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How to Apply for Industrial Incentives in Karnataka (2025-30 Guide)

The Karnataka Industrial Policy 2025-30 offers generous incentives to industries, especially MSMEs, to promote equitable development across zones. To avail these benefits, industries must follow a structured application and approval process coordinated by the Department of Industries and Commerce through the Single Window Clearance System (SWCS).

Step-by-Step Application Process

Step 1: Business Registration

Before applying for any industrial incentives, register your enterprise:

  1. MSMEs: Mandatory Udyam Registration on Udyam Portal
  2. Large/Medium Enterprises: Register with DIC or KIADB
Step 2: Apply for Preliminary Approval Through Karnataka Udyog Mitra (KUM) Portal:
  1. Visit Karnataka Industries portal
  2. Register your entity
  3. Upload required documents
Step 3: Approval from District/State-Level Committee

Based on investment value:

Investment Range

Approval Authority

Upto ₹15 Crores

District Industries Centre (DIC)

₹15–100 Crores

State-Level Single Window Clearance Committee (SLSWCC)

Above ₹100 Crores

High-Level Clearance Committee (HLCC)

Once approved, a Preliminary Sanction Letter is issued.

Step 5: Final Incentive Disbursal

Once investment is complete:

  1. Apply for Final Sanction using your application reference ID
  2. Field verification by officials
  3. Submission to Department of Industries
  4. Incentive amount disbursed via DBT (Direct Benefit Transfer)

✅ Ensure all compliance conditions are met before applying for final disbursement.

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