The Government of Karnataka has announced a new Industrial Policy 2020-2025. The policy was issued by a notification dated 13th August 2020. The policy and package of incentives and concessions will come into effect from 13th August 2020 and will be valid for 5 years or until a new policy is announced. The incentives and concessions are primarily available to Manufacturing Enterprises/ Industries and specified categories of service enterprises.
Some of the key strategies contemplated by the Industrial Policy are as follows:
- Promotion of sustainable, balanced and inclusive industrial growth
- Employment generation and increase in labour market flexibility
- Strategic tie-ups for enhancement of knowledge and R&D Hub
- Development and promotion of MSME Sectors
- Facilitation of availability of industrial land
- Promotion of Tier II/ III cities of the State as engines of economic growth
- Increase the State’s international trade
- Creation of an environment that enhances ease of doing business
- Support R&D & Technology Upgradation
- Attraction of private investment in integrated/ multi/ sectoral industrial parks and flatted factories
Additionally, the Policy provides incentives and concessions for MSMEs such as exemption from stamp duty, concessional registration charges, reimbursement of Land Conversion Fees, etc. Similarly, Large, Mega, Ultra Mega and Super Mega Enterprises have also been provided with incentives and concessions these include, subsidy for setting up Effluent Treatment Plant (ETP), investment subsidy for Anchor Industries, etc.
Additionally, incentives and concessions have also been provided to Private Industrial Parks and eligible industrial enterprises are also entitled to further incentives and concessions.
The Policy also caters to skill development such as on the job training, entrepreneurship development programmes, artisan training institutes, etc. It provides financial support or grants in the form of subsidies to Research and Development, industry 4.0, Intellectual Property Rights and Healthcare Enterprises.
