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Haryana Cabinet approves startup and data centre policies

Haryana Cabinet approves startup and data centre policies


Haryana Cabinet approves startup and data centre policies

The Haryana cabinet on Monday approved a new startup policy which aims to boost and nurture the vibrant startup ecosystem in the state and help entrepreneurs at different stages, an official statement said on Monday.

The cabinet also approved a data centre policy with a view to make Haryana a preferred destination for setting up such facilities and help the state emerge as a global data centre hub. Under the startup policy, an business entity recognised as a startup by the Department for Promotion of Industry and Internal Trade (DPIIT) under the Union ministry of commerce and industry up to a period of 10 years from the date of its incorporation/registration and with an annual turnover not exceeding Rs 100 crore and being based in Haryana will be eligible to avail fiscal and non-fiscal benefits.

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In addition, other startups recognised by the DPIIT having their registered office anywhere in the country/even outside Haryana and till the time they are working through government-owned/supported incubators operational in Haryana will be eligible to avail non-fiscal benefits under the new policy. These benefits include subsidised incubation space, liberalised criteria for participation in Haryana government tenders, participation in mentorship events and other startup specific programmes. This part of the policy will incentivise such startups to ultimately migrate to Haryana, the statement said.

At present, 3,910 Haryana-based startups have been recognised by the DPIIT. A startup Haryana cell is being established in the Department of Information Technology, Electronics and Communication to oversee the implementation and other institutional activities of this revised policy. It is expected that at least 5,000 new startups would be established in Haryana over the next five years providing direct and indirect employment to 75,000 persons, the statement said.

The fiscal incentives to startups under the policy include 50 per cent net SGST reimbursement for 7 years, reimbursement of lease rental subsidy for up to Rs 5 Lakh, seed grant up to Rs 10 lakh per startup for 100 startups in ‘A’ category blocks, 250 startups in ‘B’ category blocks, 750 startups in ‘C’ category blocks, and 1,000 startups in ‘D’ category blocks. The fiscal incentives to incubators include capital grant of up to Rs 2 crore to government host institutes and up to Rs 1 crore to private host institutes for setting up of incubators.

A financial assistance of up to Rs 10 Lakh per incubator for existing incubators in universities and other government institutions for upgrading their facilities. The Cabinet also approved a data centre policy. The Haryana government will declare the data centre space as a separate infrastructure industry and also declare it as an energy-intensive industry. The government will declare data centres as an essential service under Haryana Essential Services Maintenance Act, 1974.

Through this policy, the state government aims to create conducive business environment and facilitate establishment of 115-120 new data centres in Haryana. It is expected that an investments of Rs 7,500 crore would be made to establish these data centres, the statement said. Any data centre set up in Haryana with 1 mw and above power consumption will be eligible for various benefits under the new policy.

Among the key benefits of this policy include 50 per cent net SGST reimbursement for a period of 10 years in ‘A’ & ‘B’ category blocks and 75 per cent net SGST reimbursement for a period of 10 years in ‘C’ and ‘D’ category blocks. Reimbursement of the power bill of up to 25 per cent of net SGST for a period of Three years. Hundred per cent reimbursement of stamp duty paid on sale/lease deeds to establish a data centre.

Also, a 100 per cent exemption from electricity duty shall be permitted for a period of 20 years. Data centres shall be eligible for an employment generation subsidy of Rs 48,000 per year for a period of 10 years. Property tax levy on data centres operational in the state shall be on par with the industrial rates.

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