Haryana · State Subsidy
Haryana Registered Vehicle Scrappage & Recycling Facility Incentive Policy 2024
- Maximum benefit
- 25% of eligible capital expenditure up to ₹40 lakh (micro and small units), or Net SGST reimbursement instead
- Who can apply
- Micro, Small, Medium enterprises, for specific activities only
- Status
- Open; current term ends 20 October 2029
Is Vehicle Scrappage Incentive Policy open? Key facts at a glance
Vehicle Scrappage Incentive Policy (Haryana): 25% of eligible capital expenditure up to ₹40 lakh (micro and small units), or Net SGST reimbursement instead.
Last verified: 20 Oct 2026. How we check our information
| Status | Open |
|---|---|
| Level | Haryana State scheme |
| Type of benefit | Capital Subsidy or Net SGST Reimbursement |
| Maximum benefit | 25% of eligible capital expenditure up to ₹40 lakh (micro and small units), or Net SGST reimbursement instead |
| Project cost range | Any |
| Who can apply | Micro, Small, Medium enterprises (Manufacturing, Service). Only for: Only Registered Vehicle Scrapping Facilities (RVSF) and Registered Vehicle Scrapping & Recycling Facilities (RVS&RF) registered or approved by the Transport Department, Haryana under the Motor Vehicles (Registration and Functions of Vehicle Scrapping Facility) Rules, 2021, in B, C or D category blocks or the matching 2026 area categories. |
| Implementing agency | Department of Industries & Commerce, Haryana (RVSF registration: Transport Department, Haryana) |
| Where to apply | Invest Haryana (single window) portal |
| Official notification | Read the notification (PDF) · notified 14 July 2026 |
| Current term ends | 20 October 2029 |
| Last verified | 20 Oct 2026 · How we check |
What is Vehicle Scrappage Incentive Policy?
The Haryana Registered Vehicle Scrappage & Recycling Facility Incentive Policy 2024 was notified on 21 October 2024 (Haryana Govt. Gazette Extraordinary No. 162-2024/Ext, notification No. 20/01/2024-4IB-I; Council of Ministers meeting of 5 August 2024) for five years or until the Government discontinues it.
Its five schemes were notified on 14 July 2026 (Gazette 109-2026/Ext, all under No. 20/01/2024-4IB-I): the Capital Subsidy Scheme and the Net SGST Reimbursement Scheme for individual facilities, and schemes for park developers, a Centre of Excellence for skill development and financial assistance for skill development (those three are not for an individual unit).
Registered vehicle scrapping facilities are given the status of "Industry".
Capital Subsidy Scheme (one time, eligible capital expenditure = building, plant and machinery, land excluded): first 30 micro and small units 25% up to ₹40 lakh in D and C category blocks and up to ₹35 lakh in B blocks; first 15 medium units 20% up to ₹50 lakh (D, C) or ₹40 lakh (B); first 15 large units 10% up to ₹10 Crore (D, C) or ₹5 Crore (B); first 2 mega units 20% up to ₹20 Crore (D, C) or ₹15 Crore (B).
Net SGST Reimbursement Scheme, taken instead of the capital subsidy: first 42 MSME units 50% of Net SGST for 10 years then 35% for 3 years in D blocks (cap 150% of FCI), 50% for 7 years then 35% for 3 years in C blocks (cap 125%) and 50% for 5 years then 25% for 3 years in B blocks (cap 100%); new micro units led by women, SC or ST entrepreneurs 50% for 7 years then 35% for 3 years in B, C and D blocks (cap 150%); MSME startups 50% for 7 years (cap 150%); large and mega units have their own rates and ultra-mega projects a customised package; six existing RVS&RF units get Net SGST reimbursement for five years from the policy's start, subject to MoRTH and Transport Department compliance.
Units starting up to 25 May 2026 follow the HEEP 2020 block categories; units starting on or after 26 May 2026 follow the Make in Haryana Industrial Policy 2026 area categories, with B blocks treated as Intermediate, C as Sub-Prime and D as Prime/Focus Areas (Capital Subsidy Scheme clause 13).
A block or Core Area units are not covered. Expansion or diversification qualifies once, with additional investment of at least 50% of FCI.
A unit cannot take both the capital subsidy and Net SGST reimbursement, cannot claim a head already availed or applied for under HEEP 2020 or another Haryana policy, and total incentives are capped at 100% of FCI.
The policy also provides stamp duty reimbursement on land under its park-developer provisions, which is not presented here as a unit benefit.
Official notification (PDF) · notified 14 July 2026
What are the key benefits of Vehicle Scrappage Incentive Policy?
- Capital subsidy, one time, for the first 30 micro and small units: 25% of eligible capital expenditure (building, plant and machinery; land excluded) up to ₹40 lakh in D and C blocks, ₹35 lakh in B blocks (Capital Subsidy Scheme cl. 2(i)).
- Medium units (first 15): 20% up to ₹50 lakh (D, C) or ₹40 lakh (B); large units (first 15): 10% up to ₹10 crore or ₹5 crore; mega units (first 2): 20% up to ₹20 crore or ₹15 crore (cl. 2(ii)–(iv)).
- Or, instead, Net SGST reimbursement for the first 42 MSME units: 50% for 10 years then 35% for 3 years in D blocks (cap 150% of FCI); 50% for 7 years then 35% for 3 years in C blocks (cap 125%); 50% for 5 years then 25% for 3 years in B blocks (cap 100%) (Net SGST Scheme cl. 2(iv)).
- New micro units led by women, SC or ST entrepreneurs: 50% of Net SGST for 7 years then 35% for 3 years in B, C and D blocks, cap 150% of FCI; MSME startups: 50% for 7 years, cap 150% (cl. 2(iv)–(v)).
- Six existing RVS&RF units: Net SGST reimbursement for five years from the policy’s start (cl. 2(vi)).
What could a unit get under Vehicle Scrappage Incentive Policy?
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 expenditure up to ₹40 lakh (micro and small units), or Net SGST reimbursement instead
Illustrative only: this is the scheme’s maximum, not an estimate for your unit. Source: Haryana Registered Vehicle Scrappage & Recycling Facility Incentive Policy 2024 — Haryana Govt. Gazette (Extra.) No. 162-2024/Ext, 21 October 2024 (notification No. 20/01/2024-4IB-I); Capital Subsidy Scheme and Net SGST Reimbursement Scheme — Gazette No. 109-2026/Ext, 14 July 2026.
Who can apply for Vehicle Scrappage Incentive Policy?
- A Registered Vehicle Scrapping Facility (RVSF) or Registered Vehicle Scrapping & Recycling Facility (RVS&RF) registered or approved by the Transport Department, Haryana under the Motor Vehicles (Registration and Functions of Vehicle Scrapping Facility) Rules, 2021, starting commercial production after 21 October 2024.
- In a B, C or D category block (units starting up to 25 May 2026) or the matching Make in Haryana 2026 area category (from 26 May 2026: Intermediate, Sub-Prime or Prime/Focus); A blocks and Core Areas are not covered.
- Existing units qualify once, for expansion or diversification with additional investment of at least 50% of FCI, on land with valid CLU or in a Government-approved industrial estate or IMT.
- A unit takes either the capital subsidy or Net SGST reimbursement, not both; no claim for a head already availed or applied for under HEEP 2020 or another Haryana policy; total incentives capped at 100% of FCI.
Eligible business types
MSME categories covered
Eligible industries
How do I apply for Vehicle Scrappage Incentive Policy?
- Apply in the Annexure I form to the Director/Director General, Industries & Commerce, through the Single Window System (Invest Haryana portal) or another portal the Department designates (Capital Subsidy Scheme cl. 6; Net SGST Scheme cl. 6).
- Capital subsidy: claim within 3 months of commencement of commercial production (first sale bill); the Director may condone up to 3 months’ delay and the Administrative Secretary up to 6 months (cl. 8, 11). Net SGST: claim within 3 months of the close of each financial year, or of the scheme’s notification if later (Net SGST Scheme cl. 8).
- The District Industries Centre inspects the unit; for the capital subsidy, deficiencies are notified within 7 working days and must be removed within 10 working days (cl. 6).
Apply at: Invest Haryana (single window) portal
Which documents are needed for Vehicle Scrappage Incentive Policy?
- Application in Annexure I with the Annexure II declaration
- IEM / Udyam Registration / Haryana Udyam Memorandum
- Certificate of incorporation or partnership deed; board resolution or power of attorney
- CLU / NOC from the competent authority
- Ownership deed, registered lease deed or allotment letter for the land
- Valid RVSF / RVS&RF registration or approval from the Transport Department, Haryana
- CA certificate of eligible capital expenditure (Annexure III)
- First sale bill and cancelled cheque
Can Vehicle Scrappage Incentive Policy be combined with other schemes?
This scheme can be combined with the following for higher total benefits:
Why are Vehicle Scrappage Incentive Policy applications rejected?
- Not registered or approved as an RVSF / RVS&RF by the Transport Department
- Located in an A category block / Core Area
- Commercial production started before 21 October 2024 (other than a qualifying expansion)
- Capital subsidy claimed by a unit taking Net SGST reimbursement, or vice versa
- Claim filed more than 3 months after commercial production (beyond the condonable delay)
- The first 30 micro/small (or 15 medium) slots already taken
Subsidy Setu's DPR preparation process addresses all common rejection points before filing.
Frequently asked questions about Vehicle Scrappage Incentive Policy
- Is Vehicle Scrappage Incentive Policy open?
- Yes. The current term runs until 20 October 2029. Status last verified: 20 Oct 2026.
- Who can apply for Vehicle Scrappage Incentive Policy?
- Micro, Small, Medium enterprises (Manufacturing, Service). Only for: Only Registered Vehicle Scrapping Facilities (RVSF) and Registered Vehicle Scrapping & Recycling Facilities (RVS&RF) registered or approved by the Transport Department, Haryana under the Motor Vehicles (Registration and Functions of Vehicle Scrapping Facility) Rules, 2021, in B, C or D category blocks or the matching 2026 area categories.
- What is the maximum benefit under Vehicle Scrappage Incentive Policy?
- 25% of eligible capital expenditure up to ₹40 lakh (micro and small units), or Net SGST reimbursement instead.
- How do I apply for Vehicle Scrappage Incentive Policy?
- 1. Apply in the Annexure I form to the Director/Director General, Industries & Commerce, through the Single Window System (Invest Haryana portal) or another portal the Department designates (Capital Subsidy Scheme cl. 6; Net SGST Scheme cl. 6). 2. Capital subsidy: claim within 3 months of commencement of commercial production (first sale bill); the Director may condone up to 3 months’ delay and the Administrative Secretary up to 6 months (cl. 8, 11). Net SGST: claim within 3 months of the close of each financial year, or of the scheme’s notification if later (Net SGST Scheme cl. 8). 3. The District Industries Centre inspects the unit; for the capital subsidy, deficiencies are notified within 7 working days and must be removed within 10 working days (cl. 6). Apply at: Invest Haryana (single window) portal.
- Until when can I apply for Vehicle Scrappage Incentive Policy?
- The current term runs until 20 October 2029. Projects must usually be registered or commence within the term; check the cut-off before you rely on it.
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