Karnataka Agriculture Policy
In order to give focused attention for the overall development of agribusiness and food processing sector the Karnataka Govt. has introduced an exclusive Agribusiness & Food Processing Policy. In Karnataka, about 3% of the total agro and allied produce is processed currently. The Ministry of Food Processing Industries, Govt. of India aims to achieve the food processing target of 25% by 2025 at the national level. In line with the National benchmark, the Karnataka Agribusiness & Food Processing Policy 2015 aims to achieve the target of 10% of agro processing by 2020 and 25% by 2025 in the State. This policy aims to develop agribusiness and agro processing as a vibrant sector for creating employment opportunities and increasing the farm returns to farmers by value addition.
Starting date: 11th December, 2015
Incentives under the scheme
|
Sl. No. |
Incentive / Subidy |
Rate of Subsidy |
Max Limit |
Eligible for |
Time Period |
|
|
Investment Promotion Subsidy |
35% |
65 Lakhs |
Micro, Small and Medium Industries |
One time |
|
|
Exemption from Stamp Duty |
100% |
No Limit |
Micro, Small, Medium and Category A,B,C industries |
One Time |
|
|
Concessional Registration Charges |
@ Rs.0.50 per Rs.1000 |
No Limit |
Micro, Small, Medium and Category A,B,C industries |
One Time |
|
|
Reimbursement of land conversion fee for |
100% |
No Limit |
Micro, Small, Medium and Category A,B,C industries |
One Time |
|
|
Exemption from Entry Tax for Capital goods |
100% |
No Limit |
Micro, Small, Medium and Category A,B,C industries |
3 years - MSME 3 years – A & B 5 Years – C
|
|
|
Exemption from Entry Tax for for raw materials, inputs and component parts and consumables excluding petroleum Products |
100% |
No Limit |
Micro, Small, Medium and Category A,B,C industries |
6 Years - MSME 5 years – A 6 Years – B 7 Years – C |
|
|
Interest Subsidy |
6% |
No Limit |
Micro Enterprises |
7 Years |
|
|
Exemption from tax on Electricity tariff |
100% |
No Limit |
All industries |
8 Years |
|
|
Reimbursement of VAT |
75% - MSME 60% - A 70% - B 80% - C |
100% of VFA |
Micro, Small, Medium and Category A,B,C industries |
5 Years |
|
|
Subsidy for technology adoption from recognized national Labs |
50% |
1 Lakh |
Micro, Small, Medium industries |
One time |
|
|
Market Fee Exemption |
100% |
No Limit |
All Industries |
10 years |
|
|
Subsidy for setting up Effluent Treatment Plant (ETP) |
75% - MSME 50% - A,B,C |
Rs. 50 Lakhs – MSME Rs. 100 Lakhs – A,B,C |
Micro, Small, Medium and Category A,B,C industries |
One time |
List of Ineligible Activities / Enterprises
- Breweries and Distilleries of all types excluding Winery.
- Masala making without Cold Process Grinding, powder of Chilly, Turmeric, Masala, Spices, Curry, Sambar, Papad etc.,except those having FSSAI certification.
- Preparation of Sweetmeat and Salted Snacks, Mixture, Bhujia.
- Khandasari making enterprises.
- Jaggery making enterprises except those having FSSAI Certification.
- Mineral Water and aerated Soft Drinks, Alcoholic Beverages.
- Tea Blending / Mixing Units, Coffee Roasting & Grinding units having installed capacity of less than 2 TPD.
- Production of Popcorn, Ice Block, Production of Ice Candy and Ice Fruits etc. Ice-cream manufacturing without FSSAI certification.
- Units connected with Raw-Tobacco and Tobacco Based Products.
- Fertilizer Mixing Units.
- Poultry excluding Hatcheries.
Our Unique Services
- Preparation of Detailed Project Reports (DPR)
- Layout Drawings
- Facilitating various permissions required from various Govt. Departments
- Error free application processing for various subsidies and incentives
- Facilitating the arrangement of subsidies and incentives from Govt. Departments
- Advisory on Purchase of Machinery / Technology and Civil works