Investment Promotion Schemes for Companies Set up in Karnataka

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Investment Promotion Schemes for Companies Set up in Karnataka

Being the first state to announce the creation of a Startup Cell specifically, the Karnataka government is proud of this accomplishment. The mission of the Karnataka Startup Cell is to position Karnataka as the world's best place for startups. Its goal is to use the state's inventive culture to leverage strategic investments and policy changes to establish a world-class startup ecosystem.

    Industrial policy terms and conditions

  • New industrial policy Period is 2020-25
  • Incentives and Concessions under this policy will be available to all new and additional investments during the policy period for establishment of new enterprises and expansion/ diversification/modernization.
  • Incentives and concessions under this policy shall primarily be available only for Manufacturing Enterprises/ Industries and specified categories of service enterprises as listed in the policy.
  • Eligible MSMEs Shall submit application for sanction of investment promotion subsidy with in one year from the date of Commencement of commercial production.
  • Eligible MSMEs shall Commence Commercial Production with in 3 years from the date of approval from the DLSWCC/SLSWCC. If Any enterprise who has not taken approval from the DLSWCC/SLSWCC for their project for any reason shall commence commercial production with in 3 years from the date of taking possession of land/building or taking industrial plan approval.
  • While calculating the value of eligible fixed assets created during the expansion/ modernization of an enterprise only additional new investments shall be considered.
  • Incentives and concessions under this policy will reckon these definitions of MSME and shall automatically stand revised to the revision made by Government of India from time to time and eligible incentives and concessions will be as per new definitions from the date of change in the definitions, subject to enabling orders issued by the State Government.

    Investment Promotion subsidy will be based on the turnover from the date of commencement of Commercial production as follows;

  • Micro Enterprises: Investment in Plant and Machinery or Equipment does not exceed INR 1 crore and turnover does not exceed INR 5 crore.
  • Small Enterprises- Investment in Plant and Machinery or Equipment does not exceed INR 10 crore and turnover does not exceed INR 50 crore.
  • Medium Enterprises - Investment in Plant and Machinery or Equipment does not exceed INR 50 crore and turnover does not exceed INR 250 crore.
  • Large Enterprise: An Industrial Unit which is not classified as Medium Enterprise and with an investment in fixed assets up to INR 250 crore shall be classified as large-scale enterprise.
  • Mega Enterprise: Projects with an investment in fixed assets above INR 250 crore and up to INR 500 crore
  • Ultra-Mega Enterprise: Projects with an investment in fixed assets above INR 500 crore and up to INR 1,000 crore
  • Super-Mega Enterprise: Projects with an investment in fixed assets above INR 1,000 crore

    Employment Criteria for enterprises availing incentives and concessions under Industrial Policy 2020-25 are as follows:

  • (i) All new industrial investment projects shall create maximum possible direct employment opportunities with a minimum employment of 70% to Kannadigas on an overall basis and 100% in case of Group D employees.
  • (ii) District Industries Centres will monitor the compliance of employment to Kannadigas for a period of initial 5 years. Failure of the industries to provide employment to Kannadigas as stipulated above will be reported to the concerned DLSWCC/ 13 SLSWCC/ SHLCC which may recommend for recovery of incentives and concessions sanctioned to the unit

    INCENTIVES & CONCESSIONS FOR MSME: INCENTIVES & CONCESSIONS FOR MSME: The incentives and concessions for knowledge based industries will be as per respective sectoral policies.

  • All renewable energy projects viz., solar; wind, biomass and mini hydel projects are proposed to be treated as manufacturing industry and are eligible for incentives & concessions as applicable to manufacturing industries mentioned in this policy except All renewable energy projects viz., solar; wind, biomass and mini hydel projects are proposed to be treated as manufacturing industry and are eligible for incentives & concessions as applicable to manufacturing industries mentioned in this policy except Investment Promotion Subsidy.
  • The applicable incentives and concessions for promotion of industries in Aerospace and Defense sector will be as per Karnataka Aerospace Policy 2013-23.
  • The incentives and concessions for electric vehicles sector applicable to industries will be as per the Karnataka Electric Vehicle and Energy Storage policy 2017.
  • The incentives and concessions for Garment and Textile sector applicable to industries will be as per New Textile & Garment Policy 2019-24.
  • The incentives and concessions for Agro and food processing sector applicable to industries will be as per the Karnataka Integrated Agri business and food processing policy 2015.