Industrial units replacing diesel with CNG to get 50% VAT rebate

Chandigarh, October 22

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The Haryana Government has decided to give 50 per cent rebate in value added tax (VAT) to the industrial units that will replace their diesel-run generators with natural gas-run equipment to meet their energy requirement.

The scheme will be applicable to all industries, including MSMEs, and will be effective for 2 years from the date of its notification.

valid for two years

• The industrial units replacing their diesel-run generators with natural gas-run equipment will be eligible for the rebate
• The scheme, applicable to all industries, will be effective for two years from the date of its notification

A decision in this regard was taken at a meeting of the Standing Finance Committee held here today under the chairmanship of CM Manohar Lal Khattar.

Notably, the use of diesel-run generators is banned in the National Capital Region. Now, the industries that will meet their energy requirement by utilising CNG and PNG will get 50 per cent exemption in VAT.

The committee also approved giving a subsidy of Rs 164.66 crore per year to the companies manufacturing electric vehicles under various heads, under Haryana Electric Vehicle (EV) Policy-2022.

The CM was informed that the EV policy aimed at protecting the environment, reducing carbon footprint, making Haryana an EV manufacturing hub, ensuring skill development in the field, encouraging uptake of EV vehicles, providing EV charging infrastructure and encouraging R&D in EV technology.

The policy offers various financial incentives to EV manufacturers by giving incentives on fixed capital investment, net SGST, stamp duty and employment generation etc.