Make in Haryana Industrial Policy 2026: What Large, Mega and Ultra Mega Investors Need to Know

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The Make in Haryana Industrial Policy 2026 replaces the Haryana Enterprises & Employment Policy (HEEP) 2020 as the State's flagship industrial policy. It has ambitious targets:

• 10 lakh new jobs;

• investment of more than INR 5 lakh crore; and

• doubling annual merchandise exports from about INR 1.62 lakh crore (FY25) to INR 3.24 lakh crore.

The policy describes a shift from "government as regulator" to "government as facilitator". It is built around eight enablers: competitive incentives, infrastructure, ease of doing business, talent, exports, sustainability, R&D and branding.

One structural change is essential to understand: this policy applies only to Large, Mega and Ultra Mega units. MSMEs are covered by a separate Haryana Progressive MSME & Exports Policy. The sector-specific 2026 policies (Pharma & Medical Devices, Data Centres, GCCs, IT/ITeS & AI, AVGC-XR, E-Waste, Toys & Sports) also rely on this policy's definitions of project size and area categories.

Project categories

Category	Minimum Fixed Capital Investment (FCI)
Ultra Mega	INR 6,000 cr (Core), INR 4,500 cr (Intermediate), INR 3,000 cr (Sub-Prime), INR 1,500 cr (Prime/Focus)
Mega	INR 700 cr (Core), INR 600 cr (Intermediate), INR 500 cr (Sub-Prime), INR 400 cr (Prime/Focus); or 1,250+ direct employees with FCI of at least INR 125 cr
Large	FCI above INR 125 cr; or 500+ direct employees with FCI of at least INR 50 cr

The employment-based routes mean that labour-intensive projects can qualify as Large or Mega with relatively modest capital investment.

Area categories: where you invest matters

The State is divided into four area categories, and incentive rates rise as you move away from developed urban areas:

• Prime/Focus Areas: notified Industrial Investment Promotion Zones.

• Sub-Prime Areas: conforming industrial zones in development plans, vacant and unallotted plots in HSIIDC IMTs, estates and private industrial parks, newly licensed industrial colonies, and areas outside controlled-area limits.

• Intermediate Areas: already-allotted plots in HSIIDC estates and private parks, and the belt between municipal and controlled-area limits.

• Core Areas: land within municipal limits.

The allotted/unallotted distinction is significant. The same IMT can be Sub-Prime for a new allottee and Intermediate for an existing plot that changes hands.

Eligibility in brief

• Who: companies, firms, LLPs, societies, trusts and cooperatives engaged in manufacturing, processing or contract manufacturing, plus selected services: healthcare, education, tourism and hospitality, and R&D. Tourism is limited to 10 hotels, resorts or amusement/water parks with FCI of at least INR 125 crore. Standalone R&D units qualify if they meet the Large Project threshold.

• Timing: commercial production must begin on or after notification and within the five-year policy period. The application must be filed before commencement.

• Expansion/diversification: existing Large, Mega and Ultra Mega units qualify once, where additional FCI is at least 50% of existing FCI, or 25% subject to a minimum of INR 125 crore, or exceeds the Mega/Ultra Mega threshold.

• Transitional protection: units that had taken "effective steps" (land secured, finance tied up, CLU/NOC applied for) and made substantial investment before notification may choose to remain under HEEP 2020. This applies if production begins within two years of notification (Large) or three years (Mega/Ultra Mega).

• Restricted list: no incentives for tobacco, stone crushers, most brick kilns, distilleries (with exceptions), tanneries, firecrackers and certain polluting activities.

The nine fiscal incentives

1. Net SGST reimbursement on intra-State sales

The rate depends on area and on whether 50% or more of intra-State sales are B2C:

Area	B2C ≥ 50%	B2C < 50%
Core	30%	20%
Intermediate	50%	40%
Sub-Prime	60%	50%
Prime/Focus	70%	60%

The duration is 7 years for Large units, 10 years for Mega units and up to 12 years under customised packages. The B2B/B2C split is certified annually by the Excise & Taxation Department.

2. Fast-track commencement incentives

A capital subsidy on Eligible Capital Expenditure (ECE) rewards projects that start production quickly, measured from the later of CTE or building plan approval:

Unit and timeline	Core	Intermediate	Sub-Prime	Prime/Focus
Large, within 2 years	5%	10%	15%	20%
Large, within 3 years	2.5%	5%	10%	15%
Mega, within 4 years	5%	10%	15%	20%
Mega, within 5 years	2.5%	5%	10%	15%

Customised packages for Mega and Ultra Mega units can go up to 15%, 20%, 25% and 30% respectively. The subsidy is paid in ten annual instalments. Units that meet these timelines also receive:

• electricity duty reimbursement of 100% for 3, 5, 7 or 10 years depending on area (up to 20 years under customised packages); and

• stamp duty reimbursement on land of 30%, 60%, 75% or 100% depending on area, where production begins within five years of purchase or lease.

3. Local employment incentives

• Employment Generation Subsidy for ten years: at 15% or more Haryana-domicile employees (verified through the Parivar Pehchan Patra), the subsidy is 100% + 20% × (local share − 15%) of average monthly gross salary per local employee, capped at INR 1 lakh a year. For women, SC, Divyang, Agniveer and ex-servicemen employees the base is 120% and the cap INR 1.2 lakh. A minimum of INR 48,000 per employee applies.

• HKRN booster: 100% reimbursement of employer and employee EPF contributions for five years for staff hired through the Haryana Kaushal Rozgar Nigam.

4. Backward area infrastructure

For Ultra Mega projects in Sub-Prime and Prime/Focus areas, the State provides 100% assistance for road connectivity to the nearest highway, water supply and an independent power feeder up to the project boundary. These works can also be executed by the unit itself, subject to prior approval of estimates.

5. R&D and patents

• R&D centres: 50% capital support for DSIR/CSIR-recognised R&D centres, capped at INR 10 crore (Large), INR 25 crore (Mega) or INR 50 crore (Ultra Mega).

• Patents: INR 50 lakh per domestic patent and INR 1 crore per international patent that is commercially used (caps of INR 5 crore and INR 10 crore respectively).

6. Export incentives (one option, final once chosen)

• Export Booster: 5% × (export share % − 10%) added to the fast-track capital subsidy. This requires at least a 10% export share and INR 100 crore average turnover.

• Annual Export Turnover Incentive: 3% of export value for five years, capped at 4.5% of ECE.

7. Greening incentives

• Carbon credits: INR 100 per credit (cap INR 1 crore).

• Captive renewable energy: INR 50 lakh per MW (cap INR 2.5 crore for Large units, INR 10 crore for Mega/Ultra Mega).

• Zero Liquid Discharge: 50% of cost (cap INR 5 crore or INR 10 crore).

• Green building certification: 2% of building cost (cap INR 5 crore).

Standalone renewable energy projects above 1 MW are treated as "industry" for incentive purposes.

8. Relocation grant

50% of the cost of moving plant and machinery to Haryana, capped at INR 5 crore from elsewhere in India and INR 10 crore from abroad.

9. Thrust, essential and import-substitution sector booster

A 5% top-up on the fast-track capital subsidy is available for units in the 15 thrust sectors, for essential products, or for import-substitution items. The thrust sectors include EVs, ESDM, semiconductors, pharma and medical devices, defence and aerospace, green hydrogen, rare earths, toys and e-waste recycling. Only one 5% top-up is allowed per project. Alternatively, the unit may opt for the relevant sectoral policy.

Two important alternatives:

• PLI top-up: units supported under PLI, the Electronics Component Manufacturing Scheme, the India Semiconductor Mission or similar Central schemes can take a 50% top-up on central benefits instead of the entire State package.

• Customised packages: HEPB can offer customised packages for Mega and Ultra Mega projects, and can relax policy provisions for strategically important projects.

Across all routes, Central and State support together cannot exceed 100% of FCI.

Infrastructure and private industrial parks

• Mega Private Industrial Parks (300+ acres): up to 65% saleable area, at least 35% industrial use, up to 30% residential/commercial use (commercial capped at 5%), a global FAR of up to 3.0, fast-track clearances, and 100% State-funded external road, water and power connections in backward areas.

• Private industrial parks (100+ acres): a choice between a capital subsidy of 40% (Sub-Prime) or 50% (Prime/Focus) of trunk infrastructure cost, or Net SGST reimbursement of 60% or 70% for seven years. Either option is capped at INR 15 crore per 100 acres, and developers also receive 100% stamp duty reimbursement.

• HSIIDC initiatives: 10 new IMTs, a Land on Lease policy with a freehold conversion option, plug-and-play ready-built factories, worker dormitories, creches and incubation centres. Flagship projects include IMC Hisar, Global City Gurugram, the multi-modal logistics hub at Narnaul and the Electronics Manufacturing Cluster at IMT Sohna.

Ease and speed of doing business

• Invest Haryana portal upgrades: automated site assessment, AI-generated project reports, single sign-on with DigiLocker, and grievance tracking.

• Approvals: a Land Feasibility Certificate within 45 working days, a "one query" rule, and deemed approvals where timelines are missed.

• Incentive payments: 50% released within 7 working days and the balance within 45 days, with 8% interest on delays. Third-party verification agencies and delegated sanction powers will speed up processing.

• Decriminalisation and deregulation: the Haryana Jan Vishwas Act 2025 decriminalised 164 minor offences, CTE/CTO timelines have been reduced to 21 days, and instant CLU is available in designated zones.

• Talent: industry adoption of ITIs on a PPP basis, a Skill Census and internship stipend support.

• Exports: the GIFT export facilitation cell, plus product-line diversification seed funding (up to 25% of plant and machinery book value or INR 10 crore) for up to 10 export units affected by geopolitical disruption.

Points to keep in mind

1. Confirm your category early. FCI, headcount and the exact area category (including allotted versus unallotted plot status) determine every rate in the policy.

2. Speed is rewarded. The capital subsidy, electricity duty and stamp duty benefits all depend on meeting the commencement timelines.

3. Compare the options before committing: HEEP 2020 versus this policy (for projects already underway), the sectoral policy versus the 5% thrust booster, and the State package versus the PLI top-up.

4. The B2C proportion affects SGST benefits. Distribution and invoicing structures may influence the Net SGST rate.