Haryana · State Subsidy
PADMA Capital Investment Subsidy and Interest Subsidy Schemes (Haryana)
- Maximum benefit
- 25% of eligible capital investment up to ₹25 lakh (30% up to ₹30 lakh for women/SC/SHG units) + 6% interest subsidy up to ₹20 lakh a year for 5 years
- Who can apply
- Micro, Small enterprises, for specific activities only
- Status
- Open; current term ends 16 August 2028
Is PADMA Unit Incentives open? Key facts at a glance
PADMA Unit Incentives (Haryana): 25% of eligible capital investment up to ₹25 lakh (30% up to ₹30 lakh for women/SC/SHG units) + 6% interest subsidy up to ₹20 lakh a year for 5 years.
Last verified: 26 Oct 2026. How we check our information
| Status | Open. Confirm the status before you apply (see the note on this page). |
|---|---|
| Level | Haryana State scheme |
| Type of benefit | Capital Investment Subsidy + Interest Subsidy |
| Maximum benefit | 25% of eligible capital investment up to ₹25 lakh (30% up to ₹30 lakh for women/SC/SHG units) + 6% interest subsidy up to ₹20 lakh a year for 5 years |
| Project cost range | Any |
| Who can apply | Micro, Small enterprises (Manufacturing, Service). Only for: Only micro and small units making the PADMA product identified for their block (one product per block in the PADMA policy list). Inside an approved PADMA cluster: new, expansion, diversification or modernisation projects; outside the cluster: only new units set up in that block around the identified product. The interest subsidy also covers services directly linked to manufacturing in the cluster (skill centre, marketing, repair, logistics, testing, tool room) as approved by SLSC-PADMA. |
| Implementing agency | Directorate of Micro, Small & Medium Enterprises, Haryana |
| Official notification | Read the notification (PDF) · notified 4 March 2024 |
| Current term ends | 16 August 2028 |
| Last verified | 26 Oct 2026 · How we check |
What is PADMA Unit Incentives?
The Programme to Accelerate Development for MSME Advancement (PADMA) is a five-year block-level programme re-notified on 17 August 2023 (notification No. 12/02/2022-1IB-II, Haryana Govt. Gazette No. 34-2023 of 22 August 2023), identifying one focus product in each block across the 22 districts.
On 4 March 2024 (Gazette No. 10-2024, 5 March 2024) the State notified two unit-level schemes under it for micro and small enterprises inside or outside approved PADMA clusters.
PADMA Capital Investment Subsidy: inside a cluster, 25% of eligible capital investment in plant and machinery and building, up to ₹25 lakh, or 30% up to ₹30 lakh for units owned by women, SC entrepreneurs or a Self-Help Group of at least 10 women, for new, expansion, diversification or modernisation projects; outside the cluster, half the cap (₹12.5 lakh, or ₹15 lakh for women/SC/SHG units) for new units set up in that block around the identified product.
The number of units is capped per cluster (20 in each of the first 5 clusters, 10 in the 6th to 15th, 5 thereafter) and at 100 units outside the clusters across the State, first come first served.
PADMA Interest Subsidy: reimbursement of interest at 6% a year or the actual rate, whichever is less, on term loans from banks, NBFCs or approved financial institutions sanctioned or disbursed after 17 August 2023, up to ₹20 lakh a financial year inside a cluster or ₹10 lakh outside (new units in that block), for five consecutive financial years; interest paid up to one year before commercial production also counts.
Both schemes require Udyam Registration and the Haryana Udyam Memorandum, commercial production, manufacture of the cluster's approved product, and no similar incentive under another Haryana policy; the capital subsidy also needs land bought or on a registered lease of at least 10 years, five years of regular production and use of the PADMA logo.
Both run from 17 August 2023 for five years, up to 16 August 2028, or the validity of the PADMA policy. The Head of the Directorate of MSME sanctions claims; appeals lie with the Administrative Secretary, Industries & Commerce, within 30 days.
Official notification (PDF) · notified 4 March 2024
What are the key benefits of PADMA Unit Incentives?
- Capital investment subsidy inside a PADMA cluster: 25% of eligible investment in plant, machinery and building, up to ₹25 lakh; 30% up to ₹30 lakh for women-owned, SC-owned or women-SHG units (cl. 2).
- Outside the cluster, new units in the same block making the identified product get half: up to ₹12.5 lakh, or ₹15 lakh for women/SC/SHG units (cl. 2).
- Interest subsidy: 6% a year (or the actual rate if lower) on term loans, up to ₹20 lakh a year inside a cluster or ₹10 lakh outside, for five consecutive financial years (Interest Subsidy Scheme cl. 2).
What could a unit get under PADMA Unit Incentives?
The ceiling the scheme sets. What a particular unit receives depends on its project cost, location and the conditions on this page, so no rupee figure is worked out here.
Up to the scheme’s limits: 25% of eligible capital investment up to ₹25 lakh (30% up to ₹30 lakh for women/SC/SHG units) + 6% interest subsidy up to ₹20 lakh a year for 5 years
Illustrative only: this is the scheme’s maximum, not an estimate for your unit. Source: PADMA Capital Investment Subsidy Scheme and PADMA Interest Subsidy Scheme — Industries & Commerce Department notifications No. 12/02/2022-1IB-II of 4 March 2024, Haryana Govt. Gazette No. 10-2024 (5 March 2024); PADMA policy re-notified 17 August 2023 (Gazette No. 34-2023).
Who can apply for PADMA Unit Incentives?
- Micro or small enterprise with Udyam Registration and HUM, in commercial production, making the PADMA product approved for its block or cluster.
- Inside a cluster: new, expansion (over 25% of existing gross fixed capital, completed within 18 months), diversification or modernisation projects; outside: new units in that block only.
- Capital subsidy: land owned or on a registered lease of at least 10 years; regular production for 5 years; PADMA logo on products.
- Interest subsidy: term loan sanctioned or disbursed after 17 August 2023; not a defaulter or NPA.
- No similar incentive under any other Haryana policy for the same purpose.
Eligible business types
MSME categories covered
Eligible industries
How do I apply for PADMA Unit Incentives?
- Apply on the prescribed form to the Director General, Directorate of MSME, on the department's web portal: within 3 months of commercial production (capital subsidy) or within 3 months of the close of each financial year claimed (interest subsidy).
- The Joint/Deputy Director of the District MSME Centre inspects the unit and verifies documents; deficiencies are notified within 7 days and must be cured within 10 days.
- The Head of the Directorate of MSME sanctions the claim; appeal to the Administrative Secretary, Industries & Commerce within 30 days.
Which documents are needed for PADMA Unit Incentives?
- Application in the prescribed form (Annexure I)
- Udyam Registration Certificate and Haryana Udyam Memorandum (HUM)
- Certificate of incorporation, partnership deed or registration, with memorandum and articles where applicable
- Land title: sale deed or registered lease deed of at least 10 years
- CA certificate of project cost and means of finance
- Audited accounts and annual reports of the last three years (expansion, diversification or modernisation)
- Declaration that no grant or subsidy has been taken or will be taken for the same purpose
Why are PADMA Unit Incentives applications rejected?
- Unit does not make the PADMA product approved for that block or cluster
- Unit outside the cluster is an expansion rather than a new unit
- Cluster or State-wide case limit already reached
- Same or similar incentive taken under another Haryana policy
- Claim filed after the 3-month limit (delay can be condoned only up to 3 or 6 months)
- Loan account in default or NPA (interest subsidy)
- Unit closed or not in regular production at disbursement
Subsidy Setu's DPR preparation process addresses all common rejection points before filing.
Frequently asked questions about PADMA Unit Incentives
- Is PADMA Unit Incentives open?
- It is listed as open, but confirm the status before you apply: Both schemes run to 16 August 2028 (or the validity of the PADMA policy) by their own text, and no order closing them was found on the Directorate of MSME website on 26 October 2026. Whether new claims are being accepted after the Haryana Progressive MSME & Export Promotion Policy 2026 was not confirmed, and both schemes bar taking a similar incentive under another Haryana policy. Confirm with the District MSME Centre before applying. Status last verified: 26 Oct 2026.
- Who can apply for PADMA Unit Incentives?
- Micro, Small enterprises (Manufacturing, Service). Only for: Only micro and small units making the PADMA product identified for their block (one product per block in the PADMA policy list). Inside an approved PADMA cluster: new, expansion, diversification or modernisation projects; outside the cluster: only new units set up in that block around the identified product. The interest subsidy also covers services directly linked to manufacturing in the cluster (skill centre, marketing, repair, logistics, testing, tool room) as approved by SLSC-PADMA.
- What is the maximum benefit under PADMA Unit Incentives?
- 25% of eligible capital investment up to ₹25 lakh (30% up to ₹30 lakh for women/SC/SHG units) + 6% interest subsidy up to ₹20 lakh a year for 5 years.
- How do I apply for PADMA Unit Incentives?
- 1. Apply on the prescribed form to the Director General, Directorate of MSME, on the department's web portal: within 3 months of commercial production (capital subsidy) or within 3 months of the close of each financial year claimed (interest subsidy). 2. The Joint/Deputy Director of the District MSME Centre inspects the unit and verifies documents; deficiencies are notified within 7 days and must be cured within 10 days. 3. The Head of the Directorate of MSME sanctions the claim; appeal to the Administrative Secretary, Industries & Commerce within 30 days.
Related schemes
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