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AVGC-XR analysis

Haryana's AVGC-XR policy reimburses 30 per cent of studio capex up to ₹10 crore, and only for units with at least 50 staff

Haryana's policy reimburses 30 per cent of eligible capital spend up to ₹10 crore a unit, for units that directly employ at least 50 people for a year [1]. As of 21 September, the state's schemes page lists no scheme to claim it under [27].

By AVGC-XR Desk ·

Haryana's Industries and Commerce Department notified the Haryana AVGC-XR Policy 2026 in the state gazette on 27 May 2026, valid for five years [2]. The state government announced it on 29 May as one of seven sector policies notified together [3]. It sets an objective of more than 10,000 direct and indirect jobs over the policy period [4].

Who can claim

The incentives are open only to units that begin commercial operations after the notification and directly employ at least 50 people, on payroll or on contract with ESI or PF numbers, continuously for a year [5]. An existing studio qualifies by expanding with additional fixed capital investment of at least half its current investment, or a quarter with a minimum of ₹125 crore [6]. Units must apply to the department before they begin commercial operations [7].

Capital and operating support

Qualifying units are reimbursed 30 per cent of eligible capital expenditure, up to ₹10 crore a unit, paid in ten annual instalments [8]. Eligible capital spend covers building and fit-out, servers, rendering infrastructure, motion capture systems, IT hardware, licensed software and stamp duty [9].

Operating costs are reimbursed at 50 per cent for five years from the start of operations, up to ₹2 crore a year [10]. Eligible operating costs include net SGST, electricity duty, 75 per cent of lease rent, certification and patent costs, internet bandwidth and cloud rental charges [11].

Production grants

Animation feature films of at least 60 minutes made in Haryana get 20 per cent of eligible production cost, up to ₹1 crore a film and one sanction a year per unit [12]. Animation series of at least ten episodes get 20 per cent, up to ₹30 lakh a series and two sanctions a year [13]. XR and VFX projects, including service work on contracts worth at least ₹15 lakh, get 20 per cent up to ₹50 lakh a project [14]. Games get 20 per cent up to ₹10 lakh a game, and only once the game reaches 2 lakh verified downloads or installs [15].

The break-even points that follow are arithmetic on the policy's published rates and caps rather than figures it states. Thirty per cent of about ₹33 crore is ₹10 crore, the capital-support ceiling [8]. Twenty per cent of ₹5 crore is ₹1 crore, the film ceiling [12].

Each grant carries conditions: at least 60 per cent of eligible production spend must be incurred in Haryana and certified by a chartered accountant [16]. At least half the production staff on the project must be domiciled in Haryana [17]. The Haryana Film Promotion Board must approve the project before production starts, and money is released only after the Board certifies the finished work for quality and originality [18].

Karnataka's Policy 3.0 pays the same 20 per cent on animation films, capped at ₹50 lakh a company [19]. Rajasthan pays up to 30 per cent on animation films of 60 minutes or more, capped at ₹50 lakh an entity [20]. For games, Karnataka caps support at ₹5 lakh a company [21]. Rajasthan caps game support at ₹1 crore an entity [22].

Games, jobs and centres of excellence

Only skill-based games qualify: the policy excludes online money games and any game prohibited, restricted or regulated under the Promotion and Regulation of Online Gaming Act, 2025 [23].

The policy adds a ten-year employment subsidy for Haryana residents on the payroll: for general-category employees it applies only once residents make up at least 15 per cent of the workforce, and it is capped at ₹1 lakh an employee a year [24].

The state will back one Centre of Excellence for gaming and interactive media and two for animation, VFX, comics and XR, each eligible for 50 per cent of capital cost up to ₹5 crore [25].

What has not appeared yet

The policy says the schemes and operational guidelines under it will be notified within three months of its release [26]. As of 21 September, the department's schemes page links the policy document and lists no AVGC-XR scheme or operational guidelines [27]. The policy also commits to paying half of an eligible incentive within seven working days of an application and the rest within 45, with 8 per cent interest on delays attributable to the department [28].

What the documents leave open

- Whether the operational guidelines have been issued anywhere other than the department's own website. - How the 50-employee test is applied at application, which falls due before a unit begins operations [7]. - The overall cost: the notification sets ceilings per unit, project, centre and park, and states no total outlay [29].

Sources

  1. [1]haryanaindustries.gov.in
  2. [2]haryanaindustries.gov.in
  3. [3]prms.prharyana.gov.in
  4. [4]haryanaindustries.gov.in
  5. [5]haryanaindustries.gov.in
  6. [6]haryanaindustries.gov.in
  7. [7]haryanaindustries.gov.in
  8. [8]haryanaindustries.gov.in
  9. [9]haryanaindustries.gov.in
  10. [10]haryanaindustries.gov.in
  11. [11]haryanaindustries.gov.in
  12. [12]haryanaindustries.gov.in
  13. [13]haryanaindustries.gov.in
  14. [14]haryanaindustries.gov.in
  15. [15]haryanaindustries.gov.in
  16. [16]haryanaindustries.gov.in
  17. [17]haryanaindustries.gov.in
  18. [18]haryanaindustries.gov.in
  19. [19]itbtst.karnataka.gov.in
  20. [20]rising.rajasthan.gov.in
  21. [21]itbtst.karnataka.gov.in
  22. [22]rising.rajasthan.gov.in
  23. [23]haryanaindustries.gov.in
  24. [24]haryanaindustries.gov.in
  25. [25]haryanaindustries.gov.in
  26. [26]haryanaindustries.gov.in
  27. [27]haryanaindustries.gov.in
  28. [28]haryanaindustries.gov.in
  29. [29]haryanaindustries.gov.in

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