Haryana Gramin Udyogik Vikas Yojana (HGUVY)

What is Haryana Gramin Udyogik Vikas Yojana?

Haryana Gramin Udyogik Vikas Yojana (HGUVY) is a capital and credit support scheme for new micro enterprises in rural Haryana, notified by the Industries and Commerce Department in the Haryana Government Gazette Extraordinary on 29 July 2021 under Chapter 14 of the Haryana Enterprises and Employment Policy 2020. It is administered by the Directorate of Micro, Small and Medium Enterprises, Haryana.

The stated objective is to provide capital support and affordable credit to new micro enterprises in the rural areas of B, C and D category blocks, in order to spur rural industrial growth. Haryana classifies its blocks A to D by level of industrial development; the A category blocks, being the most developed, are outside this scheme entirely.

The scheme commenced with effect from 1 January 2021 and was notified to remain in operation for five years.

How much money does HGUVY give?

HGUVY has three distinct components, and a single unit can claim more than one.

Capital subsidy

• 15 per cent of the investment made on plant and machinery and building, up to a maximum of Rs 20 lakh for general category entrepreneurs.
• 15 per cent of the same investment, up to a maximum of Rs 25 lakh, for women and Scheduled Caste entrepreneurs.

Interest subsidy

• 7 per cent on the term loan, or a maximum of Rs 8 lakh per year, for a period of 7 years.

DG set subsidy

• Rs 8,000 per KVA, capped at 50 per cent of the cost of the DG set. The DG set must have been purchased on or after 1 January 2021 and must remain intact and operational for 5 years from purchase.

The notification adds that other incentives available to the MSME sector under the Haryana Enterprises and Employment Policy 2020 also remain permissible for micro enterprises set up under this scheme.

Who is eligible for HGUVY?

You can apply if:

• Your unit is a new micro enterprise: investment in plant, machinery or equipment not exceeding Rs 1 crore and turnover not exceeding Rs 5 crore, or as amended under the MSMED Act, 2006.
• The unit went into commercial production after 1 January 2021 and before 31 December 2025 (for capital subsidy), or had a term loan sanctioned in that window (for interest subsidy).
• The unit is located in a rural area, defined by the scheme as land under the sole jurisdiction of a village panchayat.
• The block is in the B, C or D category.
• The unit files a Udyam Registration Certificate and a Haryana Udhyam Memorandum on the portal.
• The unit is in regular production at the time of disbursement.

You are not eligible if:

• The unit falls in A category blocks or inside municipal limits; location under a village panchayat is checked by the Joint Director or Deputy Director of the District MSME Centre from the sale deed or registered lease deed and the Development and Panchayats Department's list of village panchayats, and a Sarpanch's certificate may be required.
• The unit is on the restrictive list notified by the state government.
• The unit is not in commercial production, or has closed; subsidy is not released to a closed unit.
• The unit has taken PMEGP subsidy, in which case only the DG set subsidy remains available.
• The unit is a medium or small enterprise rather than micro, or an existing unit rather than a new one.

What documents are required?

How to apply for HGUVY

1. Complete your Udyam Registration and file the Haryana Udhyam Memorandum (HUM) for the unit.
2. Start commercial production and keep the first sale bill safe, the three-month claim window runs from that date.
3. Get a Chartered Accountant certificate in the Annexure-III format, certifying the investment in building and in plant and machinery, carrying the CA's membership number and UDIN.
4. Fill the prescribed application form (Annexure-I) with the unit's details, block category, entrepreneur category (general, woman or SC) and the components being claimed.
5. Submit the application online on the web portal of the Directorate of Micro, Small and Medium Enterprises, addressed to the Director or Director General, MSME, along with all the listed annexures.
6. Respond to deficiencies fast. The Joint Director or Deputy Director of the District MSME Centre scrutinises the claim and inspects the unit; any deficiency is communicated in writing within 7 days, and you get 10 days to correct it. If it is not corrected in time the claim is filed and closed, with intimation by e-mail.
7. Track the sanction against the service delivery timeline: 45 working days for the letter of approval, 7 days for the letter of sanction and 7 days for disbursement.

What are the deadlines?

The three-month rule is the one that catches most applicants:

• Capital subsidy — within 3 months from the start of commercial production.
• Interest subsidy: within 3 months of the close of the financial year for which the incentive is claimed.
• DG set subsidy; within 3 months from the date of purchase of the DG set.

An enterprise that does not file a complete claim within the applicable window forfeits its entitlement. The scheme does allow condonation: the Director or Director General, MSME may condone a delay of up to 3 months, and the Administrative Secretary, Industries and Commerce, up to 6 months, provided the reasons are supported by substantial evidence.

Who sanctions, and how do I appeal?

The Director or Director General, MSME is the competent authority for subsidy above Rs 10 lakh, and the Additional Director, MSME for amounts up to Rs 10 lakh.

An appeal against an order of the competent authority lies with the Director or Director General, MSME; an appeal against the Director General's own order lies with the Administrative Secretary, Industries and Commerce, Haryana, within 30 days of communication of the order. The Administrative Secretary's order in appeal is final. Interpretation of the scheme's provisions is also reserved to the Administrative Secretary.

What obligations continue after the subsidy is paid?

• The unit must stay in regular production for 5 years from the date of commercial production, verified by an annual inspection by the Joint Director or Deputy Director of the District MSME Centre.
• A DG set on which subsidy was drawn must remain intact and operational for 5 years from purchase.
• If assistance was claimed on wrong facts, the applicant must refund it with compound interest at 12 per cent per annum, faces legal action, is debarred from any future state incentive and from public procurement, and the amount is recoverable as arrears of land revenue.

Where to get help

The Haryana Enterprises Promotion Centre (HEPC) handles queries on the state's industrial incentive schemes on 0172-2701344 and the toll-free number 1800-180-2132. At district level, the District MSME Centre, headed by a Joint Director or Deputy Director, is the office that scrutinises, inspects and recommends HGUVY claims, and is the right place to take a stuck file.

How to check your HGUVY application status

HGUVY does not have a separate public tracking number system of the kind some central schemes use; status is tracked mainly through the same online channel the claim was filed on and through the District MSME Centre that is scrutinising it.

1. Log back into the web portal of the Directorate of Micro, Small and Medium Enterprises, Haryana, the same portal used to submit the claim, with the credentials used at the time of application. Applicants should see the current stage of their claim (submitted, under scrutiny, deficiency raised, sanctioned or disbursed) against their application reference.
2. Watch your registered e-mail closely. Two of the scheme's own timelines are e-mail driven: a deficiency memo is sent by e-mail within 7 days of submission if papers are incomplete, and if a claim is closed for non-response it is again intimated by e-mail. Missing that e-mail is the single most common reason applicants think a claim has gone silent when it has actually been closed.
3. Match your file's age against the notified service delivery timeline: 45 working days for the letter of approval from the date of a complete application, a further 7 days for the letter of sanction, and 7 more days for disbursement once sanctioned. If your claim has crossed 45 working days from the date you submitted a complete file (with no deficiency memo received) without an approval letter, that is the point to escalate rather than keep waiting.
4. Call the District MSME Centre in your district first, since it is the office that actually scrutinises the claim, inspects the unit and forwards its recommendation; it can tell you whether your file is with the Joint Director or Deputy Director for inspection, awaiting your response to a deficiency, or already forwarded for sanction.
5. Call the Haryana Enterprises Promotion Centre (HEPC) on 0172-2701344 or the toll-free 1800-180-2132 for a status check if the District MSME Centre is unresponsive or if you need to raise the matter above district level.
6. If a deficiency memo has been issued, remember the clock: you have 10 days from that memo to correct and resubmit. Checking status at this stage means confirming your corrected papers were received and logged, not just waiting for the original 45-day timeline, which resets against the resubmission.

Common reasons for rejection

• Unit is physically in an A category block or inside municipal limits. HGUVY is only for B, C and D category blocks, and land must be under the sole jurisdiction of a village panchayat. The Joint Director or Deputy Director verifies this from the sale deed or registered lease deed against the Development and Panchayats Department's list of panchayats, and a mismatch here is an outright disqualifier, not something a clarification can fix. Confirm your plot's panchayat status and block category before investing, not after applying.
• Claim filed after the 3-month window. Capital subsidy claims must be filed within 3 months of the start of commercial production, interest subsidy claims within 3 months of the close of the relevant financial year, and DG set claims within 3 months of purchase. A late claim is not quietly processed slower, it is forfeited outright unless the Director, Director General or Administrative Secretary formally condones the delay on documented grounds. Diarise the first sale bill date the day you get it and file well inside the window.
• CA certificate or annexures incomplete or wrongly formatted. The Annexure-III certificate needs the Chartered Accountant's membership number and UDIN, and Annexure-IV needs an item-wise list of plant and machinery with supplier and bill details. A CA certificate without a UDIN, or an investment figure in Annexure-III that does not match the invoices in Annexure-IV, routinely triggers a deficiency memo and, if not fixed in 10 days, closure of the file.
• Unit not in regular production, or already closed. Subsidy is not released to a unit that has stopped production; if inspection finds the unit shut or running below the level shown in its claim, the claim is rejected at that stage regardless of how complete the paperwork is.
• Investment or turnover exceeds the micro enterprise limit. HGUVY is restricted to micro enterprises under the MSMED Act definition; a unit whose plant, machinery or equipment investment or turnover has crossed into the small enterprise band is not eligible, even if it registered as micro at an earlier point.
• PMEGP subsidy already availed. A unit that has taken PMEGP subsidy can only claim the DG set component under HGUVY; claiming capital or interest subsidy on top of PMEGP support is rejected as a duplicate benefit.
• Facts found incorrect at verification. Beyond simple rejection, if assistance is actually disbursed on facts later found wrong, the scheme requires refund with compound interest at 12 per cent per annum, debars the unit from future state incentives and public procurement, and allows recovery as arrears of land revenue, so overstating investment figures or the production start date is a risk well beyond a rejected claim.
• Notarised undertaking missing or on the wrong stamp value. The undertaking must be on non-judicial stamp paper of at least Rs 50; an undertaking on plain paper or an unnotarised copy is treated as incomplete documentation and draws a deficiency memo.