Ineligible Industries

Ineligible Activities under Karnataka Industrial Policy 2025-30

While Karnataka encourages a broad spectrum of industries through its industrial policy, certain activities are explicitly ineligible for fiscal incentives and support. These exclusions are rooted in environmental, social, and economic considerations.

Ineligible Industries

1. Breweries & Distilleries of all types for human consumption alcohol excluding winery and ethanol plants established as integral part of fuel manufacturing process
2. Khandasari and Jaggery making enterprises not certified by FSSAI with investment less than INR 1Cr
3. Photo Studios & Colour Processing and instant photo printing Enterprises
4. Photocopying/ Xerox Machines/Fax Machines/Data Entry / Data Recovery enterprises
5. Fertilizer mixing Units
6. All types of Sawmills excluding manufacture of particle board/Low-Density Fiber Board (LDF)/Medium Density Fiberboards (MDF)/High-Density Fiberboards (HDF).
7. Beedies/Cigarettes/Cigars/Gutka & Tobacco based products manufacturing enterprises
8. Azoic/Reactive Dyes manufacturing enterprises.
9. Firecracker manufacturing enterprises.
10. Industries manufacturing Ozone-depleting substances.
11. Laundries including Power Laundries.
12. Brick-making Enterprises excluding Hydraulic press, Cement Hollow / Solid Blocks, Wire Cut, Fly AshBricks, and Refractory Bricks.
13. Poultry including hatcheries.
14. Popcorn Manufacturing.
15. Coffee roasting and grinding units having installed capacity of less than 2MT a day.
16. Clock and Watch/Mobile/Computer and Hardware equipment repair enterprises.
17. Cassette recording (Audio & Video) enterprises.
18. Cyanide Manufacturing enterprises.
19. Mining activity.
20. Lime kiln/burnt lime units.
21. X-ray clinics, clinical/pathological laboratories, and scanning, and MRI testing enterprises
22. All industries of mobile nature like rigs, concrete/tar mixing plants/hot-mix plants including site-oriented plants/industries.
23. Units engaged in the manufacture of Chrysolite Asbestos (White Crystal).
24. All types of Saloon/ Spas/Massage Centres etc
25. All types of hotels/restaurants/resorts/amusement parks etc.
26. Vermi compost
27. Roof-top solar power generation
28. Bottling of LPG and other gases
29. Aggregators/supply chain business Enterprises related to/supporting bio-fuel manufacturing units