Karnataka Industrial Policy 2014 -19, Incentives for women entrepreneurs

Directorate of Industries & Commerce

Karnataka Industrial Policy

2014 -19for

1. It is proposed to promote two industrial areas in the Stateat potential locations such as Hubli/Dharwad andHarohally in Kanakapura taluk for women.

2. Reservation of 5% of plots/sheds in the IndustrialAreas/Estates developed by KIADB/KSSIDC for womenentrepreneurs in all the future Industrial areas/estates.

3. Exclusive cluster for women in Textile, Gem & Jewellery.4. Trained entrepreneurs by CEDOK or recognized training

institutions will be provided with low interest start uploans (with interest subsidy) and flexible repaymentschedule.

5. Attractive incentives and concessions.

Encouragement to Women Entrepreneurs:

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MSME’s Established during 2009-14 policy

Men

No. of Units: 75,785

Investment

Rs 7,94,474 lakhs.

Employment:5,54,414

Women

No. of Units: 31,023

Investment

Rs 1,10,247 lakhs.

Employment :1,31,719

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Subsidy released to the units sanctioned in 2009-14 policy

Men

No.of Units 1,125

Amount released in Rs. 5,691.77 lakhs

Women

No of Units 558

Amount released in Rs 2,919.80 lakhs

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Classification of taluks for Incentives & Concessions

Hyd-Kar region

Zone-1: 20 taluks

Zone-2: 11 taluks

Non Hyd-Kar region

Zone-1: 23 taluks

Zone-2: 51 taluks

Zone-3: 62 taluks

Zone-4: 9 taluks

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MSMED Act 2006: Investment on Plant and machinery

Medium

Small

Micro

Rs.10 crore

Rs.5 crore

Rs.25 lakh

Rs.5 crore

Rs.2 crore

Rs.10 lakh

Manufacturing Service

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Super mega

Ultra mega

Mega

Large

Above Rs.1000 crore

Above Rs.500 crore upto Rs.1000 crore

Above Rs.250 crore upto Rs.500 crore

Above Rs.10 crore to Rs. 250 Crore

Classification of Large Scale Industries

Definition of Mega, Ultra Mega & Super MegaInvestment on Fixed Assets

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1. Investment Subsidy (Rs. In lakhs)

Category Other than Hyd-Kar Area Hyd-Kar Area

Zone 1 Zone 2 Zone 3 Zone 4 Zone 1 Zone 2

Micro Other

women

% 30% 25% 20% 10% 35% 30%

Max Rs. 18.00 Rs.15.00 Rs. 12.00 Rs. 8.00 Rs.20.00 Rs.18.00

SC/ST

Women

% 35% 30% 25% 15% 40% 35%

Max Rs.20.00 Rs.18.00 Rs.15.00 Rs. 12.00 Rs.22.00 Rs.20.00

Small Other

women

% 25% 20% 15% 10% 30% 25%

Max Rs.45.00 Rs.35.00 Rs.25.00 Rs.10.00 Rs.50.00 Rs.45.00

SC/ST

Women

% 30% 25% 20% 15% 35% 30%


Mediu

m

Other

womenMax Rs.55.00 Rs.45.00 Rs.35.00 Rs.20.00 Rs.60.00 Rs.55.00

SC/ST

womenMax Rs.60.00 Rs.50.00 Rs.40.00 Rs.25.00 Rs.65.00 Rs.60.00

Medium :Unit those providing minimum of 25 direct employment8

2 & 3. Stamp Duty Exemption & Concessional Registration Charges

Other than Hyd-Kar Area Hyd-Kar Area


Stamp duty exemption 100% 100% 100% 75% 100% 100%

Concessional

Registration Charges

Rs. 0.50/

Rs. 1000

Rs. 0.50/

Rs. 1000

Rs. 0.50/

Rs. 1000

Rs. 0.50/

Rs. 1000

Rs. 0.50/

Rs. 1000

Rs. 0.50/

Rs. 1000

4. Reimbursement of Land Conversion FeeOther than Hyd-Kar Area Hyd-Kar Area


100% 100% 100% 75% 100% 100%

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5. Exemption From Entry TaxOther than Hyd-Kar Area Hyd-Kar Area


% 100% 100% 100% NIL 100% 100%

On PM 3 years 3 years 3 years NIL 3 years 3 years

On RM 6 years 6 years 6 years NIL 6 years 6 years

6. Subsidy for Setting up Effluent Treatment Plant (ETP) : Manufacturing MSMEs:

Non HK region HK regionZone-1,2 &3 -75%- Rs.100 lakhs Zone- 1 & 2- 75%- Rs.100 lakhs

Zone-4 – 75% - RS. 50 Lakhs

One time capital subsidy based on the cost of ETPs 10

7. Interest Subsidy (Micro units only)

Rate of

Int sub

Non HK area HK area


6% 6 Years 5 years 4 years NIL 7 years 6 years

8. Exemption from Tax on Electricity Tariff: Manufacturing MSMEs:

% Non HK area HK area


100% 7 years 6 years 5 years 4 years 8 years 7 years

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Non HK region (Zone 1,2 & 3 only) & HK region (Zone 1 & 2)5%- Interest subsidy on loans availed from KSFC & Scheduled commercial banks which are not

covered under CLCSS of GOI.

a. Interest Subsidy on Technology Upgradation Loan:

Non HK region (Zone 1,2 & 3 only) & HK region (Zone 1 & 2)

75% of cost ( max. Rs. 1.00 lakh)

b. ISO Series Certification:

9.Technology upgradation, Quality CertificationManufacturing MSMEs:

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50% of fees payable to BIS (max. Rs. 20,000) and 50% of cost (max. Rs. 1,00,000) for purchase

of testing equipments as approved by BIS.

c. BIS Certification:


50% of cost (max. Rs. 1.00 lakh)for adopting technology from recognized national laboratories

d. Technology Adoption:


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50% of the project cost (max: Rs.75.00 lakh).

e. Technology Business Incubation Center:


5% with a ceiling limit of Rs. 15.00 lakh

Additional investment promotion subsidy

f. Recycling of electronic waste and plastic waste:


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Rain water harvesting : 75% of cost of equipment (max. Rs. 1.50 lakh)

Waste water recycling : 75% of cost of equipment (max. Rs. 7.50 lakh)

Zero discharge process: 75% of cost of equipment (max. Rs. 7.50 lakh)

10.Water Harvesting / Conservation Measures: Manufacturing SMEs:

11.Energy Conservation : Manufacturing MSMEsAll Zones

Practicing Energy Conservation measures resulting in reduction of Energy Consumption of at least10% of earlier consumption: 15% of capital cost (max Rs. 7.50 lakh).Use of non-conventional energy sources: 15% of capital cost (max. Rs.7.50 lakh). Subsidy of Rs.0.75 per unit of Captive power generated and consumed through Solar & Wind Energy sourcesonly.

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Non HK region (Zone 1,2 & 3 only) &

HK region (Zone 1 & 2)

75% of project report preparation cost- Max Rs.2.00 lakhs

Reimbursement of the cost of preparation of project reports up to prepared by

TECSOK and CEDOK required for which bank loans are sanctioned

12. Reimbursement of the cost of preparation of project reports

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Subsidy Non HK area HK area


% 40% 40% 30% 25% 40% 40%


13. Land / Shed allotment by KIADB and KSSIDC at concessional rates for SC/ST women entrepreneurs

• This concession is in addition to theinvestment promotion subsidy provided

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• This policy is with effect from : 1/10/2014

• Duration: for five years or as revised by the Government.

• Once the new Industrial Policy 2014-19 comes intooperation the Industrial Policy 2009-14 stands withdrawn

• Enterprises which have been sanctioned and have partlyavailed incentives and concessions under earlier policiesshall continue to enjoy those benefits as per respectivesanction orders.

Annexure-3A: TERMS & CONDITIONS FOR SANCTION OF INCENTIVES & CONCESSIONS-2

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b) The applicability of the Industrial Policy 2009-14 or IndustrialPolicy 2014-19 for the Projects which are under implementation(pipeline projects) at the time of announcement of IndustrialPolicy 2014-19 is decided as follows.

(i) Projects cleared through District level, State Level and State HighLevel Clearance Committee during the 2009-14 Policy period andif they have availed any of the incentives and concessions for theproject as per 2009-14 policy are eligible to avail other incentivesand concessions under 2009-14 policy only.


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(ii) If any unit including self financed project has taken any one of the followingeffective steps and the date of any one of these steps is before the date of issue ofGovernment Order of the new industrial policy 2014-19, then the unit shall availincentives as per policy 2009-14 only.

1. Date of entering lease or sale agreement of the premises (either land or building).

2. Date on which possession certificate of the plot or shed is taken from KIADB/KSSIDC orany other agency

3. Date of approval of building plan by competent authority

4. Date of release of first installment of loan from Financial Institution /Bank.

5. Date of placement of first purchase order for plant and machinery.

(iii) If any enterprise has not taken any effective steps, not invested any amount andnot availed any incentives and concessions during the 2009-14 policy period, they shallavail incentives as per Industrial Policy 2014-19 only.


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c) The Projects which are under implementation (pipeline projects) at the time ofannouncement of Industrial Policy 2014-19 as explained above shall commencecommercial production before 31/08/2017 failing which their eligibility to availincentives as per Industrial Policy 2009-14 will lapse. They will not be eligible toclaim incentives either under Industrial Policy 2014-19.

d) Incentives and concessions under this policy shall primarily be available only forManufacturing Industries and specified categories of service industries as listed inAnnexure 1

e) The incentives and concessions under this policy will be available to all new andadditional investments made during the policy period for establishment of newenterprises and expansion/ diversification/ modernization (as defined in Annexure5).

h) Enterprises can avail incentives and concessions under only one policy of theIndustries Department.


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i) Minimum term loans on eligible fixed assets from FinancialInstitution/Banks required for Investment Promotion Subsidy – 50%

ii) Time frame for claiming Investment Promotion subsidy- within oneyear from the date of commencement of commercial production

j) There is no restriction on the quantum of loan to be availed from thefinancial institutions for availing tax based incentives. Own financedunits are also eligible for tax based incentives.

l) While calculating the value of eligible fixed assets created duringexpansion / diversification / modernization of an enterprise onlyadditional new investments shall be considered. The originalinvestment for which subsidy has already been sanctioned shall not beaccounted.


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Directorate of Industries & Commerce

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Karnataka Industrial Policy 2014 -19, Incentives for women entrepreneurs

Business

investment subsidy rs

hydkar areahydkar areazone

microother women

smallother women

manufacturing msmes

trained entrepreneurs

scst womenmaxrs

hk regionhk regionzone