Karnataka – Textile Policy 2020-25 for MSME & Large Industries
The State’s New Textile and Garment Policy aims to position Karnataka as a leading destination in the Textile and Apparel sector in the country and to make textile value chain into gold mine value chain. The Policy will provide a stimulus to the textile industry in the State and aims to generate 5 lakh new employments in the next 5 years and attract investments worth INR 10,000 crore.
In the light of the above, the following new Textile Policy has been introduced
Starting date: 04th November, 2019
Ending date: 04th November, 2024
Incentives for Textile segment - 1. Credit Linked Capital Subsidy (Textile)
|
Sl. No. |
Segment |
MSME |
Large |
| 1 |
Thrust Sectors |
||
|
Zone 1 |
30% of Fixed Assets |
25% of Fixed Assets |
|
|
Zone 2 |
25% of Fixed Assets |
20% of Fixed Assets |
|
|
Zone 3 |
20% of Fixed Assets |
15% of Fixed Assets |
|
|
Zone 4 |
NA |
NA |
|
| 2 |
Other Sectors |
||
|
Zone 1 |
25% of Fixed Assets |
20% of Fixed Assets |
|
|
Zone 2 |
20% of Fixed Assets |
15% of Fixed Assets |
|
|
Zone 3 |
15% of Fixed Assets |
10% of Fixed Assets |
|
|
Zone 4 |
NA |
NA |
|
| 3 |
Additional Subsidy |
Additional 5% capital subsidy on the value of Fixed Assets for SC/ST persons/ Persons with disabilities/ Minority/ Ex- servicemen/Women |
Additional 5% capital subsidy on the value of Fixed Assets for SC/ST persons / Persons with disabilities/ Minority |
2. Credit Linked Capital Subsidy (Garment)
|
Sl. No. |
Segment |
MSME |
Large |
| 1 |
Zone 1 |
25% of Fixed Assets |
20% of Fixed Assets |
| 2 |
Zone 2 |
20% of Fixed Assets |
15% of Fixed Assets |
| 3 |
Zone 3 |
15% of Fixed Assets |
10% of Fixed Assets |
| 4 |
Zone 4 |
NA |
NA |
| 5 |
Additional Subsidy |
Additional 5% capital subsidy on the value of Fixed Assets for SC/ST persons/ Persons with disabilities/ Minority/ Ex- servicemen/Women |
Additional 5% capital subsidy on the value of Fixed Assets for SC/ST persons / Persons with disabilities/ Minority |
3. Interest Subsidy (Textile)
|
Sl. No. |
Segment |
MSME |
Large |
| 1 |
All Sectors |
||
|
Zone 1,2,3 |
NA |
5% per annum Interest Subsidy on Term Loans for the first 5 years |
|
|
Zone 4 |
NA |
NA |
4. Interest Subsidy (Garment)
|
Sl. No. |
Segment |
MSME |
Large |
| 1 |
Zone 1,2,3 |
NA |
5% per annum Interest Subsidy on Term Loans for the first 5 years |
| 2 |
Zone 4 |
NA |
NA |
5. Power (Textile)
|
Sl. No. |
Segment |
MSME |
Large |
| 1 |
Spinning |
||
|
Zone 1,2,3 |
Reimbursement of cost of power paid at INR 2.0 per unit for a period of 5 years |
Reimbursement of cost of power paid at INR 2.0 per unit for a period of 5 years |
|
|
Zone 4 |
NA |
NA |
|
| 2 |
Weaving (Uncon Ventional Looms) |
||
|
Zone 1,2,3 |
Reimbursement of cost of power paid at INR 2.0 per unit for a period of 5 years |
Reimbursement of cost of power paid at INR 2.0 per unit for a period of 5 years |
|
|
Zone 4 |
NA |
NA |
|
| 3 |
Integrated Units |
||
|
Zone 1,2,3 |
Reimbursement of cost of power paid at INR 1.0 per unit for a period of 5 years |
Reimbursement of cost of power paid at INR 2.0 per unit for a period of 5 years |
|
|
Zone 4 |
NA |
NA |
|
| 4 |
Processing Units |
||
|
Zone 1,2,3 |
Reimbursement of cost of power paid at INR 1.0 per unit for a period of 5 years |
Reimbursement of cost of power paid at INR 2.0 per unit for a period of 5 years |
|
|
Zone 4 |
NA |
NA |
|
| 5 |
Technical Textile Units |
||
|
Zone 1,2,3 |
Reimbursement of cost of power paid at INR 1.0 per unit for a period of 5 years |
Reimbursement of cost of power paid at INR 1.0 per unit for a period of 5 years |
|
|
Zone 4 |
NA |
NA |
|
| 6 |
Others Units |
||
|
Zone 1,2,3 |
Reimbursement of cost of power paid at INR 1.0 per unit for a period of 5 years |
Reimbursement of cost of power paid at INR 1.0 per unit for a period of 5 years |
|
|
Zone 4 |
NA |
NA |
6. Power Subsidy (Garment)
|
Sl. No. |
Segment |
Micro & Small |
Large |
| 1 |
Zone 1,2,3 |
Reimbursement of cost of power paid at INR 1.0 per unit for a period of 5 years |
NA |
| 2 |
Zone 4 |
NA |
NA |
7. Stamp Duty Exemption and Concessional Registration Charges (Textile)
|
Sl. No. |
Segment |
MSME |
Large |
| 1 |
All Sectors |
||
|
Zone 1,2,3 |
Stamp Duty Exemption and concessional registration charges rate of INR 1.00 per INR 1000 |
NA |
|
|
Zone 4 |
NA |
NA |
8. Stamp Duty Exemption and Concessional Registration Charges (Garment)
|
Sl. No. |
Segment |
MSME |
Large |
| 1 |
Zone 1,2,3 |
NA |
Stamp Duty Exemption and concessional registration charges rate of INR 1.00 per INR 1000 |
| 2 |
Zone 4 |
NA |
NA |
9. ESI/EPF Reimbursement (Textile)
|
Sl. No. |
Segment |
MSME |
Large |
| 1 |
All Sectors |
||
|
Zone 1,2,3 |
75% reimbursement of employer’s contribution of wage rate per employee per month for all the new units for a period of 5 years as EPF and ESI subsidy |
NA |
|
|
Zone 4 |
NA |
NA |
10. ESI/EPF Reimbursement (Garment)
|
Sl. No. |
Segment |
MSME |
Large |
| 1 |
Zone 1,2,3 |
75% reimbursement of employer’s contribution of wage rate per employee per month for all the new units for a period of 5 years as EPF and ESI subsidy |
NA |
| 2 |
Zone 4 |
NA |
NA |
11. Wage Subsidy (Garment)
|
Sl. No. |
Segment |
Medium |
Large |
| 1 |
Zone 1 |
INR 1500 per employee per month. Applicable for a period 5 years where minimum employment is 200 or above |
INR 1500 per employee per month. Applicable for a period 5 years where minimum employment is 500 or above |
| 2 |
Zone 2,3 |
INR 1000 per employee per month. Applicable for a period 5 years where minimum employment is 200 or above |
INR 1000 per employee per month. Applicable for a period 5 years where minimum employment is 500 or above |
| 3 |
Zone 4 |
12. Effluent Treatment Plant (Textile)
|
Sl. No. |
Segment |
MSME |
Large |
| 1 |
All Sectors |
50% capital subsidy or INR 5 crore whichever is less for establishment of Effluent Treatment Plants (ETPs) |
|
| 2 |
Integrated Units & Processing Units (All zones) |
||
13. Common Infrastructure for Greenfield Textile Park
|
Sl. No. |
Segment |
All Units |
| 1 |
Individuals (All Zones) |
One time grant support for development of common infrastructure for Greenfield Parks up to 25% of the project cost or INR 25 crores per Park project, whichever is less |
| 2 |
SPV (All Zones) |
One time grant support for the development of common infrastructure for Greenfield Parks of up to 40% of the project cost or INR 40.00 crores per Park project, whichever is less |
14. Common Infrastructure for Brown Field Textile Park
|
Sl. No. |
Segment |
All Units |
| 1 |
SPV (All Zones) |
One time grant support for the development of common infrastructure for Greenfield Parks of up to 40% of the project cost or INR 12.00 crores per Park project, whichever is less |
Cap on Incentives
- Non Kalyana Karnataka Regions: The total incentives drawn as per provisions under the policy shall not exceed 40% of Fixed Capital Investment (FCI) for Large and MSME units
- Kalyana Karnataka Regions: The total incentives drawn as per provisions under the policy shall not exceed 50% of Fixed Capital Investment (FCI) for Large and MSME units
- Additional incentive of 5% of Fixed Capital Investment (FCI) for Thrust Sector Units
- Additional incentive of 5% of Fixed Capital Investment (FCI) for Anchor Units set up across the State.
- Additional incentive of 5% for SC/ST Entrepreneurs/Persons with disabilities/Minority/Ex- servicemen/Women, over and above the standard package
- The sanctioned incentives will be disbursed over a period of 5 years from the date of commencement of production.
Definitions
Large Enterprise (Textile): Investment upto INR 300 crore and Employment minimum of 200 for the first INR 100 crore and additional 75 employment for every additional investment of INR 100 crore proportionately.
Large Enterprise (Garment): Investment upto INR 200 crore and Employment minimum of 2000 for the first INR 100 crore and additional 1000 employment for every additional investment of INR 100 crore proportionately.
Mega Enterprise (Textile): Investment above INR 300 crore and Employment minimum of 350 for the first INR 300 crore and additional 75 employment for every additional investment of INR 100 crore proportionately.
Mega Enterprise (Garment): Investment upto INR 200 crore and Employment minimum of 3000 for the first INR 200 crore and additional 1000 employment for every additional investment of INR 100 crore proportionately.
Project Cost: Assets created for the project and would include Factory Building, Infrastructure including land cost (other than land development), Plant & Machinery, ETP and other Productive Assets with Transportation (excluding transport vehicles), Erection & Electrification and construction of housing / dormitories by themselves (for up to 50 per cent of their workers/ employees).
Thrust Sectors:
- Spinning
- Weaving
- Integrated Units
- Processing
- Technical Textiles
Zone 1: Kalayana Karnataka Region (Bidar, Raichure, kalaburagi, Koppal, Yadgir, Bellary)
Zone 2: All areas other than municipal corporations, district headquarters in non Kalyana Karnataka region excluding areas under zone 4.
Zone 3: All Municipal Corporations and District Headquarters in Non Kalyana Karnataka Region excluding areas under Zone 4.
Zone 4: Bangalore Urban District
Stamp Duty: Stamp duty to be paid shall be exempted and concessional registration charges in respect of
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Execution of Lease, Lease-cum sale and Sale deeds in respect of industrial land / plots allotted;
-
Execution of Lease Deeds in case of industrial sheds/ plots taken on Lease and
-
Loan and credit deeds, including security documents such as mortgage deed, pledge deed etc., executed for availing long term funds from banks/ FIs and other agencies of GoK/GoI.
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