For those eligible for special category incentives, they will qualify for investment promotion subsidies worth 35 percent of VFA in Zone-1, 30 percent of VFA in Zone-2, 20 percent in Zone-3, and 10 percent in Zone-4. In August, Karnataka announced New Industrial Policy (NIP) 2020-25 which has a provision to incentivise mobile manufacturing. Aequs is Karnataka's first third-party IT SEZ outside Bengaluru. The Karnataka cabinet on Thursday approved a new industrial policy for 2020-2025 in which it said it aimed to ensure that 70% overall employment in all fresh investments go to local Kannadigas. Exports from the state stood at around US$17.4 billion in 2018-19, which is 5.3 percent of Indias total exports. Bengaluru (Karnataka) [India], July 23 (ANI): The Karnataka State Cabinet on Thursday approved the new Industrial Policy for 2020-2025. Uttar Pradesh approves a startup policy to set up 100 incubators in the state. In addition, subsidies will be offered for enterprises that set up effluent treatment plants within their premises. It plans to make arrangements for adequate availability of power, water and transportation for industrial areas. In August, Karnataka announced New Industrial Policy (NIP) 2020-25. non-technical staff, drivers, housekeeping staff, etc. Meanwhile, Bengaluru has been ranked the fourth-best city for investment in India. The policy was issued by a notification dated 13 th August 2020. The policy highlights the governments plan to make sufficient land readily available for business. Sections 64 and 65 have been amended to extend overtime hours to a total of 125 hours per quarter. In Zone-1, 65 percent of VFA will be offered for a turnover rate of 2.75 percent for a period of seven years. The Bengaluru-Mumbai Economic Corridor and Chennai-Bengaluru Industrial Corridor pass through Karnataka. Andhra Pradesh unveils its new industrial policy. India Briefingis produced byDezan Shira & Associates. Depending on the zone where they are based, MSMEs can be exempted from stamp duty on land registration. The Karnataka Industrial Policy 2020-25 is aimed at the states holistic development and the promotion of Tier II and Tier III cities. The State government is in the process of notifying a new industrial policy and will also release a special relief package for MSMEs, said Minister for Our subscription service offers regular regulatory updates, The subsidy will be based on 10 percent of their turnover each year for five years and will be limited to 20 30 percent of the value of their fixed assets (VFA) based on the zone. Establish new industrial corridors: The policy proposes the establishment of new industrial corridors within the state to boost industrial growth. Moving beyond the capital, Bengaluru: The new industrial policy groups Karnatakas districts into three zones to develop areas considered to be industrially backward. Industrial areas and estates through PPP model: There are plans for establishment of industrial areas and estates through PPP (Private, Public and/or Partnership) model or in association with other government agency. Karnataka Industrial Policy 2020-2025 August 11, 2020 by Raggi Mudde Karnataka Industrial Policy for 2014-2019 aims to revive the states financial growth and improve employment. The state is Indias largest software exporter, largest producer of aerospace and defense equipment, has the largest biotech hub, and is the largest producer of coffee in the country. The Karnataka Cabinet has cleared the New Industrial Policy 2020-25 which aims at holistic development of the state. This website uses cookies to improve your experience while you navigate through the website. Read on to know the highlights of the policy. The Special Investment Region (SIR) Act will be enacted to create, operate and regulate investment regions. Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. Read on to know the highlights of the policy. Save my name, email, and website in this browser for the next time I comment. These concessions are not applicable to loans obtained from the Karnataka State Financial Corporation and commercial banks that are not listed under the credit linked capital subsidy scheme of the government of India. Required fields are marked *. But opting out of some of these cookies may affect your browsing experience. With An Introduction to Doing Business in India 2020 will provide readers with an overview of the fundamentals of i India is an attractive destination for foreign investors due to its large consumer-oriented market, low labor Foreign companies investing in India are advised to do a due diligence check, especially if entering into a jo Dezan Shira & Associates helps Bengaluru (Karnataka) [India], July 23 (ANI): The Karnataka State Cabinet on Thursday approved the new Industrial Policy for 2020-2025. This website uses cookies to improve your experience. (adsbygoogle = window.adsbygoogle || []).push({}); Necessary cookies are absolutely essential for the website to function properly. After the Cabinet meet, Jagadish Shettar, Minister for medium and It is mandatory to procure user consent prior to running these cookies on your website. The Karnataka State Cabinet on 23 July 2020 approved the New Industrial Policy for 2020-2025 that aims to attract Rs five lakh crore worth investments over the next five years, and create about two million jobs to help mitigate the economic impact of the Covid-19 crisis. The second SIR will encompass the Davanagere, Shivamogga, Chitradurga, and Chickamagaluru districts as well as Kalaburagi. Micro and small enterprises can avail reimbursement of power tariffs at the rate of INR 1 per unit for a period of three years. The policy will be pro-industry and aligned with recent reforms, such as amendments to the Land Reforms Act, the Labour Act, and Karnataka Industries (Facilitation) (Amendment) Act. Micro and small enterprises will be offered interest subsidies if they secure loans from public service banks at an annual rate of three percent for five years. The firm assists foreign investors throughout Asia from offices across the world, including inDelhiandMumbai. The policy mentions funding (VC fund, angel funding), providing subsidies forallocating spaces to entrepreneurs to set up business, technological support and good infrastructure among the facilities to be extended for the growth of the sector in the state. The state has a coastline of 300 km with 12 minor ports and one major port in Mangaluru (formerly Mangalore). The policy looks beyond Bengaluru with an aim to promote Tier-2 and -3 cities as engines of economic growth. Previous Article India Discusses Preferential Trade Agreement with Southern African Customs Union, Next Article How Indias Economy is Recovering from COVID-19: A Snapshot View . It also set up Indias first notified engineering and manufacturing SEZ in 2009. The total installed power capacity in Karnataka stands at 28,400 MW. For enterprises operated by persons qualifying for special category incentives, a 100 percent concession of stamp duty is available in Zones-1, 2, and 3 and a 75 percent concession in Zone-4. Wage revisions: The minimum wage will be periodically revised based on factors like inflation and consumer price index (CPI). Karnataka also hosts the highest number of R&D centers, technical and medical institutions, and startup enterprises in India. Overall, Karnataka stands fourth in merchandise exports in the national export basket. This category only includes cookies that ensures basic functionalities and security features of the website. The policy highlights aerospace, machine tool, steel & cement sectors as focus industries. The Karnataka Cabinet on Thursday cleared the States New Industrial Policy 2020-25. [], Donating eyes in Karnataka can help correct vision []. Aequs is Karnataka's first third-party IT SEZ outside Bengaluru. Subsidies for MSMEs: The policy offers production turnover-based subsidies for micro, small, and medium-sized enterprises (MSMEs) with a view to boost industrial innovation. The draft version of the policy mandated the minimum direct employment for 100 employees for the initial investment of INR 2.5 billion (US$33.39 million) and additional employment of 20 personnel for every additional investment of INR 500 million (US$6.67 million). Earlier, the proposal was made in the Karnataka Industrial policy, 2020-25, by the State government to give impetus to growth of industry; and in the Other incentives include exemption from stamp duty and concessional registration charges; reimbursement of land conversion fee; tax exemption on electricity tariff for MSMEs; and power subsidy for MSMEs. Notify me of follow-up comments by email. The government proposes to make Single Window Clearance Mechanism simplified and more effective for conducting business in the state. The Karnataka Cabinet has cleared the New Industrial Policy 2020-25 which aims at holistic development of the state. 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