HaryanaActive27 May 2026–v1

Haryana AVGC-XR Policy 2026

A five-year state policy, notified in the Haryana Government Gazette (Extraordinary) No. 81-2026 on 27 May 2026 by the Industries and Commerce Department, after Finance Department concurrence and Council of Ministers approval on 18 May 2026. It aims to make Haryana a national AVGC-XR hub and to generate more than 10,000 direct and indirect jobs over the policy period. Incentives go only to units that start operations after notification and directly employ at least 50 people for a year, and a unit must apply before it starts operating. The core package reimburses 30% of eligible capital expenditure up to ₹10 crore per unit, paid over ten years, and 50% of eligible operating expenditure up to ₹2 crore a year for five years. Production grants reimburse 20% of eligible cost: up to ₹1 crore per animated feature, ₹30 lakh per animated series, ₹50 lakh per XR or VFX project and ₹10 lakh per game, conditional on 60% of spend in Haryana, half the production staff being Haryana-domiciled and prior Haryana Film Promotion Board approval. Only skill-based games qualify; online money games are excluded. It also funds three Centres of Excellence (up to ₹5 crore capital support each) and AVGC parks (up to ₹45 crore per park). The policy states no total outlay: its financial terms are per-unit, per-project, per-centre and per-park ceilings. It committed to notifying operational schemes within three months.

Key figures

CAPEX support ceiling, per unit: up to₹10 crore; Per Industries & Commerce Department, Government of Haryana: Haryana AVGC-XR Policy 2026, Haryana Government Gazette (Extraordinary) No. 81-2026, Notification No. 20/04/2026-4IB-1 dated 27 May 2026 (archived).
OPEX support ceiling, per unit per yearfive years: up to₹2 crore; Per Industries & Commerce Department, Government of Haryana: Haryana AVGC-XR Policy 2026, Haryana Government Gazette (Extraordinary) No. 81-2026, Notification No. 20/04/2026-4IB-1 dated 27 May 2026 (archived).
Animated feature grant ceiling, per film: up to₹1 crore; Per Industries & Commerce Department, Government of Haryana: Haryana AVGC-XR Policy 2026, Haryana Government Gazette (Extraordinary) No. 81-2026, Notification No. 20/04/2026-4IB-1 dated 27 May 2026 (archived).
Animated series grant ceiling, per series: up to₹30 lakh; Per Industries & Commerce Department, Government of Haryana: Haryana AVGC-XR Policy 2026, Haryana Government Gazette (Extraordinary) No. 81-2026, Notification No. 20/04/2026-4IB-1 dated 27 May 2026 (archived).
XR/VFX project grant ceiling, per project: up to₹50 lakh; Per Industries & Commerce Department, Government of Haryana: Haryana AVGC-XR Policy 2026, Haryana Government Gazette (Extraordinary) No. 81-2026, Notification No. 20/04/2026-4IB-1 dated 27 May 2026 (archived).
XR/VFX service contract, minimum value: ₹15 lakh; Per Industries & Commerce Department, Government of Haryana: Haryana AVGC-XR Policy 2026, Haryana Government Gazette (Extraordinary) No. 81-2026, Notification No. 20/04/2026-4IB-1 dated 27 May 2026 (archived).
Game development grant ceiling, per game: up to₹10 lakh; Per Industries & Commerce Department, Government of Haryana: Haryana AVGC-XR Policy 2026, Haryana Government Gazette (Extraordinary) No. 81-2026, Notification No. 20/04/2026-4IB-1 dated 27 May 2026 (archived).
Start-up prototyping ceiling, per year: up to₹10 lakh; Per Industries & Commerce Department, Government of Haryana: Haryana AVGC-XR Policy 2026, Haryana Government Gazette (Extraordinary) No. 81-2026, Notification No. 20/04/2026-4IB-1 dated 27 May 2026 (archived).
Centre of Excellence capital support, per CoE: up to₹5 crore; Per Industries & Commerce Department, Government of Haryana: Haryana AVGC-XR Policy 2026, Haryana Government Gazette (Extraordinary) No. 81-2026, Notification No. 20/04/2026-4IB-1 dated 27 May 2026 (archived).
Centre of Excellence operating support, per yearfive years: up to₹1 crore; Per Industries & Commerce Department, Government of Haryana: Haryana AVGC-XR Policy 2026, Haryana Government Gazette (Extraordinary) No. 81-2026, Notification No. 20/04/2026-4IB-1 dated 27 May 2026 (archived).
AVGC park support ceiling, per park: up to₹45 crore; Per Industries & Commerce Department, Government of Haryana: Haryana AVGC-XR Policy 2026, Haryana Government Gazette (Extraordinary) No. 81-2026, Notification No. 20/04/2026-4IB-1 dated 27 May 2026 (archived).
Expansion route: minimum added investment at 25% FCI: ₹125 crore; Per Industries & Commerce Department, Government of Haryana: Haryana AVGC-XR Policy 2026, Haryana Government Gazette (Extraordinary) No. 81-2026, Notification No. 20/04/2026-4IB-1 dated 27 May 2026 (archived).

Incentives & provisions

Gaming eligibility: Only enterprises engaged in the design, development and production of skill-based games are eligible. Online money games, and any online game or platform prohibited, restricted or regulated under the Promotion and Regulation of Online Gaming Act, 2025, are excluded.
Unit eligibility: Only units that commence commercial production or operations after the date of notification and within the policy's validity, and that directly employ at least 50 employees on payroll or on contract with an ESI/PF number continuously for at least one year, are eligible. A unit must apply to the Department before the date of commencement of commercial operations.
Expansion by existing units: An existing unit may claim for expansion or diversification at the same location if the additional fixed capital investment is at least 50% of current FCI, or at least 25% subject to a minimum expansion investment of ₹125 crore, or exceeds the Mega/Ultra Mega threshold for the location. Expansion incentives can be claimed only once during the policy period.
Cumulative cap and no double claims: A unit claiming under this policy cannot claim for the same project under any other Government of Haryana policy (except to the extent the Haryana Progressive MSME and Exports Policy covers a head this policy does not). Cumulative incentives, together with Government of India support for the same project, are capped at 100% of fixed capital investment.
CAPEX support: Reimbursement of 30% of eligible capital expenditure, up to ₹10 crore per unit. Eligible CAPEX includes building construction and fit-out, new machinery, equipment, servers, rendering infrastructure, motion capture systems, digital production hardware, IT hardware and licensed software, and technology acquisition including production pipelines, game engines and rendering software.
CAPEX disbursement: CAPEX support is disbursed in ten annual instalments, starting after commencement of operations or achievement of the committed eligible capital investment, whichever is later. Stamp duty on land or office space, external development charges (owned buildings) and new captive renewable energy projects of at least 100 kW also count as eligible CAPEX.
OPEX support: Reimbursement of 50% of eligible operating expenditure for five years from commencement of operations, up to ₹2 crore a year. Eligible OPEX includes net SGST paid to Haryana, electricity duty, lease rent at 75% of rent paid (capped at 6% of assessed property value a year), industry and platform certification costs, patent costs, and internet bandwidth charges from a GST-registered Indian provider.
OPEX support, further items: Eligible OPEX also includes cloud rental charges from a GST-registered Indian provider, CGTMSE guarantee fees and credit rating expenses from SEBI-accredited or SIDBI-empanelled agencies. Mega and Ultra Mega projects may receive customised packages from the Haryana Enterprise Promotion Board over and above the standard package.
Employment generation subsidy: For ten years from commencement of operations, a subsidy per eligible Haryana local employee, at rates set by the share of local employees in the workforce, capped at INR 1 lakh per employee per year (INR 1.2 lakh for women, SC, Divyang and ex-servicemen category employees). Where the average gross monthly salary is below INR 48,000, a minimum of INR 48,000 a year per employee applies. Local status is verified only through Parivar Pehchan Patra.
Recruitment through HKRN: Units recruiting Haryana local employees through Haryana Kaushal Rozgar Nigam are reimbursed 100% of the employer's EPF contribution for five years, and those employees are reimbursed 100% of their own EPF contribution by DBT for five years; each capped at 12% of basic plus DA and INR 25,000 per employee per year.
Internship stipend support: The State reimburses 50% of stipend paid to interns or apprentices from partner courses, up to INR 15,000 per intern per month, for up to six months each, and up to 50 interns per unit per financial year.
Animated feature grant: Reimbursement of 20% of eligible production cost for animated features of at least 60 minutes produced in Haryana, up to ₹1 crore per film, one sanction per unit per financial year, subject to theatrical, OTT or television release in India.
Animated series grant: Reimbursement of 20% of eligible production cost for animated series of at least ten episodes produced in Haryana, up to ₹30 lakh per series, two sanctions per unit per financial year, subject to release on a licensed OTT platform or TV channel.
XR/VFX production grant: Reimbursement of 20% of eligible production cost for XR or VFX work in Haryana, under own IP or a service contract with an Indian or international production house, up to ₹50 lakh per project, one sanction per unit per financial year. A service contract must be worth at least ₹15 lakh, and the output must be released theatrically, on OTT or on TV in India.
Game development grant: Reimbursement of 20% of eligible game development cost, up to ₹10 lakh per game, one sanction per unit per financial year, subject to at least 2 lakh verified downloads or installs on digital distribution platforms.
Production grant conditions: At least 60% of eligible production expenditure must be incurred in Haryana, certified by a Chartered Accountant; at least 50% of production-role staff must be Haryana-domiciled during the project; and a detailed proposal must be approved by the Haryana Film Promotion Board before production begins. Marketing, distribution, financing and land or building costs are not eligible.
Post-completion certification: Production grants are disbursed only after the Haryana Film Promotion Board certifies the finished project for quality, originality and compliance with the approved proposal. The Board's decision is final.
Market access and Grand Challenges: The State may organise content markets, buyer-seller meets, investor connects and showcase festivals for local creators, and will periodically run AVGC-XR Grand Challenges for new technologies.
Start-up incubation and prototyping: The top five start-ups each year get up to five free incubation seats in government incubators for one year, extendable to three. Eligible start-ups are reimbursed 50% of prototype development cost, up to ₹10 lakh per start-up per financial year, two sanctions a year.
Venture capital preference: Eligible AVGC-XR units get preference in allocations from the State's venture capital fund for start-ups, women entrepreneurs and SC/ST entrepreneurs.
Centres of Excellence: Eligible Centres of Excellence are reimbursed 50% of eligible capital expenditure, up to ₹5 crore per CoE, including rendering farms, high-performance computing, motion capture and XR labs; and 50% of eligible operating expenditure, up to ₹1 crore a year per CoE for five years.
AVGC park capital subsidy: Private AVGC park developers licensed by the Town and Country Planning Department may choose a capital subsidy of 75% (Sub-Prime Areas) or 85% (Prime/Focus Areas) of eligible trunk-infrastructure expenditure, or the SGST option.
AVGC park ceiling and SGST option: Park capital subsidy is capped at ₹45 crore per park and paid in four tranches tied to completion and 25%, 50% and 75% occupancy. The alternative is net SGST reimbursement on trunk-infrastructure spend, also capped at ₹45 crore per park, at 60% (Sub-Prime) or 70% (Prime/Focus).
AVGC park stamp duty: 100% of stamp duty paid by the developer for parks in Sub-Prime and Prime/Focus Areas is reimbursed on obtaining the development licence and Consent to Establish during the policy period.
Incentive processing timelines: 50% of an eligible incentive is released within seven working days of application after preliminary scrutiny, and the rest within 45 working days, with interest at 8% a year on delays attributable to the department.
Operational schemes: All new schemes and operational guidelines proposed in the policy are to be notified within three months of the policy's release, approved by the Administrative Secretary and placed before the Standing Finance Committee.

Source: Industries & Commerce Department, Government of Haryana: Haryana AVGC-XR Policy 2026, Haryana Government Gazette (Extraordinary) No. 81-2026, Notification No. 20/04/2026-4IB-1 dated 27 May 2026. Terms are structured from the primary source and updated as the policy changes — this page always reflects the latest known version. (archived copy)