Capital Subsidy Scheme for Vehicle Scrappage Facilities 2026
Up to ₹20.00 Cr
Max Capital Subsidy (Mega Units)
25% Subsidy
Capital Subsidy for Micro & Small RVSFs
60 Units
Total Quota of Eligible Scrappage Facilities
100% FCI
Cumulative Incentive Ceiling
Vehicle Scrappage Capital Subsidy Scheme 2026 at a Glance
Notified by the Department of Industries & Commerce, Government of Haryana vide Notification No. 20/01/2024-4IB-I published in Gazette Extraordinary No. 109-2026/Ext. on 14 July 2026, the 'Capital Subsidy Scheme' implements Clause 11(i)(a)(a) of the Haryana Registered Vehicle Scrappage & Recycling Facility Incentive Policy 2024 (notified on 21.10.2024).
The scheme accords official 'Industry Status' to Registered Vehicle Scrapping Facilities (RVSFs) and Registered Vehicle Scrapping & Recycling Facilities (RVS&RFs) in Haryana to establish a scientific vehicle circularity ecosystem, formalize the informal vehicle recycling sector, and encourage green End-of-Life Vehicle (ELV) processing.
Effective retrospectively from 21.10.2024 (the date of notification of the parent RVSF Policy 2024) and valid through the operative period of the policy.
Core Policy Objectives
- •Facilitate scientific recycling and depollution of End-of-Life Vehicles (ELVs) across Haryana.
- •Reduce the cost of doing business and attract private capital into formal vehicle scrapping yards.
- •Formalize informal auto-dismantling markets through capital grants and regulatory support.
- •Grant one-time capital subsidies of up to ₹20.00 Crore for state-of-the-art recycling facilities.
Capital Subsidy Scale across Enterprise Categories
Subsidy Rates & Financial Caps by Enterprise Scale (Clause 2)
| Enterprise Scale & Unit Quota | Subsidy Rate & Cap in Blocks 'D' & 'C' (Prime/Sub-Prime) | Subsidy Rate & Cap in Block 'B' (Intermediate Area) |
|---|---|---|
| Micro & Small Industry (First 30 Units) | 25% of eligible capital expenditure or up to ₹40.00 Lakh | 25% of eligible capital expenditure or up to ₹35.00 Lakh |
| Medium Industry (First 15 Units) | 20% of eligible capital expenditure or up to ₹50.00 Lakh | 20% of eligible capital expenditure or up to ₹40.00 Lakh |
| Large Industry (First 15 Units) | 10% of eligible capital expenditure or up to ₹10.00 Crore | 10% of eligible capital expenditure or up to ₹5.00 Crore |
| Mega Industry (First 2 Units) | 20% of eligible capital expenditure or up to ₹20.00 Crore | 20% of eligible capital expenditure or up to ₹15.00 Crore |
Special Incentive Packages: Admissible for Mega and Ultra-Mega Projects as per HEEP-2020 or the Make in Haryana Industrial Policy 2026 (notified 26.05.2026).
Fixed Capital Investment, Scrappage Definitions & Critical Age
Key Legal & Technical Definitions (Clause 3)
- •Eligible Capital Expenditure: Building, plant, and machinery/equipment excluding land cost and land development.
- •Fixed Capital Investment (FCI): Original total investment in land, building, plant, and machinery.
- •Registered Vehicle Scrapping Facility (RVSF): Facility registered under Motor Vehicles (Registration and Functions of Vehicle Scrapping Facility) Rules, 2021 for dismantling and scrapping ELVs.
- •Critical Age of Vehicles: 10 years for diesel vehicles and 15 years for petrol vehicles (or as amended by Transport Dept).
- •End-of-Life Vehicles (ELV): Vehicles no longer validly registered, unfit via Automated Fitness Centres, court-ordered waste, or self-declared by legitimate owners.
- •Final Disposal: Complete dismantling where chassis number is cut out and engine is rendered unusable.
Compliance Requirements, Non-Stacking & Area Rules
Eligibility Criteria (Clause 4)
- •New Units: RVSFs and RVS&RFs commencing commercial operations on or after 21.10.2024 on land with valid CLU or inside Govt-approved Industrial Estates / IMTs.
- •Existing Units: Undertaking expansion/diversification with an additional investment of at least 50% of existing FCI.
- •Registrations Required: IEM filing with DPIIT, Udyam Registration Certificate (URC), and Haryana Udhyam Memorandum (HUM).
- •Transport Dept Approval: Valid RVSF approval/registration issued by Commissioner (Transport), Haryana.
Exclusions & Cumulative Ceiling (Clause 4 Note)
| Rule Type | Specific Constraint / Restriction |
|---|---|
| Net SGST Exclusion | Units availing Net SGST reimbursement under RVSF Policy 2024 CANNOT claim Capital Subsidy under this scheme. |
| No Double Dipping | Units cannot claim capital subsidy under HEEP 2020 or Make in Haryana 2026 for the same capital assets. |
| Cumulative Incentive Cap | Total cumulative state incentives capped at 100% of Fixed Capital Investment (FCI). |
| Single Benefit on Expansion | Units undertaking expansion/diversification are eligible for capital subsidy only once during the policy period. |
Step-by-Step Submission, Scrutiny & Sanction Authorities
Application Procedure & Approval Authorities (Clause 6 - 10)
| Workflow Stage | Responsibility & Time Limits |
|---|---|
| Online Application | Submit Annexure-I on Invest Haryana Portal (Single Window System) within 3 months of commencing commercial production. |
| DIC Scrutiny & Inspection | Joint Director / Deputy Director DIC conducts physical site visit to verify building, plant & machinery. |
| Deficiency Communication | Communicated within 7 working days; applicant given 10 working days to rectify deficiencies. |
| Competent Sanction Authority | Director / DG Industries & Commerce for claims ≤₹1.00 Lakh; Administrative Secretary, Industries & Commerce for claims >₹1.00 Lakh. |
| Condonation of Delay | Delay up to 3 months condonable by DG Industries; delay up to 6 months condonable by Administrative Secretary. |
| Penal Consequences | Misrepresentation results in 12% compound interest recovery, legal prosecution, and debarment from state procurement & subsidies. |
HEEP 2020 vs Make in Haryana Industrial Policy 2026 Alignment
Dual Framework Mapping Rules (Clause 13)
| Commercial Operation Date Range | Policy Framework Applied | Area / Block Categorization Applied |
|---|---|---|
| Units commencing up to 25.05.2026 | HEEP-2020 Framework | Category 'B', 'C', and 'D' Blocks |
| Units commencing on or after 26.05.2026 | Make in Haryana Policy 2026 | Intermediate ('B'), Sub-Prime ('C'), Prime/Focus ('D') Areas |
Government Notifications, Statutory Citations & Department Details
The Capital Subsidy Scheme for Vehicle Scrappage Facilities is published under official state authority:
| Reference / Citation Head | Official Government & Gazette Record Details |
|---|---|
| Primary Scheme Notification | No. 20/01/2024-4IB-I dated 14th July, 2026; Industries & Commerce Department, Government of Haryana. |
| Parent Policy Gazette | Clause 11(i)(a)(a) of Haryana Registered Vehicle Scrappage & Recycling Facility Incentive Policy 2024 (Notification No. 20/01/2024-4IB-I dated 21.10.2024). |
| Official Gazette Publication | Haryana Govt. Gazette (Extraordinary), No. 109-2026/Ext., CHANDIGARH, Tuesday, July 14, 2026 (Asadha 23, 1948 Saka). |
| Notification Signatory | Amit Kumar Agrawal, Commissioner & Secretary to Government Haryana, Industries and Commerce Department. |
| Single Window Portal | Invest Haryana Portal (https://investharyana.in) |
| Regulatory Baseline | Motor Vehicles (Registration and Functions of Vehicle Scrapping Facility) Rules, 2021. |