Karnataka – Industrial Policy 2020-25 for Large, Mega, Ultra Mega and Super Mega Enterprises
Karnataka provides a unique and complete package to meet all the needs of Large, Mega, Ultra & Super Mega Enterprises and continues to be preferred destination for many OEMs looking for high quality intermediate products equipped with the latest technology. Concerted efforts are made in the Industrial Policy 2020-25 to ensure Karnataka remains an attractive destination for investment
Industries with investments with more than Rs. 100 Crore act as anchor industries and the economy of the area revolves around these industries. Karnataka Govt. has announced following incentives for such industries.
Starting date: 13th August, 2020
Ending date: 13th August, 2025
Investment Promotion Subsidy
|
|
Category |
% of VFA |
Turnover % |
Max Period |
Max Subsidy |
|
A |
Large Enterprises |
|
|
|
|
|
|
Zone 1 |
45% |
2.25% |
7 Years |
- |
|
|
Zone 2 |
40% |
2.25% |
6 Years |
- |
|
|
Zone 3 |
Nil |
Nil |
Nil |
- |
|
B |
Mega Enterprises |
|
|
|
|
|
|
Zone 1 |
50% |
2% |
8 Years |
- |
|
|
Zone 2 |
45% |
2% |
7 Years |
- |
|
|
Zone 3 |
Nil |
Nil |
Nil |
- |
|
C |
Ultra Mega Enterprises |
|
|
|
|
|
|
Zone 1 |
55% |
1.85% |
9 Years |
- |
|
|
Zone 2 |
50% |
1.85% |
8 Years |
- |
|
|
Zone 3 |
Nil |
Nil |
Nil |
Nil |
|
D |
Super Mega Enterprises |
|
|
|
|
|
|
Zone 1 |
60% |
1.75% |
10 Years |
- |
|
|
Zone 2 |
55% |
1.75% |
9 Years |
- |
|
|
Zone 3 |
Nil |
Nil |
Nil |
Nil |
Note:
- Enterprises can avail an investment promotion subsidy to an extent of percentage of turnover in each financial year for a maximum period as above from the date of commercial production. The investment promotion subsidy is limited to either the specified period or VFA limits whichever is reached earlier.
- For Large Enterprises Minimum Direct Employment should be 50 Nos. for 1st INR 50 Crore and additional 35 employment for every additional investment of INR 50 crore
- For Mega Enterprises Minimum Direct Employment should be 200 Nos. for 1st INR 250 Crore and additional 35 employment for every additional investment of INR 50 crore
- For Ultra Mega Enterprises Minimum Direct Employment should be 400 Nos. for 1st INR 500 Crore and additional 35 employment for every additional investment of INR 50 crore
- For Super Mega Enterprises Minimum Direct Employment should be 750 Nos. for 1st INR 1000 Crore and additional 35 employment for every additional investment of INR 100 crore