Capital Investment Subsidy for Textile Units

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EXTRAORDINARY

Published by Authority

© Govt. of Haryana

No. 119-2023/Ext.] CHANDIGARH, THURSDAY, JULY 6, 2023 (ASADHA 15, 1945 SAKA)

HARYANA GOVERNMENT

INDUSTRIES & COMMERCE DEPARTMENT

DIRECTORATE OF MICRO, SMALL & MEDIUM ENTERPRISES

Notification

The 6th July, 2023

No. 12/03/2022-1IB-II.— In pursuance to the Haryana AatmaNirbhar Textile Policy 2022-25 notified in Gazette vide No. 12/03/2022-1IB-IIdated 19.12.2022, the Governor of Haryana is pleased to notify "Capital Investment Subsidy for Textile Units". The Scheme will consist of following provisions:

1. Objective

The main objective of the scheme is to attract investments and generate employment in the State's textile sector across its value chain. Through this scheme, the Government will provide financial assistance for creating best-in-class manufacturing infrastructure, upgradation of technology, promotion oftextile products across value chain particularly technical textiles and manmade fibres, backward integration, increase in exports thereby resulting in overall development of the textile sector in the state.

2. Quantum of Assistance

2.1 Assistance for Textile Units

I. For all Categories of Textile Enterprises: Capital investment subsidy @30% of eligible capital investment, maximum up to INR 2.5 Crore in 'B' category blocks and 35% of eligible capital investment, maximum up to INR 3.5 Crore in 'C' & 'D' category blocks for new/ expansion/ diversification/ modernization projects.

II. For Technical Textile Units/ Import Substitution/ Backward Integration: Capital investment subsidy @30% of eligible capital investment, maximum up to INR 3.5 Crore in 'B' category blocks and 35% of eligible capital investment, maximum up to INR 5 Crore in 'C' & 'D' category blocks for new/ expansion/ diversification/modernization projects.

III. For Textile units engaged in Open End Spinning and Waste to Fibre: Capital investment subsidy @35% of eligible capital investment, maximum up to INR 4 Crore in 'B', 'C', and 'D' category blocks for new/ expansion/ diversification/ modernization projects.

(1700)HARYANA GOVT. GAZ. (EXTRA.), JULY 6, 2023 (ASAR. 15, 1945 SAKA) 1701 IV. For Textile Machine Manufacturing Units: Capital investment subsidy @ 25% of eligible capital investment, maximum up to INR 2 Crore in 'B', 'C' and 'D' category blocks for new/ expansion/ diversification/ modernization projects.

(Maximum 84 projects shall be provided grant to avail the benefits under the incentives mentioned at clause 6.1 of this scheme during the policy period)

(All new textile units coming up inside the Integrated Manufacturing Cluster (IMC), Hisar will get benefits of 'C' category block.)

(Note: 5% extra incentive will be provided to Women/SC led enterprises/ enterprises coming up in textile related cluster in respective PADMA block. The incentive amount will be capped as mentioned in clause 2.1 of this scheme.)

2.2 Assistance for Anchor Units

Capital investment subsidy @20% of eligible capital investment, maximum up to INR 50 Crore in 'B' category blocks, @25% of eligible capital investment up to a maximum of INR 100 Crore in 'C' category blocks and @35% of eligible capital investment, up to a maximum of INR 150 Crore in 'D' category blocks.

This incentive shall be applicable for new/ diversification projects across all categories of textile enterprises including backward integration and production of raw material leading to import substitution. (as per textile products mentioned in HEEP 2020 import substitution list). (State Level Steering Committee for Textiles will be final authority to decide on the eligibility of the project for the purpose of diversification)

(Maximum 2 projects shall be provided grant to avail the benefits under the incentives mentioned at clause 6.2 of this scheme during the policy period)

3. Definitions

(i) Fixed Capital Investment: Means value of investment made in plant & machinery, civil works such as factory sheds and buildings, Laboratories for research and quality testing, laboratory equipment, utilities for power, fuel and water supply and other misc. fixed assets before a unit commences expansion/diversification/modernization.

(Excluded Items: Cost of Land, Land Development, Pre-operative & preliminary expenditure, Working Capital, Interest during Construction and general civil works such as roads, drains, office infrastructure, etc.)

(ii) Existing Enterprise: Any project existing and in operation prior to notification of this policy and any project undertaking expansion/diversification/modernization during the operative period of the policy.

(iii) New Industrial Enterprise: New industrial enterprise means an enterprise established and commencing commercial production during the operative period of this policy. The existing enterprise undertaking expansion/diversification at different location shall also be considered as New Industrial Enterprise.

(iv) Expansion/ Diversification/ Modernization: Existing enterprise taking up expansion and/or diversification with or without forward/backward integration, with investment more than 25% of itsexisting gross fixed capital investment, as on date of initiating expansion/ diversification and commencing production of said expansion/ diversification during the operative period of the policy shall be treated as expansion/ diversification. The expansion should be completed within 18 months of its initiation.

(v) Micro Enterprise: Investment in Plant and Machinery or Equipment does not exceed INR 1 Crore and turnover does not exceed INR 5 Crore as amended under the MSMED Act, 2006 or as amended by GoI from time to time.

(vi) Small Enterprise: Investment in Plant and Machinery or Equipment does not exceed INR 10 Crore and turnover does not exceed INR 50 Crore as amended under the MSMED Act, 2006 or as amended by GoI from time to time.

(vii) Medium Enterprise: Investment in Plant and Machinery or Equipment does not exceed INR 50 Crore and turnover does not exceed INR 250 Crore as amended under the MSMED Act, 2006 or as amended by GoI from time to time.

(viii) Large Enterprise: Investment in Plant and Machinery greater than INR 50 Crore and turnover greater than INR 250 Crore (over and above the of limit of medium units defined under the MSMED Act, 2006 or as amended by GoI from time to time).

(ix) Anchor Unit: An enterprise with Fixed Capital Investment (FCI) or employment as defined in table below with at least 75% of the total unskilled employment to people of Haryana and at least 30% of overall employment to people of Haryana or as notified by the State Government from time to time.

(x) Textile Sector/Textile Enterprises: The term 'Textile sector/Textile enterprises' shall include all units which are engaged in various value chain activities of the industry such as Ginning & Pressing, Spinning, Recycled PSF manufacturing, Weaving, Tufting, Dyeing & Processing, Technical textiles (including non-woven), Knitting, Garment/Made-ups/Apparels, Machine Carpeting, Extruding, Machine Embroidery and any other activities/process like crimping, texturizing, twisting, winding, sizing etc. and Textile machine manufacturing.

(xi) Technical Textiles: Technical textiles, for the purpose of this policy, are defined as textile materials and products used primarily for their technical performance and functional properties rather than for aesthetics or decorative characteristics, where function is the primary criterion. Depending on the product characteristics, functional requirements and end-use applications, the highly diversified range of technical textiles has been grouped into 12 sector application wise:

(a) Agriculture, Horticulture, Fisheries, and Forestry Textiles (Agrotech): Agrotech Segment includes textile products used in agriculture, horticulture (including floriculture), fisheries, animal husbandry, forestry and other allied activities.

(b) Architectural and Constructional Textiles (Buildtech):Buildtech consists of those textile products which have application in building and construction industry.

(c) Clothing Textiles (Clothtech):Clothtech segment comprises textile material and products manufactured to fulfil functional requirements of clothing, garments, and footwear industry.

(d) Geotextiles (Geotech): These materials are permeable and have been designed for uses such as soil reinforcement, separation, filtration, drainage, and erosion control. Products in Geotech segment are used in nonwoven, woven and knitted forms in roads, railway tracks, embankments, waterworks etc.

(e) Household Textiles (Hometech): Technical components of furniture, household textiles, and floor coverings, etc., are categorised as Hometech.

(f) Industrial textiles (Indutech): Textile products which are designed for filtration, conveying, purification of products and other industrial uses are classified under Indutech segment.

(g) Medical and Hygiene Textiles (Meditech): Meditech segment consists of textile material used for healthcare and hygiene applications.

(h) Transportation Textiles (Mobiltech):Mobiltech segment includes textile products that are used for applications in automotive components of terrestrial vehicles of various kinds, railways, airplanes, boats and ships, satellites, and space crafts.

(i) Environment Protection Textiles (Oekotech): Textile products that are used for applications related to environmental protection are categorised as Oekotech products. Oekotechproducts are used in erosion control, air and water purification, waste recycling and treatment.

(j) Packaging Textiles (Packtech): This segment consists of products manufactured for applications in packaging of industrial products and food products.

(k) Protection and Safety Textiles (Protech): Products of Protech segment are used for their functional performance in the areas of protection of personnel and physical assets. The main user groups are those associated with external security duties (defence), fire control services, police, paramilitary forces as well as residential and industrial security.

(l) Sport and Recreation Textiles (Sportech): High-performance textile materials used for sportswear and sports equipment are covered under this category.

(m) Any other product as notified by Ministry of Textiles, Government of India from time to time.

Note: Detailed list of products under each sector group of technical textiles as notified by Govt. of India are provided in the Annexure – B of the Haryana AatmaNirbhar Textile policy 2022-25.

(xii) Backward Integration: Backward integration include but not limited to production of yarns like Low Melt Polyester Yarn, Low Melt Nylon Yarn, Waterless Dyed Nylon High Tenacity Yarn, Waterless Dyed Polyester High Tenacity Yarn, Reflector Twisted Yarns, Waterproof Yarns for safety and footwear industry, Aramid Yarns for Defence Industry, Belting Narrow Weaving Fabrics, Textured Yarn for Airbag Industry, Textured Yarn for Cleaning Mob Industry, Mob Assembly for Hygiene Industry, Fabrics for technical textile industries, etc.

(xiii) Women/SC Led Enterprises:The definition of Women/SC Led Enterprises is as under:

(a) In case of proprietorship firm, the proprietor shall be Women/SC

(b) In case of partnership firm, the Women/SC partners shall be holding at least 51% stake in the enterprise

(c) In case of private limited companies/LLP, at least 51% stake shall be held by Women/SC Promoters

(xiv) PADMA Textile Cluster:Any cluster having textile product as category approved under PADMA scheme as notified by Government of Haryana.

4. Commencement and Applicability

The Scheme shall commence with effect from 19.12.2022 for providing capital investment subsidy and shall remain in operation for a period of 3 years.The applicants shall apply on the prescribed performa (Annexure– 1) alongwith complete documents before coming into the commencement of production.The other applicants eligible under the scheme and coming into production between 19.12.2022 and date of notification of the schemecan also apply to the Office ofDirectorate of MSME within 3 months of the notificationof the scheme.

5. Eligible Textile Units and Facilities under this Scheme

Eligible units and facilities under the scheme will be all units which are engaged in various manufacturing value chain activities of the textile industry such as

 Ginning & Pressing, Spinning

 Recycled PSF manufacturing

 Weaving, Tufting, Dyeing & Processing

 Technical textiles (including non-woven)

 Knitting, Garment/ Made ups/ Apparels

 Machine Carpeting

 Extruding, Machine Embroidery and any other activities/process like crimping, texturizing, twisting, winding, sizing etc.

 Backward Integration

 Textile machinery manufacturing units.

6. Eligible Organizations/Entities

Organizations such as Partnership/ Proprietorship Firms, Companies, Limited Liability Partnership, Corporations, Cooperatives, Self Help Groups (SHGs), NGOs, etc.

7. Eligible Capital Investment for Grant calculation

All technical civil work and all plant & machinery (new or pre-owned/ refurbished/ reconditioned which is directly related to proposed project) shall be eligible for assistance for the new/expansion/diversification unit except ineligible items as follows:

7.1 Ineligible list for Civil Works:

 Compound Wall

 Approach Road

 Cost of Land and site development

 Administrative Office Building

 Canteen

 Security/ Guard Room or enclosure

 Labour Quarters for workers shall be ineligible, however Labour rest room shall be eligible for assistance

 Consultancy fee, insurance etc.

 Any other non-technical civil work which is not related to processing facility of the unit  Any other item as decided by the State Level Steering Committee for Textile (SLSC-Textile).

7.2 Ineligible list for Plant & Machinery:

 Fuel, consumables, spares and stores

 Computers and allied office furniture

 Transport vehicles

 All types of service charges etc.

 Closed Circuit TV Camera and security system related equipment

 Stationery items

 Plant & machinery not directly related to the proposed project shall be ineligible for assistance.

 Any other item as decided by the State Level Steering Committee for Textile (SLSC-Textile).

8. Basic Eligibility Criteria

8.1 For Textile Units:

(i) The Proposals for the project should be duly appraised by the Bank/ Financial Institutions. The promoter needs to bring in term loan from the Bank/Financial Institution for an amount not less than 10% of the project cost.

(ii) The promoter's own contribution in the form of equity capital/ quasi capital on the project should not be less than 20% of the total project cost.

(iii) The land for the project shall be arranged by the promoter either by purchase or on registered lease deed of at least 15 years.

(iv) The appraisal report should contain the project components for which grant is sought under the scheme.

(v) In Principle/ Final Sanction letter of term loan from bank/ financial institutions.

(vi) The applicant company should not have obtained or applied for grant for the same project and same components from any other Ministry or Department of Government of India or State Government or their agencies.

(vii) Another application for incentive under the same scheme for new/ expansion/ diversification/ modernization projects by same promoter/subsidiary company /group company will be considered after a period of 1 year from the date of previous application.

8.2 For Anchor Units

(i) The combined net worth of the promoter(s) shall not be less than 1.5 times the grant amount sought by Anchor Unit.

(ii) The promoter's own contribution in the form of equity capital/ quasi capital on the project should not be less than 20% of the total project cost.

(iii) The Proposals for the project should be duly appraised by the Bank/ Financial Institutions. The promoter needs to bring in term loan from the Bank/Financial Institution for an amount not less than 20% of the project cost.

(iv) The appraisal report should contain the project components for which grant is sought under the scheme.

(v) The land for the project shall be arranged by the promoter either by purchase or on registered lease deed of at least 20 years.

(vi) In Principle/ Final Sanction letter of term loan from bank/ financial institutions.

(vii) The applicant company should not have obtained or applied for grant for the same project and same components from any other Ministry or Department of Government of India or State Government or their agencies.

(viii) Another application for incentive under the same scheme for new/ expansion/ diversification/ modernization projects by same promoter/subsidiary company /group company will not be considered.

9. Documents required for online application

The following documents are required as perscheme to be uploaded online duly signed by the lead promoter/authorized signatory.

(i) Application in the prescribed format (Annexure – 1).

(ii) Detailed project report (Annexure-9).

(iii) In Principle/ Final Sanction letter of term loan from bank/ financial institutions.

(iv) Appraisal report from Bank/Financial Institution.

(v) Certificate of incorporation/ registration of the organization, Memorandum and Articles of Association and Bye laws of the society (If applicable)/partnership deed etc.

(vi) Annual reports and Audited Statement of Accounts of last three years, in case of expansion/diversification/modernization.

(vii) Blueprint/ Building Plan

(viii) Land title documents i.e., sale deed or registered lease deed for at least 15 years in case of MSME and Large units and at least 20 years in case of Anchor Units.

(ix) Change in Land Use (CLU)/ NOC permission for the project for said land from Competent Authority.

(x) CA certificate regarding the proposed project cost and means of finance.

(xi) Chartered Engineer Certificate certifying the item wise and cost wise details of Technical Civil works envisaged duly certified by CharteredEngineer (Civil)

(xii) Chartered Engineer Certificate certifying the item wise and cost wise details of Plant & Machinery envisaged duly certified by Chartered Engineer (Mechanical).

(xiii) A declaration to the effect: "that the organization has not obtained/applied or will not obtain any grant/subsidy from any Ministry/Department of Central Govt./State GoI organization/agencies for the same purpose/ activity/same components".

(xiv) Latest Udyam Registration Certificate (URC) and Haryana Udhyam Memorandum (HUM) for MSMEs; Haryana Udhyam Memorandum (HUM) and Industrial Entrepreneur Memorandum (IEM) for Large and Anchor Units.

(xv) Documents in support of net-worth of the promoter in case of Anchor units.

(xvi) Document in support of women/SC led enterprises/ enterprises coming up in textile related cluster in respective PADMA block.

(xvii) The unit should not have been placed in the restrictive list as notified by the State government from time to time.

(xviii) Quotations from the suppliers/vendors of plant & machinery and equipments. In case of preowned/refurbished/reconditioned machines, a certificate from Chartered Engineer (Mechanical) or Registered Valueris required, certifying that the said machine(s) is fit for operations/use for minimum next 10 years.

10. Approval, Sanctioning and Disbursal Authority

10.1 Sanctioning Authority: The State Level Steering Committee for Textile under the chairmanship of Administrative Secretary, Industries & Commerce Department, Haryana would evaluate and approve/sanction the subsidy. The other members of the committee shall be as under:

Note: Any other member in addition to above can also be co-opted by the chairman keeping in view the requirement(s) of the proposal. The meeting shall be convened once in two months (at least 6 meetings in a year). Meeting can, however, be called at any other time at the discretion of the Chairman of the committee. Also, review meeting shall be convened every month to monitor the progress of approved cases.

10.2 Disbursal Authority: The Director General, Directorate of MSME, Haryana shall be competent to disburse the grant after compliance of requisite formalities.

Progress report of disbursed cases shall be submitted every month.

11. Release of Grant

The grant-in-aid will be released in two instalments of 50% each as per following schedule: 11.1 Release of 1stInstallment

The 1st installment of 50% of the approved grant under the scheme will be released after ensuring that 50% of the promoter's contribution & 50% of theterm loan have been spent on the project. The promoter shall submit the below mentioned documents along with the request for 1st installment within 6 months from the date of issue of the approval letter. (i) Duly notarized Surety Bond: To be executed by the beneficiary company on Non-Judicial stamp paper of not less than Rs.100/-{Annexure 2}

(ii) Duty notarized Affidavit: To be executed by the beneficiary company on Non-Judicial stamp paper of not less than Rs.100/-{Annexure-3}

(iii) Chartered Accountant Certificate: Actual expenditure incurred onthe project showing the means of finances and 50% utilization of Promoters contribution and 50% of Term loan. {Annexure 4}

(iv) Bank Certificate certifying that they have released 50% of term loan. {Annexure 5} (v) Certificate of Chartered Engineer (Civil):Certificate of C.E. (Civil) for technical civil works indicating item wise progress, cost quantity, manufacturer/supplier and comment on quality. {Annexure 6}

(vi) Certificate of Chartered Engineer (Mechanical):Certificate of C.E. (Mechanical) for Plant & Machinery indicating item wise progress, cost quantity, manufacturer/supplierand comment on quality. {Annexure 7}.In case of preowned/refurbished/reconditioned machines, a certificate from CE (Mechanical) or Registered Valuer certifying that the said machine(s) is fit for operations/use for minimum next 10 years.

(vii) All requisite documents mentioned in the approval letter. (viii) Bank Account Statement and Term Loan Statement showing payment made to suppliers/ vendors.

(ix) Copy of invoices/receipts from the suppliers/vendors. (x) Compliance of conditions imposed in the approval letter of the grant-in-aid, if any. (xi) Physical Site inspection report by inspection committee under the chairmanship of Additional Director, MSME.

11.2 Release of 2nd Installment

The 2nd installment of remaining 50% of the approved grant under the scheme will be released after ensuring that 100% of the promoter's contribution, 100% of the term loan and Utilization of 1st installment of grant released. The promoter shall submit the below mentioned documents along with the request for 2ndinstallment within 12 months from the date of issue of the approval letter.

(i) Chartered Accountant Certificate: Actual expenditure incurred onthe project showing the means of finances and 100% utilization ofPromoters contribution, 100% of Term loan and 1st installment ofreleased grant. {Annexure 4}

(ii) Certificate of Chartered Engineer (Civil):Certificate of C.E.(Civil) for technical civil works indicating itemwise progress, cost quantity, manufacturer/supplier and comment on quality. {Annexure 6}

(iii) Certificate of Chartered Engineer (Mechanical):Certificate of C.E.(Mechanical) for Plant & Machinery worksindicating item wise progress, cost quantity, manufacturer/supplierand comment on quality. {Annexure 7}. In case of preowned/ refurbished/ reconditioned machines, a certificate from CE (Mechanical) or Registered Valuer certifying that the said machine(s) is fit for operations/use for minimum next 10 years.

(iv) Utilization Certificate: Duly certified by C.A. and countersigned by the promoter of the beneficiary company. {Annexure 8}

(v) Bank Certificate certifying that they have released 100% of term loan. {Annexure 5}

(vi) Bank Account Statement and Term Loan Statement showing payment made to suppliers/ vendors.

(vii) Copy of invoices/receipts from the suppliers/vendors.

(viii) The Unit shall, at its own cost, insure and keep insured all the plant, machinery, fixtures and equipment every year for a minimum period of 3 years and the proof of same needs to be submitted by the unit.

(ix) Compliance of conditions imposed in the approval letter of the grant-in-aid, if any.

(x) Physical Site inspection report by inspection committee under the chairmanship of Additional Director, MSME.

12. Time Schedule

12.1 The time schedule for completion and operationalization of project will be 18 months from the date of approval unless extended by State Level Steering Committee for Textile for the reasons to be recorded.

12.2 The entity shall make all possible efforts to complete the project as per the stipulated timelines committed to while seeking approval for the project. In case of non-adherence to stipulated timeline, except in case offorce de majeure or reasons beyond the control of promoter,the State Level Steering Committee for Textile (SLSC-Textile) may consider imposing appropriate penalty interms of reducing the grant amount, on case-to-case basis.

12.3 In case of non-adherence of timelines, a penalty of 1% of the quantum of installment amount due for release for that installment, will be imposedfor each month's delay beyond the stipulated timeline. The maximum amount of penalty, however, shall not exceed 10% of the installment to be released to promoter.

12.4 In the event of the entity withdrawing from executing the project and the project not being completed by the promoter for any reason,the grant-in-aid amount released will be returned by the promoter along with interest @12% p.a accrued thereon to the Directorate of MSME, Haryana within 30 days of communication of the order for refund of such grant.

12.5 The units availing grant-in-aid under the scheme would have to remain in production for a period of at least 5 years in case of Micro, Small, Medium and Large units and at least 10 years in case of Anchor units from the date of commencement of commercialproduction. In case, the unit is closed before the stipulated period, grant-in-aid shall be recovered along with compound interest @ 12% per annum.

12.6 The unit shall submit utilization certificate for 2nd installment of grant-in-aid along with actual expenditure certificate duly signed by CA, within 3 months from the release of said instalment of grant-in-aid.

12.7 The unit shall submit progress report to the local DMC office after every 6 months.

13. Interpretation/ Clarification

13.1 The decision of the SLSC-Textile shall be final and binding on all concerned parties on the interpretation of the provisions of these guidelines and the matters related/ incidental thereto.

13.2 The SLSC-Textile shall have the final say regarding eligibility or otherwise of the proposals and selection of proposals for grant-in-aid.

13.3 Maximum 84 projects shall be considered for approval during the policy period to avail the benefits under the incentives mentioned at clause 3.1 of this scheme.

13.4 Maximum 2 projects shall be considered for approval during the policy period to avail the benefits under the incentives mentioned at clause 3.2 of this scheme.

13.5 The grant will be provided only in respect of technical civil work and eligible plant & machinery.

13.6 Any modification in plant and machinery and civil work after approval of proposal will only be approved by SLSC-Textile.

13.7 Any second project from the same promoter(s) shall only be considered after aperiod of 1 year from date of application of previous project and the same previous project should be in commercial production.

13.8 The Administrative Secretary, Industries & Commerce, Haryana shall be competent to make interpretation/clarification and removal of any difficulties in provision of this scheme.

14. Power to condole delay in submission of application & appeal

Condonation of delay for submittingapplications upto 45 days shall be decided by Additional Director, Directorate of MSME and up to 90 days shall be decided by Director General, Directorate of MSME keeping in view the merits of each case.

15. Penal Action:

In case, it is found at any stage that the applicant has claimed the assistance on the basis of wrong facts and the applicant shall besides refunding assistance with compound rate of interest @ 12% per annum and facing legal action, will be debarred from grant of any incentive/assistance from the State Government. If the applicant fails to refund the subsidy amount with interest, then the amount shall be recovered as arrear of land revenue. The applicant shall be debarred from public procurement as a result of mismatch in facts and figures.

ANAND MOHAN SHARAN, Additional Chief Secretary to Government Haryana, Industries & Commerce Department.

Annexure – 1

Signature of applicant (with seal)

Date: ____________1710 HARYANA GOVT. GAZ. (EXTRA.), JULY 6, 2023 (ASAR. 15, 1945 SAKA) Annexure – 2

SURETY BOND

(On Stamp Papers not less than Rs. 100/-)

KNOW ALL MEN BY THESE PRESENTS that we, M/s________________________, a ___________________ (Type of organization)incorporated / registered under the _________________(Name of the Act)and having its registered office at_____________________________________ (hereinafter called the "Obligors'") areheld fully and firmly bound to the Governor of Haryana (hereinafter called the "Government") for the sum of Rs._____________________(Rupees__________________________________ only) well and truly to be paid to the Government on demand and without a demur for which payment we firmlybind ourselves and our successors and assignees by these presents.

SIGNED on the _________________________ day of ______________________ in the year Two Thousand ________.

WHEREAS on the Obligors'" request, the State Government as per Sanction Order No.____________________ Dated ____________________ (hereinafter referred to as the "Letter of Sanction") which forms an integral part of these presents, and a copy whereof is annexed hereto and marked as Annexure-I, agreedto make in favor of the Obligors grants-in-aids-in-aid of Rs._______________(Rupees_____________________________only) for the purpose of_______________________(description of the project) at______________________________ out of which the sum of Rs.____________(Rupees_____________________ only) have been paid to the Obligors' (the receipt of which the Obligors' do hereby admit and acknowledge) on condition of the Obligors' executing a bond in the terms and manner contained hereinafter which the Obligors' have agreed to do.

NOW the conditions of the above written obligation is such that if the Obligors dulyfulfill and comply with all the conditions mentioned in the letter of sanction, the above written Bond or obligation shall be void and of no effect. But otherwise, itshall remain in full force and virtue. The Obligors' will abide by the terms &conditions of the grants-in- aid by the target dates, if any specified therein. THAT the Obligors' shall not divert the grants-in-aids and entrust execution of the Scheme or work concerned to another institution(s) or organization(s). THAT the Obligors' shall abide by any other conditions specified in this agreement and in the event of their failing to comply with the conditions or committing breach of the bond, the Obligors' individually and jointly will be liable to refund to the Governor of Haryana, the entire amount of the grants-in-aid with interest of 12% per annum thereon. If a part of the grants-in-aid is left unspent after the expiry of the period within which it is required to be spent, interest @12% per annum shall be charged up to the date of its refund by the Haryana Government, unless it is agreed to be carried over.

The Obligors agree and undertake to surrender / pay the Haryana Government themonetary value of all such pecuniary or other benefits which it may receive orderive / have received or derived through / upon unauthorized use of (such asletting out the premises on adequate or less than adequate consideration or use ofthe premises for any purpose other than that for which the grants-in-aid was intended of the property) buildings created / acquired constructed largely fromout of the grants-in-aid sanctioned by Directorate of MSME. As regards the monetary value afore mentioned to be surrendered/ paid to the Haryana Government, the decision of the Haryana Government will be final and binding on the Obligors'. AND THESE PRESENTS ALSO.

WITNESS THAT the decision of the Administrative Secretary, Industries & Commerce Department, Government of Haryana on the question whether there has been breach or violation of anyof the terms or conditions mentioned in the sanction letter shall be final andbinding upon the Obligors' and IN WITNESS WHERE OF these presents have been executed as under on behalf of the Obligors'

Signature of the AUTHORISED SIGNATORY

Signed for and on behalf of

(Name of the Obligor in blockletters)

(Seal / Stamp of Organization)

1. Signature of Witness

Name & Address

2. Signature of Witness

Name & AddressHARYANA GOVT. GAZ. (EXTRA.), JULY 6, 2023 (ASAR. 15, 1945 SAKA) 1711 TO BE FILLED UP BY DIRECTORATE OF MSME (ACCEPTED)

For and on behalf of the Administrative Secretary, Industries & Commerce Department, Haryana

Name:_______________________

Designation:__________________

Dated:_______________________

Notary Seal & Signature1712 HARYANA GOVT. GAZ. (EXTRA.), JULY 6, 2023 (ASAR. 15, 1945 SAKA) Annexure – 3

Declaration of the guarantee

(Not less than Rs. 100/-)

I ………………….. S/o ……………………… Resident of …………………………………………………director / proprietor of M/s ……………………………………. do here by solemnly affirms and State as follows:

(a) That the organization has not obtained/applied for or will not obtain any grant/subsidy from any other Ministry/Department of Central Government/GOI organization/agencies and State Government for the same project and same components.

(b) That the organization will remain in operation for at least 5 years after the release of grant-in-aid/date of commencement of commercial production.

Authorized signatoryHARYANA GOVT. GAZ. (EXTRA.), JULY 6, 2023 (ASAR. 15, 1945 SAKA) 1713 Annexure – 4

Letter Head of CA

CA Certificate (with membership No. and Firm Registration No. of CA) in the following format Date:

Signature and Seal of C.A (Statutory Auditor in case of company)

UDIN._________1714 HARYANA GOVT. GAZ. (EXTRA.), JULY 6, 2023 (ASAR. 15, 1945 SAKA) Annexure – 5

(Letter Head of the Bank)

Certificate

1. Certified that this Bank has appraised the Project of M/s _______________(Name and address of company) for Grant-in-Aid as per guidelines of the State Government and also sanctioned term loan of Rs. ______ lakh (if applicable)

2. It is further certified that we have released Rs. ______ lakh (50%/ 100% of sanctioned term loan) to M/s _____________(Name and address of the company)

Signature

Name

Branch Manager with

seal of BankHARYANA GOVT. GAZ. (EXTRA.), JULY 6, 2023 (ASAR. 15, 1945 SAKA) 1715 Annexure – 6 CE Certificate (Civil) Format for Technical Civil Work:

(Letter Head of the CE)

CE certificate in the following format:

Date: _____________ Name of Project:

Location with address:

Date of site Visit by Chartered Engineer:

Signature and Seal of C.E.

Annexure – 7 CE Certificate (Mechanical) Format for Plant & Machinery

(Letter Head of the CE)

CE Certificate in the following format

Date: __________ Name of project:

Location with address:

Date of Visit by Chartered Engineer:

Signature and Seal of C.E.

Annexure – 8

Utilization Certificate

Certified that Rs. _____________ of 1st/ 2nd instalment of grant-in-aid sanctioned/released in favour of _________________under the Directorate of MEME, the same has been utilized for the purpose ______________ for which it was sanctioned/released.

Certified that I have satisfied myself that conditions on which the grant-in-aid was sanctioned have been dully fulfilled/ are being fulfilled and that I have exercised the checks to see that the money was actually utilized for the purpose for which it was sanctioned.

Signature (CA)_______________

Designation_________________

Date____________________

Counter signature of promoter of company with Seal.

Annexure – 9

Template for Detailed Project Report (DPR)

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

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

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

4. Project Details:

a. Components under the scheme as applicable to the project:

b. Sector of Project: ……………………………..

5. Land Details.

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

* DPR should have a detailed chapter on proposed land, raw material production and supply statistics for the catchment area.

**In case of leased land, period of lease should not be less than 15 years.

7. Proposed Project Financials

* The component wise cost breakup of technical and other civil work should be provided in the Chartered Engineer (Civil) certificate

** The component wise cost breakup of P&M should be provided in the Chartered Engineer (Mechanical) certificate

***The cost of common utilities may be provided in Chartered Engineer (civil) and Chartered Engineer (Mechanical) certificate wherever applicable.

* To be provided for section under the bank appraisal note highlighting the afore mentioned detail.

8. Availability of Raw Material in the Catchment Area – provide details such as Adequate Volume, Wider Mix of Raw Material, Days of Operation in a Year along with supporting data.

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

10. Employment Generation Projections

(a) Direct Employment: …………………

(b) Contractual Employment with no. of days: ……………..

(c) Indirect Employment (specify): ……………….

11. Details of Renewable/ alternate energy sources including solar energy, if any, proposed to be used for operating the project including the inter alia, details of power generation.

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

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

Date: Signature of Applicant/Lead Promoter.

Place:

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, …………………………………………. do hereby solemnly state that I am proprietor/ partner/director/ …………… of M/s …………………………………………. Located at ………………………………………which is engaged in the manufacture of ……………………………… and I have been authorized to file the claim of Capital Investment Subsidy for textile units with the Directorate of MSME, Haryana.

I have gone through all the conditions/criteria mentioned in the scheme of Capital Investment Subsidy and the same have been duly complied with.

I do hereby affirm that the particulars given in the application are correct and further that:

(a) The unit will be liable to refund excess subsidy/assistance, if any released due to omission or pointed out by the Audit team of Principal Accountant General, Haryana.

(b) In case, any of the statement/ information furnished in the application/ documents later found to be wrong or incorrect or misleading or violation of the eligibility criteria/conditions, I, do hereby undertake to refund the entire amount of assistance of INR__________(Rupees ) granted to unit at the compound rate of interest @12% per annum, which shall also be recoverable arrears of land revenue, 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.

Signature of the applicant (with seal)

Date: ____________

10459—C.S.—H.G.P., Pkl.