Introduction
In an era marked by increasing environmental awareness and sustainability concerns, governments worldwide are implementing policies and initiatives to encourage eco-friendly industrial practices. The Indian state of Haryana, known for its thriving industrial sector, has taken a significant step in this direction. On June 8, 2021, the Haryana Government Gazette published an extraordinary notification introducing the “Assistance for Environment Compliance” scheme. This groundbreaking initiative aims to support new Micro, Small, and Medium Enterprises (MSMEs) in adopting environmentally responsible practices. In this article, we delve into the details of this scheme, exploring its objectives, eligibility criteria, and the broader implications for sustainable industrial development.
Objective: ‘Zero Effect’ on the Environment
The Assistance for Environment Compliance scheme is rooted in the fundamental principle that industrial development must not come at the expense of the environment. The objective is clear: to implement the concept of ‘Zero Effect’ by providing financial assistance for the establishment of Effluent Treatment Plants (ETP) and the installation of Air Pollution Control Devices (APCD) for new MSMEs in Haryana.
The scheme acknowledges that economic growth should not harm the ecology and the environment as a whole. By offering financial incentives, it encourages entrepreneurs to build and operate their businesses in a manner that minimizes their environmental footprint.
Quantum of Assistance
To make the scheme attractive and accessible to a wide range of MSMEs, the Haryana government offers varying levels of financial support based on the environmental compliance efforts of the enterprises:
- 50% financial support or a maximum of INR 50.00 lakh on the capital cost for setting up Effluent Treatment Plants and installing Air Pollution Control Devices.
- MSMEs that achieve zero effluent discharge, as certified by the Haryana State Pollution Control Board (HSPCB) and reuse treated wastewater, may receive higher benefits, up to 75% of the capital cost, with a maximum limit of INR 1 crore.
Defining Micro, Small, and Medium Enterprises
To ensure clarity and consistency in the application of the scheme, specific definitions for Micro, Small, and Medium Enterprises are provided:
- Micro Enterprise: Investment in Plant and Machinery or Equipment does not exceed INR 1 crore, and turnover does not exceed INR 5 crores.
- Small Enterprise: Investment in Plant and Machinery or Equipment does not exceed INR 10 crore, and turnover does not exceed INR 50 crore.
- Medium Enterprise: Investment in Plant and Machinery or Equipment does not exceed INR 50 crore, and turnover does not exceed INR 250 crore.
Additionally, an enterprise is considered “new” if it has commenced commercial production on or after the date of notification of the policy, which is January 1, 2021.
Commencement and Applicability
The Assistance for Environment Compliance scheme came into effect on January 1, 2021, and is scheduled to remain in operation for a period of 5 years, ending on December 31, 2025. During this timeframe, eligible MSMEs can benefit from the scheme by purchasing and installing ETPs and APCDs.
Eligibility and Conditions
To avail of financial support under this scheme, new Micro, Small, and Medium enterprises operating anywhere in the state of Haryana must meet specific eligibility criteria and comply with certain conditions. Notably, the restrictive list of industries notified under the Haryana Enterprises & Employment Policy-2020 does not apply to this assistance. Here are the key conditions:
- The enterprise must have filed the Udyam Registration Certificate (URC) and Haryana Udhyam Memorandum (HUM) on the relevant portal for statistical purposes.
- If applicable, the enterprise must have obtained the necessary No Objection Certificate (NOC) or Change of Land Use (CLU) from the Competent Authority.
- The enterprise should be in commercial production and maintain regular production at the time of disbursement. Subsidies will not be granted to closed units.
Application Process
The application process for the Assistance for Environment Compliance scheme is streamlined and transparent, ensuring that eligible enterprises can access the support they need. Here is a breakdown of the application procedure:
- Application Submission: Entrepreneurs must submit their applications on the prescribed Form (Annexure-I) to the Director or Director-General of Micro, Small, and Medium Enterprises within three months of the installation date or the scheme’s notification date, whichever is later.
- Scrutiny and Recommendation: The Joint Director or Deputy Director of the District MSME Centre will process and examine the applications. They are responsible for scrutinizing the applications and recommending approval or rejection after inspecting the unit. If any deficiencies are identified, they will be communicated to the applicant in writing within seven days, allowing a ten-day window for rectification.
- Committee for Zero Effluent Discharge: For enterprises aiming for zero effluent discharge and seeking higher subsidies, a committee consisting of key officers, including the Administrative Secretary of Industries & Commerce, will evaluate and approve such claims.
- Time Limit: To maintain eligibility, applicants must submit their claims, complete in all respects, within three months of the installation of pollution control equipment, as certified by the Regional Officer of the Haryana State Pollution Control Board or from the date of scheme notification, whichever is later.
Competent Authority and Appeal Process
The Director or Director-General of Micro, Small, and Medium Enterprises serves as the competent authority for sanctioning subsidies under this scheme. However, applicants have the right to appeal against any order passed by this authority. The appeal must be lodged with the Administrative Secretary of Industries & Commerce, Haryana, within 30 days from the date of communication of the order. The decisions made by the Administrative Secretary in appeal cases are final.
Condoning Delays and Penal Actions
To address exceptional cases, the scheme includes provisions for condoning delays in submitting applications and appeals:
- The Director or Director-General of Micro, Small, and Medium Enterprises, Haryana, can condone delays of up to three months after the prescribed time limit.
- The Administrative Secretary of Industries & Commerce, Haryana, can condone delays of up to six months after the prescribed time limit, provided substantial evidence and documents support the reasons for the delay.
Penal Actions
Penal actions are also outlined in the scheme to deter misuse or false claims. If an applicant is found to have claimed assistance based on incorrect information, they will be required to refund the assistance with compound interest at a rate of 12% per annum. Legal action may also be taken, and the applicant could be debarred from receiving any further incentives or assistance from the State Government. Failure to refund the subsidy with interest may result in recovery as arrear of land revenue and debarment from public procurement.
Service Delivery Timeline
Efficiency and promptness are essential aspects of the Assistance for Environment Compliance scheme. The scheme outlines specific time limits for various tasks within the application process, ensuring that applicants receive timely responses:
- Letter of Approval: To be issued within 30 days.
- Letter of Sanction: To be issued within 7 days.
- Disbursement: To be made within 7 days.
Conclusion
The Assistance for Environment Compliance scheme introduced by the Haryana government reflects a significant commitment to sustainable industrial development. By providing financial incentives to new Micro, Small, and Medium Enterprises for adopting environmentally responsible practices, the scheme encourages businesses to operate in an ecologically friendly manner.
This initiative aligns with global efforts to balance economic growth with environmental conservation and sets a noteworthy example for other states and nations to follow. As the scheme continues to operate until December 31, 2025, it holds the potential to catalyze a wave of green initiatives within Haryana’s industrial landscape, benefiting both businesses and the environment.
It is evident that the Haryana government recognizes the importance of fostering a business environment where economic progress goes hand in hand with environmental protection. The Assistance for Environment Compliance scheme stands as a testament to the state’s commitment to a sustainable and prosperous future.
