Karnataka Industrial Policy Scheme

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Industries Policy Scheme

Zone 1 Zone 2 Zone 3

KS DIC - With effect from 13.08.2020 to 12.08.2025

		General Category		SC /ST / Women /Minority / Ex- Services / Physically
Sl No	Subsidy	% of Subsidy	Max.	% of Subsidy	Max.
1	Investment Promotion Subsidy
	Micro	30% of VFA	25 Lakhs	35% of VFA	30 Lakhs
	Small	25% of VFA	100 Lakhs	30% of VFA	105 Lakhs
	Medium	40% of VFA		40% of VFA
	Note: 1. Micro & Small units can avail investment subsidy per year maximum of 10% of turnover only, from Date of commercial Production (Max of 5 Years) Maximum Subsidy over 5 Years: 10% of Turnover each year, over 5 year period (or) Maxium Limit of Subsidy, which ever is lower
	2. Medium units can avail investment subsidy per year maximum of 2.50 % of turnover only, from Date of commercial Production (Max of 6 Years) Maximum Subsidy over 6 Years: 40% of VFA (or) 6 Years period, which ever is reached earlier
2	Exemption for Stamp Duty for MSME
	All MSMEs	100%	5 Years	100%	5 Years
3	ConcessionalRegistration charges for MSME
	All MSMEs	1 /- per every 1000/-		1 /- per every 1000/-
4	Reimbursement of land Conversions Fee
	All MSMEs	100%		100%
5	Exemption from Tax on Electricity Tariff
	All MSMEs	100%	7 Years	100%	8 Years
6	Power Subsidy
	Micro & Small only	1/- per unit Consumed	3 Years	1/- per unit Consumed	3 Years

KS DIC - With effect from 13.08.2020 to 12.08.2025

		General Category		SC /ST / Women /Minority / Ex- Services / Physically
Sl No	Subsidy	% of Subsidy	Max.	% of Subsidy	Max.
1	Investment Promotion Subsidy
	Micro	25% of VFA	20 Lakhs	30% of VFA	25 Lakhs
	Small	20% of VFA	90 Lakhs	25% of VFA	95 Lakhs
	Medium	35% of VFA		35% of VFA
	Note: 1. Micro & Small units can avail investment subsidy per year maximum of 10% of turnover only, from Date of commercial Production (Max of 5 Years) Maximum Subsidy over 5 Years: 10% of Turnover each year, over 5 year period (or) Maxium Limit of Subsidy, which ever is lower
	2. Medium units can avail investment subsidy per year maximum of 2.50 % of turnover only, from Date of commercial Production (Max of 5 Years) Maximum Subsidy over 5 Years: 40% of VFA (or) 6 Years period, which ever is reached earlier
2	Exemption for Stamp Duty for MSME
	All MSMEs	100%	5 Years	100%	5 Years
3	ConcessionalRegistration charges for MSME
	All MSMEs	1 /- per every 1000/-		1 /- per every 1000/-
4	Reimbursement of land Conversions Fee
	All MSMEs	100%		100%
5	Exemption from Tax on Electricity Tariff
	All MSMEs	100%	6 Years	100%	7 Years
6	Power Subsidy
	Micro & Small only	1/- per unit Consumed	3 Years	1/- per unit Consumed	3 Years

KS DIC - With effect from 13.08.2020 to 12.08.2025

		General Category		SC /ST / Women /Minority / Ex- Services / Physically
Sl No	Subsidy	% of Subsidy	Max.	% of Subsidy	Max.
1	Investment Promotion Subsidy
	Micro	NIL	NIL	10% of VFA	10 Lakhs
	Small	NIL	NIL	10% of VFA	25 Lakhs
	Medium	NIL	NIL	NIL	NIL
	Note: 1. Micro & Small units can avail investment subsidy per year maximum of 10% of turnover only, from Date of commercial Production (Max of 5 Years) Maximum Subsidy over 5 Years: 10% of Turnover each year, over 5 year period (or) Maxium Limit of Subsidy, which ever is lower
2	Exemption for Stamp Duty for MSME
	All MSMEs	NIL	NIL	75%	5 Years
3	ConcessionalRegistration charges for MSME
	All MSMEs	NIL	NIL	NIL	NIL
4	Reimbursement of land Conversions Fee
	All MSMEs	NIL	NIL	75%
5	Exemption from Tax on Electricity Tariff
	All MSMEs	NIL	NIL	100%	4 Years
6	Power Subsidy
	Micro & Small only	NIL	NIL	NIL	NIL