA.

I/We fully understand that any submission made in this certificate if proved incorrect or false,

will render me/us liable to face any penal action or other consequences as may be prescribed in the law

or otherwise warranted.

Signature and Seal of C.A. (Statutory Auditor

in case of company)

Counter signature of promoter/ authorized signatory of company with Seal

HARYANA GOVT. GAZ. (EXTRA.), DEC. 3, 2019 (AGHN. 12, 1941 SAKA)

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Annexure-IV

CE Certificate (Civil) Format for Technical Civil Work: (Letter Head of the CE) CE certificate (With

membership/registration No. of CE) in the following format:

Date:

Name of Project:

Location with address:

Date of site Visit by Chartered Engineer:

Project Progress: (If project has multiple locations, the location wise details should be submitted in below

format for each location)

Sl. No.

Name of

Component

Proposed Area/ Existing Area

(in case of expansion) (sq.m.)

Proposed Cost

(Lakh Rs.)

Rate/ Unit(Rs./ Sqm.)

Total

Signature and Seal of C.E.

Counter signature of promoter/ authorized signatory of company with Seal

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Annexure-V

CE Certificate (Mechanical) Format for Plant & Machinery: (Letter Head of the CE) CE Certificate (With

membership/registration No. of CE) in the following format:-

Date:

Name of project:

Location with address:

Date of Visit by Chartered Engineer:

Project Progress (If project has multiple locations, the location wise details should be submitted in below

format for each location)

S. No.

Name of Component Proposed/ Existing

(in case of expansion

projects) Quantity

Proposed Cost

(Lakh Rs.)

Supplier/ Manufacturer

(Supported by quotations)

Basic Cost

Taxes, Freight,

installation,

insurance

Component -1

Component -2

Component -3

TOTAL

Signature and Seal of C.E.

Counter signature of promoter/ authorized signatory of company with Seal

HARYANA GOVT. GAZ. (EXTRA.), DEC. 3, 2019 (AGHN. 12, 1941 SAKA)

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Annexure-VI

UNDERTAKING

I ………. (Name of the Lead Promoter/ Lead Partner/ Proprietor etc.) son of Mr……………… (father’s name)

resident of ……………… (residential address) do hereby solemnly affirm and declare/undertake as under:

That I am promoter/ director/ partner/ proprietor of M/s………………… (name of applicant) having

its Registration no. …………………and Registered Office at ………………………………. (office

address of applicant).

I hereby make application and I am duly authorized in my own right/by management vide its resolution

no. ……………dated…………to apply and sign all required documents including this undertaking

on behalf of company/partnership firm etc. named as ………………; and am fully aware of the

facts relating to the setting up of pharmaceutical project at

Survey/

Plot

No.

……….…...……,

Village …………, Tehsil ………………, District …………, State …………, PIN code ..………..

(location of the main facility) for……………… (activities to be undertaken by project) and application

is being made to the Directorate of Industries department, Haryana under the Scheme for Capital

Subsidy for Pharma units setting up in Pharma Parks in Haryana.

That the term and conditions of the above scheme of the State Government under which an application

is made by the applicant have been properly read and understood by me and I affirm that the project/

proposal comply with all the terms and conditions of the approval letter and provisions enshrined in the

scheme guidelines.

That the proposed activities to be undertaken by the project/proposal are covered under the above

scheme of State Government and no part of the scheme/infrastructure of the project is designed or

assigned to be used for any activity other than the activities specified in the application at present or in

the near future.

It is certified that …………….. (name of applicant) has not obtained or applied for grants for the same

project, component, purpose or activity from any other Ministry or Department of the Government of

India or State Government or their agencies.

It is certified that applicant’s sister concern (s)/ related company / group company/firms as well as the

applicant itself has not availed any financial assistance for a pharmaceutical project in the past from

State Government/Ministry of Chemicals & Fertilizers [if availed, the details shall be furnished

separately].

I also solemnly affirm/undertake that the proposed project components in the application are a

completely new activity and not a pre-existing activity or any component thereof.

In case of concealment of any facts in this regard, the State Government would have right to reject/

cancel my application/project out right at any stage.

I will meet any shortfall in means of finance due to less admissibility of grant or any future reduction

in grant-in-aid or any escalation caused in the cost of the project.

10.

I shall not dispose-off or encumber or utilize the assets created wholly or substantially out of

government grant for purpose other than those for which they have been sanctioned, without obtaining

the prior approval of the sanctioning authority of grant-in- aid.

11.

In case of non-implementation/ delayed implementation of the project the Directorate of Industries

department, Haryana will have absolute right in cancelling the approval granted and also recall the

grant released, if any, along with interest as per the scheme guidelines.

12.

In case of failure to operate the project for at least three years after commencement of commercial

operation, I shall return the entire grant-in-aid with interest @ 12% per annum.

13.

User charges/hiring rates of the facilities created under the project will be disseminated to the public

including uploading of the same on the website of the project/ organization. A copy of the same will

also be made available to the Ministry.