Capital Investment Subsidy for Individual Agro and Food Processing Units (Haryana)

What is the Capital Investment Subsidy for individual agro and food processing units?

This scheme is the individual-unit grant under Haryana's agri-business policy, notified by the Industries and Commerce Department on 12 June 2019 in pursuance of the Haryana Agri-Business and Food Processing Policy 2018. It is formally titled the scheme for "Creation, Expansion and Diversification of individual Agro and Food Processing Units".

According to the notification, the objective is to increase the level of food processing, reduce wastage, add value, raise farmer incomes and increase exports. The instrument is a capital grant on the money a promoter actually sinks into plant, machinery and technical civil works.

Important status note. The parent policy has changed. The Haryana Government Gazette Extraordinary of 29 May 2026 records that the Governor of Haryana, in supersession of the Haryana Agri-Business and Food Processing Policy 2018, notified the Haryana Agri-Business and Food Processing Policy 2026, effective from the date of notification for a period of five years. Anyone planning a claim today should confirm with the Directorate of Industries and Commerce whether the 2019 scheme has been re-notified under the 2026 policy and on what terms.

How much subsidy is given?

The pattern of assistance under the 2019 notification is:

• 25 per cent capital investment subsidy on fixed capital investment, limited to Rs 1 crore for new units set up in "C" and "D" category blocks.
• 25 per cent capital investment subsidy on fixed capital investment, limited to Rs 1 crore for individual units set up inside food parks in C and D category blocks, along with 100 per cent net SGST reimbursement for 10 years from the date of commencement of commercial production, capped at 100 per cent of fixed capital investment.
• 25 per cent capital investment subsidy limited to Rs 50 lakh for individual units set up inside food parks in A and B category blocks, again with 100 per cent net SGST reimbursement for 10 years capped at 100 per cent of FCI.

Fixed capital investment is defined as the original value of investment in plant and machinery plus the cost of technical civil works. The grant is provided only in respect of technical civil works and eligible plant and machinery.

What is excluded from the grant calculation?

The notification lists the exclusions explicitly, and they account for a large share of a real project budget:

• Ineligible civil works: compound wall, approach and internal roads, cost of land and site development, administrative office building, canteen, labour rest room and workers' quarters, security or guard room, consultancy fees and taxes, and any non-technical civil work not related to the food processing facility.
• Ineligible plant and machinery: fuel, consumables, spares and stores, computers and air conditioning with ducting and allied office infrastructure, personal transport vehicles, second-hand or old machines, expenditure on painting of machinery, and all service, carriage and freight charges.
• Other ineligible items, stationery, consultancy fees, margin money, working capital and contingencies.

The State Level Committee for Food Processing (SLC-FP) is the final authority on whether an item is admissible.

Who is eligible for this subsidy?

You can apply if you are:

• A partnership or proprietorship firm, company, corporation, cooperative, self-help group, farmer producer organisation, NGO or a central or state PSU.
• Setting up a unit in an eligible food processing sector — fruit and vegetable processing; milk processing; meat, poultry and fish processing; ready-to-eat and ready-to-cook products, breakfast cereals, snacks, bakery and other food products including nutritional health foods; and agri-horticultural sectors including food flavours, additives and colours, oleoresins, spices, coconut, mushrooms and hops. Food packaging that enhances shelf life counts as a food processing activity.
• Commencing commercial production after the date of notification of the policy.
• Contributing promoter's capital or equity of at least 20 per cent of the total project cost.
• Able to get the project appraised by a bank or financial institution.

An existing unit qualifies for expansion or diversification if it makes at least 50 per cent additional investment in plant and machinery or technical civil work as on the date of initiating the expansion, and commences production from it during the operative period.

You are not eligible if:

• Your unit does one of the excluded activities: extraction of oil from seeds; shelling, grading or polishing of rice; primary processing of millets; manufacture of any kind of pulses or dals; guar and guar-gum; grinding of wheat, flour mills, suji and maida; or aerated water, packaged drinking water and soft drinks.
• The date of commercial operations is prior to the date of application.
• A subsidiary, related or group company of the applicant has already availed grant-in-aid under this scheme.
• You are availing an incentive under a similar head in the Haryana Enterprises Promotion Policy 2015.
• You have already submitted one proposal, no second proposal from the same applicant or organisation is accepted.
• The developer is availing a Government of India SAMPADA grant under a similar head.

How to apply for the capital investment subsidy

1. Prepare a detailed project report that clearly identifies the project components for which the grant is sought.
2. Get the project appraised by a bank or financial institution and obtain the term loan sanction letter and appraisal report. If you are not taking a term loan, the proposal must still be compulsorily appraised by a nationalised bank or financial institution.
3. Assemble the certificates: Chartered Engineer (Civil) for item-wise and cost-wise technical civil works, Chartered Engineer (Mechanical) for plant and machinery, along with land title documents, building plan approval, NOC or CLU certificate and Udyog Aadhaar Memorandum.
4. File the application online with the Directorate of Industries and Commerce, Haryana in the prescribed format (Annexure-A), attaching the declaration that no grant has been obtained or applied for from any central ministry or agency for the same components.
5. Time it correctly: applicants must apply at least 2 months before commencement of production. Units already in production between 4 June 2018 and the date of the scheme's notification had 3 months from notification. Condonation of delay up to 60 days may be allowed by the Director of Industries and Commerce on merits.
6. Present the proposal to the State Level Committee for Food Processing (SLC-FP), chaired by the Administrative Secretary, Industries and Commerce, with the MD of HSIIDC and the Directors of Agriculture, Horticulture, Animal Husbandry and Industries as members. Quorum is four members.
7. On approval, claim the first instalment within 6 months of the approval letter, with a notarised surety bond, CA certificate on expenditure, GFR 19-A utilisation certificate, bank certificate and the two Chartered Engineer progress certificates.

How is the money released?

Grant-in-aid is released in two equal instalments.

• First 50 per cent; after confirming that 50 per cent of the promoter's contribution and 50 per cent of the term loan have been spent on eligible project cost, and after a site inspection by a team of officers decided by the Additional Chief Secretary, Industries.
• Second 50 per cent; after the first instalment is utilised, 100 per cent of the promoter's contribution and 100 per cent of the term loan have been spent, and a further site inspection confirms progress.

The Director of Industries and Commerce, Haryana is the disbursal authority.

What are the timelines and penalties?

• The project must be completed and operationalised within 24 months of approval, unless extended by the SLC-FP for recorded reasons.
• Delay beyond the stipulated timeline attracts a penalty of 1 per cent of the instalment due, per month, capped at 10 per cent of that instalment.
• If the promoter withdraws or the project is not completed, the released grant must be returned with interest at 12 per cent per annum within 30 days of the refund order.
• The unit must remain in production for 5 years from the date of commercial production; earlier closure triggers recovery of the grant with compound interest at 12 per cent per annum.

Where to get help

The Haryana Enterprises Promotion Centre answers queries on state industrial and agri-business incentives on 0172-2701344 and toll-free 1800-180-2132. The scheme documents, including the notification for creation, expansion and diversification of individual agro and food processing units and the successor policy of 2026, are published on the Directorate of MSME's agribusiness and food processing page at msme.haryana.gov.in.

How to check your application status

There is no separate public tracking portal for this subsidy, so status checks run through the Directorate of Industries and Commerce and the SLC-FP process itself rather than an online dashboard.

• After online submission: note the application or acknowledgement number generated when you file the proposal on the Directorate of Industries and Commerce portal. Keep the appraisal report and term loan sanction letter reference handy, the department's office asks for these when you call or visit.
• Before the SLC-FP meeting: contact the office of the Administrative Secretary, Industries and Commerce, or the Directorate's agribusiness cell, to confirm your file has been listed for the next State Level Committee for Food Processing meeting. Since SLC-FP meets periodically rather than on a fixed daily cycle, a proposal can sit for some time before it is tabled, so a direct follow-up call is more reliable than waiting for a notification.
• After SLC-FP approval: the approval letter itself is your primary status document. It starts the clock on your 6-month window to claim the first instalment, so confirm the date on the letter as soon as it is issued rather than assuming an email or SMS will follow automatically.
• During instalment processing: once you submit the first-instalment claim (surety bond, CA certificate, GFR 19-A utilisation certificate, bank certificate, Chartered Engineer progress certificates), status turns on the site inspection. Ask the Directorate's office which inspection team has been assigned and whether a visit date has been fixed, since disbursal cannot proceed until that inspection is completed and its report filed.
• General follow-up: for any stage where the file seems stalled, call the Haryana Enterprises Promotion Centre on 0172-2701344 or the toll-free number 1800-180-2132, or check the agribusiness and food processing page on msme.haryana.gov.in for updated circulars, since the 2026 policy supersession may also change which office currently handles live files.

Common reasons for rejection

• Application filed after commercial production has already started. The scheme requires the proposal to be filed at least 2 months before commencement of production. Units that started production first and applied afterward, outside the narrow one-time window given to units that began production between 4 June 2018 and the notification date, are rejected outright. Fix: apply before production starts, or if you missed the deadline, request condonation of delay from the Director of Industries and Commerce within the 60-day condonation limit rather than filing late without explanation.
• Project cost includes ineligible items in the claimed amount. Claims that bundle in compound walls, approach roads, land cost, office buildings, canteens, guard rooms, consultancy fees, computers, air conditioning, second-hand machinery, or vehicles get the subsidy amount cut down or the claim sent back for correction, because the notification explicitly excludes these from fixed capital investment. Fix: have the Chartered Engineer (Civil) and Chartered Engineer (Mechanical) certificates itemise only the technical civil works and plant and machinery that qualify, and strip out ineligible heads before submission.
• No bank appraisal, or an appraisal that does not meet the required standard. Every proposal, term-loan-backed or not, needs appraisal by a bank or financial institution, and self-financed units still need this compulsory appraisal from a nationalised bank or financial institution. A missing or informal appraisal report is a common ground for the SLC-FP to defer or reject a file. Fix: get the appraisal and term loan sanction letter (or the compulsory appraisal for self-financed cases) completed before submission, not after.