Haryana Registered Vehicle Scrappage & Recycling Facility Incentive Policy 2024
85%
Target Vehicle Recyclability Level
Up to ₹20.00 Cr
Eco-Park Infrastructure Grant Ceiling
10-Year Lease
HSIIDC Industrial Land Leasing Model
Up to ₹5.00 Cr
Centre of Excellence Skilling Grant
Haryana Registered Vehicle Scrappage Policy 2024 at a Glance
Notified by the Industries & Commerce Department, Government of Haryana vide Notification No. 20/01/2024-4IB-I on 21 October 2024 in Gazette Extraordinary No. 162-2024/Ext., the 'Haryana Registered Vehicle Scrappage & Recycling Facility Incentive Policy 2024' is India's FIRST dedicated state framework providing capital and operational incentives for vehicle scrappage and recycling.
Haryana holds one of India's highest vehicle ownership rates (~8.6 million registered vehicles in 2019, projected to reach 13 million by 2025 with ~6.5 lakh End-of-Life Vehicles in 2025 and 8.25 lakh by 2030). As the primary manufacturing hub for OEMs like Maruti Suzuki, Honda Motorcycle, Suzuki, and Hero Motors, Haryana offers a ready market for recycled steel, aluminium, rubber, and auto components.
Concurred by Finance Department (U.O. No. 1/20/2024-1FD-III/2024/18260 dated 02.08.2024) and approved by the Cabinet on 05.08.2024. Valid for 5 years from notification across Haryana.
Core Policy Objectives
- •Grant official 'Industry Status' to Registered Vehicle Scrapping Facilities (RVSFs) and Recycling Facilities (RVS&RFs).
- •Establish a circular economy for End-of-Life Vehicles (ELVs) to recapture raw materials and reduce iron ore, coal, and fuel imports.
- •Achieve an 85% vehicle recyclability level across scrapping yards in Haryana.
- •Develop specialized Eco-Parks / Recycling Parks (15 to 50 acres) in collaboration with auto OEMs.
- •Formalize the unorganized vehicle dismantling market through fiscal subsidies, skilling centres, and Single Window approvals.
Fixed Capital Investment, Scrapping Criteria & End-of-Life Vehicles
Key Legal Definitions (Clause 7)
- •Registered Vehicle Scrapping Facility (RVSF): Facility registered under Motor Vehicles (Registration and Functions of Vehicle Scrapping Facility) Rules, 2021 for depolluting and dismantling ELVs.
- •Registered Vehicle Scrapping & Recycling Facility (RVS&RF): Environmentally sound establishment combining dismantling with processing, shearing, shredding, and material recovery.
- •End-of-Life Vehicles (ELV): De-registered, unfit vehicles (via Automated Fitness Centres), court-ordered waste, or self-declared scrap vehicles.
- •Critical Age: 10 years for diesel vehicles and 15 years for petrol vehicles.
- •Certificate of Vehicle Scrapping: Official certificate issued by RVSF recognizing final vehicle disposal and chassis cutout.
- •Ultra-Mega Project: FCI >₹6,000 Cr (Block A), >₹4,500 Cr (Block B), >₹3,000 Cr (Block C), >₹1,500 Cr (Block D).
- •Mega Project: FCI >₹200 Cr (Block B), >₹100 Cr (Block C), >₹75 Cr (Block D).
Capital Subsidies, Net SGST Refunds, Land Leasing & VC Funds
A. Investment Subsidy Options (Clause 11.i)
Units have the choice between Option A (Capital Subsidy) or Option B (Net SGST Reimbursement):
| Industry Category | Capital Subsidy Rate & Cap (Blocks 'D' & 'C') | Capital Subsidy Rate & Cap (Block 'B') |
|---|---|---|
| Micro & Small Industry | 25% eligible capital expenditure up to ₹40.00 Lakh | 25% eligible capital expenditure up to ₹35.00 Lakh |
| Medium Industry | 20% eligible capital expenditure up to ₹50.00 Lakh | 20% eligible capital expenditure up to ₹40.00 Lakh |
| Large Industry | 10% eligible capital expenditure up to ₹10.00 Crore | 10% eligible capital expenditure up to ₹5.00 Crore |
| Mega Industry | 20% eligible capital expenditure up to ₹20.00 Crore | 20% eligible capital expenditure up to ₹15.00 Crore |
Option B — Net SGST Reimbursement: As per HEEP 2020. Existing RVS&RF units are also eligible for Net SGST reimbursement for 5 years from policy notification upon full compliance.
B. Land Bank & Venture Capital Support
- •HSIIDC Land Bank Support: HSIIDC will develop a dedicated 10-year land leasing model for RVS&RF units in industrial zones.
- •Haryana Venture Capital Fund: Priority funding allocation from the Haryana Venture Capital Fund for startups, women entrepreneurs, and SC category promoters establishing scrappage facilities.
Infrastructure Assistance & Tranche Disbursement Scale
Park Development Thresholds & Financial Assistance (Clause 11.ii)
| Urban Potential Zone (Act of 1975) | Minimum Area (Acres) | Minimum Units Required | Minimum Total Investment |
|---|---|---|---|
| Hyper / High Potential Zone | 50 Acres | 10 Units | ₹150.00 Crore |
| Medium Potential Zone | 25 Acres | 5 Units | ₹75.00 Crore |
| Low Potential Zone | 15 Acres | 3 Units | ₹45.00 Crore |
Infrastructure Grant & Tranche Structure
10% of total project cost (excl. land) up to a ceiling of ₹20.00 Crore in Blocks B, C, D disbursed in 4 tranches:
- •Tranche 1 (25% Grant): 50% development of Eco-Park with approved amenities.
- •Tranche 2 (35% Grant): Remaining 50% Eco-Park development + proof of operation of at least 25% earmarked unit area.
- •Tranche 3 (25% Grant): Proof of operation of at least 75% earmarked unit area.
- •Tranche 4 (15% Grant): Proof of operation of 100% earmarked unit area.
Stamp Duty Refund: 100% reimbursement in Block D; 75% in Blocks C & B for park land acquisition.
CoE Grants, Operations Funding & Institute Reimbursements
Skilling Infrastructure Support (Clause 11.iii)
| Skilling Support Head | Assistance Quantum & Operational Terms |
|---|---|
| Centres of Excellence (CoE) | 50% grant of project cost up to ₹5.00 Crore for 3 CoEs (50% for setup, 50% for operations over 5 equal annual installments). |
| State Skilling Institute Support | ₹25.00 Lakh per annum reimbursed to 10 Govt/ITI/Polytechnic institutes for 5 years for specialized auto-recycling courses. |
Single Window System, Transport Dept SLAs & Compliance Penalties
Single Window Clearance & Regulatory Oversight (Clause 10 - 13)
- •Single Window Portal: All approval and incentive applications filed on Invest Haryana Portal (https://investharyana.in).
- •45-Day SLA: All project-related approvals granted within 45 days of filing a complete application.
- •Operational Controller: Transport Department, Government of Haryana controls RVSF/RVS&RF compliance and licensing.
- •Penalty for Default: Up to ₹1.00 Lakh penalty per default imposed by Transport Commissioner after passing a speaking order.
- •Industries & Commerce Dept Role: Restricted to sanction and release of fiscal incentives.
Government Notifications, Cabinet Approvals & Department Details
The Haryana Registered Vehicle Scrappage & Recycling Facility Incentive Policy 2024 is published under official authority:
| Reference / Citation Head | Official Government & Gazette Record Details |
|---|---|
| Primary Policy Notification | No. 20/01/2024-4IB-I dated 21st October, 2024; Department of Industries & Commerce, Government of Haryana. |
| Official Gazette Publication | Haryana Govt. Gazette (Extraordinary), No. 162-2024/Ext., CHANDIGARH, Monday, October 21, 2024 (Asvina 29, 1946 Saka). |
| Finance Department Concurrence | U.O. No. 1/20/2024-1FD-III/2024/18260 dated 02.08.2024. |
| Cabinet Approval | Approved by the Council of Ministers in its meeting held on 05.08.2024. |
| Notification Signatory | Arun Kumar Gupta, Additional Chief Secretary to Government Haryana, Industries & Commerce Department. |
| Central Framework Baseline | Motor Vehicles (Registration and Functions of Vehicle Scrapping Facility) Rules, 2021 by MoRTH. |