Documentos de Académico
Documentos de Profesional
Documentos de Cultura
Policy 2014-19
(Final Draft)
Contents
1.
Introduction ................................................................................................... 4
2.
Vision ........................................................................................................... 10
3.
Mission ......................................................................................................... 10
4.
Strategies ..................................................................................................... 10
5.
Policy Measures............................................................................................. 11
5.1.
5.2.
5.3.
Investors Facilitation..20
5.4.
MSME Development......................................................................................................................... 22
5.5.
5.6.
5.7.
5.8.
Special thrust for encouraging SC/ST, Women, Minority, PH and Ex-Servicemen entrepreneurs ..................... 34
5.9.
5.10.
5.11.
5.12.
List of Service Enterprises eligible for package of Incentives and Concession ............................................... 58
List of Industrial Activities / Enterprises not eligible for Incentives and Concessions ...................................... 59
Introduction
India Economic outlook
The Planning Commission has set an average GDP growth target of 8% for the 12th Plan. The sector-wise
average GDP growth targets for Agriculture, Industry and Services are 4%, 7.6% and 9% respectively. To register
significant economic growth, revival of investment in industry and key infrastructure sectors is very important.The
growth in Gross Domestic Product (GDP) at factor cost at constant (2004-05 prices) is estimated (provisional
estimate) at 5.0% in 2012-13 with agriculture, industry and services registering growth rates of 1.9%, 2.1% and
7.1% respectively. Also, it is crucial to accelerate the output of core sectors and speed up implementation of crucial
big ticket projects, while laying emphasis on research and development and adequate availability of skilled
manpower to improve India's competitiveness in the manufacturing sector.
National Competitiveness Programme was announced in 2005 with an objective to support the
Small and Medium Enterprises (SMEs) in their endeavor to become competitive and adjust to
the competitive pressure caused by liberalization and moderation of tariff rates. Some of the
schemes introduced as a part of the programme include:
Design Clinic Scheme for design expertise to MSMEs Manufacturing sector (DESIGN)
MSMED Act 2006, was introduced to provide for facilitating promotion, development and enhancing
competitiveness of micro, small and medium enterprises.
Automotive Mission Plan 2006-16 was introduced with a vision to increase the output of the sector to INR
9019.75 billion (USD 145 billion) and create additional employment for 25 million persons by 2016.
In 2011, the Government of India announced a National Manufacturing Policy with the objective of
enhancing the share of manufacturing in GDP to 25% within a decade and creating 100 million jobs.
The Ministry of Food Processing Industries launched a Centrally Sponsored Scheme - National Mission on
Food Processing (NMFP) during 12th Plan. The NMFP contemplates establishment of National Mission as
well as corresponding Missions in the state and District level to promote food processing sector across
India.
Indias National Action Plan on Climate Change, launched in 2008, establishes eight National Missions.
Among these are the National Solar Mission with the aim of generating 20 gigawatts of solar power by
2022; the National Mission for Enhanced Energy Efficiency; and the National Water Mission, which aims
to increase water use efficiency by 20 percent, among other goals.
Companies Bill, 2011: It aims to enhance transparency in company operations, improve corporate
governance and strengthen regulation for corporates and auditing firms. It also makes it mandatory for
profit- making companies to spend two percent of their profit for community welfare as per CSR.
Land acquisition Act 2013 has been approved and will replace the Land acquisition Act of 1894.
Science, Technology and Innovation Policy (STI), 2013 emphasises on innovation and setting up research
facility with an aspiration to place India among the top five scientific powers in the world by 2020. The
Policy targets increase in gross expenditure in R&D to 2 per cent of Gross Domestic Product from the
current 1 per cent in this decade by supporting increased private sector participation.
Karnataka
Today, Karnataka is home to
6.11 crore people (2011 Census)
20
17.1
15
12.2
State's
population
10
has
9.7
8.4
10.8
9.2
9.7
5.1
9.2
8.3
3.5
4.4
2.4
2.4
2.1
-1.5
0
2005-06
2006-07
2007-08
-5
2008-09
Karnataka
2009-10
2010-11
2011-12
2012-13
India
15.6%
during
corresponding period.
Karnatakas industrial growth between FY 2005-06 and FY 2011-12 was 7.39% as against Indias 7.93%.
Karnataka GSDP has grown at 5.9% to reach INR 3, 03,444 crore in 2012-13 (constant price) against Indias 5%.
Bangalore has been at the fore front of attracting both domestic and foreign investments. The state has been able
to attract considerable amount of FDI across various sectors. Between April 2000 and October 2013, Karnataka
received FDI to the tune of INR 54,508 crores. From 2009-10 to 2013-14, the State High Level Clearance
Committee (SHLCC) cleared 484 projects worth INR 671460.21 crores with employment potential for 22, 72,064
persons. In the same period, State Level Single Window Clearance Committee cleared 2041 projects worth INR
31794.25 crores with employment potential for 466640 persons. Karnatakas export of INR 2, 58,368.53 crore
during the period 2012-13 constitutes 12.69% of all India exports. Karnatakas share in national exports for
electronics and software constitute about 38% and for product exports constitute 6.3%. Share of electronics and
software in state exports stands at 60% for the period 2012-13.
In the 11th Five Year plan, the economy could not grow at the pace as planned due to global slowdown witnessed
since the beginning of 2008, uncertain and challenging macroeconomic situation globally and nationally, and the
widespread drought situation in the State. However, the Government of Karnataka is determined and poised to
accelerate the process of its economic growth so as to achieve its vision of an inclusively developed State. It
undertook several initiatives to maintain the growth of the state economy and came out with numerous policies to
support sector and industrial growth. Some of the policies released by the state include:
SN
1.
2.
3.
4.
5.
Policy
Department
Department
, 2009- 14
Government of Karnataka
policyeng.pdf
Department
http://www.gokenergy.gov.in/govt_on.htm
2009-14
Government of Karnataka
Department
http://www.gokenergy.gov.in/documents/S
Tourism,
of
of
Energy,
Energy,
http://karnatakatourism.org/policy/tourism
olar%20Policy%20English.pdf
http://karnatakaindustry.gov.in/documents
for
Commerce,
/StatePolicyforSpecialEconomicZones2009
special
economic
Government
of
zones 2009
Karnataka
withAmendments.pdf
http://www.karnatakaindustry.gov.in/Old-
policy 2012
Commerce,
document/AerospacePolicy%20_CII_%201
policy
2010
Government of
Karnataka
_6.pdf
http://kumappsonline.com/newsletter/imag
Science
es/jan2013/downloads/semiconductor%20
&
Technology,
Government of Karnataka
brochure.pdf
http://www.bangaloreitbt.in/docs/2012/09/
Communication
Science
Informanton&CommunicationsTechnology
Government of Karnataka
Policy.pdf
http://www.bangaloreitbt.in/docs/2012/09/
Science
Biotech_Policy_II.pdf
Information
7.
of
Government of Karnataka
Semiconductor
6.
Source/Link
and
8.
&
&
Technology,
Technology,
Government of Karnataka
Karnataka
9.
10.
animation,
http://www.bangaloreitbt.in/docs/2012/09/
Science
KAVG%20Policy.pdf
Government of Karnataka
Department of Information
http://www.bangaloreite.biz/IT_2013/pdf/K
Incentives ) policy
Technology,
arnataka-i4-Policy.pdf
&
Technology,
Biotechnology
SN
11.
Policy
Department
Department
Government of Karnataka
ntegrated-AgriBusiness2-RN-8pm.pdf
Karnataka
http://www.advantagekarnataka.com/ima
Department, Government of
ges/sector-
Karnataka
profiles/Biotechnology&Pharmaceutical.pd
Pharmaceutical
12.
policy
2012
Source/Link
of
Agriculture,
http://www.karnataka.gov.in/Documents/I
13.
Department
of
Handlooms
http://www.karnatakaindustry.gov.in/docu
18
ments/SUVARNA%20VASTRA%20NEETHI
Karnataka
-2008-13.pdf
As against the targeted Investment of INR 3.00 lakhs Crores and employment generation for 10.00 lakh
people, around 1200 large enterprise proposals were approved during the policy period , with an investment of
INR6,95,000 crores and employment generation for 25,86,000 people. Out of which few have already
implemented and many of them are under various stages of implementation. Besides, 101366 MSMEs have
been established with an investment of INR8400 crores and employment generation for 6,40,000 people.
Land bank concept has been established and through which Government has initiated action for
acquisition of 1,15,000 acres and out of which 31,000 acres of land is finally notified for development.
Action has been has initiated for supply of tertiary treated water to augment the water scarcity and to
adopt water conservation measures.
Action has been initiated for establishment of Sector specific parks namely, Pharma, Aerospace, Spice,
Jewelry, IT/BT, ITIR, Hardware Park, Food, Textile, Apparel, etc.
For effective maintenance of the industrial area, a separate industrial township is constituted for
Electronic City in Bangalore District, as a pilot project.
Industries facilitation act 2002 is amended to facilitate Single Window Mechanism to work more
effectively with more powers, particularly at District levels.
Online application filing system is introduced to facilitate the new investors to file their applications for
project clearance, across the World
KaigarikaAdalats at Divisional and District level have been conducted to sort out the various issues of
Industries.
Global Investors Meet 2010 & 2012 have been conducted successfully to showcase the investment
opportunities existing in the state to domestic and international investors and mobilize investments .
In order to provide required trained man power to the industries various Skill Development Training
Programmes were conducted
More than 4000 MSMEs are extended with various incentives and concessions to an extent of more than
INR 250 Crores.
State Govt. has established 13 Skill Development Training Centres in association with Private Institutions
under PPP Module.
Now, the state intends to consolidate the strategies and achievements made so far by intensifying governance
reforms, ensuring effective targeting of subsidies and better monitoring, and instituting a process of informed
decision making through independent evaluation.
One such key initiative is the formulation of a new Industrial Policy 2014-19 that will encourage investors and
entrepreneurs to develop market, bring in technology and provide employment opportunities and spread
industrialization and development to the most backward areas of the state. In this policy, the government has
envisioned undertaking a holistic approach towards promotion of industrial development in the State through
development of human & natural resources, creation of new employment opportunities, increasing share of
industry in the State GDP, development of MSME sector and promotion of skill development and
entrepreneurship.
Apart from the providing special incentives to the industry, Government of Karnataka is also committed to
providing right infrastructure and business environment. Ensuring availability of quality Land, Water, Power and
Labour is the top priority of the state.
2. Vision
To make Karnataka the most preferred investment destination through inclusive, sustainable and balanced
growth.
3. Mission
To enhance the contribution of manufacturing sector to the State GDP to 20% by end of policy period.
4. Strategies
4.1.
4.2.
4.3.
4.4.
4.5.
4.6.
Quality improvement
4.7.
4.8.
4.9.
4.10.
Special thrust for encouraging SC/ST, PH, Ex-Servicemen, and Women entrepreneurs
4.11.
Support for promotion of Khadi& Village industry, Artisan and Coir Sector
4.12.
10
5. Policy Measures
Infrastructure Development with special focus on promotion of
5.1.
State Government has proposed to establish two industrial corridors in the state with the support of
Government of India, viz. Chennai Bangalore Chitradurga Industrial corridor and Bangalore
Mumbai Economic corridor. The corridors will have separate industrial nodes for industrial
investments.
State will also explore option for setting up of State industrial corridors along:
i.
ii.
11
iii.
iv.
Efforts will be made to encourage development and alignment of new industrial areas/ estates along
the NMIZs and industrial corridors and manufacturing units.
d. To create full-fledged sector specific industrial zones where investors can set up industries on
plug and play basis
A new policy for industrial area/ estate development will be explored where the State would look at
creating Special Investment Zones for focus sectors. Efforts will be made to establish these
investment zones in all districts and will be managed by a single SPV. All regulatory and statutory
approvals for the development of the investment zone and for establishment of industry in these
investment zones would be taken by the SPV.
It is proposed to set up one such sector specific industrial zone in each revenue division, during the
policy period.
5.1.2.
a)
b)
12
Permission to purchase lands from land owners for development of private industrial Estates / Parks
subject compliance with land use pattern in the approved Master Plan.
To utilize proponents own land for development of private industrial Estates/ Parks subject
compliance with land use pattern in the approved Master Plan.
Allotment of bulk land in areas acquired by KIADB / Government bodies to the Private investors /
developers for Industrial Layouts / Parks. Suitable sub-leasing arrangements along with flexible terms
& conditions would be specified.
Acquisition of private lands by the State Government on demand for development of Private
Industrial Layouts / Parks, where atleast 80% consent has been obtained by the proponent, through
Single Window Mechanism/ Empowered Committee. Such lands would be transferred / leased to the
Developer/ Co-developer on easy terms. The private Industrial Estates will be setup with the
minimum of 50 to 75 acres of land in the most potential talukas to expediate the development of
Small and Micro Sector
c)
d)
e)
13
cluster specific industrial estates/ parks at potential locations will be encouraged. Also segregation of
plots will be mandatory to reflect separate earmarked area for highly polluting industries.
Note : Incentives and Concessions offered for formation of private industrial areas / estates are
as per Annexure -2 & 5 respectively.
5.1.3.
KIADB may expand its scope of services to include effluent treatment plants, provision of power,
water and quality access roads for a select number of large industrial areas, on its own or in PPP
mode.
d. To develop world class support infrastructure for industries
KIADB will create an action plan to develop multi-floor industrial buildings in for industrialisation in
and around Bangalore, Mysore, Belgaum, Hubli-Dharwad, Bellary, Mangalore, and Udupi where land
is scarce and the cost of acquisition / development is very high.
14
e.
WATER:
50 MLD of water proposed for Kolar, Narasapura, Vemgal, Hoskote, Malur and
Mastenahalli Industrial Areas.
f.
POWER:
State Government has initiated various measures to augment the power shortage and expected to
attend self sufficient by 2017. Besides in order to encourage energy conservation measures and also
to generate and consume power through non-conventional energy sources, various incentives and
concessions are offered and listed in Annexure-2
Further, in order to make available the required land to private entrepreneurs for setting up power
generating units the procedure for purchase of Agricultural land or conversion for non-agricultural
purpose will be made easier.
15
Suitable mechanism shall be adopted for effective utilisation of the land.by imposing penalties
and forfeitures for inaction by Promoters and delays in implementing the projects after land
allotment for more than 2 years.
FAR, will be increased from the present average levels of 1.0 to 3.0, specifically for plots in industrial
parks and average ground coverage will be increased from 45-50% to 70%. This will be applicable
both to existing and proposed projects. This measure would release significant amount of land in
existing industries and reduce the need to procure or provide more land for industry.
Necessary amendments will be proposed for Karnataka Land Reforms Act, to reduce the time taken in
according approval for purchase of land under Section 109 and also for converting agriculture land for
industrial purposes.
Karnataka Industrial Area Development Board (KIADB) and Karnataka State Town Planning Board
maintain different standard requirements for Floor Area Ratio (FAR) for industries. Floor Area Ratio
for industry projects will be standardised between the two departments to provide better facilitation
for investors.
Lands allotted for industrial purposes will not be allowed to be used for any other purpose other than
industrial purposes.
Facilitate purchase of land upto 25 to 30 acres without extensive regulatory procedures and
permit deemed conversion for such land within stiputated time. Necessary Amendments to
the Karnataka Land Reforms Act will be proposed.
5.2.
5.2.1.
Skill Development
a)
16
b)
c)
d)
e)
f)
17
g)
h)
Provision of manpower requirement (with skill category and number) by industries at the time of
filing of application for single window approval and or for incentives under state policies will be
made mandatory.
Council for Vocational Education and Research/ or any other nodal agency will be appointed as nodal
agency for regional mapping of demand & supply of available and projected skilled labour. The nodal
agency will be responsible for aligning supply of skilled candidates from training institutes to skill
requirements of area specific industry and services clusters. Skill development centres will act as
support bodies of the nodal agency for conducting the regional mapping.
i)
j)
18
and facilitate participation of women for skill development and creation of employment ready women
workforce. Facilities such as hostel for women, scholarships, transport, training materials and loans,
will be made available for the students of the institute.
5.2.2.
a)
Entrepreneurship Development
Focus on fostering entrepreneurship through education
Centre for Entrepreneurship Development of Karnataka (CEDOK) to develop zone-wise sector-wise
modules for Entrepreneurship Development Programmes inclusive of industry visit and interaction to
enable entrepreneurs to focus on regional opportunities
Centre for Entrepreneurship Development of Karnataka (CEDOK) to introduce Entrepreneurship
Development Programmes for entrepreneurs and conduct them on a regular basis across districts.
Programmes for existing entrepreneurs could be in the area of Technology Up gradation, Product
Diversification, Quality Marks, National and International Strategies against W.T.O., International
Market and Export procedures.
b)
c)
d)
19
Entrepreneur Information handbooks containing guidelines on all the procedures and formalities of
setting up and operating a business in Karnataka will be prepared and distributed through guidance
cells
e)
f)
To provide online and transparent facilitation mechanism for all investments proposals
A one stop online information centre will be established for Industrial Areas/ estates to enable
i.
ii.
Profile and detailed information system for all industrial estates/ areas
iii.
iv.
5.3.2.
To provide online and transparent facilitation mechanism for all investments proposals
As appointed by the Karnataka Industries Facilitation Act 2002, Karnataka UdyogMitra (KUM) will
continue to act as the nodal agency at the State level to undertake investment promotional activities
and to render necessary guidance and assistance to entrepreneurs to setup industrial undertaking in
the State. KUM will act as the central facilitation cell for all investors in the state and will be the first
point for receiving of all investment applications/ proposals.
20
The state has made continuous endeavours to decrease cost and increase accessibility and
transparency of the investment application system in the state. It has recently introduced an online
facilitation portal for investors and departments to apply, approve, track and monitor the proposals in
an effective manner. This online application system will be extended to include submission of an
online Combined Application Form for investment proposals. This extended system will facilitate the
investors in submitting, tracking and getting the approvals online without visiting multiple
departments.
Government will make efforts to introduce an online system for tracking MSME investments at the
district level through DICs and district level facilitation cells. It will also set up an online dedicated
Grievance Redressal Mechanism for investors.
5.3.3.
To strengthen single window mechanism to facilitate the investors to avail all clearances
through one nodal agency
Projects approved and authorised for implementation by the State High level Clearance Committee
(SHLCC), and or State Level Single Window Clearance Committee (SLSWCC) and or District Level
Single Window Clearance Committee (DLSWCC) appointed by the Karnataka Industries Facilitation
Act 2002, will be valid and binding on all line departments.
Opinion is to be sought from relevant line departments for projects where application is filed with
KUM (Information and fees provided by investor is complete in all formats) and placed before
approval committee for approval. The timeframe for receiving such opinions from line departments
has been defined as 90 days by the State and can be revised by the state from time to time. Investors
having clear possession of land will be given all clearances/ approvals after filing of application with
KUM provided line departments do not submit any objection when their opinion is sought. Investors
not having clear possession of land will only be given in-principal approval and final approval will be
given after clear possession of land.
All the regulatory approvals (except land) required under the SHLCC and SLSWCC for s will be
provided within 90 days of the receipt of the application in Karnataka UdyogMitra
5.3.4.
21
State shall explore the possibility of removing the Trade license system or simplifying the trade license
for manufacturing industries.
All application processes and procedures for new investments in the state will be made available in
one place in the KUM website and respective departmental processes and procedures will be made
available on their respective websites.
5.3.5.
5.4.
MSME Development
5.4.1.
MSME sector investing in the state will be eligible for an attractive package of incentives, concessions
and benefits as per Annexure 2.
22
Government to earmark minimum 20 30%extent of allotable land in KIADB industrial areas for
MSMEs wherein further reservation of 20%, 30% and 50% of allotable land would be made available
for micro, small and medium enterprises respectively.
Department of Industries will conduct an annual vendor development event at the State levelto bring
together MSMEs and large manufacturers/Public Sectors. Similar events at the District level also will
be conducted.An online system will be created for tracking of collaboration/vendor opportunities for
MSMEs.
Government may examine the possibility of exempting all MSME projects falling under the green
category and not included in the list of polluting industries from obtaining CFE/ CFO from Karnataka
State Pollution Control Board (KSPCB).
State will evolve a mechanism to reduce uncoordinated and irregular inspections conducted by various
line departments to ease burden on MSMEs.
Government will plan for awarding MSMEs for achieving excellence through growth in production and
profit, quality and environment improvement measure.
Selected recipients from each district would get priority for sponsored participation in national and
international trade fairs.
5.4.2.
5.4.3.
a)
To promote sector specific MSME cluster development and business incubation centres
Development of Rural Industrial Areas for MSME
Development of separate rural small industrial areas for Micro, Small and Medium Industry with
enabling infrastructure, viz. road connectivity, drainage system, street lighting, and water supply will
be initiated by KIADB.
State government will provide land, power and water at subsidized prices.
Rural small industrial areas will have minimum 100/ 150 plots per district per year measuring 2000 sq.
ft to 10000 sq. ft. and plots shall be allotted only to non-polluting industries.
23
Land will be allotted to Micro, Small and Medium Enterprises in the ratio of 25%, 35% and 40%
respectively.
A budgetary provision of INR60 Crores per annum will be made available to subsidise the plot cost.
b)
Cluster Development
Benefits under Micro and Small Enterprises Cluster Development programme of Government of India
will be facilitated for MSME cluster development. The objective of the scheme is to support the
sustainability and growth of MSEs by addressing common issues such as improvement of technology,
skills and quality, market access, access to capital, etc. It also seeks to build capacity for MSEs,
create/ upgrade infrastructural facilities in the industrial areas/clusters of MSEs, and to set up
common facility centres.
The Karnataka Council for Technological Upgradation (KCTU) will continue to be the monitoring /
nodal agency on behalf of the State Government for the Micro and Small Enterprises Cluster
Development Programme that has been launched by the Ministry of Micro, Small and Medium
Enterprises.
Realising the need for MSME clusters, GoK will be launching a scheme for development and up
gradation of existing clusters.Under the phase 1 ofscheme a sum of INR 20 crore per annum, will be
earmarked for upgradation of existing clusters and development of new clusters.Under this scheme
the state will also develop a comprehensive MSME development plan for the state. Under this scheme
the state will also provide viability gap funding for setting up of business incubation centres in the
KIADB industrial areas under PPP mode. Under the phase 2 of the scheme the state will create district
level master incubator to provide district level implementation support to MSMEs and Entrepreneurs.
5.4.4.
5.4.5.
5.4.6.
Quality Improvement
Quality improvement interventions by state MSMEs such as upgradation of existing and installing of
new technologies for quality control, cleaner environment friendly production, quality testing, and
fees paid for quality certifications would be eligible for one time subsidy through reimbursement of
24
actual costs. This benefit would be available for MSMEs who have already taken benefits under
central government schemes and would like to go for renewal.
Details of incentives are as in Annexure 2.
5.5.
Sustainable
Industrial
Growth
Technology
Transfer
and
Upgradation Support
5.5.1.
Adopt a sustainable green industrial growth strategy to safeguard and protect the natural
resources of the state
Efforts will be made to adopt a green industrial development program that looks at more sustainable
patterns of production and consumption i.e. patterns that are resource and energy efficient, lowcarbon and low waste, non-polluting and safe, and which produce products that are responsibly
managed throughout their lifecycle while providing sustainable livelihoods and continuous job
creation.
In the long run this measure will help reduce burden on public finances, improve environmental safety,
reduce vulnerability of natural resources, expand coverage of water and energy services and make it
more efficient, reduce health impacts associated with environmental degradation; reduce costs and
increase productivity from technologies that will also ease environmental pressure, etc.
Department of Industries in close co-ordination with Karnataka State Pollution Control Board
(KSPCB) will try to build awareness, educate and engage the industry in reducing environmental
footprint.
Awareness programmes for green manufacturing and sustainable production will be initiated in all
districts through the DIC with active participation of green champions from the local industry on a
regular basis. All green champions from the industries participating in government green awareness
programmes will be allowed credit under CSR programmes, the guidelines for which will be decided in
association with KSPCB.
Department of industries will initiate a study to develop a strategic framework for the state to identify
and prioritize specific interventions required to make industrial growth sustainable.
Department will also conduct a benchmarking study to map the water consumption pattern, energy
consumption pattern, solid waste management practices, discharge practices, etc. of major KIADB
industrial areas in the statewith international standards and best practices. Also specific targets will
be set for various aspects in each sector which will act as the guidelines for all new and existing units.
Any new industry will have to comply with these standards to avail incentives under the industrial
policy and existing units will be encouraged to adhere to the new guidelines with special benefits
under CSR programmes.
25
Under the green industrial growth agenda of the state, adoption of following standards will be made
mandatory for all new industries and one time reimbursement of cost facility will be offered to new
and existing MSME units adopting these standards(Details are as in Annexure 2):
i.
ii.
iii.
Units practicing zero water discharge will be eligible for onetime subsidy on relevant equipment/
technology upgradation(Details as in Annexure 2).
Industries Department will work along with KSPCB to review and rationalize existing list of green, red
and orange categories of industries to reduce avoidable renewable burdens without compromising on
environmental protection needs.
Department of Industries along with KIADB will also initiate a program for greening of minimum 50
existing industrial areas per annum across the State.Under the scheme a funding INR 15 crores will be
provided every year regarding study and implementations of various initiatives.Emphasis would be
placed on developing green industrial parks/estates with a vision for next 20 years.
Adequate land will be compulsorily earmarked in all new industrial areas/ estates for setting up
Common Effluent Treatment Plant (CETP) and other common environment protection measures.
Recycling of electronic waste and setting up of e-waste recycling units will be encouraged and
incentivised.
Green and non-polluting industries will be given preference over polluting and environmentally unsafe
industries while allocation of land in KIADB industrial areas and for allocation of government land.
Also, scholars and entrepreneurs conducting research & development or creating start-ups in the field
of sustainable industrial development and green industries will be given due importance and priority.
5.5.2.
26
technology to improve quality compliance & standards, patent registration, etc. Special emphasis will
be given to adoption of sustainable technologies and processes(Incentives details are as in Annexure
2).
5.5.3.
5.5.4.
To promote research & development institutes where no such R&D centre/ facility exists
Recognised R&D centres coming up in zone 1, 2 & 3 and supporting manufacturing industry will be
eligible for a 50% capital subsidy limited to INR 500 Lakhs. Minimum two R & D centres per annum
will be promoted.
5.6.
5.6.1.
27
cities will be identified to be developed on a hub-and-spoke model of inclusive and equally distributed
industrial and economic growth centres cutting across districts and regions in the State.
5.6.2.
5.6.3.
Anchor Industries
To promote setting up of anchor industries in districts/ taluks/ industrial areas where no such industry
exist so that downstream opportunities for MSMEs can be encouraged and Anchor unit subsidy on
Fixed Assets shall be offered for the firts two manufacturing enterprises per taluk with a minimum
investment of INR 100 crores at minimum employment of 100 persons. The subsidy will applicable
only in Talukas where no Industrial Enterprises of the above investment exists at present. The rate
and amount of subsidy is shown in the package incentives and concessions chapter in Annexure-2.
This subsidy will be applicable only in taluks where no industrial enterprise of the proposed size exists
at present.
5.7.
5.7.1.
Anchor Unit Subsidy INR 500 lakhs for first 10 Aerospace OEM with minimum investment of
INR 50 crore
ii.
28
iii.
iv.
v.
vi.
vii.
Special Package of incentives for mega, ultra mega, and super mega projects
viii.
Karnataka also has a dedicated industrial park for aerospace companies Bangalore
Aerospace Park, which is currently being set up alongside the Bangalore International
Airport. Efforts will be made to operationalize Bangalore Aerospace Park within 2014 so that
industrial units can start to move in.
5.7.2.
Automotive Sector
The state would like to transform Karnataka into an energetic automobile hub of the country by
leveraging advantages and opportunities available for sustained development of the emerging
automobile sector:
i.
State will explore setting up of Major Auto Parks at Dharwad, Kolar and Bidadi in
Ramanagara district.
ii.
Also Government will explore setting up of Auto Parks of smaller size at potential locations
like Belgaum, Shimoga, Mysore and Gulbarga.
iii.
State proposes to incentivize and institutionalize the R&D environment in the State by
fostering and supporting linkages between industry and academia for free competitive
research.
iv.
v.
Government to set up a venture fund with an initial capital of at least INR 50 crore. (and on
similar lines of IT and Biotech) specifically focused on boosting MSMEs requiring growth
capital and start-up capital the fund should start
ii.
29
iii.
Tie up with NSDC (National Skills Development Corporation) to identify private sector
initiatives that can be quickly funded jointly by NSDC and the State in order to train and
provide employment ready personnel to the industry.
iv.
To set up a focus group for addressing the problems of the auto component sector
v.
To explore options for reducing road tax and registration tax to reduce burden on State
Environment through vehicular pollution.
5.7.3.
Pharmaceuticals Sector
In January 2013, Health and Family Welfare department of Government of Karnataka released
Karnataka Pharmaceutical Policy 2012, with an objective To make Karnataka a vibrant
pharmaceutical manufacturing hub by leveraging the strengths of knowledge based institutions and
skilled human resource of the State, to provide innovative, quality and affordable health care
solutions to the masses. All pharmaceutical sector investments and industry will be eligible for
incentives under the policy.
Key highlights of the policy are:
i.
Setting up of specialised infrastructure for Pharmaceutical sector like Pharma Parks and
Special Economic Zones
ii.
Efforts will be made to encourage setting up of R&D institutions related to pharma sector to
leverage the strengths already available in the State.
iii.
The Government will support selected & reputed pharmaceutical educational institutions in
setting up Finishing School for Pharmaceutical Learning across Karnataka.
iv.
v.
State Government will set up a Venture Capital Fund with a corpus of INR50 crores with
contribution of 26% from Government
vi.
Industries will be supported to go for non-conventional energy sources like solar, wind, biofuel, utilisation of solvent waste for boiler, etc., for their requirements. Adoption of rain
water harvesting, water recycling and other conservation measures will also be supported by
incentives
vii.
30
viii.
Pharmaceutical companies, which take steps for reducing waste generation at source or
recycling of wastes will be supported by providing subsidy upto 50% of the cost subject to a
maximum of INR50 lakhs
ix.
Purchase of refrigerated vans by industry for captive use will be considered as part of capital
investment of the unit
x.
Appointment of more Quality Enforcement Officers and Drug Testing Laboratories with
adequate state of the art testing equipment
5.7.4.
Steel Sector
Iron and steel manufacturing has attracted huge investments over the last decade with estimated
employment generation of more than 8, 00,000 direct and indirect. The sector has also been critical in
providing backward linkages to a large number of manufacturing industries. Lately the steel sector in
the State has been facing considerable challenges due to bottlenecks in land acquisition, hurdles in
iron ore mining and transportation costs, which have led to declining investments in the Steel sector.
Efforts will be made to remove hurdles in mining of iron ore specifically for captive consumption to
produce Steel is going to be a priority for the State.
Specific clusters for steel along the iron ore producing areas such as Bellary-Hospet, Tumkur,
Chitradurga, Chikmagalur and along industrial corridors with necessary high speed connectivity will
be created.
It will be made mandatory for the steel and cement industries to develop specific skilling centres to
upgrade existing skill sets and boost productivity per employee. This should be done in conjunction
with NSDC sector skill councils.
Mineral assets will be proposed to be allocated first to existing value addition industry. And, in order
to make the industry accountable for development of mineral assets, it will be allocated only after
completion of 100% of ordering and completion of 50% of the project activity.
As India is still importing value added steel like Cold rolled steel, Galvanised steel, electric steel, Tin
Plates, etc. Existing industry or new industry intends to invest for production of value added steel
products and which becomes substitute for imports, such investments will be considered for special
package of incentives and concessions(details as in Annexure -2).
Setup the Research Centre to undertake research on better mining practices and promote use of
latest technology in mining.
5.7.5.
Cement Sector
The spurt in infrastructure projects such as the dedicated freight corridors, upgradation and creation
of new airports and ports have increased the demand for cement. The growth of the housing sector
and road construction projects has also provided significant opportunities. The demand for cement is
31
likely to be sensitive to the growth in these sectors and will also impact policy initiatives. To help the
cement industry grow further, the state will take initiatives to resolve issues relating to Logistics
(Railways, Roads, Inland Waterways, Port connectivity); Raw Materials; Fuel (Coal, Pet coke,
Alternative fuels); Fly Ash and Land Acquisition.
Efforts will be made to remove hurdles in mining specifically for captive consumption to produce
Cement (Value Addition).
Specific clusters for Cement manufacturing will be created around Gulbarga, Bagalkot, Chitradurga,
and Belgaum district.
5.7.6.
32
Special package of incentives namely concessional power tariff, enhanced VAT loan / grant will be
offered for mega industries engaged in producing value added import substitute products (Details as
in Annexure 2)
5.7.7.
33
5.8.
Special thrust for encouraging SC/ST, Women, Minority, PH and ExServicemen entrepreneurs
5.8.1.
To safeguard and uplift entrepreneurs from other social sections through reservation and
facilitation in key government programmes and initiatives
State to introduce Entrepreneurship Development Programmes exclusively for prospective first
generation women entrepreneurs where interest free start up loan with flexible payback schemes and
continuous guidance will be provided upon successful completion of State Entrepreneurship
Development courses.
State will provide reservation for such entrepreneurs including priority for allotment of land in
KIADB/KSSIDC Industrial area and proposed NIMZs for setting up of industrial units.
Special package of incentives over and above what is offered has standard package will be provided
to SC/ ST/ Women/Minority/PH and Ex-Servicemen entrepreneurs as given in Annexure -2.
State will provide additional export and market development assistance upto INR 2 Lakhs to
entrepreneurs availing incentives under Government of India programme for Trade Related
Entrepreneurship Assistance and Development Scheme for Women (TREAD) and marketing
assistance.
State will provide space reservation in government funded incubation centres and skill development
centres for first time SC/ ST/ PH, Ex-Servicemen/ Women MSME entrepreneurs.
5.9.
34
A scheme for providing funding for difference of wages between Minimum Wages and the
wages earned per day will be introduced on similar lines to Khadi worker
Additional 3% interest subsidy on term and working capital loan for coir industry over and
above what is already prescribed in the policy and applicable to the rest of the units.
5.10. Special Thrust for encouraging Industrial Development in Hyderabad- Karnataka Area :
Leverage on the Article 371 status for Hyderabad Karnataka Area to create a strong industrial base
there. The State Government will petition the Central Government to offer tax incentives like Excise
Duty Exemption, Income Tax Exemption to boost manufacturing.
All Talukas of Hyderabad Karnataka Area are exclusively covered under Zone I of the policy to
provide the required boost to industry.
Mega, Ultra mega & Super Mega projects coming up in Hyderabad Karnataka region will provided
with special incentives of land and concessional rates upto 20% of the land price based on the
merits and advantages of such projects for the state.
5.11.
5.12.
35
No. of
units
Micro
15oooo
Investment
Employment
INR in Crores
25000
600000
Land
Water
in
requirement in
Million
liter
Acres
per day
5000
Power in MW
100
15
Remarks
Around
40,000
units
will
be
15000
50000
250000
2500
300
10
Medium
3000
50000
175000
3000
300
15
36
Large
1500
75000
150000
5000
150
30
Mega
300
100000
125000
3000
400
20
Ultra Mega
150
100000
125000
7500
750
50
Super Mega
75
100000
75000
14000
1000
100
TOTAL
170025
500000
1500000
40000
3000
240
A high level Inter Departmental Review Committee will be constituted to regularly monitor implementation of all provisions of the policy. This
committee will
also ensure issue of necessary Govt. orders by various departments in relation to the policy without loss of any time for mid-course corrections, if required for
smooth implementation of the Policy. The committee will also bring out annual reports indicating the progress in implementation of the Policy.
37
7.
Budgetary provision
The requirement of funds for implementation of various components of the policy during the policy period yearwiseshall be as follows:
2014-15
SN
Schemes
No. of
2015-16
Amount
units
No. of
2016-17
Amount
units
No. of
2017-18
Amount
units
No. of
2018-19
Amount
units
No. of
Total
Amount
units
No. of
Amount
units
50.00
----
50.00
----
50.00
----
50.00
----
50.00
250
10.00
----
10.00
----
10.00
----
10.00
----
10.00
50
and Mangalore
3
Industrial Townships
0.25
0.25
0.25
0.25
0.25
1.25
30
100.00
30
100.00
30
100.00
30
100.00
30
100.00
150
500
----
100.00
----
100.00
----
100.00
----
100.00
----
100.00
500
10
50.00
10
50.00
10
50.00
10
50.00
10
50.00
50
250
15.00
75
60.00
15000
300
15.00
3000
60.00
15.00
3000
60.00
15.00
3000
60.00
15.00
3000
60.00
3000
38
10
R&D centers
20.00
2
11
5.00
20.00
2
5.00
20.00
2
20.00
20.00
100
5.00
5.00
5.00
10
25
b) Revival of ATIs
c)
On job training
100
0.25
100
0.25
100
0.25
100
0.25
100
0.25
500
1.25
0.25
0.25
0.25
0.25
0.25
15
1.25
10000
25.00
10000
25.00
10000
25.00
10000
25.00
10000
25.00
50000
125
0.20
0.20
0.20
0.20
0.20
Communication technology
e)
0.25
0.25
0.25
0.25
0.25
1.25
f)
0.50
0.50
0.50
0.50
0.50
2.5
20.00
20.00
20.00
20.00
20.00
100
1.00
1.00
1.00
1.00
1.00
Entrepreneurship Development
j)
3000
1.00
3000
1.00
3000
1.00
3000
1.00
3000
1.00
15000
---
50.00
---
50.00
---
50.00
---
50.00
---
50.00
250
39
k)
1.00
1.00
1.00
1.00
1.00
l)
Enterpreneurship awards
0.20
0.20
0.20
0.20
0.20
Standard Package of incentives and concession to MSMEs , Large , Mega , Ultra Mega and Super Mega Enterprises
12
1000
100.00
1100
110.00
900
90.00
950
95.00
850
85
4800
480
13
100
1.00
115
1.15
90
0.90
95
0.95
90
0.90
490
4.9
14
30
0.30
35
0.35
35
0.35
30
0.30
25
0.25
155
1.55
15
50
50.00
50
50.00
50
50.00
50
50.00
50
50.00
250
250
30
100
35
150
40
150
50
200
55
200
210
800
17
50
30
65
40
70
40
80
45
85
50
350
205
18
10
10
12
10
15
10
15
10
15
48
67
19
100
1.00
125
1.25
125
1.25
150
1.50
150
1.50
650
6.5
1000
2.00
1000
2.00
1000
2.00
1000
2.00
1000
2.00
5000
10
Enterprises
20
40
21
50
0.30
60
0.40
50
0.50
50
0.50
65
0.65
275
2.35
10
0.10
15
0.15
20
0.25
20
0.25
25
0.30
90
1.05
10
0.08
15
0.10
17
0.15
18
0.16
20
0.20
80
0.69
0.50
0.70
10
1.00
12
1.20
15
1.50
49
4.9
50
10.00
100
25.00
150
50.00
200
75.00
250
100.00
750
260
18646
815.18
18876
903
18713
911.3
18861
18836
1017.2
93932
4643.44
23
24
25
Total
996.7
6
Note: The above provisions are made only wherever the funds are not available from the GOI Schemes.
41
Expected to generate additional direct sales tax revenue approximately INR500 crores every
year and by the end of the policy period the additional sales tax revenue to the State
exchequer would be around INR2500 crores.
9. Implementation mechanism
In order to implement the policy more effectively and meaningfully there is a need to reorganize the
department by way of strengthening the gross root level offices particularly at Taluk and District
levels. To this effect, the department will initiate action to submit the proposals to Government for
approval with proper justifications.
42
Districts
Total
No.ofTaluks
Hyderabad Karnataka
region (Zone 1) Special
Zone
Backward Zone
(Zone 2)
(Zone 3)
(Zone 4)
(Zone 5)
---
---
---
Other
than
notified
Industrial
Areas
in
AnekalTq.
---
---
---
---
Blore (North)
---
---
---
---
Blore(South)
---
---
---
---
Blore(East)
---
---
---
Other
than
notified
Industrial
Areas
in
DevanahalliTq.
---
---
---
Other
than
notified
Industrial
Areas
in
DoddaballapuraTq.
---
---
---
Other
than
notified
Industrial
Areas
in
HoskoteTq.
---
---
---
---
Nelamangala
---
Kanakapura
---
Other
than
notified
Industrial
Areas
in
RamanagaraTq.
---
Magadi
---
Other
than
notified
Industrial
Areas
in
ChannapatnaTq.
---
Hosadurga
Hiriyur
Chitradurga
---
Blore (U)
4
Blore (R)
Ramanagara
Chitradurga
DevanahalliTq.
DoddaballapuraTq.
HoskoteTq.
RamanagaraTq.
ChannapatnaTq.
43
Davanagere
Chikkaballapura
Kolar
Shimoga
Tumkur
10
10
Chamaraja-nagar
11
Chicka - magalore
---
---
Molakalmur
---
---
---
---
Hololkere
---
---
---
---
Challakere
---
---
---
Channagiri
Honnali
Davangere
---
---
Harapanahalli
Jagalur
Harihar
---
---
Bagepalli
Gudibande
Chikka- ballapura
---
---
---
Gowribidanur
Siddlaghatta
---
---
---
---
Chintamani
---
---
---
Mulbagal
Kolar
---
---
---
---
Bangarpet
---
---
---
---
Srinivasapura
---
---
---
---
Malur
---
---
---
Soraba
Shimoga
---
---
---
Bhadravathi
---
---
---
---
Sagar
---
---
---
---
Shikaripura
---
---
---
---
Hosanagara
---
---
---
---
Thirthahalli
---
---
Kunigal
Turuvekere
Tumkur
---
---
Madhugiri
Koratagere
Tiptur
---
---
Gubbi,
Chikkanaya-kanahalli
---
---
---
Sira
---
---
---
---
Pavagada
---
---
---
---
Chamaraja-nagar
Gundlupet
Yelandur
---
Kollegal
---
Kadur
Chikka - magalore
-----
---
44
12
13
D Kannada
Hassan
Kodagu
14
Mandya
15
16
Mysore
---
---
---
Tarikere
---
---
---
Shringeri
---
---
---
Mudigere
---
---
---
Koppa
---
---
---
N R Pura
---
---
---
---
---
---
Bantwal
---
---
---
Puttur
---
---
---
Sulya
---
---
---
Belthangadi
---
---
Arakalgud
Hassan
---
---
---
Arasikere
---
---
---
C R Patna
---
---
---
H N Pura
---
---
---
Belur
---
---
---
Alur
---
---
---
Sakleshpura
---
---
---
Madikeri
---
---
---
Somwarpet
---
---
---
Virajpet
---
---
Malavalli
Mandya
---
---
Nagamangala
Maddur
---
---
K R Pet
Srirangapatna
---
---
---
Pandavapura
---
H D Kote
Hunsur
Mysore (excl.
Mangalore
(excl. Corpn.limits)
Mangalore
Corporation limits)
(only
45
Corpn. limits)
Udupi
17
Periapatna
limits )
---
---
T N Pura
---
---
---
Nanjangud
K R Nagara
---
---
---
---
Udupi
---
---
---
---
Kundapura
---
---
---
---
Karkala
---
Bellary
---
---
---
---
Hospet
---
---
---
---
Siraguppa
---
---
---
---
H B Halli
---
---
---
---
Hadagalli
---
---
---
---
Sandur
---
---
---
---
Kudligi
---
---
---
---
Bidar
---
---
---
---
Bhalki
---
---
---
---
Humnabad
---
---
---
---
B Kalyana
---
---
---
---
Aurad
---
---
---
---
Gulbarga
---
---
---
---
Sedam
---
---
---
---
Chitapur
---
---
---
---
Afzalpur
---
---
---
---
Aland
---
---
---
---
Chincholi
---
---
---
---
18
Bellary
Bidar
5
19
Gulbarga
20
46
21
22
23
24
Yadgir
Koppal
Raichur
Bagalkote
Belgaum
10
25
Bijapur
26
Jewargi
---
---
---
---
Yadgir
---
---
---
---
Shahapur
---
---
---
---
Shourapur
---
---
---
---
Koppal
---
---
---
---
Gangavathi
---
---
---
---
Kushtagi
---
---
---
---
Yelburga
---
---
---
---
Raichur
---
---
---
---
Sindanorr
---
---
---
---
Manvi
---
---
---
---
Lingasugur
---
---
---
---
Devadurga
---
---
---
---
---
Bilagi
Hunagund
Bagalkote
---
---
---
Badami
Mudhol
---
---
---
---
Jamkhandi
---
---
---
Athani
Belgaum
---
---
---
Gokak
Khanapur
---
---
---
Soundatti
Hukkeri
---
---
---
---
Ramdurga
---
---
---
---
Bailhongal
---
---
---
---
Chikkodi
---
---
---
---
Raibag
---
---
---
---
Bijapur
---
---
Muddebihal
---
---
---
---
B Bagewadi
---
---
---
47
Dharwad
5
27
Gadag
5
28
Haveri
7
29
U Kannada
11
30
TOTAL
176
---
Indi
---
---
---
---
Sindgi
---
---
---
---
---
Kalghatagi
Dharawad
---
---
---
---
Hubli
---
---
---
---
Kundagol
---
---
---
---
Navalgund
---
---
---
Mundargi
Gadag
---
---
---
---
Nargund
---
---
---
---
Ron
---
---
---
---
Shirahatti
---
---
---
Savanur
Haveri
---
---
---
Shiggaon
Ranebennur
---
---
---
Hirekerur
Byadagi
---
---
---
---
Hanagal
---
---
---
Supa
Karwar
---
---
---
Bhatkal
Haliyal
---
---
---
---
Sirsi
---
---
---
---
Mundagod
---
---
---
---
Yellapura
---
---
---
---
Honnavar
---
---
---
---
Ankola
---
---
---
---
Siddapura
---
---
---
---
Kumta
---
31
18
35
88
Note:Notified Industrial Areas means final notification issued by the Govt. for acquisitions of land as on effective date of this policy.
Industrial Policy 2014-19 Final Draft
48
11. Annexure 2
11.1.
11.1.1.
b)
49
c)
d)
Additional subsidy to Women, Minority , Physical challenged and Ex-Servicemen Entrepreneurs as under:
Additional subsidy of 5% subject to maximum of INR 2.00 lakhs, 5.00 lakhs and INR 7.5 lakhs for Micro,
Small and Medium manufacturing enterprises respectively.
Note:
(i)
Subsidy sanctioned amount will be released in 2 to 4 instalments depending upon the funds allotted
by the Govt.
(ii) This incentive is available to enterprises availing term loan for acquisition of Fixed Assets, where the
term loan amount shall not be less than 50% of approved assets by the Financial Institutions.
(iii) The Enterprise shall apply for sanction of subsidy within one year of the commercial production
(iv) The unit shall avail the sanctioned subsidy within the period of five years.
11.1.2.
b)
Zone 3: a) For investment in Fixed Assets upto 150.00 lakh 20% VFA (max. INR 30.00 lakh)
b) For investment in Fixed Assets between 151.00-250.00 lakhs Industrial Policy 2014-19 Final Draft
50
11.1.3.
51
lease cum sale and absolute sale deed executed by developer in respect of lands purchased for development of
private industrial estates / park shall be exempted as below:
Zone 1(Special Zone): 100%
Zone 2: 100%
Zone 3: 100%
Zone 4: 75% for general category and 100% for SC/ST entrepreneurs
Zone 5: Nil for general category and 75% for SC/ST entrepreneurs in the notified industrial areas only.
11.1.4.
The exemption of stamp duty and concessional registration charges are also applicable to lands
purchased under Section 109 of the KLR Act nd also for direct purchase of industrially converted lands
for the projects approved by SHLCC / SLSWCC / DLSWCC. This incentive will also be applicable for the
land transferred by KIADB to land owners as compensation for the acquired land.
(ii) The exemption of stamp duty and concessional registration charges are also available for registration
of final sale deed in respect of lands, sheds, plots, industrial tenements after the expiry of lease period
at the rate as specified in the Industrial Policy which was in vogue at the time of execution of leasecum-sale deed.
11.1.5.
Zone 2: 100%
Zone 3: 100%
Zone 4: 75% for general category and 100% for SC/ST entrepreneurs
Zone 5: Nil
52
11.1.6.
11.1.7.
11.1.8.
11.1.9.
53
Investment range on
Quantum of grant
fixed assets
(INR cr.)
MSME
----
installments
value.
after
Minimum 50 employment
(i.e investment on
fixed assets up to
INR250 Crores)
Mega Enterprises :
(i.e investment on
fixed assets above
INR250 Crores up to
INR500 Crores)
for
investment
INR300
crores
up
to
and
additional 25 employment
value.
Repayment of the loan shall be in 3
investment.
Ultra
Mega
Enterprises :
(i.e investment on
fixed assets above
INR500 Crores up to
INR100 Crores)
Super
Mega
Enterprises :
(i.e investment on
up to
investment of
Crs
additional
investment
value.
Repayment of the loan shall be in 4
annual instalments after 7 yrs.
additional 25 employment
54
Investment range on
Quantum of grant
fixed assets
(INR cr.)
fixed assets above
INR1000 Crores)
additional investment
value.
11.1.10.
Interest Subsidy
Micro and Small manufacturing enterprises:
Interest subsidy @ 5% & 3% on term loans to Micro and Small respectively. The interest subsidy is payable only
on the interest actually paid to financial institutions and not defaulted in payment of principle or interest
installments. The amount of interest subsidy will be effective rate of interest (after deducting interest subsidy)
receivable by any institutions / under any Govt. of India scheme or 5% per annum whichever is less). The period
of interest subsidy is 6 years, 5 years and 4 and 3 years in Zone -1(Special Zone), Zone 2, Zone 3 & Zone 4,
respectively.
11.1.11.
11.1.12.
11.1.13.
Zone -1(Special Zone), 2 &3 : 5 % on loans availed from KSFC, KSIIDC &
are not covered under
(ii)
CLCSS of GOI.
BIS Certification:
55
(iv)
Patentregistration:
75% of cost of fees payable to Patent Office (max. INR1.25 lakhs) and 50% of cost (max.INR75,000) towards
attorney fees, patent
(v)
search etc.
Technology Adoption:
11.1.14.
Technology Business Incubation Centre: 25% of the project cost (Max:INR50 lakhs).
11.1.15.
(i)
(ii)
(iii)
Energy Conservation
Micro, Small & Medium mfg. enterprises in all zones.
Practicing Energy Conservation measures resulting in reduction of Energy Consumption of atleast 10% of earlier
consumption: 10% of capital cost (max INR5 lakh).
Use of non-conventional energy sources: 10% of capital cost (max. INR5 lakh).
Subsidy of Rs.0.50 per unit of Captive Power Generated and consumed through Solar & Wind Energy sources
only.
11.1.16.
11.1.17.
A. Aerospace sector :
As per Aerospace Policy
B.
Automotive / Steel / Cement / Agro based / Tool room sector to Mega, Ultra Mega and Super Mega
projects.
(i)
Electricity duty exemption is available to Large, Mega, Ultra Mega and Super Mega projects for a period of
(06) six years, (07) seven years, (08) Eight years & (09) Nine years, respectively.
56
(ii) CST paid will be refunded to an extent of 60% for a period of 7, 8, 9 and 10 years in respect of Large, Mega,
Ultra Mega and Super Mega Industries respectively.
(iii) Entry tax exemption during operational period (excluding petroleum products) will be extended with
additional one year over and above the standard package of incentives and concessions.
(iv) In respect of Mega Industries Interest free loan to the extent of 40% of the Gross Vat generated by the unit
for 08 (eight) years to be repaid in (08) eight equal annual instalments starting from 09th year. (This is in lieu
of provisions in 2009-14 policy.)
11.1.19.
Equity participation
The State Government will share upto 20% of infrastructure cost to a maximum of INR10 crore
per project as its equity in capital investment.
water
Desalination plants
coastal areas
Industrial Policy 2014-19 Final Draft
57
12. Annexure 3
12.1.
1.
2.
3.
R & D Centres
4.
5.
6.
Packaging services
7.
8.
Tailoring
9.
Flour mills
10. Printing
11. General engineering, fabrication, motor winding, automobile servicing and repairs, electro plating, industrial
paintings, etc., engaged in job work
12. Weigh bridges and health care facility set up within the KIADB /
13. State Level Co-ordination Committee is empowered to add / delete service activities listed in this Annexure.
58
13. Annexure 4
13.1.
1
2
Fertilizer Mixing
10
11
Fire Crackers
12
13
Power Laundries
14
Brick making Enterprises Excluding Cement Hallow Blocks, wire cut & fly ash bricks and Refractory
bricks
15
16
17
18
19
20
Cyanide
21
Mining
22
59
23
24
X-ray clinics and clinical / pathological laboratories and scanning, M.R.I. tests
25
26
All industries of mobile nature like rigs, concrete mixing plants, hot mix plants including site oriented
industries.
Manufacture of Chrysolite Asbestos (White crystal)
60
14. Annexure 5
Definitions and Terms &Conditions
14.1.
1. Definitions
a)
As per the MSMED Act, 2006,ManufacturingEnterprises have been defined based on of investment in
plant and machinery and classified into:
b)
As per the MSMED Act, 2006, Service Enterprises have been defined based on investment equipment
and classified into:
c)
d)
Mega Project:
Projects with an investment on fixed assets above INR250 crores and up to INR500 crores
e)
f)
g)
61
h)
Fixed Asset:
Fixed assets shall mean the total investment made on land, building and plant and machinery and
such other productive assets like tools, jigs, and fixtures, dies, utilities like boilers, compressors, diesel
generating sets, cranes, material handling equipments and such other equipments directly related to
production purposes.
All new industrial investments shall create maximum possible additional employment opportunities
and provide a minimum 80% of employment to the local people on an overall basis [100%
employment to local people in case of Group C & D categories will be insisted] and this will be
monitored during disbursement of incentives and concessions.
The above requirements regarding employment to local people will be monitored by the DIC for a
period of 5 years. Failure of the industries to provide employment to local people as stipulated above
will be reported to the concerned DLSWCC/ SLSWCC/ SHLCC, which will recommend for recovery of
incentives and concessions sanctioned to the unit, for which purpose a suitable under-taking will have
to be furnished by the unit concerned before sanctioning incentives and concessions.
b)
These incentives and concessions shall not be available for the Enterprises listed in Annexure 4
irrespective of the location.
c)
The incentives and concessions as per this Government Order shall be applicable only to all new and
additional investments made on or after 01.04.2014.
d)
The incentives and concessions under this policy will be available to all new investments both for
establishment of new Enterprises or for expansion, diversification and modernization of existing
industries. To be eligible for considering as expansion / diversification / modernization, enterprises
shall make an additional investment of at least 50% of the original investment of the existing unit
(Original investment mean, the investment prior to first sale Invoice raised for the initial investment).
However, while calculating the investment promotion subsidy for expansion / diversification /
modernization enterprises, the subsidy sanctioned for the original investment need not be taken
for calculating the eligible subsidy.
e)
The quantum of investment subsidy shall be computed on the value of fixed assets as approved by the
financial institutions or commercial banks.
f)
The definition of Micro, Small, Medium Enterprises and Large Scale Industry as indicated above shall
automatically stand revised as and when Government of India makes any changes in such definition
and benefits under this package shall be available to the Micro, Small, MediumEnterprises and Large
Scale Industry as per the new definition from the respective dates.
62
g)
The validity of incentives and concessions as per this order shall be for a period of five years from
st
st
Wherever industrial Enterprises avail subsidy / interest subsidy under any of other policies of the of
Govt. of Karnataka / Govt. of India, they will continue to avail the benefit in that policy only and they
are not eligible benefit under this policy.
i)
Incentives and concessions under this policy shall be available only for manufacturing Enterprises.
However, specified categories of industry related service enterprises as listed in Annexure 3 shall also
be eligible for incentives and concessions as per this order.
j)
st
The incentives and concessions under this policy will come into force from 1 April 2014. With the
announcement of this policy, all other Industrial Policies announced earlier stands withdrawn.
However, industrial Enterprises which have already been sanctioned incentives and concessions under
the earlier package/ Government Order shall continue to enjoy those benefits as per the sanction order
already issued.
k)
Industrial Enterprises which are in the process of being established at the time of announcement of this
Industrial Policy 2014-19, shall have an option of availing incentives and concessions under the 200914 policy provided; loan is sanctioned by the financial institution prior to 01.04.2014 and subject to
fulfillment of all the following conditions.
1)
Sanction of Term Loan should be before 01.04.2014 and first release of term loan
shall be 30.6.2014.
2)
50% of the investment on fixed assets should have completed before 30.9.2014.
3)
The above option should be exercised prior to 31.12.2014 and should be registered with Commissioner
for Industrial Development and Director of Industries and Commerce, Bangalore or in Office of the
concerned District Industries Centres with necessary documentary evidence. Options once exercised
cannot be withdrawn and shall be binding. Enterprises which do not exercise such option prior to
31.12.2014shall automatically be governed by the provisions of this order. However the total
investment shall be taken into consideration irrespective of period of investment i.e., before or after 0
1-04-2014 under one eligible policy only. However theStamp Duty Exemption and
Entry Tax
Exemptions granted during 2009-14 policy at the time of implementation of the project will continue
and for other incentives, the industrial policy as applicable in terms of above procedures, holds good.
All eligible Enterprises under 2014-19 policy shall submit application for sanction of incentives before
the concerned District Industries Centres within a period from one year from the date of
commencement of commercial production. Enterprises who fail to comply this deadline will not be
eligible for investment subsidy.
63
l)
Incentives and concessions for investments in the IT / BT / Tourism / Wine Sector / Neera processing
sector / Infrastructure Development sector / Textiles / Renewable Energy / Aero Space / Pharma etc.
will however continue to be governed by the respective policies of the Government.
m) Unit shall avail incentives and concessions under one Industrial Policy only unless otherwise specified.
However industries which were in the process of implementation at the time of announcement of this
policy and availed benefits like Stamp duty exemption on land allotment and Entry tax exemption for
implementation period in the earlier policy, are eligible to avail the other benefits under the current
policy subject to fulfilling the condition as explained at (J) above.
n)
The Stamp duty exemptions, Entry tax exemptions and Exemption on tax on electricity tariff as per
this policy are applicable to eligible enterprises only after the issual of notifications from the Revenue,
Finance and Energy Departments, respectively.
o)
Separate guidelines for administration of these incentives and concessions will be issued for the
guidance of the concerned agencies and officers with the approval of the State Level Coordination
Committee under the Chairmanship of the Principal Secretary to Government, C&I Department.
Interpretation of Government Orders (including of previous policies) and the decision thereon of this
State Level Coordination Committee shall be final.
2.
Proposals for development of private industrial areas / estates will be treated as industrial infrastructure and
approval in accordance with Karnataka Industries Facilitation Act will be accorded by SLSWCC or SHLCC
depending on size of investment.
3.
4.
5.
The development of industrial area / estate shall be in consistence with the zoning regulations of local LPA or
as per KTCP Act and others in practice.
a.
The master plan / layout plan of private industrial area / estates shall be approved by a committee
constituted under the Chairmanship of Deputy Commissioner comprising of JD, DIC, Environmental
Officer, KSPCB, Assistant Director, Factories and Boilers, Rep. of KIADB and KSSIDC, with District
Town Planning Officer as Member Secretary.
b.
The building plans in individual plots shall be approved by concerned local authorities.
64
6.
Size of the plots in a private industrial area shall be invariably 1/4 acre, 1/2 acre, 1 acre, 1.5 acres & 2 acres
and above.
7.
Preference of up to 20% shall be given to MSME sector in the allotment of land / sheds in private industrial
area / estate with first right of refusal.
8.
The developers shall adopt a scientific method for fixation of price to make available the infrastructure at
reasonable rates.
9.
The developers of private industrial areas shall comply with siting guidelines of MOEF.
10. Private Industrial Areas / Estates developed on PPP basis shall reserve 22.5% of plots / sheds for SC / ST
entrepreneurs with first right of refusal.
11. The proponent of private industrial layouts need to:
a.
Prepare HRD plan to train the land losers / local persons and organise training programmes for such
people and also provide employment to those persons.
b.
c.
Prepare a vendor development plan and facilitate setting up service / manufacturing vendor
enterprises.
d.
Prepare a plan for adequate social infrastructure and public amenities for the project affected
persons.
12. Proponent is liable to pay back all the fiscal benefits availed under this Policy to the Government in case the
project is not implemented as per Schedule.
13. The Government land allotted for private industrial areas / estates will be resumed upon non implementation.
65
15. Annexure 6
Important contacts
15.1.
Contact Address
Contact Address
Commissioner for Textile Development
Principal
Secretary
Commerce
and
Room
No.1
to
Industries
06,
1" floor,
Government
and
Department,
VikasaSoudha,
Building,
Phone: 22252443
Fax: 22259870
E-mail: prs-ci@karnataka.gov.in
E-mail:
texcomgok@yahoo.co.in
Website:
. website: www.karnatakaindustry.gov.in
www.textiles.kar.nic.in
Principal Secretary to Government
Commissioner
080-2228
Fax:
080
0562,
22288340,
E-mail:
22032434
22262450
itsec@bangaloreitbtin
Website:www.bangaloreitbitin
Secretary,
Water
VikasaSoudha,
Dr.
Resources
B.R.
Department,
Ambedkar
Road,
080
2225
Bangalore
Metropolitan
Region
Development
Commissioner
5524,
2225
5306
Authority (BMRDA)
E-mail:
E-mail: mc_bmrda@kar.nic.in
secyirr@secretriat2.kar.nic.in
http://waterresources.kar.nic.in
The
Secretary
to
Website: www.bmrda.kar.nic.in
Government
Managing Director
(Environment to Ecology)
&
66
Contact Address
Contact Address
4th
Ph:
080
22254377,22092445
Fax:
080
floor,
East
Entrance,
KhanijaBhavan,
Bangalore
22254377
560001.
E-mail: secyenv-fee@karnataka.gov.in
Website: www.parisara.kar.nic.in
E-mail: ksiidc@bgl.vsn.net.in
Website: www.ksiidc.com
Nrupathunga
Road,
Bangalore
560001.
Ph: 080 2221 1066 Fax: 080 2221 7702
commissioner@karnatakaindustry.gov.in
E-mail: kiadb@bgl.vsnl.net.in
Website: www.karnatakaindustry.gov.in
Website: www.kiadb.in
Managing Director
Karnataka
Development
Corporation Limited
Ph:
080
22269632,22269633
Fax:
080
State
Small
Industries
22269632
Bangalore 560010.
E-mail: director@blr.vsnl.com
Website. www.mines.kar.nic.in
E-mail: kssidcho@vsnl.com
Website: www.kssidc.kar.nic.in
Chairman
Karnataka State Pollution Control
Board
Bannerghatta
Road,
Bangalore 560029.
Ph:
080
26531252
Fax:
080
26531254
E-mail: ico@kar.nic.in
Website: http://labour.kar.nic.in
E-mail:
kspcb@kar.nic.in
website: www.kspcb.kar.nic.in
67
Contact Address
Contact Address
Managing Director
22864281/22860853
Fax:
91-80-
22864281
E-mail: ceehubli@rediffmail.com
Grams: VITRO
website: www.hescom.co.in
E-mail: vtpckarnataka@gmail.com
Website: www.vitcblr.org
Managing Director
Managing Director
Karnataka UdyogMitra
GESCOM)
Corporate Office, Railway Station Main road,
E-mail: mdgesco@gmail.com
E-mail: md@kumbangalore.com
website: www.gesco.in
Website: www.kumbangalore.com
Managing Director
Managing Director
Karnataka Power Transmission Corporation
Ltd.
Cauvery Bhavan, K.G. Road, Bangalore 560
009.
Supply
Company Limited(MESCOM)
Corporate Office, Paradiym Plaza,
5"floor,
Ph:
0824-2444300
Fax:
0824-
2444360
E-mail: md@kptcl.com
E-mail: md@mesco.in
website: www.kptcl.com
website: www.mesco.in
Managing Director
Electricity
Electricity
Bangalore
Mangalore
Managing Director
Supply
Company
(BESCOM)
Corporate Office, K.R. Circle, Bangalore 560
001.
Ph: 080 22354929 Fax: 080 22354925
E-mail: mdbescom@bescom.org
website: www.bescom.org
Industrial Policy 2014-19 Final Draft
68
Contact Details
The Joint Director, District Industries Centre,
Room No.135, Administrative Building,
Bagalakote
Bangalore (R)
Bangalore (U)
Belgaum
Bellary
Bidar
08482/232769/233129 (temporary)
jd-bidar@karnatakaindustry.gov.in
The Joint Director, District Industries
Centre Industrial Estate, Station Back Road,
Bijapur
69
District
Contact Details
The Joint Director, District Industries Centre
Room No.323, 3rd Floor, District Office Complex,
Chamarajanagar
Chickmagalur
Chickballapur
Chitradurga
Mangalore
Davangere
Dharwad
Gadag
70
District
Contact Details
The Joint Director, District Industries Centre
Gulbarga
Hassan
Haveri
Madikeri
Kolar
Koppal
Mandya
Mysore
Raichur
71
District
Contact Details
E-mail: jd-raichur@karnatakaindustry.gov.in
The Joint Director, District Industries Centre
Ramnagar
Shimoga
Tumkur
Udupi
Karwar
Yadagir
72