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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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