Eye on US$ 1bn investment, Khattar cabinet approves Haryana Aerospace and Defence Production Policy

The Haryana government Friday approved a policy to spur industrial growth aerospace and defence production sector and place emphasis on creation of an end-to-end ecosystem.

The Haryana Aerospace and Defence Production Policy, 2022, aims at attracting investments of at least 1 billion USD and provide employment opportunities to around 25,000 people in five years, an official said.

Besides, the policy will help position the state as the country’s leading aerospace and defence manufacturing hub. Setting up Aerospace and Defence University is also mooted, it said after the decision by the Cabinet, which met here under the chairmanship of Chief Minister Manohar Lal Khattar.

“Since India has the third largest armed forces and the third highest defence expenditure in the world and has spent approximately 3 per cent of its GDP in 2020, this policy is needed to indigenise the aerospace and defence production in the state that will help in building a domestic ecosystem for the aerospace and defence industry,” the statement read.

It said the policy envisages harnessing Haryana’s inherent strength in auto components and automobile manufacturing sector, which now looks forward to a possible transition into aerospace and defence manufacturing across various aspects — infrastructure augmentation, attractive fiscal incentives, human capital development, strengthening connectivity – to enhance ease of doing Business in the state.

It also looks to leverage opportunities arising out of changes in the global economic order and to align the state’s growth in the sector with national initiatives such as the ‘Atmanirbhar Bharat Mission’, the government said.

Through this policy, Haryana is committed to taking various steps to support human capital development such as curriculum development, research and innovation, scholarship programme and setting up flying schools amongst others, it said.

This policy will also address the need to create a world-class maintenance, repair and overhaul (MRO) facility in Haryana. Growth in the aviation sector necessitates the development of adequate number of such facilities for aircraft operating in the country, it added.

The state government will facilitate and incentivise proposals for setting up new MRO facilities at existing airports or at new locations in Haryana.

The government said the policy places a special emphasis on the development of Micro, Small and Medium Enterprises (MSME) sector and its business growth, and it envisages bringing up a paradigm shift from being a regulator to a facilitator of MSMEs, it said.

Curtailing AT&C losses in power distribution

To curtail the Aggregate Technical & Commercial (AT&C) losses in power distribution, the Haryana cabinet Friday approved the action plan for adoption and implementation of “revamped distribution sector scheme (RDSS)” launched by Centre. “The implementation of this scheme will strengthen the distribution system in the rural and urban areas by reducing losses and curbing the chances of theft and will make discoms financially sustainable and operationally efficient to provide 24×7 uninterrupted, quality, power supply to the consumers,” the spokesperson said.

To become eligible for the scheme and avail its benefits, the state government will have to clear the subsidy for the current year and pending payment of electricity bills of the Government departments by the end of project period.

Contractors willing to work in Haryana need to register

“As per the Rules, identity creation of contractors on the Haryana Engineering Works (HEW) portal will be mandatory. The contractor’s performance will be evaluated against each completed work by awarding marks and generating a dynamic rating,” an official spokesperson said.

The registered qualified contractors will be benefitted since they will be exempted from paying Earnest Money Deposit (EMD), the spokesperson said, adding, “Contractors not registered on HEW portal can also participate in the tender, but they will not be eligible for the EMD exemption benefit”.

Policy framed for illegal sub-division of plots

In a move to regularise the illegally sub-divided plots and to permit plot owners to rationally sub-divide the originally allotted plots, the Cabinet approved the policy directive for regularization of the same. “The policy intends to issue guidelines and parameters for regularization of illegal sub-division of plot, permission for sub-division of residential plots in Town Planning Schemes, Rehabilitation Schemes, and Improvement Trust Schemes situated in municipal areas of Haryana while not changing the prescribed use in the planned scheme. The regularization, sub-division of plots located in the planned schemes prior to 1980 will only be considered under this policy. The minimum plot size eligible for regularization and new sub-division will be 200 sq meters. The size of the sub-divided plot shall not be less than 100 sq meters,” the spokesperson said.

“Scrutiny fee of Rs 10 per square meter will be charged. For regularization of illegally sub-divided plot, sub-division/license fees at the rate of 1.5 times of license fee (for residential plot) notified by the Town and Country Planning Department from time to time will be applicable,” the spokesperson added.

MSMEs to be given all business clearances within 15 days

In order to ease the regulatory burden on the investor and to strengthen the ease of doing business, the Cabinet approved certain amendments in the Haryana Enterprises Promotion (Amendment) Rules.

“As per the regulatory reforms approved under chapter 5 of the Haryana Enterprises and Employment Policy, 2020, Micro, Small and Medium Enterprises (MSMEs) will be given all requisite business clearances within 15 days, beyond which there will be a provision for automated deemed clearance on the Haryana Enterprises Promotion Centre portal. In case of recovery of dues, a provision was made in November 2021 in the Haryana Micro, Small Enterprises Facilitation Council (HMSEFC) Rules to recover the outstanding payments as an arrear of land revenue,” the spokesperson said.

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