Overall, the new industrial policy seeks to attract investment worth INR 5 trillion (approx. Save my name, email, and website in this browser for the next time I comment. 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. Meanwhile, Bengaluru has been ranked the fourth-best city for investment in India. Overall, Karnataka stands fourth in merchandise exports in the national export basket. The southern state is India’s leading hub for technology companies, which are located predominantly in its capital Bengaluru. The new Karnataka Industrial Policy envisions emerging as a “global leader in advanced manufacturing, research and development, and innovation and to create an ecosystem for an inclusive, balanced and sustainable development of the State.”. Establish new industrial corridors: The policy proposes the establishment of new industrial corridors within the state to boost industrial growth. Image Credit: ANI. How To Apply For Caste And Income Certificates In Karnataka? Special investment regions would have an area of about 100 sq.km and be categorized as industrial townships. State Name of the Policy Year URL State Governments 1. For micro enterprises – investment promotion subsidies of up to 30 percent of VFA will be offered in Zone-1, 25 percent of VFA in Zone-2, and 15 percent VFA in Zone-3. Representative Image. Local jobs creation: The policy will require new industrial projects to create as much direct employment as possible and hire locally – a minimum of 70 percent of the workforce should consist of locals and 100 percent in the case of Group D type of employees (housekeeping and sanitation staff, non-technical posts, drivers, etc.). The land conversion fee can be reimbursed up to 100 percent for enterprises in Zones-1 and 2 and 75 percent for those in Zone-3. We also use third-party cookies that help us analyze and understand how you use this website. The government has proposed a number of subsidies and incentives to promote entrepreneurs belonging to the women and special categories. A number of reforms have been introduced under the policy. Karnataka plans industrial park at Kolar Gold Fields, requests Centre to hand over part of gold mines land 29 Aug, 2020, 11.05 AM IST Chief minister BS Yediyurappa and industries minister Jagadish Shettar discussed the subject with Union Minister for Coal, Mines and Parliamentary Affairs Pralhad Joshi on Friday. Labor reforms under the policy: An amendment to the Factories Act, 1948 will ensure that women workers who work the night shift in factories, that is between 7pm to 6am, are registered. On July 23, the state cabinet of the Karnataka government approved the New Industrial Policy for 2020-25. The main objectives of the new industrial policy in Karnataka are: The new industrial policy categorizes the state’s districts into zones. 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. Stay Ahead of the curve in Emerging Asia. The Karnataka Cabinet on Thursday cleared the State’s New Industrial Policy 2020-25. In January 2017, Karnataka Department of Commerce and Industries introduced an NRI policy to attract investments from non-resident Kannadigas. India Briefing is produced by Dezan Shira & Associates. In January 2017, Karnataka Department of Commerce and Industries introduced an NRI policy to attract investments from non-resident Kannadigas. 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. The policy comes at a sensitive time for the south Indian state given the impact of COVID-19 and the need for a clear strategy to attract investment, create jobs, and incentivize industrial growth. Improved Labour Market Information System: The policy focuses on creation of an improved Labour Market Information System (LMIS) in order to help in the assessment of labour market and their needs. REGISTER TODAY. Uttar Pradesh approves a startup policy to set up 100 incubators in the state. Annexure 5 Zonal Classification . Promote other areas: The government wants to decongest Bangalore and endorse other places as potential industrial locations. The Government of Karnataka launched the New Industrial Policy for 2014-2019 with the intention to revive the state’s financial growth and improve employment prospects. Karnataka also hosts the highest number of R&D centers, technical and medical institutions, and startup enterprises in India. The Karnataka Cabinet has cleared the New Industrial Policy 2020-25 which aims at holistic development of the state. The state is home to the Pavagada Solar Park, which has an installed capacity of 2,000 MW, the largest in the country, of which 1,400 MW is operational. and grow their operations. Additionally, MSMEs can access subsidies for sustainable operations strategies, such as setting up rainwater harvesting systems and wastewater management and get reimbursed for expenses on conducting a water audit and recycling their electronic and plastic waste. 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. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. The firm assists foreign investors throughout Asia from offices across the world, including in Delhi and Mumbai. Karnataka is also a popular destination for auto, electronics, food processing, heavy machinery, and the textiles industry. Rajasthan Rajasthan Industrial Development Policy It is mandatory to procure user consent prior to running these cookies on your website. Filed Under: Industry Tagged With: government policies. The investment promotion subsidy will be based on 10 percent on turnover each year for a period of five years and limited to 20 to 30 percent of value of fixed assets (VFA). After the Cabinet meet, Jagadish Shettar, Minister for medium and … The policy also stipulates that MSMEs qualify for interest subsidy on technology upgradation loans of up to 10 percent for a period of five years. These cookies will be stored in your browser only with your consent. What are the emerging opportunities and how should investors react? It plans to make arrangements for adequate availability of power, water and transportation for industrial areas. Karnataka is best known for its software industry and now biotechnology. MSMEs will also be offered a 100 percent exemption from tax on power tariffs for a period of seven years in Zone-1, six years in Zone-2, and five years in Zone-3. Depending on the zone where they are based, MSMEs can be exempted from stamp duty on land registration. US$66.89 billion). This category only includes cookies that ensures basic functionalities and security features of the website. For this purpose it plans to set up Special Investment Regions (SIR) in Northern Karnataka. In August, Karnataka announced New Industrial Policy (NIP) 2020-25 which has a provision to incentivise mobile manufacturing. The policy was issued by a notification dated 13 th August 2020. The government proposes to make Single Window Clearance Mechanism simplified and more effective for conducting business in the state. The State Government on Thursday unveiled the new Industrial Policy 2020-25 aimed to ensure holistic development of the state. 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 … Moving beyond the capital, Bengaluru: The new industrial policy groups Karnataka’s districts into three zones to develop areas considered to be industrially backward. including the most recent legal, tax and accounting changes that affect your business. Your email address will not be published. Upgrade existing industrial areas: The government also has plans to upgrade existing industrial areas and estates by providing monetary assistance to improve their infrastructure. The minimum wage will be revised periodically based on consumer price index, inflation and other such factors. Each SIR will be categorized as an industrial township and have an area of 100 sq. The New Industrial Policy 2020-25 outlines investment promotion subsidies for enterprises according to their scale of production, turnover, and whether they are operated by persons belonging to special categories. The New Industrial Policy for 2020-25 will oversee new incentives and an easing of the regulatory process.”, In terms of the kind of investments the state sought to attract, Shettar said: “To emerge as globally competitive with skill and scale that leverage hi-tech growth, following thrust areas have been recognized: Industry 4.0, Research and Development, Intellectual Property Rights (IPR), Technology Adoption and Innovation, Cluster Development Initiatives and Sustainable Industrialization.”. This website uses cookies to improve your experience. Encourage women entrepreneurship: The policy encourages women entrepreneurship as well as entrepreneurship from Special category like SC/ST/Differently abled/Ex-servicemen. These cookies do not store any personal information. Minister for Large and Medium-scale Industries Jagadish Shettar on Tuesday said that the new industrial policy will be finalised soon and the cabinet will also give its approval. The industrially backward districts come under Zone-1 and Zone-2 while more industrially developed districts are classified under Zone-3 and Zone-4. The new industrial policy of Karnataka is expected to push mobile production in value terms in the state to Rs 30,000 crore and create 1.2 lakh jobs by 2023, mobile handset and electronics body ICEA said on Sunday. The state ranked third among Indian states in terms of foreign direct investment (FDI) inflows, attracting FDI worth US$40.7 billion between 2000 and 2019. […], Donating eyes in Karnataka can help correct vision […]. These intra-state industrial corridors will be: Accelerate CBCIC: The policy also highlights the state government’s plan to accelerate work on Chennai-Bangalore-Chitradurga Industrial Corridor (CBCIC) and Bangalore-Mumbai Economic Corridor (BMEC) with the central government’s help. Karnataka’s new industrial policy incentivises high-tech investments, boosts local jobs creation, and seeks to move industrial and technology hubs beyond the state capital, Bengaluru (formerly, Bangalore). Karnataka is well connected to all major markets with two international airports; 307,030 km of road network; and 5,543 km rail network. For large enterprises with investment on fixed assets between INR 100 million (US$1.33 million) and INR 2.5 billion (US$33.39 million), the policy offers an investment promotion subsidy based on their turnover. In August, Karnataka announced New Industrial Policy (NIP) 2020-25. It also aims to generate employment opportunities for 20 lakh people. While Karnataka saw its proposals shoot up 154% in the first 10 months of 2020 over the comparable period last year, the national numbers witnessed a 11.9% drop during the same period. The first such region or SIR will encompass the Dharwad, Gadag, Haveri, and Belagavi districts of Karnataka. 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To establish brand Karnataka in the global market, To make Karnataka one of the top 3 investment destinations in the country, To create a business friendly environment in the state in order to project Karnataka as a state that promotes and encourages entrepreneurship, To maintain an industrial growth rate of 12 % per annum, To increase the manufacturing sector’s contribution to the State GDP to 20% by 2019, To attract minimum investments worth Rs 5 lakh crore by 2019, To create additional employment for 15 lakhs people by 2019, Exemption from payment of electricity tariff to ultra-mega and super-mega projects, Subsidy for setting up Energy Effluent Treatment Plant, Interest subsidy for water harvesting, technology up-gradation, Reimbursement of cost of preparing project reports. Bengaluru (Karnataka) [India], July 23 (ANI): The Karnataka State Cabinet on Thursday approved the new Industrial Policy for 2020-2025. Karnataka Industrial Policy for 2014-2019 aims to revive the state’s financial growth and improve employment. Wide range of fiscal and policy incentives for businesses under the Karnataka Industrial Policy, 2014-19 with simplified procedures for investment. The new industrial policy of Karnataka is expected to push mobile production in value terms in the state to Rs 30,000 crore and create 1.2 lakh jobs by 2023, mobile handset and electronics body ICEA said on Sunday. The policy highlights aerospace, machine tool, steel & cement sectors as focus industries. Sections 64 and 65 of the Factories Act have been amended to extend overtime hours to 125 hours per quarter. Late last week, on July 23, the state cabinet of the Karnataka government approved the New Industrial Policy for 2020-25. This is aimed at developing industrially backwards areas. The policy waives 100 percent stamp duty for enterprises in Zones-1 and 2 and 75 percent of the stamp duty in Zone-3. Gujarat announces its Industrial Policy, 2020. 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. In August, Karnataka announced New Industrial Policy (NIP) 2020-25. Students With OCI Cards Are Eligible For State Quota Seats In Karnataka, Kathamala – Stories To Kindle Interest In Indian Culture, Varanga – A Picturesque Stop on the Jain Pilgrim Trail, Donating Eyes In Karnataka Through Jeevasarthakathe – Everything You Must Know. Rajasthan Rajasthan Industrial Development Policy Policy . The priority is once again given to enterprises in Zones-1, 2, and 3. In August, Karnataka announced New Industrial Policy (NIP) 2020-25 which has a provision to incentivise mobile manufacturing. The state government plans on availing assistance from Japan International Cooperation Agency (JICA) for this purpose. 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 sectors encouraged include automobiles and auto components, pharmaceuticals, medical devices, knowledge-based industries, electric vehicles, and logistics, among others. Previous Article « India Discusses Preferential Trade Agreement with Southern African Customs Union, Next Article How India’s Economy is Recovering from COVID-19: A Snapshot View ». Karnataka Industrial Policy 2020-2025. Quality training and certification: The policy highlights on upgradation of skills in order to foster economic growth in the state. Bengaluru (Karnataka) [India], July 23 (ANI): The Karnataka State Cabinet on Thursday approved the new Industrial Policy for 2020-2025. Promote Karnataka as a hub for entrepreneurs: The State Government wants to promote Karnataka as a hub for entrepreneurs. Annexwe 1 Definitions . It also set up India’s first notified engineering and manufacturing SEZ in 2009. 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). The new policy will facilitate greater investments in advanced manufacturing, research and development (R&D) and innovation and aims to the create at least 2 million jobs. km. Aequs is Karnataka's first third-party IT SEZ outside Bengaluru. The policy focuses on export promotion, renewable energy projects and is focused on providing support to enterprises that adopt energy efficiency measures. Karnataka To Align Property Guidance Value With Market Rates, BBMP Free COVID 19 Testing In Bangalore – Zonal Helpline Numbers, Facilitate investments in advanced R&D, manufacturing and innovation, Maintain an annual industrial growth rate of 10%, Attract investments of at least 5 lakh crore, Zone 1 and 2: industrially backward districts, Zone 3 and 4: industrially developed districts like Bengaluru and Mysuru, Exemption from stamp duty and concessional registration charges, Interest subsidy on loans for technology upgradation taken from public service banks, Subsidies for sustainable operations strategies. Industries minister Jagadish Shettar (File photo) BENGALURU: The Karnataka government is all set to roll out a new industrial policy (2020-2025) with an ambitious plan to attract Rs 5 lakh crore investments over the next five years and maintain 10% yearon-year growth. & D centers, technical and medical institutions, and startup enterprises in Zones-1 and 2 and 75 percent VFA! 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