Karnataka Industrial Policy 2020-2025 PDF

PDF Name	Karnataka Industrial Policy 2020-2025
No. of Pages	112
PDF Size	5.33 MB
Language	English
PDF Category	Government
Source / Credits	ebiz.karnataka.gov.in
Uploaded By	Pradeep

Karnataka Industrial Policy 2020-2025 - Summary

Karnataka government has launched a new Industrial Policy. The new Industrial Policy 2020-25 is aimed at the state’s holistic development and the promotion of Tier II and Tier III cities. To achieve this, it mentions a number of changes to existing laws as well as concessions, particularly for MSMEs.

The new Karnataka Industrial Policy envisions emerging as a “global leader in advanced manufacturing, research and development, and innovation and to create an ecosystem for an inclusive, balanced and sustainable development of the State.”

Karnataka Industrial Policy 2020 – 25 Objectives

The main objectives of the new industrial policy in Karnataka are:

Create at least 2 million jobs
Facilitate investments in advanced R&D, manufacturing, and innovation
Maintain an annual industrial growth rate of 10%
Attract investments of at least 5 lakh crore
Reach the 3^rd rank amongst Indian states for merchandise exports in the next 5 years

Industrial Policy In Karnataka 2020-25 – Highlights

The new industrial policy categorizes the state’s districts into zones. This is aimed at developing industrially backward areas.

Zone 1 and 2: industrially backward districts
Zone 3 and 4: industrially developed districts like Bengaluru and Mysuru
Automobiles and auto components
- - Electric vehicles
  - Pharmaceuticals and medical devices
  - Knowledge-based industries
  - Engineering and machine tools
  - Logistics
  - Aerospace
  - Renewable energy
  - Defense

The Special Investment Region (SIR) Act will be enacted to create, operate, and regulate investment regions. Each SIR will be categorized as an industrial township and have an area of 100 sq. km.
The first SIR will encompass the Dharwad, Belagavi, Gadag, and Haveri districts. The second SIR will encompass the Davanagere, Shivamogga, Chitradurga, and Chickamagaluru districts as well as Kalaburagi.

MSMEs To Get Subsidies

Micro, Small, and Medium-Sized Enterprises (MSMEs) will be given production turnover-based subsidies to encourage innovation. The subsidy will be based on 10 percent of their turnover each year for five years and will be limited to 20 – 30 percent of the value of their fixed assets (VFA) based on the zone. Other incentives include:

Exemption from stamp duty and concessional registration charges
- Tax exemption on electricity tariff
- Interest subsidy on loans for technology up-gradation taken from public service banks
- Reimbursement of land conversion fee
- Subsidies for sustainable operations strategies
- Power subsidy