Haryana Government has decided to give a 50 percent rebate in Value Addition Tax (VAT) to industrial units in the state that will replace diesel generator sets required to meet their energy requirement with natural gas. This scheme will be applicable to entire industries including MSMEs and will be effective for 2 years from the date of its notification.
A decision in this regard was taken in the meeting of the Standing Finance Committee held on Saturday under the Chairmanship of Chief Minister, Manohar Lal Khattar. Deputy Chief Minister, Dushyant Chautala was also present in the meeting.
Notably, the use of diesel-powered generator sets is banned in the National Capital Region. Now the industries that will meet their energy requirement from CNG, PNG will get a 50 percent exemption in VAT.
Similarly, the Committee also approved giving a subsidy of Rs.164.66 crore per year to electric vehicle manufacturing companies under various heads, under Haryana Electric Vehicle (EV) Policy 2022.
The Chief Minister was apprised that the EV Policy aims to protect the environment, reduce carbon footprint, make Haryana an EV manufacturing hub, ensure skill development in EV field, encourage uptake of EV vehicles, provide EV charging infrastructure and encourage R&D in EV technology.
The policy encourages new manufacturing in EV technology and also encourages existing automobile manufacturers to diversify in the EV manufacturing domain. The policy offers various financial incentives to EV manufacturers by giving incentives on Fixed Capital Investment (FCI), Net SGST, Stamp Duty, Employment Generation, etc.
The policy encourages R&D in Educational or research institutes. Efforts shall be made to convert 100 percent of the bus fleet owned by Haryana State Transport Undertakings into electric buses or Fuel Cell Vehicles or other non- fossil-fuel-based technologies by 2030.
The cities of Gurugram and Faridabad will be declared as model Electric Mobility (EM) cities with phase-wise goals to adopt Electric Vehicles (EVs), charging infrastructure to achieve 100 percent e-mobility.