Incentives2019-06-10T10:12:18+00:00

Incentives

 Sr. No Particulars Karnataka Agribusiness & Food Processing Policy 2015
1.  Investment Promotion Subsidy Investment promotion subsidy @ 35% of the value of fixed assets (VFA) irrespective of zonal and promoter classification up to a maximum of Rs.65 Lakhs for MSME
2.  Exemption from Stamp Duty for MSME, Category A, B & C enterprises Stamp duty to be paid in respect of

(i) loan agreements, credit deeds, mortgage and hypothecation deeds executed for availing loans from State Government including GST loan from C&I Department and / or State Financial Corporation, National Level Financial Institutions, Commercial Banks, RRBs, Co-operative Banks, KVIB/ KVIC, Karnataka State SC/ST Development Corporation, Karnataka State Minority Development Corporation and other institutions which may be notified by the Government from time to time for the initial period of five years only and

(ii) for lease deeds, lease-cum-sale and absolute sale deeds executed by industrial enterprises in respect of industrial plots, sheds, industrial tenements by KIADB, KSSIDC, KEONICS, Industrial Co-operatives and approved priGSTe industrial estates shall be exempted @ 100% irrespective of promoter & zonal classification for MSME, Category ‘A’, ‘B’ & ‘C’ enterprises.

3.  Concessional Registration Charges for MSME, Category A, B & C enterprises For all loan documents, lease deeds and sale deeds, the registration charges shall be at a concessional rate @ Rs.0.50 per Rs.1000 irrespective of promoter classification for MSME, Category ‘A’, ‘B’ & ‘C’ enterprises.

Note:

(i) The exemption of stamp duty and concessional registration charges are also applicable to lands purchased under Section 109 of the KLR Act, 1961 and also for the direct purchase of industrially converted lands for the projects approved by SLSWCC / DLSWCC. This incentive will also be applicable to the land transfer by KIADB to landowners as compensation for the acquired land.

(ii) The exemption of stamp duty and concessional registration charges are also available for registration of final sale deed in respect of lands, sheds, plots, industrial tenements after the expiry of lease period at the rate as specified in the Industrial Policy which was in vogue at the time of execution of the lease-cum-sale deed.

4.  Reimbursement of land conversion fee for MSME, Category A, B & C enterprises The payment of land conversion fee for converting the land from agriculture use to industrial use will be reimbursed @ 100% irrespective of promoter & zonal classification for MSME, Category ‘A’, ‘B’ & ‘C’ enterprises.
5.  Exemption from Entry Tax MSME: 100% exemption for 3 years on plant and machinery and capital goods and 6 years for raw materials, inputs and component parts and consumables excluding petroleum products from the date of commencement of project implementation and from the date of commencement of commercial production respectively irrespective of zonal classification.

Category ‘A’, ‘B’ & ‘C’ Enterprises: 100% exemption for an initial period of 3 years for Category ‘A’ & ‘B’ and 5 years for Category ‘C’ on plant and machinery and capital goods from the date of commencement of project implementation irrespective of zonal classification.

For raw materials, inputs and component parts and consumables excluding petroleum products (wherever applicable) for a period of 5 years from the date of commencement of commercial production. In respect of Category ‘B’ & ‘C’ an additional One and Two years will be allowed respectively for the operational period.

6.  Subsidy for setting up Effluent Treatment Plant (ETP) One time capital subsidy to an extent of 75% of the cost subject to a maximum of Rs.50 Lakhs for MSMEs in respect of ETPs costing less than Rs.100 Lakhs.

Further, a one-time capital subsidy to an extent of 50% of the cost of ETPs subject to a ceiling of Rs.100 Lakhs for Category ‘A’, ‘B’ & ‘C’ enterprises irrespective of zonal classification.

One time capital subsidy to an extent of 50% of the cost of ETPs subject to a ceiling of Rs.200 Lakhs for setting up of Effluent Treatment Plants (ETPs) as a common facility in Food Parks, Spice Parks, Sea Food Parks or a place where the cluster of food processing & agribusiness enterprises are located irrespective of promoter and zonal classification.

7.  Interest Subsidy Interest subsidy of 6% per annum on term loans will be provided to Microenterprises irrespective of promoter classification. This interest subsidy is payable to financial institutions on behalf of the enterprise only if the enterprise has not defaulted in payment of either principal or interest instalments. The amount of interest subsidy will be the effective rate of interest (after deducting interest subsidy receivable by any institution/s under any Government of India scheme) is 6% per annum whichever is less irrespective of promoter classification. The period of interest subsidy is for 7 years irrespective of zonal classification.
8.  Exemption from tax on Electricity tariff 100% exemption of tax on electricity tariff for the initial period of 8 years irrespective of zonal classification.
9.  Reimbursement of GST to MSME & Category A, B & C Enterprises MSME: 75% of net GST will be reimbursed for a period of 5 years subject to a maximum of 100% of the Value of Fixed Assets irrespective of promoter & zonal classification to be claimed on yearly basis.

For Category ‘A’, ‘B’ & ‘C’ enterprises net GST reimbursement will be to the extent of 60%, 70% & 80% respectively for a period of 5 years subject to a maximum of 100% of the Value of Fixed Assets irrespective of promoter & zonal classification to be claimed on yearly basis.

10.  Subsidy for technology adoption from Recognized National Labs 50% of the cost (max Rs.1 Lakh) for MSME irrespective of promoter classification.
11.  Market Fee Exemption New Agricultural Produce Processing Industries are exempted from payment of the market fee for a period of ten years in respect of purchases of agricultural produce by such industries.