₹3 Cr auto components unit in Faridabad: subsidy stacking blueprint
A new precision-machining unit in Faridabad supplying brackets, housings and turned parts to tier-one suppliers of the vehicle makers in the Delhi NCR belt.
Estimated total: ₹67,52,143 (Core area) to ₹1,30,70,000 (Prime / Focus area), computed by our subsidy calculator from the notified rates. Illustrative estimate under the Haryana Progressive MSME & Export Promotion Policy 2026 (Gazette 114-2026/Ext, 29 Jul 2026); figures depend on the notified terms and the operational guidelines.
The assumed project
Every figure below is an assumption of this example, entered into the calculator as it stands. Change any of them in the calculator to see your own estimate.
| Land | ₹50,00,000 | Excluded from eligible capital expenditure |
|---|---|---|
| Building | ₹70,00,000 | Eligible capital expenditure |
| Plant and machinery | ₹1,60,00,000 | Eligible capital expenditure |
| Working capital (margin) | ₹20,00,000 | Excluded from eligible capital expenditure |
| Project cost | ₹3,00,00,000 | Eligible capital expenditure (fixed capital investment): ₹2,30,00,000 |
| Term loan | ₹2,00,00,000 | 9.5% a year, 7 years, equal monthly principal |
| Expected Net SGST paid a year | ₹6,00,000 | Mostly to registered (B2B) buyers |
| Stamp duty paid on land | ₹3,50,000 | On the sale deed of the plot |
| Unit, sector and size | Small | New unit, manufacturing, Faridabad; 40 new jobs for Haryana residents; no owner-category or exporter top-up assumed |
Incentive estimate for all four area categories
The same project in each of the four location types of clause 1(m). The category depends on the type of location, not the district; our Know Your Zone tool helps place a plot. Interest subsidy is the calculator's total over 3 years on the reducing loan balance; Net SGST is the total over 7 years.
| Head | Core | Intermediate | Sub-Prime | Prime / Focus |
|---|---|---|---|---|
| Capital Investment Subsidy (clause 4.1.1)Core: 15% (core area) of ₹2,30,00,000 eligible capital expenditure · Intermediate: 20% (intermediate area) of ₹2,30,00,000 eligible capital expenditure · Sub-Prime: 25% (sub / prime area) of ₹2,30,00,000 eligible capital expenditure · Prime / Focus: 30% (prime / focus area) of ₹2,30,00,000 eligible capital expenditure | ₹34,50,000 | ₹46,00,000 | ₹57,50,000 | ₹69,00,000 |
| Interest Subsidy, 3 years (clause 4.1.2)Core: 5% a year on the reducing loan balance for 3 years (cap ₹20,00,000/yr) · Intermediate: 6% a year on the reducing loan balance for 3 years (cap ₹20,00,000/yr) · Sub-Prime: 7% a year on the reducing loan balance for 3 years (cap ₹25,00,000/yr) · Prime / Focus: 7% a year on the reducing loan balance for 3 years (cap ₹25,00,000/yr) | ₹23,57,143 | ₹28,28,571 | ₹33,00,000 | ₹33,00,000 |
| Net SGST Reimbursement, 7 years (clause 4.1.3)Core: 20% of ₹6,00,000 Net SGST a year for 7 years · Intermediate: 40% of ₹6,00,000 Net SGST a year for 7 years · Sub-Prime: 50% of ₹6,00,000 Net SGST a year for 7 years · Prime / Focus: 60% of ₹6,00,000 Net SGST a year for 7 years | ₹8,40,000 | ₹16,80,000 | ₹21,00,000 | ₹25,20,000 |
| Stamp Duty Refund (clause 4.2.3)Core: 30% of ₹3,50,000 stamp duty paid · Intermediate: 60% of ₹3,50,000 stamp duty paid · Sub-Prime: 75% of ₹3,50,000 stamp duty paid · Prime / Focus: 100% of ₹3,50,000 stamp duty paid | ₹1,05,000 | ₹2,10,000 | ₹2,62,500 | ₹3,50,000 |
| Employment Generation Subsidy₹48,000 – ₹1,20,000 per eligible Haryana-local employee a year, for 10 years (clause 4.6.1). For 40 new jobs that is ₹19,20,000 – ₹48,00,000 a year if every one qualifies. Depends on each employee’s salary and category, Parivar Pehchan Patra verification and the local share of your workforce (only special-category locals count below 15%), so it is not added to the total. | not estimated | not estimated | not estimated | not estimated |
| Electricity Duty ExemptionThe 2026 MSME policy’s fiscal incentives do not include an electricity duty exemption for MSMEs; the HEEP exemption was superseded on 29 July 2026. Some sector policies (e.g. EV) have their own. | not estimated | not estimated | not estimated | not estimated |
| Heads added up (before the cap) | ₹67,52,143 | ₹93,18,571 | ₹1,14,12,500 | ₹1,30,70,000 |
| Cap: 100% of fixed capital investment (clause 3.6), taken as plant and machinery + building | ₹2,30,00,000 | ₹2,30,00,000 | ₹2,30,00,000 | ₹2,30,00,000 |
| Estimated total | ₹67,52,143 | ₹93,18,571 | ₹1,14,12,500 | ₹1,30,70,000 |
- Land ₹50,00,000 — not counted. Land is never eligible capital expenditure under the 2026 policy (stamp duty on it has its own refund).
- Working capital ₹20,00,000 — not counted. Working capital, pre-operative expenses and capitalised interest are excluded from eligible capital expenditure.
Illustrative estimate under the Haryana Progressive MSME & Export Promotion Policy 2026 (Gazette 114-2026/Ext, 29 Jul 2026); figures depend on the notified terms and the operational guidelines. Source: Haryana Progressive MSME & Export Promotion Policy 2026 — Haryana Govt. Gazette (Extra.) No. 114-2026/Ext, 29 July 2026; policy figures last verified 19 Oct 2026. No owner-category or exporter top-up is assumed; the operational guidelines the policy promised by 29 October 2026 will settle the claim forms.
Other schemes you may stack
Named from our catalogue, open on the date this page was built, with each scheme's own ceiling as its page states it. No figure is estimated for them: each depends on the bank or on its own application. The 2026 policy bars a second capital subsidy on the same component, so a component scheme is claimed on a different cost from the capital subsidy above.
- Credit Guarantee Fund Trust for Micro and Small Enterprises
Guarantee cover on loans up to ₹10 Crore
Loan or credit guarantee: not a subsidy, sits alongside the State incentives.
- Haryana Testing Equipment Assistance Scheme
50% of cost, up to ₹25 Lakh per year
Covers a specific cost of its own, with its own application.
- Haryana Quality Certification Assistance Scheme
50% of certification cost, up to ₹10 Lakh/year (60% and ₹20 Lakh/year for exporters)
Covers a specific cost of its own, with its own application.
- Zero Defect Zero Effect Certification SchemeCheck status
Up to 100% of certification cost (women-owned); 80% for other micro units
Covers a specific cost of its own, with its own application.
- Haryana Solar Rooftop Support for MSMEs 2026
30% of eligible capital investment, up to ₹25–35 Lakh by area
Covers a specific cost of its own, with its own application.
- Haryana Energy Efficiency Promotion for MSEs 2026
25% up to ₹50 Lakh, or 40% up to ₹1 Crore by area
Covers a specific cost of its own, with its own application.
Alternatives, not add-ons
A State policy with a capital subsidy of its own for this activity. One or the other on the same machinery and building; our expert team compares them for a specific plot and product.
- Haryana Electric Vehicle Policy 2022
MSMEs: 20–25% of FCI up to ₹15–50 Lakh (early units), or 50% of Net SGST for 10 years
Sector policy with its own capital subsidy; read its activity condition first.
Not estimated: Punjab, Rajasthan and Uttar Pradesh
The calculator is Haryana-only. Punjab and Rajasthan incentives are largely a share of State tax paid and need a different working, and Uttar Pradesh is not estimated either. Their principal policies, by name:
- Punjab Industrial and Business Development Policy 2026
20% capital subsidy up to ₹10 Crore + 75% of Net SGST; total up to 100–125% of FCI
Not estimated on this site; the eligibility checker matches it by State, sector and size.
- Rajasthan Investment Promotion Scheme 2024
75% of State tax for 10 years + 3–6% interest subvention for 7 years (MSME cap ₹5 Crore a year)
Not estimated on this site; the eligibility checker matches it by State, sector and size.
- Uttar Pradesh MSME Promotion Policy 2022
10–25% capital subsidy up to ₹4 Crore; micro units also 50% interest subsidy up to ₹25 lakh
Not estimated on this site; the eligibility checker matches it by State, sector and size.
What you need before filing
The records the Haryana Progressive MSME & Export Promotion Policy 2026 entry lists for a claim; claims are filed on the Invest Haryana (HEPC) portal.
- Udyam Registration
- GSTIN
- PAN/Aadhaar
- Project Report/DPR
- CA Certified Financials
- Machinery Quotations/Invoices
- Land/Lease Documents establishing the area category
- IEC (for export incentives)
- First sale bill/invoice evidencing Date of Commencement of Commercial Production
Questions about this blueprint
How much subsidy could a ₹3 Cr manufacturing unit get in Haryana under the 2026 policy?
On the assumptions of this blueprint the illustrative estimate runs from ₹67,52,143 in a Core area to ₹1,30,70,000 in a Prime / Focus area, adding up Capital Investment Subsidy, Interest Subsidy, 3 years, Net SGST Reimbursement, 7 years, Stamp Duty Refund. Employment Generation Subsidy and Electricity Duty Exemption are not estimated. The 100%-of-fixed-capital-investment cap (clause 3.6) does not bite in any category for this project. The figures depend on the notified terms and the operational guidelines and on the department's determination of eligible expenditure and area category.
Which area category gives the highest estimate, and how do I know mine?
Prime / Focus gives the highest estimate (₹1,30,70,000) and Core the lowest (₹67,52,143). The category depends on the type of location, not the district: Core is land within municipal limits, Intermediate an allotted industrial plot or land between municipal and Controlled Area limits, Sub-Prime a conforming industrial zone, HSIIDC or licensed park plot or land outside Controlled Area limits, and Prime / Focus a notified Industrial Investment Promotion Zone (clause 1(m)). Our Know Your Zone tool and the land records settle it for a specific plot.
Are land and working capital counted in the capital subsidy?
No. The capital subsidy and the fixed-capital-investment cap are worked on plant and machinery plus building, ₹2,30,00,000 in this example. Land (₹50,00,000) is left out: Land is never eligible capital expenditure under the 2026 policy (stamp duty on it has its own refund). Working capital (₹20,00,000) is left out: Working capital, pre-operative expenses and capitalised interest are excluded from eligible capital expenditure. The project cost the calculator reports is ₹3,00,00,000.
Does the capital subsidy change if the unit makes electric-vehicle parts?
Auto, auto components and electric vehicles are one thrust sector of the 2026 policy, so the rates on this page apply either way. A unit making EV components may also look at the Haryana EV Policy 2022, which has a capital subsidy of its own, but the 2026 policy bars two State capital subsidies on the same component, so it is one or the other for the machinery. The testing and quality schemes listed below cover other costs and can sit alongside.
Can CGTMSE or a bank loan scheme be combined with these Haryana incentives?
Yes. A credit guarantee or a loan scheme is not a subsidy, so it sits alongside the State incentives; the interest subsidy is worked out on the bank loan however it is secured. What the 2026 policy bars is a second capital subsidy on the same component, under this policy or another State scheme, and the usual central margin-money subsidies are alternatives for the same unit rather than add-ons. The schemes listed on this page as stackable are named from our catalogue without figures; each has its own application.
What is not estimated on this page?
Employment Generation Subsidy: Depends on each employee’s salary and category, Parivar Pehchan Patra verification and the local share of your workforce (only special-category locals count below 15%), so it is not added to the total. Electricity Duty Exemption: The 2026 MSME policy’s fiscal incentives do not include an electricity duty exemption for MSMEs; the HEEP exemption was superseded on 29 July 2026. Some sector policies (e.g. EV) have their own. Punjab, Rajasthan and Uttar Pradesh are not estimated either, because their incentives are worked out differently; their policy pages are linked below. Nothing here is a sanction or an approval.
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