Karnataka Industrial Policy 2014-19 Operative Guidelines

GOVERNMENT OF KARNATAKA
DEPARTMENT OF INDUSTRIES AND COMMERCE
Operative Guidelines
ON PACKAGE OF INCENTIVES AND CONCESSIONS UNDER
KARNATAKA INDUSTRIAL POLICY 2014-19
APPROVED VIDE GOVT. LETTER NO: CI 58/SPI/2013 DTD:07/05/2015

CONTENTS
SL. NO. PARTICULARS PAGE NO.

1 Acknowledgement 1
2 Introduction 2
3 Definitions of various terms used in the policy 2-6
4 Investment Promotion Subsidy 7-13
5 Exemption from Payment of Stamp Duty and 13-15
Concessional Registration Charges
6 Reimbursement of Land Conversion Fine 15-16
7 Exemption from Payment of Entry Tax 17-20
8 Subsidy for Setting up of Effluent Treatment Plant (ETP) 20-21
9 Interest Subsidy for Micro Enterprise 21-22
10 Exemption from Tax on Electricity Tariff 22-23
11 Technology Upgradation, Quality Certification For 23-29
MSMEs
12 Water Harvesting and Conservation Measures for 30-31
Manufacturing MSMEs
13 Energy Conservation Measures for MSME 31-32
manufacturing enterprises
14 Land/Shed allotment by KIADB and KSSIDC at 32
concessional rates to SC/ST entrepreneurs
15 Reimbursement of the Cost Of Preparation of Project 32
Reports
16 Encouragement For Anchor Industries 33
17 Interest Free Loan To Large,Mega, Ultra Mega, Super 34-36
Mega Enterprises On Net VAT And CST
18 Interest free loan to focused manufacturing sector 37
19 Classification of Taluks in Karnataka into Zones for the 38-41
purpose of Administration of Incentives and
Concessions
LIST OF ANNEXURES
ANNEXURE
NUMBER PARTICULARS PAGE NO.
1 List of Service Enterprises Eligible for Package of 42

Incentives and Concessions
2 List Of Industrial Activities/Enterprises Not Eligible for 43
Incentives and Concessions
3A Terms and Conditions for Sanction of Incentives and 44-47
Concessions
4 Application for Sanction of Investment Promotion 48-50
Subsidy
5 Statement of Fixed Assets Created by the Enterprise 51-52
6 Fixed Investment Certificate from the Bank/Financial 53-54
Institution
7 Civil Engineer’s/Architect’s Certificate for Investment in 55
Building and Other Civil Works
8 Form Of Declaration Regarding Employment of Local 56-57
Persons
9 Chartered Accountant Certificate 58-59
10 Investigation Report of Assistant Director/Deputy 60-61
Director Of DIC
11 Agenda Notes for Sanction of Investment Promotion 62-64
Subsidy in the DLC Meeting
12 Format for Sanction Order of Investment Promotion 65-66
Subsidy
13 Format of Undertaking to be Executed for Investment 67-68
of Promotion Subsidy
14 Format for Submi tting Progress of Sanction of 69
Investment of Promotion Subsidy
15 Application for Stamp Duty and Concessional 70-72
Registration Charges
16 Format for Issue of Stamp Duty Exemption and 73-74
Concessional Registration Charges Certificate (Land
Documents)
17 Format for Issue of Stamp Duty Exemption and 75
Concessional Registration Charges Certificate (Loan
Documents)
18 Format for Sanction Order for Reimbursement of Land 76
Conversion Fine
19 Format For Submitting Progress Of Sanction Of 77
Reimbur sement Of Land Conversion Fine
20 Application for Entry Tax Exemption on Purchase of 78-80
Plant & Machinery During Implementation of Project
21 Application for Entry Tax Exemption on Purchase of 81-83
Raw Materials, Inputs During Operation of Project
22 Pro forma for Entry Tax Exemption Certificate During 84-8
Implementation Phase
23 Pro forma for Entry Tax Exemption Certificate During 86-87
Operational Phase
24 Format for Submitting Progress of Issue of Entry Tax 88
Exemption Certificates
25 Application for Sanction of Investment Subsidy for 89-90
setting up of Effluent Treatment Plant
26 Fixed Investment Certificate from the Bank/Financial 91-92
Institution for Sanction of Effluent Treatment Plant
27 Chartered Accountant Certificate for Sanction of 93-94
Effluent Treatment Plant
28 Chartered Engineer’s/Architect’s Certificate for Sanction 95
of Effluent Treatment Plant
29 Capital Subsidy Sanction Order for EffluentTreatment 96-97
Plant
30 Format for Undertaking to be Executed For ETP/Anchor 98 -99
unit Capital Subsidy
31 Certificate from Bank Regarding Dates and Amount of 100
Term Loan Released
32 Format of Certificate to be Issued from Bank for 101
Claiming Interest Subsidy
33 Format for Sanction Order of Interest Subsidy For Micro 102 -103
Enterprises on Term Loan
33A Format for Sanction Order of Interest Subsidy for MSME 104 -105
s on Technology Upgradation Loan
34 Prescribed Format for Issue of Electricity Duty 106
Exemption Certificate for Micro, Small & Medium
Manufacturin g Enterprise
35 Application for Reimbursement of ISO/ISI/BIS Series 107 -109
Certification Charges.
36 Application for Incentive For Adoption/Transfer of 110 -112
Technology
37 Application for Claiming Incentives for Water Harvesting/ 113 -115
Conservation Measures
38 Application for Claiming Incentives for Energy 116 -118
39 Format for Sanction Order of Capital Subsidy for 119 -120
Anchor Enterprise
A Detailed Statement of Expenditure incurred for 121
obtaining ISO/ISI/BI S Certificate
B Chartered Accountant Certificate on Investment in Plant 122
& Machinery
C Affidavit to be Submitted for Claiming Reimbursement 123 -124
of ISO/ISI/BIS Certification Charges
D Detailed Statement of Expenditure incurred for 125
Adoption o f Technology
E Affidavit to be Submitted for Claiming Reimbursement 126 -127
on Technology Adoption
F Detailed Statement of Expenditure incurred for 128
Adoption of Rain Water Harvesting/Waste Water
Recycling/Zero Discharge
G Affidavit for Incentive on Adoption of Rain Water 129 -130
Harvesting/Waste Water Recycling/Zero Discharge
H Detailed Statement of Expenditure incurred for Energy 131
I Affidavit for Incentive on Adoption of Energy 132 -133
Guidelines for Export Related Incentives & Concessions 134-141
40 Application for Export Related Incentives & Concessions 142 - 145

40A Application for MDA and Reverse MDA 146-147
41 Entry Tax Exemption Certificate to 100% EOUs & other EOUs 148
with minimum export obligation of 50% of their total turnover
for procurement of plant and machinery and capital goods
41A Entry Tax Exemption Certificate to 100% EOUs & other EOUs 149
on purchase of raw materials, inputs, components and
consumables (excluding petroleum products)
42 Refund of Certification Charges 150
43 Refund of cost incurred for Export Consultancy/ 151
Market Intelligence studies
44 Financial Assistance for Brand Promotion and 152
Quality Assurance
45 Refund of fees incurred by Potential/Individual Entrepreneurs 153
for certification courses
46 Support for creation of Export Facilitation Facilities, 154
R&D and Testing Service
47 Assistance under Market Development Assistance for 155
South American countries
47A Assistance under Market Development Assistance for 156
all countries except South America
47B Assistance under Reverse Market Development 157
Assistance for all countries
48 Reimbursement of Export Credit 158
Guarantee Insurance premium
49 Financial Assistance for MSME/SC/ST/Artisans and 159
Women Entrepreneurs for participation in exhibitions
within and outside the State
50 Financial assistance for Procurement of Imported Seeds 160
and Training Of Farmers in development of exports of
Gherkins, Rose Onions And Floriculture
ACKNOWLEDGEMENT
The Government of Karnataka, through the Commerce and Industries Department, has
announced New Industrial Policy 2014-19, for a period of five years with effect from 1-10-14
offering various incentives and concessions to new investments in the State. In order to
administer the package of incentives and concessions, the Department of Industries and
Commerce now desires to bring out operative guidelines. This is a useful guiding tool for both
field level officers and also the investors.
The definitions, formats, procedures for claiming and sanctioning of various benefits are fully
explained. The narration is simple so that it is understood by every reader. The scopes for
seeking frequent clarifications and also for interpretations are minimized. It is noted that the
intentions of the Government of Karnataka promised in the Industrial Policy will be put into
practice with these operative guidelines.
1
INTRODUCTION
The Government of Karnataka has announced the New Industrial Policy 2014-19, vide
Government Order No. CI 58 SPI 2013 Bengaluru Dated: 1-10-2014.
The objectives of the Karnataka Industrial Policy 2014 -19 are as follows:
(i) To maintain an industrial growth rate of 12 % per annum

(ii) To enhance the contribution of manufacturing sector to the state GDP from
present level of 16.87 % to 20% by the end of the policy period
(iii) To attract investment of Rs. 5 lakh crore
(iv) To create employment opportunities for 15 lakh persons
(v) To create an environment to enhance ease of doing business in the State.
Government desires to achieve these objectives through various policy measures and one
of these is providing attractive package of incentives and concessions to various categories
of MSMEs, Large, Mega, Ultra Mega and Super Mega enterprises. The above industrial
policy and package of incentives and concessions shall come into effect from 01.10.2014
and will have a span of five years i.e upto 30.9.2019.
1.0 DEFINITIONS OF VARIOUS TERMS USED IN THE POLICY
As per the MSMED Act, 2006, Manufacturing Enterprises are classified based on the
investment in plant and machinery as mentioned below:
1.01 MICRO ENTERPRISES - Investment up to Rs. 25 lakh

1.02 SMALL ENTERPRISES - Investment above Rs. 25 lakh
and up to Rs. 500 lakh
1.03 MEDIUM ENTERPRISES - Investment above Rs. 500 lakh
As per the MSMED Act, 2006, Service Enterprises are classified based on investment
in equipment as mentioned below:
1.04 MICRO ENTERPRISES - Investment up to Rs. 10 lakh

1.05 SMALL ENTERPRISES - Investment above Rs. 10 lakh
1.06 MEDIUM ENTERPRISES - Investment above Rs. 200 lakh
and upto Rs. 500 lakh
2
1.07 Plant and Machinery
S.O. 1722(E) – In exercise of the powers conferred by sub-section (1) of 2006) herein
referred to as the said Act, the Central Government specifies the following items, the
cost of which shall be excluded while calculating the investment in plant and machinery
in the case of the enterprises mentioned in Section 7(1)(a) of the said Act, namely:
(i) equipment such as tools, jigs, dyes, moulds and spare parts for
maintenance and the cost of consumables stores
(ii) installation of plant and machinery
(iii) research and development equipment and pollution control equipment
(iv) power generation set and extra transformer installed by the enterprise as
per regulations of the State Electricity Board
(v) bank charges and service charges paid to the National Small Industries
Corporation or the State Small Industries Corporation
(vi) procurement or installation of cables, wiring, bus bars, electrical control
panels (not mounted on individual machines), oil circuit breakers or
miniature circuit breakers which are necessarily to be used for providing
electrical power to the plant and machinery or for safety measures
(vii) gas producer plants
(viii) transportation charges (excluding sales-tax or value added tax and
excise duty) for indigenous machinery from the place of the manufacture
to the site of the enterprise
(ix) charges paid for technical know-how for erection of plant and machinery;
(x) such storage tanks which store raw material and finished produces and
are not linked with the manufacturing process; and
(xi) fire fighting equipment
While calculating the investment in plant and machinery, refer to above, the original
price thereof, irrespective of whether the plant and machinery are new or second-hand,
shall be taken into account provided that in the case of imported machinery, the
following shall be included in calculating the value, namely;
(I) Import duty (excluding miscellaneous expenses such as transportation
from the port to the site of the factory, demurrage paid at the port);
(ii) Shipping charges;
(iii) Customs clearance charges; and
(iv) Sales tax or value added tax
Government of Karnataka follows the same definition for administrating package of
incentives and concessions.
1.08 LARGE PROJECT/ INDUSTRY/ ENTERPRISE:

An Industrial Enterprise which is not classified as Micro, Small and Medium
Enterprise and with investments up to Rs. 250 crore shall be classified as
large enterprise.
1.09 MEGA PROJECT/INDUSTRY/ENTERPRISE

Projects with an investment on fixed assets above Rs. 250 crore and up to
Rs. 500 crore.
1.10 ULTRA MEGA PROJECT/INDUSTRY/ENTERPRISE
Projects with an investment on fixed assets above Rs. 500 crore and up to Rs.
1000 crore
1.11 SUPER MEGA PROJECT INDUSTRY/ENTERPRISE:
Projects with an investment in fixed assets above Rs. 1000 crore
3
1.12 100% EXPORT ORIENTED ENTERPRISES (EXPORT ORIENTED
ENTERPRISES.):
A 100% export oriented enterprise is an industrial enterprise exporting its entire
production, excluding the permitted levels by Govt. of India from time to time of
domestic tariff area sales of manufacturing goods, including repair,
reconditioning re-engineering and rendering of services.
Such Enterprises may be set up either under the Export Oriented Enterprises or
under EPEP (Export Promotion Industrial Park) Scheme or under EHTP
(Electronic Hardware Technology Park) Scheme or STP (Software Technology
Park) Scheme or SEZ (Special Economic Zone).
1.13 VALUE OF ELIGIBLE FIXED ASSETS (VFA) :

Value of Eligible Fixed Assets shall mean the total investment made on land,
building, plant & machinery and such other productive assets like tools, jigs, and
fixtures, dies, utilities like boilers, compressors, diesel generating sets, cranes,
material handling equipments and such other equipments directly related to
production purposes.
1.14 EXISTING INDUSTRIAL ENTERPRISE:
Shall mean an enterprise gone into commercial production/servicing on or
before 30.09.2014 or the enterprise which are declared as pipeline status
enterprise under 2009-14 policy.
1.15 NEW INDUSTRIAL ENTERPRISE:

New enterprise for sanction of incentives and concession under 2014-19 policy
shall mean an enterprise whose commencement of project implementation
takes place on or after 1-10-2014.
1.16 EXPANSION / DIVERSIFICATION / MODERNIZATION:

Shall mean new manufacturing facility set up by an existing enterprise within
the existing facility or in new site or in an adjacent vacant site for manufacturing
o f
product already being manufactured with or without upgradation of technology
or the process and/or a totally new product would be treated as
expansion/diversification/modernization for the purpose of incentives under the
policy 2014-19.
Further, the enterprise to be eligible for incentives and concessions under
expansion/diversification/modernization program has to increase the installed
capacity by at least 25% of the declared capacity or average production during
immediate 3 years prior to commencement of commercial production in the
expanded/modernized/diversified enterprises ,whichever is more and has to
make an additional investment of 25% of the original fixed investments
of the existing unit (original fixed investment means, the investments prior to
first sale invoiced raised for the initial investment i.e. prior to expansion
/diversification/modernization program)
1.17 DATE OF COMMENCEMENT OF COMMERCIAL PRODUCTION:

Date of issue of first sale invoice after trial production either by new unit or after
expansion/diversification/modernization.
1.18 INVESTMENT / CAPITAL INVESTMENT:

For the purpose of package of incentives and concessions, investment/capital
investment shall mean investment made in fixed assets of the Enterprise.
4
1.19 UNIT(S) / ENTERPRISES(S) PROMOTED BY SC/ST ENTREPRENEURS:
Means those units/enterprises exclusively by SC/ST entrepreneur as a
proprietary concern or all partners or directors of Partnership Firms/Co-
operative Societies/Private Limited companies or any other legal entity belong
to SC/ST, Community.
1.20 UNIT(S)/ ENTERPRISES(S) PROMOTED BY SC/ST WOMEN ENTREPRENEURS:

Means those units/enterprises exclusively by SC/ST Women entrepreneurs as
a proprietary concern or all partners or directors of Partnership Firms/Co-
operative Societies/Private Limited companies or any other legal Entity belong
to SC/ST, Community and are women.
1.21 UNIT(S) / ENTERPRISES(S) PROMOTED BY WOMEN ENTREPRENEURS:

Means those units/enterprises exclusively by Women entrepreneur as a
proprietary concern or all partners or directors of Partnership Firms/Co-
operative Societies/Private Limited companies or any other legal Entity are
women.
1.22 UNIT(S) / ENTERPRISES(S) PROMOTED BY MINORITIES ENTREPRENEURS:

Means those units/enterprises exclusively by Minority community
Entrepreneur as a proprietary concern or all the partners or directors of the
Partnership Firms/Co-operative Societies/Private Limited companies or any
other legal Entity belong to Minority Community.
1.23 UNIT(S) PROMOTED BY BACKWARD class (CATEGORY 1 & 2A ONLY)

ENTREPRENEURS:
Means those unit(s) established exclusively by a Backward class (Category 1 &
2A only) entrepreneur as a proprietary concern or all the partners or directors of
the Partnership Firms/Co-operative Societies/Private Limited companies or any
other or any other legal entity belong to Backward class (Category 1 and 2A
Only) as per the notifications issued by GOK from time to time.
1.24 UNIT(S) PROMOTED BY PHYSICALLY CHALLENGED ENTREPRENEURS:

Means those unit(s) established exclusively by a physically challenged
Entrepreneur as a proprietary concern or all the partners or directors of the
Partnership Firms/Co-operative Societies/Private Limited companies or any
other legal entity are physically challenged persons
1.25 UNIT(S) PROMOTED BY EX-SERVICEMAN ENTREPRENEURS: Means those

unit(s) established exclusively by an Ex-Serviceman entrepreneur as a
proprietary concern or all the partners or directors of the Partnership
Firms/Co-operative Societies/Private Limited companies or
any other legal entity are Ex-Servicemen.
1.26 DATE OF COMMENCEMENT OF PROJECT IMPLEMENTATION:

Shall mean the date on which the unit has taken any ONE of the following effective
steps and whichever is earlier.
i. Date of entering lease or sale agreement of the premises (either Land or building)
ii. Date on which possession certificate of the plot or shed is taken
from KIADB/KSSIDC or any other agency
iii. Date of approval of building plan by competent authority
iv. Date of release of first instalment of loan from Financial Institution Bank
v. Date of placement of first purchase order for plant & machinery
5
1.27 NET VAT (FOR THE PURPOSE OF INCENTIVES AND CONCESSIONS OF 2014-19
POLICY)
Net VAT means output VAT minus input VAT.
1.28 APPROVED PRIVATE INDUSTRIAL AREAS/ESTATES
Shall mean the industrial areas/ estates formed with the approval of the
DLSWCC/ SLSWCC or SHLCC.
1.29 HEALTH CARE FACILITY CENTRE
Shall mean hospital having minimum facilities to provide medical assistance to
employees and to attend any casualty taking place in the industrial areas. This
shall be supported with certificate from Health Department.
1.30 DLSWCC
Shall mean District Level Single Window Clearance Committee for
consideration of application from entrepreneurs intending to establish
industries with the investment up to Rupees Fifteen crore (15 crores) each to
be set up in the respective districts. This was constituted under the Karnataka
Industries (Facilitation) Act, 2002 and notified under Notification No.CI 208 SPI
th
2002, Bengaluru Dated 4 August, 2004 and Amended vide Notification dtd:
04/01/2014
1.31 SLSWCC
Shall mean State Level Single Window Clearance Committee for consideration
of application from entrepreneurs intending to establish industries with the
investment of above Rupees Fifteen crore (15 crore) up to Rupees One
Hundred crore (100) each to be set up in the State. This was constituted under
the Karnataka Industries (Facilitation) Act, 2002 and notified under Notification
th
No.CI 162 SPI 2001, Bengaluru Dated 26 July, 2004 and Amended vide
Notification dtd:04/01/2014
1.32 SHLCC
Shall mean State High Level Clearance Committee for consideration of
application from entrepreneurs intending to establish industries with the
investment of above Rupees One Hundred crore (100 crore) each to be set up
in the State. This was constituted under the Karnataka Industries (Facilitation)
Act, 2002 and notified under Notification No.CI 162 SPI 2001, Bengaluru Dated
26th July, 2004 Amended vide Notification dtd:04/01/2014
1.33 Employment:
Direct Employment shall mean employees who are on the rolls of the
respective companies which will include contact labour engaged in production
line. It will however not include casual labour. The percentage of contract
labour engaged should not exceed 30% of total labour force.
1.34 Anchor Industry:

The first two manufacturing enterprises in a taluk providing a minimum direct
employment to 150 persons with a minimum investment of 250 crore are
called Anchor Industries. The definition applies to taluks where no such
industry exists at present.
1.35 Captive Power Plant:

Means a power plant set up by a unit to generate electricity primarily for its
own use.
6
A) INVESTMENT PROMOTION SUBSIDY:
Investment promotion subsidy shall be available to Micro, Small Enterprises and Medium
Manufacturing and eligible service sector Enterprises as per Annexure-1 as detailed below:
I. GENERAL CATEGORY ENTREPRENEURS:
a) Micro Enterprises i) Other than Hyderabad Karnataka Area

Zone 1: 25% Value of Fixed Assets (VFA) (max. Rs. 15.00 lakh)
Zone 4: Nil
ii) Hyderabad Karnataka Area
HK Zone 1: 30% Value of Fixed Assets (VFA) (max. Rs. 18.00 lakh)
Small Enterprises i) Other than Hyderabad Karnataka Area

b) Zone 2: 15% Value of Fixed Assets (VFA) (max. Rs. 30.00 lakh)
Zone 4: Nil
Medium i) Other than Hyderabad Karnataka Area

c) manufacturing Zone 1 : Rs. 50.00 lakh
Enterprises (as Zone 2 : Rs. 40.00 lakh
defined in MSMED Zone 3 : Rs. 30.00 lakh
ACT and those Zone 4 : Nil
who provide ii) Hyderabad Karnataka Area
minimum 25 direct HK Zone 1 : Rs. 55.00 lakh
employment) HK Zone 2 : Rs. 50.00 lakh
II. SC/ST CATEGORY ENTREPRENEURS:

Micro Enterprises
a) i) Other than Hyderabad Karnataka Area
35% Value of Fixed Assets (VFA) (max. Rs. 20.00 lakh)
– in Respect of SC/ST Women entrepreneurs
– in Respect of SC/ST Women entrepreneurs
Zone 3: 20% Value of Fixed Assets (VFA) (max. Rs. 12.00 lakh
of SC/ST Women entrepreneurs.
– in Respect of SC/ST Women entrepreneur
– in Respect of SC/ST Women entrepreneur.
7
ii) Hyderabad HK Zone 1: 35% Value of Fixed Assets (VFA) (max. Rs. 20.00 lakh)
Karnataka Area 40% Value of Fixed Assets (VFA) (max. Rs. 22.00 lakh)
- in respect of SC/ST women entrepreneurs.
- in respect of SC/ST women entrepreneurs
b) Small Enterprises. i) Other than Hyderabad Karnataka Area

Zone 1: 25%Value of Fixed Assets (VFA) (max. Rs. 45.00 lakh )
30%Value of Fixed Assets (VFA) (max. Rs. 50.00 lakh )
Zone 2: 20% Value of Fixed Assets (VFA) (max. Rs. 35.00 lakh )
20% Value of Fixed Assets (VFA) (max. Rs. 30.00 lakh )
- in respect of SC/ ST women entrepreneurs.
- in respect of SC/ ST women entrepreneurs.
HK Zone 1: 30% Value of Fixed Assets (VFA) (max. Rs. 50.00 lakh )
35% Value of Fixed Assets (VFA) (max. Rs. 55.00 lakh )
HK Zone 2: 25% Value of Fixed Assets (VFA) (max. Rs. 45.00 lakh )
- in respect of SC/ST women entrepreneurs
c) Medium i) Other than Hyderabad Karnataka Area

manufacturing Zone 1: Rs. 55.00 lakh
Enterprises (as Rs. 60.00 lakh - in respect of SC/ST
defined in women entrepreneurs
MSMED ACT Zone 2: Rs. 45.00 lakh
and those who Rs. 50.00 lakh - in respect of SC/ST
provide minimum women entrepreneurs
25 direct Zone 3: Rs. 35.00 lakh
employment) Rs. 40.00 lakh - in respect of SC/ST
women entrepreneurs
Zone 4: Rs. 20.00 lakh
Rs. 25.00 lakh - in respect of SC/ST
women entrepreneurs
HK Zone 1: Rs. 60.00 lakh
women entrepreneurs.
III. Women Entrepreneurs:

in respect of SC/ST Women entrepreneurs.
11
8
in respect of SC/ST women entrepreneurs.
in respect of SC/ST women entrepreneurs
in respect of SC/ ST women entrepreneurs.
HK Zone 2: 30% Value of Fixed Assets (VFA)(max.Rs.18.00 lakh)
in respect SC/ST Women entrepreneurs.
b) Small Enterprises i) Other than Hyderabad Karnataka Area

35% Value of Fixed Assets (VFA) (max. Rs.55.00 lakh)

Enterprises (as Rs. 60.00 lakh- in respect of SC/ST
defined in MSMED women entrepreneurs.
ACT and those Zone 2: Rs. 45.00 lakh
who provide Rs. 50.00 lakh- in respect of SC/ST
minimum 25 direct women entrepreneurs
employment) Zone 3: Rs. 35.00 lakh
Rs. 40.00 lakh- in respect of SC/ST
Zone 4: Rs. 20.00 lakh
Rs. 25.00 lakh- in respect of SC/ST
9
Rs. 65.00 lakh - in respect of SC/ST women
entrepreneurs
Rs. 60.00 lakh - in respect of SC/ST women
entrepreneurs
IV. Minorities, Backward class (Category 1 & 2A only), Physically

Challenged and Ex-Service Entrepreneurs.

Zone 4: Nil
b) Small Enterprises. i) Other than Hyderabad Karnataka Area

Zone 4: Nil

Enterprises (as Zone 2: Rs. 45.00 lakh
defined in MSMED Zone 3: Rs. 35.00 lakh
ACT and those who Zone 4: Nil
provide minimum ii) Hyderabad Karnataka Area
25 direct HK Zone 1: Rs. 60.00 lakh
employment) HK Zone 2: Rs. 55.00 lakh
The investment promotion subsidy is available only to Enterprises availing term loan of
minimum 50% of fixed assets from KSFC/KSIIDC /Banks/Other Recognised Financial
Institutions from RBI.
The quantum of investment promotion subsidy shall be computed on the Value of Fixed Assets
(VFA) as approved/certified by the financial institutions/commercial banks/chartered
accountant certificate/civil engineer certificate or actual investment in fixed assets at site,
whichever is less.
Total quantum of investment promotion subsidy for any industrial enterprise shall not exceed
the prescribed upper limit, including for expansion, modernization, diversification, which is
inclusive of investment subsidy availed under earlier package of incentives on fixed assets.
Wherever MSMEs avail any kind of subsidy or grant on fixed assets/capital expenditure/project
cost under any other schemes/policies of Government of Karnataka/Government of India, only
differential amount of subsidy, if any would be sanctioned.
All eligible Enterprises under 2014-19 Industrial Policy shall submit application in the
prescribed format along with the documents for sanction of subsidy before the concerned
District Industries Centre within a period from 12 months from the date of commencement of
10
commercial production. Enterprises that fail to comply to this deadline will not be eligible for
investment promotion subsidy.
Other terms and conditions not specifically mentioned herein above but indicated in the
Government Order No. CI/58/SPI/2013 dated: 01.10.2014 and subsequent amendments,
clarifications issued by the Government thereon shall apply mutatis-mutandis.
Procedure for claiming Investment Promotion Subsidy:
Eligible industrial enterprises shall apply with the following documents to the concerned District
Industries Centre.
a) Duly filled in Application in the prescribed format as in Annexure–4
b) Statement of Fixed Assets in prescribed format in Annexure–5
c) Original Investment certificate issued by the KSFC/KSIIDC/Bank/Other financial
institutions in prescribed format as in Annexure–6
d) Original Certificate from Civil Engineer/Architect in prescribed format in respect of
investment made in building as in Annexure–7
e) Form of declaration regarding employment of local persons in the prescribed format as in
Annexure–8
f) Original investment certificate from Chartered Accountant in prescribed format as in
Annexure–9 in respect of small and medium enterprises
g) A copy of the Project report duly signed by the Promoter
h) Copy of Land documents/records
i) Copy of term loan sanction orders from KSFC/KSIIDC/Bank/Other financial institutions
recognized by RBI
j) Copy of First sale invoice
k) Copy of IEM acknowledgment – Part -II
l) Copy of registered partnership deed/Memorandum and Articles of Association/byelaws
m) Copy of Caste certificates in respect of SC/ST minorities/Backward class (category 1 & 2A
only) issued by competent authority and appropriate certificate/documents in respect of
Physically Challenged/Ex-servicemen entrepreneurs
n) Copy of power sanction/power serviced, letter
o) VAT Registration Certificate from Commercial Tax Department if applicable
p) Certificate from the Textile Department for not availed subsidy in respect of Textile based
industries including Readymade Garment/Certified from Department of Agriculture/
Horticulture for not availed subsidy in respect of Agro Food Processing Industry in any of
the Government of Karnataka/India Schemes
q) Copy of approved building plan Or Copy of license obtained from competent authority
Scrutiny of Investment Promotion Subsidy claim for sanction:
The concerned Member Secretary of the District Level Committee for Sanction of Investment
Promotion Subsidy on receipt of application shall personally verify the genuineness of the claim
with reference to the documents furnished by the enterprise. On satisfying the documents
furnished by the enterprise, shall take up physical verification of the enterprise with the approval
of the Joint Director, and shall arrange to place the proposal before the District Level Committee
for sanction of investment promotion subsidy to the applicant enterprise.
The scrutiny of Investment Promotion Subsidy application has to be done in the following
manner.
(i) Land, actually utilized for factory building required for Installation of plant and machinery,
storage of raw material, finished goods, drying yards, soaking pits etc.
(ii) Investment made on the factory building required for housing plant and machinery and
storage of raw materials, finished goods, drying yards, soaking pits and such other
structures directly related to the production purposes shall only be considered.
(iii) Reasonable area constructed for office use within the factory premises shall be considered
11
not exceeding more than 25% of investment on factory building and other items as stated in
(ii) above.
(iv) Investment made on Guest/Rest house, Decorative arch entrances, high-rise compound
walls and such other non-essential structures should be excluded.
(v) Value of building has to be accepted as certified by the KSFC/KSIIDC/Bank/Other
Financial institutions and it should be cross checked with reference to the Chartered
Engineer's certificate and Chartered Accountant certificate. The least amount of value
shall be accepted.
(vi) The plant and machineries installed in the enterprise have to be verified with reference to
the statement of fixed assets, investment certified by the KSFC/KSIIDC/Bank/Other
financial institutions and investment certified by chartered Accountant. The least amount
of value shall be accepted.
(vii) Miscellaneous items like cctv, office furniture and goods carrier shall be excluded.
However, computers, printers and fax machines can be considered.
(viii) The cost of old/second hand machinery and equipment shall be excluded for computing
the investment in the plant and machinery. However imported second hand machinery
brought into the country for the first time by the enterprise shall be considered, subject to
such machineries shall have residual life span of minimum five years certified by a
chartered engineer.
(ix) Any other investments directly made by the enterprise on eligible fixed asset items, has to
be certified by the KSFC/KSIIDC/Bank/Other financial institutions and it must be
considered by obtaining the bills and receipts. This is subject to the physical verification of
such assets and the payments of more than Rs. 20,000 should be by cheque/D.D.
However the condition of availing 50% term loan on eligible fixed assets is applicable.
(x) Member Secretary, DLC is responsible for attestation of documents and verification of local
employment details. He has to submit the investigation report to the Joint Director, District
Industries Centre as per Annexure-10 and thereafter prepare agenda notes for the DLC
as per the Annexure-11 , with the approval of Joint Director, DIC.
(xi) On obtaining approval from District Level Committee (DLC), the Joint Director, District
Industries Centre shall issue the Sanction order as per Annexure-12 . The enterprise, on
receipt of the Sanction order, shall furnish the undertaking as per Annexure-13
(xii) The Joint Director DIC shall submit monthly progress report on investment promotion
subsidy in the prescribed format as per Annexure-14
District Level Committee for Sanction of Investment Promotion Subsidy:

"A" Category Districts
1 Joint Director, District Industries Centre Chairman
2 Lead Bank Manager Member
3 Manager, KSFC Member
4 D.D. (KVI) - Zilla Panchayath Member
5 Deputy Director, District Industries Centre Member Secretary
"B" Category Districts
1 Joint Director, District Industries Centre Chairman
2 Lead Bank Manager Member
3 Manager, KSFC Member
4 D.D. (KVI) - Zilla Panchayath Member
5 Assistant Director, District Industries Centre Member Secretary
12
The Directorate will maintain state Seniority list of Investment promotion subsidy. Separate
seniority will be maintained for different types of subsidies such as Interest Subsidy, ETP
Subsidy and Reimbursement of NA Conversion sanctioned by the DLCs . Similarly, separate
seniority will also be maintained in respect of SC/ST and women category entrepreneurs. The
funds for the sanctioned will be released to Enterprises strictly on the seniority list depending
upon the funds released by the Govt. The Joint Director DICs shall submit all the sanctioned
cases in the DLC every month in the format as per Annexure-14. The proposal for release of
sanctioned pending subsidy shall be sent by the Joint Directors as per the circular instructions
and formats issued by the Directorate to Joint Directors from time to time. Based on the
proposals received from the Joint Directors, releases will be done by Directorate. Separate
record for sanctions, releases and pendency shall be maintained by Joint Directors of all the
DLC Sanctioned cases.
NOTE: The sanctioned Investment Promotion and other Subsidy amount will be
released to the units as per availability of grants from the Government time to
time depending upon Seniority.
B) EXEMPTION FROM PAYMENT OF STAMP DUTY & CONCESSIONAL REGISTRATION

CHARGES
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 VAT 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 private industrial estates shall be
exempted as below:
I. MSMEs:
CATEGORY OF AREA AND ZONE RATE OF CONCESSIONAL
ENTREPRENEUR STAMP DUTY REGISTRATION CHARGES
EXEMPTION
General Other than Hyderabad 100% Re. 1 per Rs. 1000

Karnataka Area-Zone 1,2
Zone 3 75% Re. 1 per Rs. 1000
Zone 4 Nil Nil
Hyderabad Karnataka 100% Re. 1 per Rs. 1000
Area-Zone 1,2
SC/ST Other than Hyderabad 100% Rs. 0.50 per Rs. 1000
Karnataka Area-Zone 1,2,3
Zone 4 75% Rs. 0.50 per Rs. 1000
Hyderabad Karnataka Area- 100% Rs. 0.50 per Rs. 1000
Zone 1,2
Women Other than Hyderabad 100% Rs. 0.50 per Rs. 1000
Karnataka Area-Zone 1,2,3
Zone 4 75% Rs. 0.50 per Rs. 1000
Hyderabad Karnataka Area- 100% Rs. 0.50 per Rs. 1000
Zone 1,2
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Minorities, Other than Hyderabad 100% Rs. 0.50 per Rs. 1000
Backward Class Karnataka Area-Zone 1,2,3
(category 1 &2
Zone 4 Nil Nil
0nly) Physically
challenged & Ex- Hyderabad Karnataka Area- 100% Rs. 0.50 per Rs. 1000
Servicemen Zone 1,2
II. Large, Mega, Ultra Mega, Super Mega Enterprises:
AREA AND ZONE RATE OF CONCESSIONAL

STAMP DUTY REGISTRATION
EXEMPTION CHARGES
Other than Hyderabad Karnataka Area-Zone 1 & 2 100% Re. 1 per Rs. 1000
Zone 3 75% Re. 1 per Rs. 1000
Zone 4 NIL NIL
Hyderabad Karnataka Area-Zone 1 & 2 100% Re. 1 per Rs. 1000
NOTE:
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 direct purchase of
industrially converted lands for the projects approved by SHLCC/SLSWCC/DLSWCC. This
incentive will also be applicable for the land transferred by KIADB to land owners as
compensation for the land acquired.
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 lease-cum-sale deed.
Procedure for Issue of Stamp Duty and Concessional Registration Charges:

The eligible enterprises shall apply On-line in E-udyami portal( www.kum.karnataka.gov.in)
along with the required documents as per checklist. A hard copy of application and documents
shall also be filed to the concerned officers mentioned below.
Sector Officer with whom the application to be filed.
Micro, Small and Medium and Joint Director, District Industries Centre.
Large Enterprises within project
cost of Rs. 50.00 crores
Large and Mega Enterprises Directorate, Department of Industries & Commerce
above Rs. 50.00 crores
The documents (checklist) to be furnished by the enterprise for claiming stamp duty exemption
and concessional registration charges are given below
1. Duly filled in prescribed application form as per Annexure-15
2. Attested copy of the project report duly signed by the promoter
3. Attested copy of partnership deed/Memorandum and Articles of Association/Bye-laws
4. Attested copy of IEM acknowledgment part-I or part II or Industrial license or 100% EOU
certificate
5. Attested copy of the DLSWCC/SLSWCCC/SHLCC approval obtained by the unit/copy of
government order, if issued.
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6. Attested copy of shed /land allotment order/possession certificate
7. Attested copy of unregistered lease deed/lease-cum-sale deed
8. Form of declaration regarding employment of local person in Annexure-8 in case of
existing unit
9. Attested copy of approval order/permission obtained from revenue department under
section 109 of KLR Act for purchase of land
10. Details of existing investment in case of Expansion/Modernisation/Diversification
The concerned office after verification of eligibility of the enterprise has to issue the Stamp duty
exemption & Concessional Registration Charges certificate to the enterprise in accordance
with the Revenue Departments notifications dated: 21/01/2015 and in prescribed format as in
Annexure-16 in respect of registration of Land documents and in Annexure-17 in respect of
loan documents. However, while purchasing the converted land, the Stamp Duty Exemption
and concessional registration charges shall be extended only if the same is not claimed earlier
C) REIMBURSEMENT OF LAND CONVERSION FINE:

The payment of land conversion fee for converting the land from agriculture use to industrial
use will be reimbursed as detailed below:
I. MICRO, SMALL AND MEDIUM ENTERPRISES:
CATEGORY OF AREA AND ZONE RATE OF
ENTREPRENEUR
General Other than Hyderabad Karnataka Area-Zone 1,2 100%

Zone 3 75%
Zone 4 NIL
Hyderabad Karnataka Area-Zone 1,2 100%
SC/ST Other than Hyderabad Karnataka Area-Zone 1,2,3 100%
Zone 4 75%
Women Other than Hyderabad Karnataka Area-Zone 1,2,3 100%
Zone 4 75%
Minorities, Other than Hyderabad Karnataka Area-Zone 1,2,3 100%
Backward Class Zone 4 NIL
(category 1 &2 0nly) Hyderabad Karnataka Area-Zone 1,2 100%
Physically challenged
& Ex-Servicemen
II. LARGE, MEGA, ULTRAMEGA AND SUPER MEGA ENTERPRISES

AREA AND ZONE RATE OF REIMBURSEMENT.
Other than Hyderabad Karnataka Area-Zone 1,2 100%
Zone 3 75%
Zone 4 NIL
Hyderabad Karnataka Area-Zone 1,2 100
Reimbursement of Land Conversion fine is available only to Manufacturing MSMEs and Large,
Mega, Ultra Mega and Super Mega and Selected Service Enterprises listed at Annexure-1.
15
The waiver of conversion fine will be reimbursed to the eligible enterprises after implementation
of projects i.e. after commencement of the commercial production by the enterprises.
Procedure for claiming land conversion fine reimbursement
The eligible Micro, Small, Medium, Large Mega, Ultra Mega and Super Mega enterprises, shall
apply to the respective Joint Director, District Industries Centres along with the following
documents for claiming reimbursement of conversion fine:
i Application in plain paper/letterhead
ii Copy of the IEM acknowledgment part II or industrial license
iii Copy of approved building plan and building construction license
iv Copy of Land documents/records
v Copy of land conversion order issued by Revenue Department and Copy of
receipt/challan as proof of payment made towards land conversion charges
vi Copy of Project Report, duly signed by the promoter
vii Copy of Single Window Clearance Committee approvals/Govt. order, if any
viii Copy of ESCOMs power sanction and service letter
ix Copy of First Sale Invoice in respect of individual enterprises
x Copy of Layout map showing the land utilization in respect of individual enterprises
xi Copy of Partnership deed/memorandum and Articles of Association/Bye-laws
Scrutiny of the claims received for waiver of land conversion fine reimbursement.
The Joint Director, District Industries Centre after verification of the eligibility of the MSMEs and
also large projects less than 50 crores investments the proposals has to be placed before the
DLC for sanctions and issue the sanction order in the prescribed format as in Annexure-18 and
maintain separate seniority list of such sanctions. In respect of large projects with the
investments above 50 crores and Mega, Ultra Mega and Super Mega projects the proposal
shall be verified and recommended to the Directorate with the above documents duly attested.
The directorate on receipt of the complete proposal from the JD DICs, shall issue sanction order
with the approval of Commissioner for Industrial Development and Director of Industries &
Commerce in the prescribed format. The head office shall also maintain a separate seniority list
of such sanctions.
The Joint Directors DIC's shall submit the progress of all such sanction in the DLCs on half
yearly basis in the prescribed format as in Annexure-19.
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D) EXEMPTION FROM PAYMENT OF ENTRY TAX :
I. MICRO, SMALL AND MEDIUM ENTERPRISES
Category of Area and zone During implementation During operational phase

entrepreneur
General Other than 100% Exemption from On raw materials,

Hyderabad payment of Entry Tax inputs, component
Karnataka Area Zone on 'Plant & parts & consumables
1, 2 & 3 and HK Machinery and (excluding petroleum
Zone capital goods' for an products) [wherever
1&2 initial period of three applicable] for a
(3) years from the date period of Five (5)
of commencement of years from the date of
project commencement of
implementation. For commercial
this purpose, the term production.
Plant & Machinery and
Capital Goods also
includes Plant &
Machinery and
Equipments procured
for captive generation
of electricity.
Zone 4 NIL NIL

SC/ST Other than 100% Exemption from On raw materials,
Entrepreneur Hyderabad payment of Entry Tax inputs, component
s Karnataka Area- on 'Plant & parts & consumables
Zone 1,2,3 and HK Machinery and (excluding petroleum
1&2 initial period of three applicable] for a
(3) years from the date period of six (6) years
of commencement of from the date of
Capital Goods also
includes Plant &
Machinery and
Equipments procured
of electricity.
Zone 4 NIL NIL

Women Other than 100% Exemption from On raw materials,
Entrepreneur Hyderabad payment of Entry Tax inputs, component
s Karnataka Area- on 'Plant & parts & consumables
Zone 1,2,3 and HK Machinery and (excluding petroleum
1 & 2. initial period of three applicable] for a
(3) years from the date
17
of commencement of period of six (6) years
project from the date of
implementation. For commencement of
this purpose, the term commercial
Plant & Machinery and production.
Capital Goods also
includes Plant &
Machinery and
Equipments procured
of electricity.
Zone 4 NIL NIL

Minorities, Other than 100% Exemption from On raw materials,
Backward Hyderabad payment of Entry Tax inputs, component
class Karnataka Area- on 'Plant & parts & consumables
(category 1 Zone 1,2,3 and HK Machinery and (excluding petroleum
&2 0nly) Zone 1 & 2 capital goods' for an products) [wherever
Physically initial period of three applicable] for a
challenge Ex- (3) years from the date period of six (6) years
Servicemen of commencement of from the date of
Capital Goods also
includes Plant &
Machinery and
Equipments procured
of electricity.
Zone 4 NIL NIL
II. LARGE, MEGA, ULTRA MEGA AND SUPER MEGA ENTERPRISES
In other than HK Zone 1, 2 & 3 and HK Zone 1 & 2 these units are eligible for 100% exemption
from payment of Entry Tax on 'Plant & Machinery and Capital Goods' for an initial period of
three years for Large and Mega and five years for Ultra Mega and Super Mega enterprises from
the date of commencement of project implementation. For this purposes, the Plant and
Machinery and Capital Goods also includes Plant & Machinery and Equipments procured for
captive generation of electricity / power.
On raw materials, inputs, component parts & consumables (excluding petroleum products)
[wherever applicable] for a period of five years from the date of commencement of commercial
production. In respect of Mega, Ultra Mega and Super Mega Enterprises, additional One, Two
and Three years will be allowed respectively for operational period.
18
III. Entry Tax Exemption to Focused Manufacturing Sectors i.e. Automotive, Machine
Tool (excluding Steel & Cement) Ultra Mega and Super Mega projects.
Entry tax exemption during project implementation and operational period (excluding
petroleum products) will be as under:
In Zone 1, 2 & 3 and HK Zone – 1 & 2 are eligible for 100% exemption from payment of Entry Tax
on 'Plant & Machinery and Capital Goods' for an initial period of five years from the date of
commencement of project implementation. For this purpose, the term Plant & Machinery and
Capital Goods also includes Plant & Machinery, equipment etc. including machineries for
captive generation of Electricity.
On raw materials, inputs, component parts & consumables (excluding petroleum products)
[wherever applicable] for a period of nine years from the date of commencement of commercial
production.
Procedure for availing Entry Tax Exemption:
For claiming Entry Tax Exemption during implementation stage i.e. for plant and machinery, the
eligible enterprises shall apply On-line in E-udyami portal (www.kum.karnataka.gov.in) along
with the required documents as per checklist. A hard copy of application and documents shall
also be filed to the concerned officers mentioned below.
Sector Officer with whom the application to be filed.
Micro, Small and Medium and Joint Director, District Industries Centre
Large Enterprises within project
cost of Rs. 50.00 crore
Large, Mega, Ultra Mega and Directorate, Department of Industries & Commerce
Super Mega Enterprises
including focused
manufacturing sector industry
above Rs. 50.00 crore .
The documents (checklist) to be furnished by the enterprises for Entry tax exemption Certificate
during project implementation are given below.
a. Application in prescribed format in Annexure-20
b. Copy of the IEM Acknowledgment Part I filed with GOI for establishment of Enterprise
or part II for having commenced the production or industrial licence
st
c. Copy of 1 purchase order placed for machinery
d. Copy of the Project Report, duly signed by promoter
e. Copy of DLSWCC/SLSWCC/SHLCC approval letter or Government Order wherever
applicable
f. Land documents/records
g. Term loan sanction order by Bank/Financial Institution, if applicable
h. VAT registration copy issued by the Commercial Tax Dept
i. Copy of partnership deed/Memorandum and Articles of Association/Bye-laws along
with the certificate of incorporation of company
j. List of Plant and machineries and other equipments with their value required for
implementation of the project
For claiming the Entry Tax Exemption during operational phase i.e. on raw materials, inputs,
component parts & consumables (excluding petroleum products), the eligible enterprise shall
apply with the following documents.
a. Application in prescribed format as per Annexure-21
b. Copy of the IEM acknowledgment Part II filed with GOI for having started the
production or industrial license
c. Copy of DLSWCC/SLSWCC/SHLCC approval letter OR Government Order wherever
applicable if any.
19
d. Copy of First sale invoice
e. Land documents/records
f. Term loan sanction order, if any, and investment certificate issued by Banks, Financial
Institutions in the prescribed Annexure-6
g. CA certificate in the prescribed format as per Annexure-9
h. Form of declaration regarding employment of local persons in Annexure-8
i. VAT registration copy issued by the Commercial Tax Dept.
j. Copy of partnership deed/Memorandum and Articles of Association/Bye-laws along
with Certificate of Incorporation of Company
k. Detail Statement of annual requirement of raw materials/inputs/components and
consumables for which entry tax exemption is claimed
The Joint Director, District Industries Centre after verification of the claim of the enterprise has
to issue the entry tax exemption certificate to the enterprise in the prescribed pro forma as in
Annexure-22 and 23 respectively in respect of MSMEs and large enterprises for the
investments upto Rs. 50 crore. The large enterprises above Rs. 50 crore investments and
Mega, Ultra Mega and Super Mega projects have to be verified by the Joint Director(DIC) and
recommend to Directorate for issue of certificate. The Joint Director (ID) after scrutiny of the
proposal shall issue the entry tax exemption certificate in the prescribed format as in
Annexure-22 and 23 respectively.
The Joint Director, District Industries Centre shall furnish half yearly statement indicating the
entry tax exemption certificates issued in the prescribed format as in Annexure-24.
E) SUBSIDY FOR SETTING UP EFFLUENT TREATMENT PLANT (ETP)
Subsidy for setting effluent treatment plant is available as follows:
I. Manufacturing MSMEs: (General category entrepreneurs)
One time capital subsidy up to 50% of the cost of ETPs, subject to a ceiling of Rs. 50 lakh
in respect of HK Zone 1 & 2, other than Hyderabad Karnataka Zone 1, 2, 3 and Rs. 25 lakh
in other than Hyderabad Karnataka Zone 4
II. Manufacturing MSMEs: (Women, SC/ST , Minorities, Backward class (Category 1
and 2A) Physically Handicapped, and Ex-servicemen Entrepreneurs)
One time capital subsidy up to 75% of the cost of ETPs, subject to a ceiling of Rs. 100 lakh
in respect of HK Zone 1&2, other than Hyderabad Karnataka Zone 1, 2, 3, and Rs. 50 lakh
in other than Hyderabad Karnataka Zone 4, respectively.
III. Large, Mega, Ultra Mega, Super Mega Enterprises and Common Effluent Treatment
Plant (CETP) in Private Industrial Area Layouts
One time capital subsidy up to 50% of the cost of Effluent Treatment Plants (ETPs)
subject to a ceiling of Rs. 200 lakh in respect of HK Zone 1 & 2. Other than HK Zone 1, 2, 3,
and Rs. 100 lakh in other than HK zone.
PROCEDURE FOR CLAIMING SUBSIDY FOR ETPs
Eligible MSMEs, Large Mega, Ultra Mega and Super Mega Enterprises shall file an application
in duplicate in the prescribed format to the respective Joint Director District Industries Centre
with the following documents.
a. Application in the prescribed format as in Annexure-25
b. Detailed Project report
c. Copy of the term loan sanctioned letter from financial institution, if any
d. IEM filed after commercial production/Industrial Licence
e. Partnership Deed/Memorandum and Articles of Association along with certificate of
incorporation of company.
f. Investment on ETP certified by financial institution if applicable as per Annexure-26
g. C. A. certificate for self financed cases as per Annexure-27
20
h. Chartered Engineers/Architects certificate as per Annexure-28
i. Consent For Operation (CFO) issued by KSPCB and shall be valid as on date of
application and sanction
j. Environment Clearance Certificate (ECC) issued by DFEE/MOEF, wherever applicable
k. Form of declaration regarding employment of local persons in prescribed format (As in
Annexure-8)
l. Environment Management Plan
COMMITTEE FOR SANCTION OF SUBSIDY FOR ETPs:

1 Commissioner for Industrial Development and Director Chairman
of Industries and Commerce
2 Member Secretary, KSPCB Member
3 Director, Technical Cell, Department of Ecology and Member
Environment Department
4 Director, Technical Cell, Commerce and Industries Member
Department
5 Joint Director (ID), Member
Industries and Commerce Department Secretary
6 Concerned Joint Director, District Industries Centre Invitee
SCRUTINY OF ETP SUBSIDY CLAIM:

The application for capital subsidy shall be filed in the prescribed format as per Annexure-25
with the concerned Joint Director DIC’s along with the above documents. The Joint Director
shall scrutinize the applications with reference to the documents submitted and take up the
physical inspection of the ETP jointly with the local KSPCB officer. At the spot the Joint Director
shall verify the working of the ETP, Capacity of the plant, investments made towards the civil
works, equipments, effluents discharged from the processing plant, treatment process, and
usage of treated water. He shall also verify the records maintained and test reports in random.
After satisfaction of the investments and working of the ETP, the Joint Directors shall place
before the District Level Committee with detailed report for the projects upto Rs. 50 crore. After
approval in the District Level Committee sanction order as per Annexure-29 is to be issued.
For the projects above Rs.50 crore the Joint Director DIC's shall recommend to the Directorate
and the Joint Director (ID) shall make arrangements to place before the committee constituted
as above for sanction and issue sanction orders as per Annexure-29. The enterprise shall
execute an agreement/undertaking as in Annexure-30 before release of funds
Separate seniority shall be maintained at the district level and also at the state level for
sanctions made and releases shall be made to the enterprises’ bank account as when the funds
are released by the government.
The above One time Capital Subsidy is available only to ETP and not for Sewage Treatment
Plant (STP). For the purpose of calculation of investment on ETPs, wherein both Air Pollution
Control Equipments and Water Pollution Control Equipments and its fixed assets are
considered
F) INTEREST SUBSIDY FOR MICRO ENTERPRISE:.
Interest subsidy at 5% to General category entrepreneurs and 6% to SC/ST, Women, Minority,
Backward Class (category 1 & 2A only), Physically challenged & Ex-servicemen entrepreneurs
on term loans shall be provided to micro manufacturing enterprises who avail term loan from
21
21
bank/financial institutions subject to prompt repayment of the loan installments. The interest
subsidy is payable only on the interest actually paid to financial institutions and not defaulted in
payment of principle or interest installments. The amount of interest subsidy will be effective
rate of interest (after deducting interest subsidy receivable by any institutions/ under any
Government of India scheme) or 5% / 6% per annum whichever is less.
The period of interest subsidy is 6 years, 5 years and 4 years in other than HK Zone-1, Zone-2
and Zone-3 and 7 years and 6 years in HK Zone 1 and 2, respectively. Interest subsidy shall be
applicable/eligible from the date of 1st loan released by Bank/Financial institution. However the
enterprises has to claim the benefit only after commencement of commercial production.
Documents to be furnished for claiming Interest Subsidy:
a. Application on letterhead/plain paper
b. IEM Part – II
c. Bank/financial institution term loan sanction letter
d. Certificate from the bank regarding dates and amount of term loan released as in
Annexure-31
e. Copy of First Sale Invoice
f. Certification from the bank for claiming interest subsidy in the prescribed pro forma as in
Annexure-32
Scrutiny :
The Joint Director District Industries Centre on receipt of completed application shall verify the
claims and working condition of the enterprise. He should also verify with the term loan
sanctioned bank/financial institution whether the enterprise has claimed/or paid interest
subsidy in any of the Govt. of India/Govt. of Karnataka scheme such as CLSS/Technology
upgradation scheme/Interest subsidy scheme to First generation entrepreneur/interest subsidy
to SC/ST entrepreneur etc. After satisfaction of the claims the Joint Director DIC shall place it
before the DLC for sanction of eligible interest subsidy and issue sanction order as per
Annexure-33.
Separate seniority list and register shall be maintained by the Joint Director DIC. As and when
the funds are available the Joint Director DIC shall recommend for releases of sanctioned
interest subsidy amount.
G) Exemption from Tax on Electricity Tariff
I. Micro, Small & Medium Manufacturing Enterprises for general category entrepreneurs
100% exemption of tax on electricity tariff for the initial period of six years, five years, four years,
in Zone 1, Zone 2 and Zone 3 other than HK area and seven and six years in HK Zone 1 and HK
Zone 2 area respectively.
II. Micro, Small & Medium Manufacturing Enterprises for SC/ST, Women, Physically
Challenged, Backward Class (category 1 &2A only) and Ex-Servicemen Entrepreneurs
100% exemption of tax on electricity tariff for the initial period of seven years, six years, five
years, four years in Zone 1, Zone 2, Zone 3 and Zone 4 in other than HK area and eight and
seven years in HK Zone 1 and HK Zone 2 area, respectively.
III. Additional package of incentives and concessions to Focused Manufacturing sector
i.e. Automotive, Machine Tool (excluding steel and cement) Ultra Mega and Super Mega
100% Electricity duty exemption for a period of Nine years (09), Eight years (08) & Seven years
(07) years in Zone 1, 2 & 3 of other than Hyderabad Karnataka Area respectively and Ten (10) &
Nine (09) years in Zone 1 & 2 of Hyderabad Karnataka area, respectively.
Documents to be furnished for claiming the Electricity Duty Exemption Certificate:
a. Application on letterhead/plain paper
b. IEM Part – II
c. First Sale Invoice
d. Land documents
e. ESCOMs power sanction letter and service letter with R.R. No. and date
22
f. Copies of the 1st and latest electricity bills with receipt
g. Copy of Govt. Order approving the project in respect of focused manufacturing sector
Scrutiny:
After verifying the application of the enterprises and satisfying the genuineness of the facts,
electricity duty exemption certificate in the prescribed format as in Annexure-34 shall be issued
to the eligible industrial enterprises by the Joint Director, District Industries Centre as per
Energy Department notification No: EN/171/EBS/2015 dated: 02/05/2015 in respect of MSME
sector and shall recommend to the Directorate in respect of focused manufacturing sector.
Based on the recommendation of Joint Director, DICs, the Joint Director (ID) will issue the
exemption certificate as per Annexure-34 with the approval of Commissioner for Industrial
Development.
H) TECHNOLOGY UPGRADATION, QUALITY CERTIFICATION FOR MSMEs

I) Interest subsidy on Technology Upgradation (TU) Loan
Category Non HK area HK area
Zone 1, 2 & 3 Zone 1& 2
General Category 5% 5%
SC/ST, Women, PC, Minority, BC 5% 5%
( category 1 & 2A only)
& Ex-Servicemen
The New or the existing Micro and Small Manufacturing Enterprises which undertakes
Expansion/Modernisation/Diversification programme (Both own and financed enterprises),
which have availed loan from KSFC/KSIIDC/Scheduled Commercial Banks, which are not
covered under CLCSS of GoI, are eligible to Claim an interest subsidy of 5% on Technology
Upgradation loans. The interest subsidy is payable only on the interest actually paid to the
financial institutions and not defaulted in payment of principal or interest.
The period of interest subsidy is 5 years, 4 years and 3 years in all Zones including Hyderabad-
Karnataka area.
Interest subsidy shall be available from the date of 1st loan release, however the enterprises
have to claim the benefit only after commencement of commercial production.
Documents to be furnished for claiming interest Subsidy on TU Loan:
i. Application on letterhead/plain paper
ii. IEM Part –II
iii. Bank/financial institution term loan sanction letter
iv. Investment Certificate in the prescribed form from bank/financial institution-as in
Annexure-6 .
v. Copy of First Sale Invoice
vi. Certification from the bank for claiming interest subsidy in the prescribed format - as in
Annexure-32
vii.Fixed assets investments details as in Annexure-5 .
The Eligible Micro and Small Enterprises shall file the application along with the documents
mentioned above to the respective Joint Director, District Industries Centre or KCTU,
Bengaluru.
23
Role of the Joint Director, District Industries Centre:
The Joint Directors, District Industries Centres on receipt of the complete application and above
documents shall visit the enterprise and verify the working condition. After confirming the
existence and satisfactory working of the enterprise, the Joint Director shall recommend the
applications to KCTU for sanction of interest subsidy.
Role of KCTU:
The complete application received by the KCTU directly, if any, will be sent to respect District
Industries Centres. The Joint Directors will verify as per above para and recommend to KCTU.
The Managing Director, KCTU will arrange to place the application received from the Joint
Directors DICs, for the approval of the Sanctioning Committee under the chairmanship of
Commissioner for Industrial Development and Director of Industries and Commerce.
The Managing Director, KCTU will issue the Sanction Orders based on the Committee
decisions as per Annexure-33A. The Managing Director, KCTU will release the Subsidy based
on the availability of the funds.
The Committee for sanction of Subsidy:
Sl. No. Designation Role

1 Commissioner for Industrial Development and Chairman
Director of Industries and Commerce
2 Additional Director (MSME) Member
3 Joint Director (ID) Member
4 Reprentative of M.D. KSFC Member
5 Joint Director of respective Districts Member
6 Managing Director, KCTU Member Secretary
II) ISO Series Certification
Zone 1, 2 & 3 Zone 1& 2
General Category 75% - max Rs. 75,000 75% - max Rs. 75,000
SC/ST, Women,PC, Minority, BC 75% - max Rs. 1.00 lakh 75% - max Rs. 1.00 lakh
(category 1 & 2A only)
& Ex-Servicemen
Incentives to Micro and Small Enterprises for obtaining ISO Certification:

The New or the existing Micro and Small Manufacturing Enterprises which undertakes
Expansion/ Modernisation/Diversification programme (Both own and financed enterprises)
have emerged as dynamic and vibrant sector of Indian Economy and it has been making
significant contribution to industrial production, export and employment generation. The
process of economic liberalization and market reforms has opened up the Indian Micro and
Small Enterprises to the global competition. In order to enhance the competitive strength of the
Micro and Small Enterprises, the Government introduced an incentive scheme for their quality
improvement and environment management. The scheme provides incentive to those micro
and small enterprises that have acquired ISO 9000/ISO 14001/HACCP certifications/Other
Nationally and Internationally recognised Certifications. The scheme for reimbursement of ISO
series Certification Charges in operation since 1998 has now been enlarged so as to include
reimbursement of expenses for acquiring ISO 14001 certification also.
24
24
The Salient features of the Scheme:
The Scheme envisages reimbursement of charges of acquiring ISO Series Certifications to the
extent of 75% of the expenditure incurred by the MSEs towards the payment of Accreditation
fee, Consultation fee, Training and Calibration charges (till the unit gets the certificate) subject
to a maximum of Rs. 75,000/- in respect of General category entrepreneurs and Rs. 1,00,000/-
in respect of SC/ST, Women, PC, Minority, BC (category 1 & 2A only) & Ex- Servicemen.
It is a Government of Karnataka Scheme administered by Karnataka Council for Technological
Upgradation.
The Scheme shall provide one time reimbursement only. The amount of incentive/subsidy/grant
already availed for acquiring ISO Series Certification under any Central Govt. (including DC,
MSME Incentive Scheme)/State Govt./Financial Institution shall be adjusted against the
entitlement of reimbursement. It means that the total entitlement of reimbursement of acquiring
one or more than one certification shall be up to the maximum limit of Rs. 75,000/- in respect of
General category entrepreneurs and Rs. 1,00,000/- in respect of SC/ST, Women, PC, Minority,
BC( Category 1 & 2A only) & Ex- Servicemen only. In case a unit has received
reimbursement/subsidy/grant from Central Govt./State Govt./Financial Institution against any
one of the certifications for an amount less than maximum limit of Rs. 75,000/- in respect of
General category entrepreneurs and Rs. 1,00,000/- in respect of SC/ST, Women, PC, Minority,
BC (Category 1 & 2A only) & Ex- Servicemen, the unit shall be eligible to receive the balance
amount only.
Eligible Micro and Small Enterprises shall file the application in the prescribed format
(Annexure-35) along with the documents mentioned in the format to the respective Joint
Director, District Industries Centre or KCTU, Bengaluru.
The Joint Directors, District Industries Centres on receipt of the complete application shall
inspect the enterprise and verify the working condition of the enterprise. After confirming the
existence and satisfactory working of the enterprise, the Joint Director shall recommend the
applications to KCTU for sanction of incentive for reimbursement of charges towards acquiring
ISO Certification.
Role of KCTU:
The Complete application received by the KCTU directly, if any, will be sent to respect District
Industries Centres. The Joint Directors will verify as per above para and recommend to KCTU.
The Managing Director, KCTU will arrange to place the application for the approval of the
Sanctioning Committee under the chairmanship of Commissioner for Industrial Development
and Director of Industries and Commerce.
decisions. The Managing Director, KCTU will release the Subsidy based on the availability of
the funds.
The Committee for sanction of Subsidy:

Sl.No. Designation Role
2 Additional Director (MSME) Member
4 Representative of M.D. KSFC Member
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25
III) BIS Certification
Zone 1, 2 3 & 4 Zone 1& 2
General Category 50% -max. Rs. 20,000 to BIS & 50% -max. Rs. 20,000 to BIS &
25% -max. Rs. 50,000 for Test 25% -max. Rs. 50,000 for Test
Equipments Equipments
SC/ST, Women, PC, Minority, 50% -Max. Rs. 20,000 to BIS & 50% -max Rs. 20,000 to BIS &
BC (category 1 & 2A only) 50% -Max. Rs. 1.00 lakh for Test 50% -max. Rs. 1.00 Lakh for
& Ex-Servicemen Equipments Test Equipments
Incentives to Micro and Small Enterprises obtained BIS Product Certification:

Based on Karnataka Industrial Policy 2014-19, KCTU is providing incentives to MSEs obtained
BIS Product Certification. The monitory benefit will be as under.
Schemes envisages reimbursement of fees payable to BIS and reimbursement of testing
equipment as per the above table.
The incentive is extended to The New or the existing Micro and Small Manufacturing
Enterprises which undertakes Expansion/Modernisation/Diversification programme (Both own
and financed enterprises) in all the zones in the state.
The Eligible Micro and Small Enterprises shall file the application in the prescribed format
(Annexure- 35) along with the documents mentioned in the format to the respective Joint
The Joint Directors, District Industries Centres on receipt of the complete application shall
inspect and verify the working condition of the enterprise. After confirming the existence of the
enterprise, the Joint Director shall recommend the applications to KCTU for sanction of
incentive for reimbursement of charges towards acquiring BIS Certification.
Role of KCTU:
The Complete application received by the KCTU directly will be sent to respective District
Industries Centres for the verification of the working condition of the enterprise. The
Applications, which have been recommended by the Joint Directors, will be placed for the
approval of the Sanctioning Committee under the chairmanship of Commissioner for Industrial
Development and Director of Industries and Commerce.
The Managing Director, KCTU will issue the Sanction Orders based on the Committee’s
the funds.
The Committee for sanction of Incentive:

2 Additional Director (SSI) Member
4 The Director, BIS, Branch Office, Blore Member
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IV) Technology Adoption
Zone 1, 2, 3 & 4 Zone 1& 2
General Category 25% - max. Rs. 50,000 25% - max. Rs. 50,000
SC/ST, Women, PC, Minority, BC 50% - max. Rs. 1.00 lakh 50% - max. Rs. 1.00 lakh
& Ex-Servicemen
Incentive for Technology Adoption:

The objective of technology adoption will be to facilitate an enterprise aimed at meeting the
technology needs on a demand driven basis. The following specific scheme will be
implemented by KCTU:
Technology transfer & promotion services look into the entire gamut of activities of matching the
technology needs with the available indigenous technologies and scout for foreign sources if
required.
The silent features of the scheme are:
i) An incentive of 25% of the cost up to a maximum of Rs. 50,000/- to General category units
in all Zones including HK Zones and 50% of the cost up to a maximum of Rs. 1,00,000/- to
SC/ST, Women, PC, Minority, BC (Category 1 & 2A only) & Ex-Servicemen in all Zones
including HK zones for adopting technology from National Laboratories.
ii) The incentive is extended to the New and also to existing Micro and Small Manufacturing
Enterprises which undertakes Expansion/Modernisation/Diversification programme
(Both own and financed enterprises) in all the zones in the state.
The Eligible Micro and Small Enterprises shall file the application in the prescribed format
(Annexure- 36) along with the documents mentioned in the format to the respective Joint
The Joint Director, District Industries Centre on receipt of the complete application shall inspect
and verify the working condition of the enterprise. After confirming the existence of the
enterprise and after confirming that the enterprise has successfully implemented the new
technology, the Joint Director shall recommend the applications to KCTU for sanction of
incentive for reimbursement of charges towards Technology adoption.
Role of KCTU:
the funds.
Directorof Industries and Commerce
4 Member
5 Joint Directors of respective Districts Member
27
27
V) Technology Business Incubation Centre
In order to strengthen the manufacturing sector, particularly small and medium enterprises
and to enable them to compete better under the pressure caused by liberalization and
moderation it is envisaged in the Karnataka Industrial Policy 2014-19 to increase their
competitiveness, it is proposed to promote Technology Business Incubators/ Accelerators
with the active involvement of private sector in identified potential locations in the State. This
Technology Business Incubator will aim to build on the strengths of small decentralised
Technology Development Groups and are expected to spawn high value MSEs. Government
assistance per incubation centre will be in the form of providing financial assistance for
creation of basic infrastructure facilities as follows

Zone 1, 2, 3 & 4 Zone 1& 2
General Category 25% - max. Rs. 50.00 lakhs 25% - max. Rs. 50.00 lakhs
SC/ST, Women, PC, Minority, BC 50% - max. Rs. 75.00 lakhs 50% - max. Rs. 75.00 lakhs
& Ex-Servicemen
The main objective of the scheme is to promote emerging technological and knowledge-based
innovative ventures that seek the nurturing of ideas from professionals beyond the traditional
activities of Micro, Small & Medium Enterprises (MSMEs). Such entrepreneurial ideas have to
be fostered and developed in a supportive environment before they become attractive for
venture capital. Hence the need arises for incubation centres: to promote and support
untapped creativity of individual innovators and to assist them to become technology based
entrepreneurs. It also seeks to promote networking and forging of linkages with other
constituents of the innovation chain for commercialization of their developments.
Implementing Agencies:
The Scheme will be implemented by Host Institutions, like:
i Indian Institutes of Technology (IITs)
ii National Institutes of Technology (NITs)
iii Engineering Colleges
iv Technology Development Centres, Tool Rooms, etc.
v Other recognised R&D and/or Technical Institutes/Centres etc.
vi Recognized Industrial Associations and NGOs
vii Micro and Small manufacturing enterprises
Role of KCTU:
The Complete application received by the KCTU will be sent to respective District Industries
Centres for the Appraisal Report of the Project. The Applications, which have been
recommended by the Joint Directors, will be placed for the approval of the Government.
The State Level Sanctioning Committee will sanction projects and the funds will be released
through KCTU.
The composition of the State level Committee is as under:

1 Commissioner for Industrial Development an d Chairman
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28
Mode of release of funds
Subject to availability of funds and based on the progress made by the implementing agency,
the KCTU with the approval of the Commissioner for Industrial Development and Director of
Industries and Commerce will release the amount in installments.
VI) Recycling of electronic waste and plastic waste
Additional Investment promotional subsidy of 5% as stated below are eligible for Recycling of
electronic waste and plastic waste.

Zone 1, 2 & 3 Zone 1& 2
General Category 5% - max. Rs. 10.00 lakhs 5% - max. Rs. 10.00 lakhs
SC/ST, Women, PC, Minority, BC 5% - max. Rs. 15.00 lakhs 5% - max. Rs. 15.00 lakhs
& Ex-Servicemen
The sanction of additional investment promotion subsidy to the above eligible enterprises shall
be as per procedure laid down as stated under the head Investment Promotion Subsidy. The
Joint Directors shall sanction additional subsidy at the time of sanction of investment promotion
subsidy.
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29
I) WATER HARVESTING AND CONSERVATION MEASURES ONLY FOR
MANUFACTURING MSME ENTERPRISES
The components of the scheme and incentives offered is as follows:
I) Rainwater harvesting
Zone 1, 2 & 3 Zone 1& 2
General Category 50% - max. Rs. 1.00 lakh 50% - max. Rs. 1.00 lakh
SC/ST, Women, PC, Minority, BC 75% - max. Rs. 1.5 lakh 75% - max. Rs. 1.5 lakh
& Ex-Servicemen
ii) Wastewaterecycling
Zone 1, 2 & 3 Zone 1& 2
General Category 50% - max. Rs. 5.00 lakh 50% - max. Rs. 5.00 lakh
SC/ST, Women, PC, Minority, BC & 75% - max. Rs. 7.5 lakh 75%- max. Rs. 7.5 lakh
Ex- Servicemen
iii) Zero discharge process

Zone 1, 2 & 3 Zone 1& 2
General Category 50% - max. Rs. 5.00 lakh 50% - max. Rs.5.00 lakh
SC/S,TWomen, PC, Minority, BC & 75% - max. Rs. 7.5 lakh 75% - max. Rs. 7.5 lakh
Ex-Servicemen
Rainwater harvesting is a method of augmenting rainwater, storing and using. Rainwater

harvesting assures a more continuous and reliable access to water. This method is also
environmental friendly.
Broadly, rainwater can be harvested in two ways: 1. Rooftop Rainwater Harvesting, and 2. Open
surface run-off harvesting.
Waste water recycling and Water conservation will result in recapturing the base line for current
water usage and reduction in wastage of ground water or supply from water sources. Industries
should adopt strategies to use sewage discharge, industrial discharge, storm water recycling to
efficiently adopt systems to tackle environmental, health and pollution risks and also reduce
stress on water pollution.
The Zero Discharge Process means no discharge through any media out of the factory
premises. To achieve pollution prevention & Waste minimization at manufacturing enterprises,
the incentive is extended to New or the existing Micro and Small Manufacturing Enterprises
which undertakes Expansion/ Modernisation/ Diversification programme (Both own and
financed enterprises) in all Zones.
The Industrial areas in the State are facing problems of acute shortage of water supply. This has
hampered the Industrial production. Therefore, Karnataka Industrial Policy 2014-19 has
incorporated an incentive to small and medium manufacturing enterprises for adopting water
harvesting/conservation measures within their premises.
The Eligible Small and Medium Enterprises shall file the application in the prescribed format
(Annexure-37) along with the documents mentioned in the format to the respective Joint
enterprise, the Joint Director shall recommend the applications to KCTU for sanction of
incentive.
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30
Role of KCTU:
The Managing Director, KCTU will issue the Sanction Orders based on the Committee’s
the funds.
4 Water Supply, Rural Development, B’lore Member
J) ENERGY CONSERVATION ONLY FOR MSME MANUFACTURING ENTERPRISES IN

ALL ZONES
Government of Karnataka in its Karnataka Industrial Policy 2014-19 has encouraged by way of
offering following incentives and concessions the practise of Energy Conservation Methods
and the use of non-conventional energy sources.
i) Practicing Energy Conservation measures resulting in reduction of Energy Consumption of at
least 10% of earlier consumption: 10% of capital cost (max. Rs. 5.00 lakh for general category
entrepreneurs) and max. 7.5 lakh for SC/ST/Women/Minorities/Backward Class (Category 1 &
2A only)/Physically Challenged Ex-servicemen Enterpreneurs.
ii) Use of non-conventional energy sources: 10% of capital cost (max. Rs. 5.00 lakh for general
category entrepreneurs) and max. 7.5 lakhs for SC/ST/Women/Minorities/Backward Class
(Category 1 & 2A only)/Physically Challenged/Ex-servicemen Entrepreneurs.
iii) Subsidy of Rs. 0.50 per unit to general category entrepreneur and subsidy of Rs. 0.75 per
unit to SC/ST/Women/Minorities/Backward Class (Category 1 & 2A only)/Physically
Challenged/Ex-servicemen entrepreneurs for Captive Power Generated and consumed
through Solar and Wind energy sources only.
The Eligible New or the existing Micro and Small Manufacturing Enterprises which undertakes
Expansion/Modernisation/Diversification programmes (Both own and financed enterprises)
shall file the application in the prescribed format (Annexure-38) along with the documents
mentioned in the format to the respective Joint Director, District Industries Centre or KCTU,
Bengaluru.
enterprise and successful implementation of the Scheme, the Joint Director shall recommend
the applications to KCTU for sanction of incentive.
Role of KCTU:
The Managing Director, KCTU will issue the Sanction Orders based on the Committee decisions.
31
The Managing Director, KCTU will release the Subsidy based on the availability of the funds.

1 Commissioner for Industrial Development Chairman
and Director of Industries and Commerce
4 The General Manager, KREDL, B’lore Member
The Energy conservation measures include the energy audit, adoption of new energy saving
equipments, technology, cooling towers etc.
K) LAND/SHED ALLOTMENT BY KIADB AND KSSIDC AT CONCESSIONAL RATES TO

SC/ST ENTREPRENUERS.
40% subsidy for other than HK Zone 1 & 2 with a ceiling limit of Rs. 15.00 lakh, 30% subsidy for
other than HK Zone 3 with ceiling limit of Rs. 25.00 lakh and 25% for other than HK Zone 4 with
ceiling limit of Rs. 35.00 lakh. Similarly, 40% for HK Zone 1 & 2 with ceiling limit of Rs. 25.00 lakh
for HK Zone 1 and Rs. 20.00 lakh for HK Zone 2.
This concession is in addition to the investment promotion subsidy provided at (A) above.
The funds required for the above subsidy shall be provided out of Special Component Plan and
Tribal Sub Plan. Existing guidelines/Govt. Order implemented through DIC (Central Cell) shall
be followed.
L) REIMBURSEMENT OF THE COST OF PREPARATION OF PROJECT REPORTS
Reimbursement of the75% of cost of preparation of project reports up to Rs. 2.00 lakh, per unit,
prepared by TECSOK and CEDOK required for which bank loans are sanctioned. The Joint
Directors shall verify that the enterprise has commenced the activity for which the project report
has been prepared. In case the activity for which the project report is prepared and the activity
commenced by the enterprise differ, then the above incentive shall not be considered. The
above subsidy is eligible only to MSME Enterprises belonging to Women/SC, ST and Minorities,
Backward Class (Category 1 & 2A), Physically Challenged and Ex-servicemen entrepreneurs
only.
Eligible industrial enterprises shall apply for reimbursement only after the commencement of
commercial production with following documents to the District Industries Centre.
a. Application in letter head.
b. Copy of Project report prepared by TECSOK/CEDOK
c. Copy of term loan sanction orders from KSFC/KSIIDC/Bank/Other financial institution
d. Copy of First sale invoice
e. Copy of acknowledgment after commencement of commercial production for having filed
IEM
f. Form of declaration regarding employment of local persons in prescribed format
Annexure-8
g. Copy of the bill and receipt for having paid fees/charges to the TECSOK/CEDOK
h. Copy of certificate issued by the Competent Authority that the Proprietor, all Partners,
Directors belong to Women/SC/ST/Minorities/Physically Challenged/Backward Class
(Category 1 & 2A)/Ex-servicemen entrepreneurs
i. Certificate from the TECSOK/CEDOK for having prepared the project report of the
claimant enterprise
32
Scrutiny, Sanction & Releases
The Joint Director, District Industries Centre on receipt of completed application should visit the
enterprise and verify the claims and thereafter shall arrange to place the proposal before the
District Level Committee for reimbursement of cost of preparation of project report and after
approval shall issue a formal sanction order by the Joint Director, District Industries Centre.
Funds shall be released to the units depending upon the availability. Separate register for
sanctions and releases shall be maintained by the District Industries Centres.
M) Encouragement for Anchor Industries:
To encourage investments in taluks where there are no industries with investments above Rs.
250 crore and direct employment of 150 persons investment promotion subsidy is proposed.
The first two manufacturing enterprises in a taluk providing a minimum direct employment of
150 persons with a minimum investment of Rs. 250 crore (Two hundred and fifty crore) are
called as Anchor Industries. The definition applies to taluks where no such industry exists at
present.
State Government proposes to promote Anchor Industries in at least 20 taluks during the policy
period in order to encourage dispersal of industries throughout the State and creation of local
employment. At present there are 135 taluks without any Anchor Industry.
Anchor Industries will be eligible for special investment subsidy as follows.
The anchor units will be provided with an investment subsidy of Rs. 20.00 crore in HK Zone 1
and Rs. 15.00 crore in all other Zones. Anchor Unit subsidy will be applicable only in taluks
where no industrial enterprises of the above size exist at present.
If the anchor unit invests more than Rs. 1,000 crore (one thousand crore) following additional
incentives will be granted.
a) Interest free loan equal to 100% Net VAT plus CST from the date of commencement of
commercial production for 18 years but not exceeding 125 % of the Value of Eligible Fixed
Assets created.
The loan availed in the first year shall be repaid in the 11th year and the second year in the 12th
year & so on.
This incentive is limited to either the period or loan limits whichever is reached earlier and no
carry forward is permitted.
b) The quantum of all incentives and concessions put together should not exceed 125% of the
Value of Eligible Fixed Assets created.
Procedure to claim Anchor Unit Subsidy
a. The eligible unit for sanction of Anchor Unit Subsidy shall file an application along with the
required documents in duplicate in the same form i.e. Annexure-4 followed for sanction of
investment promotion subsidy to the concerned Joint Directors, District Industries Centre.
The concerned Joint Director shall verify the claims and after physical verification
recommend the eligible proposal to the Directorate, Department of Industries and
Commerce for sanction of Anchor Unit Subsidy. The Joint Director, District Industries
Centre while recommending the proposal shall certify that the unit has invested more than
Rs. 250 crore with minimum employment of 150 members and there are no such units in
the taluk at present.
b. The Directorate of I&C on receipt of the proposal from the Joint Director, District Industries
Centre shall scrutinize and after random checkup, will place the subject before the
Committee (constituted for sanction of investment subsidy for ETPs) for sanction of
eligible Anchor subsidy. After obtaining the approval from the Committee, the Joint
Director (ID) shall issue the sanction order to the unit as in Annexure-39.
c. Release of sanctioned subsidy amount:
After the unit obtaining sanction orders, shall execute an agreement as in Annexure-30.
The Directorate of I&C on obtaining funds from the Government, shall release the money
to the unit's Bank account.
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33
N) Interest free loan to Large, Mega, Ultra Mega and Super Mega Enterprises on
Net
VAT and CST.
All Large, Mega, Ultra Mega & Super Mega Enterprises established in Zones 1, 2, 3 and
HK Zone 1 & 2 will be eligible for an interest free loan on Net VAT and CST, subject to
industries providing minimum number of direct employment as specified.
Investment range Interest free loan in other than Interest free loan in
on fixed assets ( Hyderabad Karnataka area Hyderabad Karnataka area
Large Enterprises: 100% of Net VAT + CST will be 100% of Net VAT + CST will be
(i.e. investment on sanctioned as interest free loan sanctioned as interest free loan
fixed assets above from the date of commencement from the date of commencement
Rs. 10 crore of commercial production as of commercial production as
to Rs. 250 crore) follows follows
Zone Max. Investment
Minimum direct Period limit Zone Max. Investment
Employment 20 1 9 65% of VFA Period limit
Number for first Rs. 2 8 50% of VFA 1 10 75% of VFA
10 crore & additional 3 7 40% of VFA 2 9 60% of VFA
35 employment for I I I I I I I I
every additional The loan shall be repaid as follows : The The loan shall be repaid as follows:
investment of Rs.50 loan availed in the first year shall be The loan availed in the first year
crore proportionately. th
repaid in the 11 year and the second shall be repaid in the 11th year and
th
year in the 12 year & so on. This the second year in the 12th year & so
incentive is limited to either the period on.
or loan limits whichever is reached This incentive is limited to either the
earlier and no carry forward is period or loan limits whichever is
permitted. reached earlier and no carry forward
is permitted.
34
on fixed assets Hyderabad Karnataka area Hyderabad Karnataka area
(Rs. crore)
Mega Enterprises 100% of Net VAT + CST will be 100% of Net VAT + CST will be
: sanctioned as interest free loan sanctioned as interest free loan
(i.e. investment on from the date of commencement from the date of commencement
fixed assets above of commercial production as of commercial production as
Rs. 250 crore up to follows follows
Rs. 500 crore) Zone Max. Investment Zone Max. Investment
Minimum direct Period limit Period limit
Employment 200 1 10 80% of VFA 1 11 90% of VFA
Number for first 2 9 60% of VFA I 2 I 10 I 75% of VFA I
Rs. 250 crore & I 3 I 8 I 50% of VFA I
additional 40 The loan shall be repaid as
employment for The loan availed in the first year follows:
every additional shall be repaid in the 11th year The loan availed in the first year
th th
investment and the second year in the 12 shall be repaid in the 11 year
of Rs. 50 crore year & so on. and the second year in the 12th
This incentive is limited to either year & so on.
the period or loan limits This incentive is limited to either
whichever is reached earlier and the period or loan limits
no carry forward is permitted. whichever is reached earlier and
no carry forward is permitted.
(Rs. crore)
Ultra Mega 100% of Net VAT + CST will be 100% of Net VAT + CST will be
Enterprises sanctioned as interest free loan sanctioned as interest free
from the date of commencement loan from the date of
(i.e. investment on of commercial production as commencement of commercial
fixed assets above follows production as follows
Rs. 500 crore up to Zone Max. Investment Zone Max. Investment
Rs. 1000 crore) Period limit Period limit
1 11 85% of VFA 1 12 95% of VFA
Minimum direct
Employment 400 2 10 75% of VFA I 2 I 11 I 85% of VFA I
3 9 60% of VFA
Number for first The loan shall be repaid as
I I I I
Rs.500 crore & follows:
additional 40 The loan shall be repaid as
employment for follows : The loan availed in the first
every additional The loan availed in the first year year shall be repaid in the 11th
investment of shall be repaid in the 11th year year and the second year in
Rs. 50 crore and the second year in the 12th the 12th year & so on.
proportionately. year & so on. This incentive is limited to
This incentive is limited to either either the period or loan
the period or loan limits limits whichever is reached
whichever is reached earlier and earlier and no carry forward is
no carry forward is permitted. permitted.
35
35
on fixed assets (Rs. Hyderabad Karnataka area Hyderabad Karnataka area
crore)
100% of Net VAT + CST will be 100% of Net VAT + CST will be
Super Mega sanctioned as interest free loan sanctioned as interest free loan from
Enterprises: from the date of commencement of the date of commencement of
commercial production as follows commercial production as follows
(i.e. investment on Zone Max. Investment Zone Max. Investment
fixed assets above Period limit Period limit
Rs. 1000 crore) 1 13 95% of VFA 1 14 100% of
2 12 85% of VFA VFA
I 3 I 11 I 75% of VFA I I 2 I 13 I 95% of VFA I
Minimum direct
Employment 800 Zone Max. Period Investment
Number for limit11395% of VFA 21285% of Zone Max. PeriodInvestment
first Rs. 1000 crore VFA31175% of VFA The loan shall limit114100% of VFA21395% of VFA
and additional 40 be repaid as follows : The loan shall be repaid as follows:
employment for
The loan availed in the first year The loan availed in the first year shall
every additional
shall be repaid in the 11th year be repaid in the 11th year and the
investment of
and the second year in the 12th second year in the 12th year & so on.
Rs. 200 crore
year & so on.
This incentive is limited to either the
This incentive is limited to either period or loan limits whichever is
the period or loan limits whichever reached earlier and no carry forward
is reached earlier and no carry is permitted.
forward is permitted.
36
O) Interest free loan to Focused Manufacturing Sector i.e., Automotive machine tool
( excluding steel & cement) on Net VAT and CST.
(Rs. crore)
Enterprises sanctioned as interest free loan sanctioned as interest free loan from
from the date of commencement of the date of commencement of
(i.e. investment on
fixed assets above
Rs. 500 crore up to Zone Max. Investment Zone Max. Investment
Rs. 1000 crore) Period limit Period limit
1 13 90% of VFA 1 14 100% of VFA
2 12 80% of VFA
Minimum direct I 2 I 13 I 90% of VFA I
I 3 I 11 I 75% of VFA I
Employment 400
Number for first Rs. The loan shall be repaid as follows : The loan shall be repaid as follows:
500 crore & additional The loan availed in the first year The loan availed in the first year shall
40 employment for shall be repaid in the 11th year be repaid in the 11th year and the
every additional and the second year in the 12th second year in the 12th year & so on.
investment of Rs. 50 year & so on. This incentive is limited to either t h e
crore proportionately. This incentive is limited to either the period or loan limits whichever is
period or loan limits whichever is reached earlier and no carry forward
reached earlier and no carry is permitted.
(Rs. crore)
Enterprises sanctioned as interest free loan sanctioned as interest free loan from
from the date of commencement of the date of commencement of
(i.e. investment on
fixed assets above
Rs. 500 crore up to Zone Max. Investment
Period limit Zone Max. Investment
Rs. 1000 crore)
1 14 100% of VFA Period limit
2 13 90% of VFA 1 16 100% of VFA
I 3 I 12 I 80% of VFA I I 2 I 15 I 100% of VFA I
Minimum direct
Employment 400 The loan shall be repaid as follows : The loan shall be repaid as follows:
Number for first Rs. The loan availed in the first year The loan availed in the first year shall
500 crore & shall be repaid in the 11th year be repaid in the 11th year and the
additional 40 and the second year in the 12th second year in the 12th year & so on.
employment for year & so on. This incentive is limited to either
every additional This incentive is limited to either the the period or loan limits whichever is
investment of Rs. 50 period or loan limits whichever is reached earlier and no carry forward
crore proportionately. reached earlier and no carry is permitted.
Note: Separate operative guidelines for Interest free loan to Large, Mega, Ultra Mega and
Super Mega Enterprises on Net VAT and CST will be issued.
37
Classification of Taluks in Karnataka into Zones for the purpose of administering
Incentives & Concessions under 2014-19 policy
Hyderabad
T otal Karnataka Other than Hyderabad Karnataka Area taluks
Sl.
A r ea taluks
No. Districts No. of
T aluks HK HK
Zone 1 Zone 2 Zone 1 Zone 2 Zone 3 Zone 4
1 2 3 4 5 6 7 8 9
1 B'lore (U) 4 - - - - - Anekal
- - - - - B'lore (N)
- - - - - B'lore (S)
- - - - - B'lore (E)
2 B'lore (R) 4 - - - - - Devanahalli
- - - - - D'ballapura
- - - - - Hoskote
- - - - - Nelamangala
3 Ramanagara 4 - - - - Magadi Ramanagara
- - - - Channapattana -
- - - - Kanakapura -
4 Chitradurga 6 - - - Hiriyur - -
- - - Molkalmuru - -
- - Holalkere Chitradurga - -
- - - Hosadurga Challakere -
5 Davanagere 6 - - Channagiri Honnali Davanagere -
- - Jagalur - Harihar -
- - - - -
Harappanahalli
6 Chikka- 6 - - Gudibande Chintamani Gowribidanur -

ballapura
- - Bagepalli Chickaballapura Siddlaghatta -
7 Kolar 5 - - Mulbagal - Kolar -
- - Srinivasapura - Bangarpet -
- - - - Malur -
8 Shivamogga 7 - - Soraba Hosanagara Shivamogga -
- - - - -
Bhadravathi
- - - - Sagar -
- - - - Shikaripura -
- - - - Thirthahalli -
38
Hyderabad
T otal Karnataka Other than Hyderabad Karnataka Area taluks
Sl.
No. Districts No. of A r ea taluks
T aluks HK HK
Zone 1 Zone 2 Zo ne 1 Zone 2 Zone 3 Zone 4
1 2 3 4 5 6 7 8 9
9 Tumakuru 10 - - - Madhugiri Tumakuru
- - - - T uruvekere -
- - - Koratagere T iptur -
- - - Gubbi Chikkanaya -
kanahalli
- - - Sira Kunigal -
- - - Pavagada - -
10 Chama - 4 - - Yelandur Chamaraj- - -
rajnagar anagar
- - Gundlupet Kollegal - -
11 Chikk- 7 - - - Kadur Chikkamagaluru -
amagaluru
- - - Mudigere Shringeri -
- - - Tarikere Koppa -
- - - - N R Pura -
12 Dakshina 5 - - - - Mangaluru -
Kannada
Bantwal Puttur
- - - - Sulya -
- - - - Belthangadi -
13 Hassan 8 - - Arakalgud Arasikere Hassan -
- - Belur C R Patna Sakleshpura -
- - - H N Pura - -
- - - Alur - -
14 Kodagu 3 - - Virajpet Madikeri - -
- - - Somwarpet - -
15 Mandya 7 - - Malavalli Srirangapatna Mandya -
- - - Nagamangala Maddur -
- - - K R Pet - -
- - - Pandavapura - -
16 Mysuru 7 - - Periyapatna Hunsur Mysuru -
- - H D Kote T N Pura Nanjangud -
- - - K R Nagara - -
39
Hyderabad
T otal Karnataka Other than Hyderabad Karnataka Area Taluks
Sl.
Districts No. of Area Taluks
No.
T aluks HK HK
Zone 1 Zone 2 Zone 1 Zone 2 Zone 3 Zone
4
1 2 3 4 5 6 7 8 9
17 Udupi 3 - - - - Udupi -
- - - - Kundapura -
- - - - Karkala -
18 Bagalkot e 6 - - - Bilagi Bagalkote -
- - - Badami Mudhol -
- - - - Jamkhandi -
- - - - Hunagund -
19 Belagavi 10 - - - - Belagavi -
- - - Bailhongal Athani -
- - - Soundathi Hukkeri -
- - - Chikkodi Gokak -
- - - Raibag Khanapur -
- - - - Ramdurg -
20 Vijapura 5 - - Muddebihal Sindgi - -
- - B Bagewadi Indi - -
- - - Vijapura - -
21 Dharwad 5 - - - - Dharwad -
- - - - Hubballi -
- - - Navalgund Kalghatagi -
- - - - Kundaghol -
22 Gadag 5 - - Nargund Mundargi Gadag -
- - Ron - Shirahatti -
23 Haveri 7 - - Hirekerur Savanur Ranebennur -
- - Hanagal Shiggaon Byadagi -
- - - Haveri - -
24 Uttara 11 - - - Honnavar Karwar -
Kannada
- - - Sirsi Haliyal -
- - - Mundagod Supa -
- - - Yellapura Bhatkal -
- - - Siddapura Ankola -
- - - - Kumta -
40
Hyderabad
T otal Karnataka Other than Hyderabad Karnataka Area Taluks
Sl.
Districts No. of Area Taluks
No.
T aluks HK HK
Zone 1 Zone 2 Zone 1 Zone 2 Zone 3 Zone 4
1 2 3 4 5 6 7 8 9
25 Ballari 7 H B Halli Ballari - - - -
Hadagalli Hosapete - - - -
Kudligi Sandur - - - -
- Siraguppa - - - -
26 Bidar 5 Bhalki Bidar - - - -
Humnabad - - - - -
Basava - - - - -
Kalyana
Aurad - - - - -
27 7 Kalaburagi Sedam - - - -
Kalaburagi
Afzalpur Chittapur - - - -
Aland Chincholi - - - -
Jewargi - - - -
28 Y adgir 3 Yadgir - - - - -
Shahapur - - - - -
Shorapur - - - - -
29 Koppal 4 Kushtagi Koppal - - - -
Yelburga Gangavathi - - - -
30 Raichur 5 Sindhanur Raichur - - - -
Manvi - - - - -
Lingasugur - - - - -
Devadurga - - - - -
Total 176 20 11 23 51 62 9
41
ANNEXURE - 1
LIST OF SERVICE ENTERPRISES ELIGIBLE FOR PACKAGE OF INCENTIVES

AND CONCESSIONS
Applicable to projects approved by DLSWCC, SLSWCC and SHLCC only
1. Logistics facilities supporting to industries

a) Container Freight Station Operators
b) Warehouses
c) Cold Storages and cold chain for logistic support to Food
Processing Industry
d) Material handling equipment (except transport vehicles and good
carriers)
2. Powder coating/Painting Enterprises, Industrial paintings, etc.
engaged in job work
3. Weigh bridges and health care facility set up within the
KIADB/KSSIDC industrial areas/estates
4. Material/Product Testing Laboratory
Further the State Level Coordination Committee in its 114th meeting held on 03/02/2015
has included the following service activities eligible for incentives and concession
under 2014-19 Industrial policy
1. Flour Mills
2. Maintenance and repairs of all types of equipments
3. Tailoring
4. General Engineering, Fabrication, Motor rewinding, Automobile servicing and
repairs, Electro Plating etc.
5. All types of Printing
It was also decided in the meeting that the above activities will be either micro/small
enterprises and established in the rural areas, approval of DLSWCC/SLSWCC/SHLCC is
not mandatory.
State Level Coordination Committee is empowered to add/delete service activities

listed in this Annexure.
42
ANNEXURE - 2
LIST OF INDUSTRIAL ACTIVITIES / ENTERPRISES NOT ELIGIBLE FOR
INCENTIVES AND CONCESSIONS
1. Breweries & Distilleries of all types excluding winery

2. Khandasari and Jaggery making enterprises
3. Photo Studios & Color Processing and instant photo printing Enterprises
4. Photo Copying, Xerox Machines, Fax Machines, Data Entry, Data Recovery
enterprises
5. Fertilizer Mixing units
6. Units engaged in Re-packing of Drugs/Medicines/Chemicals without any
processing or value addition
7. All types of Saw Mills excluding manufacture of particle board/Low Density Fiber
Board (LDF)/Medium Density Fiber Boards(MDF)/High Density Fiber Boards (HDF)
8. Beedies/Cigarettes/Cigars/Gutka & other Tobacco based products manufacturing
enterprises
9. Azoic/Reactive Dyes manufacturing enterprises
10. Fire Cracker manufacturing enterprises
11. Industries manufacturing and/or utilizing Ozone depleting substances
12. Laundries including Power Laundries
13. Brick making Enterprises including Cement Hollow Blocks excluding Wire
Cut & Fly Ash Bricks and Refractory Bricks
14. Poultry excluding hatcheries
15. Popcorn and Ice candy making Enterprises excluding Ice Cream
Manufacturing
16. Coffee roasting and Grinding units having installed capacity of less than
2MT/day capacity
17. Clock and Watch/Mobile/Computer and Hardware equipments repair enterprises
18. Cassette recording (Audio & video) enterprises
19. Cyanide Manufacturing enterprises
20. Mining and Mining Equipments
21. Lime kiln / burnt lime units
22. X-ray clinics and clinical/pathological laboratories and scanning, M.R.I. testing
enterprises
23. All industries of mobile nature like rigs, concrete/tar mixing plants/hot mix plants
including site oriented industries
24. Units engaged in manufacture of Chrysolite Asbestos (White crystal)
25. All types of Saloons, Spas, Massaging Centers etc.
26. All types of hotels/restaurants/resorts/amusement parks etc.
43
ANNEXURE - 3A
TERMS & CONDITIONS FOR SANCTION OF INCENTIVES AND CONCESSIONS
a) The Industrial Policy 2014-19 will come into force from the date of issue of enabling
Government order and will be in operation for five years or as revised by the Government.
Once the new Industrial Policy 2014-19 comes into operation the Industrial Policy 2009-14
stands withdrawn. However, Enterprises which have been sanctioned and have partly
availed incentives and concessions under earlier policies shall continue to enjoy those
benefits as per respective sanction orders.
b) The applicability of the Industrial Policy 2009-14 or Industrial Policy 2014-19 for the
Projects which are under implementation (pipeline projects) at the time of announcement of
Industrial Policy 2014-19 is decided as follows:
(i) Projects/Enterprises cleared through District level, State Level and State High Level
Clearance Committee during the 2009-14 Policy period and if they have availed any of the
incentives and concessions for the project as per 2009-14 policy are eligible to avail other
incentives and concessions under 2009-14 policy only.
(ii) If any unit including self financed project has taken any one of the following effective steps
and the date of any one of these steps is before the date of issue of Government Order of
the new Industrial Policy 2014-19, then the unit shall avail incentives as per policy2009-14
only.
1. Date of entering lease or sale agreement of the premises(either land or
building)
2. Date on which possession certificate of the plot or shed is taken from
KIADB/KSSIDC or any other agency
3. Date of approval of building plan by competent authority
4. Date of release of first installment of loan from Financial Institution/Bank.
5. Date of placement of first purchase order for plant and machinery.
(iii) If any enterprise has not taken any effective steps, not invested any amount and not
availed any incentives and concessions during the 2009-14 policy period, they shall
avail incentives as per Industrial Policy 2014-19 only.
c) The Projects which are under implementation (pipeline projects) at the time of
announcement of Industrial Policy 2014-19 as explained above shall commence
commercial production before 31/08/2017 failing which their eligibility to avail incentives as
per Industrial Policy 2009-14 will lapse. They will not be eligible to claim incentives either
under Industrial Policy 2014-19.
d) Incentives and concessions under this policy shall primarily be available only for
Manufacturing Enterprises/Industries, and specified categories of enterprises/industries
related service enterprises as listed in Annexure 1 will also be eligible for incentives and
concessions.
e) The incentives and concessions under this policy will be available to all new and additional
investments made during the policy period for establishment of new enterprises and
expansion/diversification/modernization (as defined in Annexure 5U.)
f) The Stamp duty exemptions, Entry tax exemptions and Exemption on tax on electricity tariff
as per the 2014-19 Policy will come in to effect only after the issuance of enabling
notifications by Revenue, Finance and Energy departments respectively.
g) Irrespective of the location, industrial activities/enterprises as listed in Annexure–2
will not be eligible for any incentives and concessions.
h) Enterprises can avail incentives and concessions under only one policy of the
Industries Department.
i) Investment Promotion Subsidy will be available only to enterprises availing a minimum of
44
50% term loans on eligible fixed assets from Financial Institution/Banks. Such eligible units shall
claim Investment Promotion subsidy within one year from the date of commencement of
commercial production
j) There is no restriction on the quantum of loan to be availed from the financial institutions for
availing tax based incentives. Own financed units are also eligible for tax based incentives.
k) The value of eligible fixed assets as approved by the financial institutions/commercial banks will
be the basis for computation of quantum of investment promotion subsidy. Commerce and
Industries Department will prescribe a standard format for a certificate to be issued by financial
institutions/commercial banks keeping in view the definition of fixed assets, intangible assets
and the assets not eligible for sanction of incentives and concessions.
l) While calculating the value of eligible fixed assets created during expansion /diversification/
modernization of an enterprise only additional new investments shall be considered. The original
investment for which subsidy has already been sanctioned shall not be accounted.
m) Investment Promotion Subsidy sanctioned to enterprises will be released in two to four
installments depending upon the availability of budgetary resources.
n) Manufacturing Enterprises and Service Enterprises have been classified as Micro, Small and
Medium Enterprises (MSME) based on investment in plant & machinery/equipment as per the
MSMED Act, 2006.
The incentives and concessions under this policy will recon these definitions of MSME and they?
shall automatically stand revised to the revision made by Government of India from time to time,
and eligible incentives and concessions will be as per new definition from the date of change in
the definitions.
o) Further, an industrial unit which is not classified as Micro, Small and Medium Enterprise, the
State Government has defined as Large Scale Enterprise, Mega Enterprise, Ultra Mega
Enterprise, Super Mega Enterprise based on the investment defined as detailed at C,D,E.F in
Annexure 5 of 2014-19 Industrial Policy
p) The incentives and concessions under this policy will recon these definitions of Large Scale
Enterprise, Mega Enterprise, Ultra Mega Enterprise, Super Mega Enterprise and shall
automatically stand revised to the revision made by State Government from time to time and
eligible incentives and concessions will be as per the new definition from the respective date of
change in the definitions
q) VAT /CST related Incentives:
i. Interest free loan on VAT and CST means, the eligible enterprise have to pay the prevailing
VAT and CST and later claim interest free loan of net VAT and CST from Commerce and
Industries Department.
ii. VAT related incentive will be provided only with reference to the sales attributed to the
production from the new investments.
iii. VAT related incentive will be in respect of the sales meant for final consumers within the
State only. The sales made by the industrial unit to other dealers within the State who in turn
make inter-State sales, stock transfer or export sales, will not be eligible for the VAT related
incentive.
iv. The sales made out of the goods imported or stock transferred or purchased from other
States and sold within Karnataka without substantive value addition of at least 25%of the
input cost will be specifically excluded from purview of the VAT incentive.
v. On introduction of GST, no compensatory incentive will be provided in case of abolition of
CST or any other tax or change in rate of tax, which currently accrues to the State
Government. However, VAT related incentive will be converted to SGST related incentive
with scope as originally approved.
vi. Investment made within a period of maximum five years from commencement of the
project implementation will be considered to determine the quantum and period of the
incentive package.
45
r) The total incentives and concessions under this policy in different heads is limited to
100% of the Value of eligible Fixed Assets (VFA) created by a new unit or unit taking up
expansion/ modernization/diversification during the policy period in all areas including
Hyderabad Karnataka Area (except for an Anchor Industry as separate limits are fixed).
s) For Ultra Mega and Super Mega units where SHLCC approves investments to be made
in phases, the tax related incentive will commence from the date of commencement of
commercial production in the first phase and these incentives will be proportionate to the
investments in the first phase and will automatically graduate to the next level
depending on the actual investments made.
Entry Tax exemptions on plant and machinery for such units will be available for each
phase separately but the Entry Tax exemption on raw material is reckoned from the date
of commencement of commercial production in the first phase only.
t)Employment Criteria for units availing incentives and concessions under Industrial
Policy 2014-19 are as follows:
i. All new industrial investment projects shall endeavour to create maximum
possible additional direct employment opportunities with a minimum employment
of 70% to Kannadigas on an overall basis and 100% in case of Group D
employees.
ii. Implementation of provisions of labour act for women should be complied with
wherever applicable.
iii. Protection for women employees must be provided by the companies and
provisions of Sexual Harassment of Women at Work Place (Prevention, Protection
and Redressal) Act 2013 to be implemented in true spirit.
iv. District Industries Centers will monitor the compliance of employment to
Kannadigas for a period of initial 5 years. Failure of the industries to provide
employment to Kannadigas as stipulated above will be reported to the concerned
DLSWCC/SLSWCC/SHLCC which may recommend for recovery of incentives and
concessions sanctioned to the unit.
u) The manufacturing industries shall comply with the corporate social responsibility (CSR)
obligations as per the section 135 of the Companies Act 2013.
v) Investments made by any existing/new unit/entrepreneur/partnership firm/companies
etc. on land, building, plant & machinery acquired from any financial institution/bank
under Sec 29 of SFCs Act, SARFAESI Act, Debt Recovery Tribunal, or any of the acts or
any tribunal etc. are not eligible for any investment promotion subsidy. However, this
condition does not apply to tax based incentives i.e. the promoters after take over can
either expand, modernize, diversify and/or revive the industry.
w) Removing anomaly in granting APMC cess waiver to agro based industries as per
Industrial Policy 2009-14 and Integrated Agro Business Development Policy 2011.
APMC cess waiver facility was provided to agro based industries in both Industrial
Policy 2009-14 and Integrated Agro Business Development Policy 2011. The Industrial
Policy 2009-14 provides APMC cess waiver for a period of five, four and three years for
the eligible industries in zone 1, 2 and 3 respectively.
Integrated Agro Business Development Policy 2011 provides for APMC cess waiver for
eligible industries up to10 years throughout the State without any zonal restrictions.
Joint Directors of DICs are the nodal officers to grant the concession under both
policies.
The enabling Government orders after the amendment to the APMC Act were issued on
April 6, 2011 and March16, 2013 for the above policies, respectively.
Agro based industries which have gone into production between April 6, 2011 and
March 16, 2013 have obtained APMC cess waiver certificate from Joint Directors, DICs
under the Industrial Policy 2009-14, though theoretically they were eligible to avail the
46
concessions for longer durations under integrated agro business policy 2011, but for
want of amendment to APMC Act 1966.
Now Joint Directors of DICs are permitted to issue revised APMC cess waiver certificate
for the units which have availed APMC cess concessions under Industrial Policy 2009-
14 for the extended/balance period under Integrated Agro BusinessPolicy 2011. They
should ensure that the period of this concession shall not exceed 10 years.
x) Separate operational guidelines for administration of these incentives and concessions
will be issued for the guidance of the concerned agencies and officers with the approval
of the State Level Coordination Committee under the Chairmanship of the Additional
Chief Secretary/Principal Secretary to Government, Commerce & Industries
Department.
y) State Level Coordination Committee shall be the authority to interpret the policy
measures, incentives and concessions detailed in this policy (including those in previous
policies wherever applicable) and its decision shall be final.
47
ANNEXURE-4
APPLICATION FOR SANCTION OF INVESTMENT PROMOTION SUBSIDY

UNDER 2014-19 POLICY
Name of the Enterprise

1.
2. Address of the Enterprise
a. Factory/works
b. Office address
3 Taluk and Zone as per 2014-19 Taluk:
Industrial Policy Zone: Other than H-K area : 1/2/3/4
H-K area: 1/2
4(a) Registration No. and date
(As mentioned in EM/IEM/IL)
4(b) ESI/EPF Registration No. and date.
4(c) VAT Registration No. and date
4(d) Electric Power Connection RR No.
(Power, Line).
4(e) Electric Power Connection RR No.
(Lighting).
5. Size of the enterprise (mention whether)
Micro/Small/Medium Enterprise
6. Whether the unit established is recycling
electronic waste/plastic waste
Products Manufactured i)
7 ii)
iii)
8. Constitution of the industry(mention whether
Proprietary/Partnership/Private /Public
Limited Company) or any other
legal entity
9. Category to which the entrepreneur
belong (mention whether general;
SC/ST; women; women SC/ST; Minority;
Backward Class [Category 1/2A];
physically challenged; ex-servicemen)
10 Is it new industry or existing industry
undertaken expansion/diversification/
modernization.
11. Date of commencement of commercial
production (As per first sale invoice)
12. Project Cost: (Amount in Rs)
Land:
Building:
Plant and Machinery:
Others:
Working Capital Margin:
TOTAL
48
13 Name of the term loan lending financial
institution
Date of loan sanctioned
Amount of loan sanctioned
Amount of loan release
Date of 1 instalment of loan released
st
14. Actual Investment details :

(Amount in Rs.)
Land:
Building
Plant and Machinery
Transportation:
Electrification:
Erection and Installation charges of
machineries:
Others:
TOTAL
15. Means of finance: (Amount in Rs.)
Own/Share capital
Term loans
Others (please specify)
TOTAL
16. Employment provided in the new
enterprises
Executive/Top level
Managerial
Supervisory/Skilled
Un skilled/Semi skilled
TOTAL
17. Additional employment in case of expansion/
modernization/diversification Existing Additional
Executive/Top level
Managerial
Supervisory/Skilled
Un skilled/Semi skilled
TOTAL
18. Declaration by the Enterprise:

I / We hereby certify that the particulars given above for the purpose of sanction of Investment
Promotion Subsidy from the Government of Karnataka are to the best of my/our knowledge and
belief, are true and correct.
Place :
Date : Signature(s)
Name and Designation of the
Proprietor/Managing Partner/Managing
Director/Authorised Person
49
19. Certificate by the Assistant Director/Deputy Director/Joint Director of District
Industries Centre.
I hereby certify that the particulars given by the applicant were verified by me with reference to
documents furnished by the applicant and found to be true and correct.
I further certify that the proprietor/all partners/all directors belong to General category/
SC/ST/Women/Women (SC/ST)/ Minority/Backward class(Category 1/2A)/Physically
Challenged/Ex-servicemen
I further certify that the total investment in fixed assets in new enterprises/in expansion,
diversification, modernization of the existing enterprise could be considered for
promotion subsidy is Rs. ………………….., and is eligible for 10%/15%/20%/25%/30%/35%
investment Promotion Subsidy of Rs. …………………..
A sum of Rs…………………. being the investment made on items on which subsidy, is not
admissible as per details shown in the Annexure-5 statements are disallowed.
The declaration in Annexure-8 regarding employment of local persons has been verified and
certified that the enterprise has provided minimum 70% employment to Kannadigas on an
overall basis (including 100% employment to local people in Group D employees ).
Place :
Date : Signature & Seal of the Member Secretary,

of DLC /Joint Director DIC.
50
ANNEXURE-5
STATEMENT OF FIXED ASSETS CREATED BY THE ENTERPRISE

UNDER 2014-19 INDUSTRIAL POLICY
PART – A : Investment on land
Location Sy. No./ Purchased Date of Payment Details

of the land Plot /alloted/ purchase/ Date Amount Payment Cheque/ Value
(mention No. acquired sale deed/ by cash/ DD No. accepted
Taluk/Indl. by who m allotment cheque/ by DIC
Area/Indl. DD
Estate)
PART – B : Investment on Building
Sl. Details Built up Rate per Total value Value Remarks

No. area sq.ft./ claimed by accepted
Cu. ft. at the by DIC
which the enterprise
enterprise
has
constructed
1. Production
building (area
in Sq.ft.)
2. Godown (area in
Sq.ft.)
3. Office building
(area in Sq.ft.)
4. D.G.set Room
(area in Sq.ft.)
5, Water tank (area
in Cu.ft.)
6. Bore well
7. Compound wall
(running feet)
8. Drying yard
(area in Sq.ft)
9. Others (specify)
51
PART – C : Investment on Plant and Machinery, Electrification, Erection and installation
Transportation, etc.
Particulars of Name of the Date of Date of Amoun Mode Cheque/ Receipt

fixed assets / and address placement bill / t of bill/ of pay - DD No No.
Sl. No. capital of the of order invoice invoice ment and date Date
expenditure supplier cheque/
DD/
cash
i. Plant and
Machinery and
other productive
assets
ii. Electrification
iii. Erection and

installation
iv . Transportation
v. Other assets
Signature of the Proprietor/Managing

Partner/Managing Director of the Industrial
Enterprises with seal
PART D
Certified that original bills and vouchers as per above and physical verification of
enterprise has been done by me with reference to above fixed assets statements and
found correct. No items for which subsidy is inadmissible is included in the statement.
Following items which are included in statement are disallowed as they are not eligible
for Investment Promotion Subsidy for the reasons stated against each item.
Sl. No. Name of the item Amount disallowed Reasons for rejection
Signature of the Member Secretary

of DLC
52
ANNEXURE-6
FIXED INVESTMENT CERTIFICATE FROM THE BANK / FINANCIAL INSTITUTIONS

REQUIRED UNDER 2014-19 POLICY
M/s.………………………………………………………………......................................(mention
name of the enterprise)factory located at ……………………………………………………..
(mention factory location of the enterprise) have been sanctioned term loan under order/letter
No:------------------ dtd:.......................... and have been disbursed the amounts of Rs.
........................ The investment made by the enterprise is as shown below:
Sl. No. Particulars Date Amount (in Rs.)

a. Term loan sanctioned
b. Loan amount disbursed on

(mention all the dates and
amount of loan disbursed
sanctioned as per above
letters)
Total amount disbursed as on

……………
c. Value of investment in fixed assets
As per project Actual investment
appraisal including promoter’s
investment
i) Land (excluding lease
hold)
ii) Building (excluding
residential quarters/guest
houses) .
iii) Plant and machinery
(excluding technical
knowhow, engineering fees,
feasibility study, etc.)
iv) Other assets, tools, jigs
dies, DG sets, boilers, etc.
(please specify the items)
TOTAL
Certified that the sanction of financial assistance to M/s.………………… ……………………….
for the enterprises at ……………………………… has been considered on the basis of the
company's assessed requirement of factory buildings and the cost is estimated at Rs.
……………………. as per the project report.
We certify that this investment certificate is issued after verifying the bills and vouchers made
available by the enterprise for purposes of release of Term loan Installments (including
promoter's investments and based on the physical verification of the inspecting Officers. Items
53
for which subsidy is not admissible are not included in the investment certified above. And also
certified that the investment made on second hand plant and machinery is not included.
The enterprises is covered/not covered under KVIC/KVIB/PMEGP/KSEP margin money
scheme and any other subsidy scheme.
We are in possession of relevant bills and vouchers on which this investment certificate is
issued and we agree to make available the same as and when required for any verification
purpose, before the loan liability is discharged.
Signature of the
Branch Manager/Manager
Place : (Name of the Bank/Institution)
Date : // SEAL //
Note: All columns should be filled without leaving any columns blank
54
ANNEXURE-7
CIVIL ENGINEER / ARCHITECT'S CERTIFICATE FOR INVESTMENT IN BUILDING AND

OTHER CIVIL WORKS UNDER 2014-19 POLICY
I, hereby certify that as against the estimated cost of Rs. ……………………..

………………………………………………….….of the building and civil works for
M/s………………………………………………………..(mention the enterprise name) for their
project at ………………… (mention the location of the enterprise). The enterprise has
completed the civil works and the particulars are as under:
Sl. No. Particulars Amount (in Rs.)

1. Value of completed civil works as per
estimates
2. Amount certified for payment to the building (civil
and structural) contractors
3. Reten tion money (from civil contractor)
4. Value of materials utilized for the completed
portion of building
The value of completed building certified above do not involve the area built for guest
houses, and residential building in the factory site.
It is further certified that built area of the building is absolutely essential for the
manufacturing/processing activity of the industry.
Place : Signature and full address

Civil engineer/chartered engineer's/architect's
Date : // SEAL //
55
ANNEXURE-8
FORM OF DECLARATION REGARDING EMPLOYMENT OF

'LOCAL PERSONS' REQUIRED UNDER 2014-19 POLICY
1 Name of the Industrial M/s.
enterprises
2 Address: OFFICE FACTORY
Village/town/taluk/district I
3. Product
4. Year of establishment
5. Proprietor/partnership/Pvt. ltd./
Ltd
6. Name of the Administrative
Officer in charge of
recruitment (Kannadiga or Non -
Kannadiga)
7. Registered as MSM E,
large/mega projects
No. and date
8. Employment details (excluding Casual workers and ‘Badli’ workers)
Particulars Group Group Group C Group D Total
A B
A. Total no. employees
B. No. of local persons
(Kannadigas) therein
C. Percenta ge of local persons
(Kannadigas) to total
9. I/We understand that the percentage of local people (Kannadigas) is not less
than 70% on an overall basis and 100% in case of Group D categories
employees.
I/We hereby undertake to make up the deficiency before the disbursement of
subsidy.
10. I/We further understand that eligibility of my/our industrial enterprises,
undertaking for incentives and concessions from the Government of Karnataka
is contingent upon my fulfilling minimum local employment as per the Dr.
Sarojini Mahishi Report to the satisfaction of the State Government.
Place:
Date:
Signature of authorized person
“Verified by me”
Member Secretary, DLC
56
1. LOCAL PERSON (Kannadiga) is defined as one who has at least fifteen
years domiciled in the State of Karnataka.
2. This declaration should be signed by a person duly authorized to do so by the
Industrial undertaking.
Group A – Executive/Top level

Group B – Managerial
Group C – Supervisory/Skilled/Clerical
Group D – Unskilled/Semi skilled
57
ANNEXURE-9
CHARTERED ACCOUNTANT CERTIFICATE REQUIRED UNDER 2014-19 POLICY
Name of the Chartered Accountant …………………………………...We hereby certify

that M/s………………………………… ………………. (name of the industrial unit) has acquired
the following fixed assets up to -------------- for the unit at ------------(address) for manufacture of --
----------------------------------- (name of products).
Item of fixed assets Period during whic h investment Value

is made (date of payment) Rs.
1.Land
I ) For entire unit excluding ETP
ii) For ETP only
2. Factory building (please specify period)
I) For entire unit excluding ETP
a. Amount paid to the Fr om To Rs.
Building contractors
b. Amount paid for building From To Rs.
materials
c. Amount paid for wages and From To Rs.
Salaries etc, for the Building
constructions.
(excluding architect’s fees and wages paid for supervision staff etc.)
ii) For ETP only:
a. Amount paid to the From To Rs.
Building contractors
b. Amount paid for building materials From To Rs.
c. Amount paid for wages and From To Rs.

Salaries etc. for the Building
constructions.
4.Electrical installations (excluding KEB deposits) Rs.
i) For entire unit excluding ETP
ii) For ETP only
5. Plant and Machinery Rs.
ii) For ETP only
6. Loading, unloading, transportation, erection expenses etc. Rs.
ii) For ETP only
7. Misc. fixed assets(Please specify items) Rs.
ii) For ETP only
58
We have checked the books of account of the unit, bills, invoices and payment vouchers etc.
and certify that the aforesaid information is verified and certified to be true. We also certify
that all the aforesaid items have been duly paid for and no credit is raised against them in
the books of the unit.
Certified that the investments certified above do not include items for which subsidy is not
allowed. Expenditure incurred on following items are not included.
A. LAND
i) Value of the open land not utilized for construction, leaving the area proposed for
immediate expansion.
ii) Expenditure incurred for land scraping for beautification and expenditure on
unsuccessful open wells/bore wells.
B. BUILDING
I) Expenditure on unproductive construction like guest house, workers/staff quarters,
canteens, cycle/scooter stands, garages etc.
ii) Expenditure incurred on beautification of buildings, arches, decorative lights including
street lights, furniture and air conditioners, water coolers, refrigerators such of the
gadgets not directly connected with production
iii) Expenditure incurred on the purchase of old buildings
C. PLANT AND MACHINERY

i) All consumable materials like tool bits, files, oils etc.
ii) Investments on tools jigs/fixtures, moulds etc. which are required repeatedly, should
not be allowed for the second time and onwards. While considering the investments
made on first purchases, only the required quantify(quantity?) of such items are to be
allowed. Extra quantities taken as spares are not to be allowed.
iii) Second hand machines purchased shall not be included.
Date :
Place : // SEAL // CHARTERED ACCOUNTANT
Name: ...........................
Code No:............
59
ANNEXURE-10
INVESTIGATION REPORT OF ASST. DIRECTOR/DY. DIRECTOR OF DIC. UNDER 2014-

19 POLICY
1 Name of the enterprise M/s.
2 Address of the Enterprise

a. Factory/ works
b. Office address
Taluk : Zone: Other than H-K area :
3 Taluk and Zone as per 2014-19 Industrial Policy
1/2/3/4 H-K area: 1/2
4 Category to which the entrepreneur belong
(mention whether general, SC/ST, women,
women Sc/ST, minority, backward Class
[Category 1/2A], physically challenged;
Ex-servicemen)
5 Constitution
(With name of Proprietor / Partners / Directors)
6 Whether new enterprise/Undertaken

Expansion/Modernization/
Diversification Programme
7 Size of the enterprise Micro/Small/Medium
Regn No. and date
8 In case of new industrial enterprise the date
of commencement of production
9 In case of expansion, actual date of
commencement of production of
existing industrial enterprise and date of
completion of expansion/modernization/
diversification of project
10 Items manufactured/processing by the
Enterprise
11 Project Cost (in Rs.)
(Please indicate item-wise details)
Land
Building
Plant and machinery
Others
Working Capital Margin
TOTAL
12 Name of the lending Institution
13 Date and Amount of loan sanction
14 Date of 1 release
st
60
15 Means of finance As per project appraisal Actual
investment
KSFC/Bank/Term Loan
Own finance
TOTAL
Details of fixed capital investment Period of Details of Capital
16 investment made investment
acceptabl e
(Amount in Rs.)
a) Land
b) Building
c) Plant & Machinery
d) Others Miscellaneous fixed asset (Please
Specify)
TOTAL
17 Employment provided Original Additional (in case of
(in case of new enterprises) expansion enterprise)
Total Local Total Local
a) Top/Executive level
b) Managerial
c) Supervisor/Skilled
d) Semi Skilled/Un skilled
TOTAL
18 Percentage of local employment (Kannadigas) in the enterprise
19 Amount of subsidy recommended Amount
Eligible Fixed capital investments Rs.
Eligible general Investment Promotion subsidy - Rs.
10/15/20/25/30/35 %
Additional Investment promotion subsidy of 5% with a ceiling
limit of *Rs. 10 lakhs for General Category/Rs.15 lakh for
SC/ST / Women / Backward Class [Category 1 & 2A] / Physically
Challenged/Ex- servicemen in Zone - 1, 2,3 in non H-K area and
Zone-1, 2 in H-K area for having established recycling of
electronic waste/plastic waste
Total eligible Investment Promotion Subsidy Rs.
20 General remarks/recommendation
(A brief report on working of the enterprise)
Declaration:
I .......................................... (name of the officer and designation should be mentioned) have
visited the above enterprise on .........................(mention date of visit) and physically verified the
assets created which is found to be correct to the best of my knowledge.
Name and signature of
the officer, with designation
Place :
Date :
61
ANNEXURE-11
AGENDA NOTES FOR SANCTION OF INVESTMENT PROMOTION SUBSIDY IN THE

DLC MEETING HELD ON …………….(under 2014-19 policy)
1 Name of the enterprise M/s.
2 Address of the Enterprise

a. Factory/works b.
Offic e address
3 Taluk and Zone as per 2014-19 Industrial Policy Taluk: Zone: Other than H-K area : 1/2/3/4
H-K area : 1/2
4 Constitution
(With name of Proprietor/Partners/Directors)

(mention whether General, SC/ST, Women,
Women SC/ST Minority, Backward
Class [Category 1/2A], Physically Challenged,
Ex-servicemen)
6 Whether new enterprise/Undertaken Expansion /
Modernization / Diversification Programme
7 Size of the enterprises Micro/Small/Medium
Regn. No. and date
8. In case of new industrial enterprise the date
of commencement of production
9 In case of expansion, actual date of
commencement of production of existing industrial
enterprise and date of completion of expansion/
modernization/diversification
of project
10 Date of application filed with DIC for
sanction of subsidy with all the required
documents
11 Items manufactured/processing by the Enterprises
Project Cost (in. Rs)
12 (Please indicate item-wise details)
Land
Building
Plant and machinery
Others
Working Capital Margin
TOTAL
13 Name of the lending Institution
14 Date and Amount of loan sanction
62
15 Date of 1 release
st
16 Means of finance As pe r project Actual

appraisal investment
KSFC/Bank/Term Loan
Own finance
TOTAL
17 Details of fixed capital investment (Amount in Rs.)
Investment certified by Land Building Plant & Other Total
different source/agency Machinery assets
a. As per claim of the
enterprise
b. As per certificate of
financial institution
c. As per chartered
accountant
d. As per investigation
report of Asst.
Director or Deputy
Director
e. As per Joint Director
DIC
18 Period during which the investment : Shown in
Col 17 above is made (please specify the
investment made in different periods)
19 Employment provided Original Additional (in case of expansion
(in case of new enterprise)
enterprises)
Total Local Tot al Local
a) Top/Executive level
b) Managerial
c) Supervisor/Skilled
d) Semi Skilled/Un skilled
TOTAL
20 Percentage of local employment (Kannadiga) in
the enterprise
21. Recommendation :
1. As per the details, the enterprises is located at ……………………….(mention the

factory address of the unit) and taluk classified in *Zone-1/2/3/4 of Non HK area /
*Zone-1/2 of H-K area (*strike out whichever is not applicable). The enterprise has
availed term loan of Rs……………. from ………………...............................................
(mention the financial institution) for the manufacture of …………………................
2. The entrepreneur belong to *General/SC/ST/Women/Women (SC/ST)/ Minority/

Backward Class [Category 1/2A]/Physically challenged/Ex-servicemen and the
enterprises is eligible for Investment Promotion Subsidy on accepted fixed capital
investment of Rs. ………….. under 2014-19 Industrial Policy at *10/15/20/25/30/35%
(*strike out whichever is not applicable) value of fixed assets and the amount of eligible
subsidy at the above rate works out to Rs. ...................... limited to the maximum amount
of Rs. .........................
63
3. Additional Investment promotion subsidy of Rs. .......................... at 5% with a ceiling
limit of *Rs. 10 lakh for General Category/Rs. 15 lakh for SC/ST/Women/Backward
Class [Category 1 & 2A]/Physically Challenged/Ex-servicemen in Zone-1, 2, 3 in Non
HK area and Zone-1, 2 in HK area for having established recycling of electronic waste
and plastic waste.
The subject is placed before the DLC for consideration.
Place: AD/DD
Date: Member Secretary DLC
64
ANNEXURE-12
FORMAT FOR SANCTION ORDER OF INVESTMENT PROMOTION SUBSIDY UNDER

2014-19 POLICY
Government of Karnataka
Department of Industries and Commerce
No. …………… Office of the ……………

Date:
Sanction Order
SUB: Sanction of 10/15/20/25/30/35% Investment Promotion Subsidy/additional 5% for
having established recycling of electronic waste/plastic waste under 2014-19 Industrial
Policy to M/s. ………………………..for manufacture/process of ……………………
located at ………………….
REF: 1. G.O.No.CI/58/SPI/2013, dated 01/10/2014
2. Your application for Investment Promotion Subsidy received vide letter No.
................. dated: .................
********
We are pleased to inform you that the District Level Committee for sanction of
Investment Promotion Subsidy for MSMEs in its ……Meeting held on -----------has sanctioned a
total Investment Promotion Subsidy of Rs.-------------- (Rupees----------only) on the basis of
investment made on fixed assets of your enterprise located at --------i.e. Zone-1/2/3/4 other than
HK area and Zone-1/2 in HK area as per 2014-19 Industrial Policy for manufacture/service
activity. The Committee has accepted the investment as detailed below:
Sl. Particulars Amount

No. Rs.
1. Land
2. Building
3. Plant & Machinery
4. Erection/Electrification/transportation, etc.
5. Other fixed assets (Please specify)
TOTAL:
Accordingly, the amount of Investment Promotion Subsidy to which you are eligible is
determined at Rs.----------------- (Rupees------------------only) at 10/15/20/25/30/35% and
additional 5% subsidy of Rs. ....................for having established recycling of electronic waste
and plastic waste i.e. total eligible subsidy determined at Rs. …………. on the above
investment under 2014-19 Industrial Policy.
You shall have to execute an agreement, in the draft format enclosed to this sanction
order. The original agreement should be on Stamp paper of Rs. 100/-. The agreement should be
executed by the proprietor in case of proprietary concern, by one or more directors duly
authorized by the board of directors of the company. The execution of the agreement should be
under the common seal of the company, by all the partners in case of partnership concern.
However, if any one of the partners holds a general power of attorney, he may execute the
agreement on behalf of the remaining partners and furnish a certified true copy of the power of
attorney. When the agreement is executed by a holder of general power of attorney, a certificate
signed by all the partners on behalf of the firm to the effect that the general power of attorney is in
force and not revoked as on the date of execution of the agreement, should be furnished. The
Erasures, if any, should be properly attested No blank should be left in the agreement form.
65
The above agreement should be executed in the presence of Assistant Director/Deputy
Director/Joint Director, District Industries Centre, …………. .
The sanction of this Investment Promotion Subsidy is subject to following conditions:
1. In the event of the Investment Promotion Subsidy being sanctioned, while at a later date
found to be not actually due, the grantee shall refund to Government such portion or
whole amount as determined by the Directorate of Industries and Commerce/Joint
Director, DIC--------. In the event of the grantee failing to refund such amount, the same
shall be recovered as arrears of land revenue.
2. The Investment Promotion Subsidy sanctioned will be released partly/fully depending
upon the funds available.
3. The Joint Director, District Industries Centre shall monitor the employment provided to
local people (Kannadigas) in accordance with terms and conditions in the para (t.) (I.) of
Annexure-3A of 2014-19 Industrial Policy for an initial period of five years. Failure of the
industries to provide employment to Kannadigas as stipulated above will be reported to
the concerned DLSWCC/SLSWCC which may recommend for recovery of subsidy
sanctioned. The enterprise is bound to return the subsidy amount to Government.
4. The Investment Promotion Subsidy sanctioned herein is in the nature of “Grant-in-aid”
and shall not be construed as a “contract” with Government of Karnataka. The grantee
shall not exercise his right of privities of contract in the matter of release of subsidy by
Government of Karnataka, who shall release the subsidy amount as and when the
grantee is eligible for the same, in such proportions and instalments as the Government
may regulate.
Joint Director
District Industries Centre
--------------------
66
ANNEXURE-13
FORMAT OF UNDERTAKING TO BE EXECUTED FOR INVESTMENT PROMOTION

SUBSIDY UNDER 2014-19 POLICY
UNDERTAKING
The undertaking executed this day ------------ 200 --------- by -------- carrying on the
business of ------------------- under the name and style of M/s.------------------------- herein after
called the 'Grantee' of the one part in favour of the Governor of Karnataka, represented by the
Director of Industries and Commerce herein after called the Government of other part
WITNESSETH.
Where as District Level Committee ---------------- vide Order No. ----------- dated: -----------
- has sanctioned an Investment Promotion Subsidy of Rs. ------------- (Rs. ---------------------- only)
under the Government of Karnataka scheme of Package of Incentives and Concessions (2009-
14 Industrial Policy) new Industrial investment made in the State of Karnataka to the grantee for
the purpose of his enterprises.
In consideration of the grant of Rs.---------------(Rs. --------------- only) as per the Order

No.---------------- dated: -------------- of the Joint Director, District Industries Centre --------- the
receipt whereof the grantee hereby acknowledges, the grantee agrees and covenants as
follows:
i If the State Government/Financial Institution concerned is satisfied that the investment

subsidy has been obtained by misrepresentation of essential fact, furnishing false
information after the reimbursement of full subsidy, the State Government/Financial
Institution concerned shall have the right to claim refund of the grant/subsidy of Rs.
………….. (Rs. ……………. only) paid to the grantee together with such interest as the
State Govt./Financial Institution concerned may charge.
ii In the event of the subsidy being sanctioned, which at later date is found to be not
actually due, the grantee shall refund to Government such portion or the whole amount
as determined by the Joint Director, District Industries Centre/Director of Industries and
Commerce. On failure to do so, such amount shall be recovered by the Government as
arrears of land revenue.
iii That this grant shall not be construed as a contract and shall be in the nature of Grant-in-
Aid only and the provisions of the Indian Contract Act or that of Specific Relief Act or any
other relative statutory Acts/Provisions shall not apply in the instant case.
iv That the grantee shall not exercise his right of claiming release/reimbursement of
subsidy amount out-of-turn either directly or through his attorney and that the decision of
the Government in the matter of periodic release based on the availability of funds shall
be final and binding on the grantee.
v The Grantee shall undertake to provide employment to local people (Kannadigas) in
accordance with terms and conditions in the para (t) (i) of Annexure-3A of the 2014-19
Industrial Policy and maintain the same at least for a period of five years from the date of
release of the subsidy amount. In case the enterprise fails to do it shall be bound to
return the subsidy amount to the Government.
67
SCHEDULE:
Sl. No. Particulars Investment details

(Amount in rupees)
1 Land Rs.
2 Building Rs.
4. Erection/Electrification/ Rs.
transportation etc.
5. Other fixed assets (Please specify) Rs.
TOTAL:
In witness whereof the Grantee has set his hand on this ------------------ day of -------------------------
two thousand ------------------------ first above mentioned.
Witness: Signature of the Grantee
1.
2.
//Common Seal of the Company//
Shall be affixed here
“Attested”
AD/DD/JD, DIC
68
ANNEXURE-14
FORMAT FOR SUBMITTING PROGRESS OF SANCTION OF INVESTMENT

PROMOTION SUBSIDY UNDER 2009-14/2014-19 INDUSTRIAL POLICY FOR THE
MONTH ENDING
Sl. Name and End District Taluk Name of the DLC No. Policy Zone as Category of
No. address of Product Assembly & Date of Package per Entrepreneur
the Unit constituency Meeting Industrial (SC/ST/
held policy Women/
Gen/PH)
1 2 3 4 5 6 7 8 9 10
Micro/ Type of New unit/ Expn/ Invest- Subsidy Amount of Working No. of In case Rema
Small/ finance Diversification ment on Sanctioned Subsidy Status employment Expansion/ rks
Medium (F. Instituti /Modernization fixed in sanctioned generated Modernisation/
ons or self) please specify assets percentage in Rs. Diversification
Please in Rs. (%) units
specify the earlier
F.I. & subsidy
branch sanctioned
and
releases
details
11 12 13 14 15 16 17 18 19 20
*Mention the category whether General/SC/ST/Women/Women (SC/ST)/Minority/

Backward Class [Category 1 or 2A]/Physically Challenged/Ex-servicemen
Joint Director
--------------------
69
ANNEXURE-15
APPLICATION FOR STAMP DUTY EXEMPTION AND CONCESSIONAL REGISTRATION

CHARGES UNDER 2014-19 INDUSTRIAL POLICY
1. Name of the enterprise :
2. Full address for communication :
3. Proposed location of the enterprise :
4. Full Office Address

(if it is different from Sl. No. 3) :
5. Zone as per Industrial Policy :

6. Constitution of the enterprise (please specify
whether proprietorship/partnership
firm/company etc.) :
7. Size of the Industry whether Micro/Small/
Medium/Large/Mega/Ultra Mega/Super Mega
Enterprises :
8. Products Manufacturing/proposed for i)
Manufacturing :
ii)
iii)
iv)
9. Industrial Entrepreneur Memorandum Filed
a) Acknowledgment No :
b) Date of issue of acknowledgment :

10 W hether the enterprise belongs to special
category of entrepreneur i.e. Women/SC/
ST/Minotiry/Backward Class (Category 1 &
2A only)/PH/Ex-Servicemen :
70
11. Details of land allotted/Purchased and cost of
land, if any
1. Agency allotted land (Mention KIADB
/KSSIDC/KSIIDC/KEONICS etc.) :
2. In case of purchase (Mention whether
section 109 or already converted land) :
12. Detail of Term loan sanctioned, if any
1. Name of the Bank Branch :
2. Amount of Term loan sanctioned : `
3. Date of Term loan sanctioned :
13. Is it new industry or existing industry
undertaken expansion/diversification/
modernization :
14. In case existing unit undertaken expansion/

diversification/modernization

product ion of existing unit :
2. Installed capacity of existing products :
3. Proposed capacity under expansion :

4. Existing value of fixed assets :
a) Land `
b) Building `
c) Plant & Machinery `
d) Other Assets like electrification, `

installation etc.
Total `
15. In case of New Industry

1. Proposed date of commencement of
commercial production :
2. Proposed Installed capacity :
3. Propo sed value of fixed assets as per

project report :
a) Land `
b) Building `
71
b) Building `
c) Plant & Machinery `
d) Other Assets like electrification, `
installation etc.
e) Contingencies `
f) Pre-operative & preliminary `
expenses
g) Margin for working `

Capital
TOTAL `
16 Means of finance
a) Promoter’s equity `
b) Institutions’ equity `
c) Term Loans `
d) Seed capital/risk capital `
e) Subsidy/Grants `
f) Others (Please Specify) `
TOTAL `
Declaration by the applicant:
I/We hereby certify that the particulars given above are to the best of my/our knowledge, belief, true
and correct:
Place: Signature(s)
Date : Name & Designation
(with seal of the company/firm)
***
72
ANNEXURE-16
FORMAT FOR ISSUE OF STAMP DUTY EXEMPTION AND CONCESSIONAL

REGISTRATION CHARGERS (FOR LAND DOCUMENTS) UNDER 2014-19 INDUSTRIAL
POLICY
No: Office of
the………………
Date:
Certificate
Subject: Issue of Stamp Duty Exemption and Concessional Registration
chargers certificate to M/s ------------------------------------reg.
Reference: 1. Govt. Order No. CI/58/SPI/2013 dated: 01/10/2014
2. Revenue Dept. Notification No. ------------------------- dated:--------
3. Application of the enterprise dated:………………….
******
This is to certify that :
1) M/s ---------------------------------------------- represented by Sri. ---------------------------------------
--- is a *proprietor/partner/managing director/director. It is a proposed *new/expansion/
modernization/diversification unit obtained *IEM/IL from *Govt. of Karnataka/Govt. of India
vide acknowledgment No.--------------------------- dated:-------------------
2) As per Govt. No. CI/58/SPI/2013 dated:01/10/2014 the enterprise is proposed to be
situated in Zone-------- of *Hyderabad Karnataka area/Other than Hyderabad Karnataka
area. The enterprise is defined as *Super Mega/Ultra Mega/Mega/Large/
Medium/Small/Micro enterprise. The *proprietor/all partners/all directors belong to
*General/SC/ST/Women/Minority/Backward Class (Category 1/2A only)/Physically
Handicap/Ex-servicemen.
3) The project has been approved by *DLSWCC/SLSWCC/SHLCC in its meeting held on -----
------------- *and Govt. Order No.-------------------------- dated---------------- is issued.
4) The enterprise has been allotted *land/plot/shed to the extent of acres
in *KIADB/KSSIDC/KEIONICS/Industrial Co-operative society in
industrial area for the manufacturing/service activity of or the
enterprise has obtained permission from the *Deputy Commissioner
district/Government or *the enterprise has purchased converted
land to the extent of from .
5) The enterprise is eligible for *100%/75% Stamp duty exemption and the
Registration charges payable at *Re.1 /0.50 for every Rs.1000/- value of
*lease/lease cum sale/absolute sale agreement
6) It is certified that the enterprise is not listed in Annexure-2 of the industrial activities
not eligible for incentives and concession as per Govt. Order No. CI/58/SPI/2013
dated: 01/10/2014.
73
Joint Director DIC/ID
To,
M/s
Copy to,
1. Sub registrar, taluk and district
2. Joint Director DIC,
3. Office copy.
* Strike out whichever is not applicable
75
74
76
FORMAT FOR ISSUE OF STAMP DUTY EXEMPTION AND CONCESSIONAL
REGISTRATION CHARGERS (FOR LOAN DOCUMENTS) UNDER 2014-19 INDUSTRIAL
POLICY
No: Office of
the………………
Date:
Certificate
Subject: Issue of Stamp Duty Exemption and Concessional Registration chargers
certificate to M/s ------------------------------------reg.
Reference: 1. Govt. Order No. CI/58/SPI/2013 dated:01/10/2014
2. Revenue Dept. Notification No. ------------------------- dated:---------
3. Application of the enterprise dated:………………….
******
1) M/s ---------------------------------------------- represented by Sri. -----------------------------------------
is a *proprietor/partner/managing director/director. It is a proposed *new/expansion
/modernization/diversification unit obtained *IEM/IL from *Govt. of Karnataka/Govt. of India
vide acknowledgment No.--------------------------- dated:-------------------
2) As per Govt. No. CI/58/SPI/2013 dated:01/10/2014 the enterprise is proposed to be
situated in Zone-------- of *Hyderabad Karnataka area/Other than Hyderabad Karnataka
area. The enterprise is defined as *Super Mega/Ultra Mega/ Mega/ Large/ Medium
/Small/Micro enterprise. The *proprietor/all partners/all directors belong to *General
/SC/ST/Women/Minority/Backward Class (Category 1/2A only)/Physically handicap/Ex-
servicemen.
3) The project has been approved by *DLSWCC/SLSWCC/SHLCC in its meeting held on -------
----------- *and Govt. Order No.-------------------------- dated---------------- is issued.
4) The enterprise has been sanctioned (mention *term loan/working capital loan/VAT loan) of
Rs. by (mention name of the* bank/financial institution/Government) for
*manufacturing of /service activity .
5) The enterprise is eligible for *100%/75% Stamp duty exemption and the Registration
charges payable at *Re.1/0.50 for every Rs. 1000/- value on loan agreement and all other
documents in respect of loan sanctioned as stated in Sl. No. 4.
6) It is certified that the enterprise is not listed in Annexure-2 of the industrial activities not
eligible for incentives and concession as per Govt. Order No. CI/58/SPI/2013
datae:01/10/2014.
Joint Director DIC/ID
To,
M/s
Copy to,
1. Sub registrar, taluk and district
2. Joint Director DIC,
3. Office copy
77
* Strike out whichever is not applicable
78
FORMAT FOR SANCTION ORDER FOR REIMBURSEMENT OF
LAND CONVERSION FINE UNDER 2014-19 INDUSTRIAL POLICY
No. Office of the …………….

Dated : …………………..
SANCTION ORDER
Ref: 1. G.O. No. CI/58/SPI/2013 dtd: 01.10.2014
2. Revenue Department Land Conversion Order No.
3. Proceeding of the ............DLC meeting held on .............
4. Application of M/s. ………………. Dtd:…………
*********
M/s. ………………………………….. have made an application cited in ref(4) for
grant of reimbursement of Land Conversion Fine paid for conversion of ………… acres
of land which was in the name of Sri/Smt. …………….. situated in Survey No. …..
No.……… of …………….. Village, ……………… Taluk, …………… District for having
established industry for manufacture of ……………... The enterprise has obtained IEM
acknowledgment/Industrial license vide No. ………. Dtd: ……… for this purpose.
The enterprise has paid the Land Conversion Charges of Rs. ………… in
accordance with the Land Conversion Order cited at ref(2) and submitted the copy of
challan for having paid the conversion Charges.
It is certified that the enterprise's requirement of land has been examined in detail
and found that ………. acres of land was essential for setting up the said industry. It is
eligible for exemption from payment of conversion fine for conversion of the above land
from agricultural to non-agricultural industrial purpose, in terms of G.O. No. CI
/58/SPI/2013 dtd: 01.10.2014.
The entrepreneur belongs to.............................(mention category
General/SC/ST/Women/Women(SC/ST)/Minorities/Backward Class (Category 1 &
2A)/Physically Challenged/Ex-servicemen). The unit is located in *Zone 1/2/3 other
than Hyderabad Karnataka area/*Zone 1/2 of Hyderabad Karnataka area. Accordingly
the enterprise is sanctioned Rs........................(in figures and words) as reimbursement
of land conversion fee to the extent of *100%/75% of fee paid to the Government.
JOINT DIRECTOR
…….. District
or
Joint Director (ID), Head
office
*Strike out whichever is not applicable
79
FORMAT FOR SUBMITTING PROGRESS OF SANCTION OF REIMBURSEMENT OF
LAND CONVERSION FINE UNDER 2009-14/2014-19 INDUSTRIAL POLICY FOR THE
HALF YEAR ENDING SEPTEMBER /MARCH
Sl. No. Name of the DLC Policy Taluk *Category of Size of the Product Amount of land
Enterprise meeting and entrepreneur industry manufac- conversion Charges paid
to whom Zone tured/ activity to Government
land No. % Amount
conversion and in Rs.
Charges is date
reimbursed
1 2 3 4 5 6 7 8 9 10
No. of persons employed Remarks
Local Other than Total with %

(Kannadigas) Local (other to local
than Kannadigas) (Kannadigas)
13 14 15 16
*Mention the category whether General/SC/ST/Women/Women (SC/ST)/ Minority/

Backward Class [Category 1 or 2A]/Physically challenged/Ex-servicemen
Joint Director
--------------------
80
APPLICATION FOR ENTRY TAX EXEMPTION ON PURCHASE OF PLANT AND
MACHINERY (DURING IMPLEMENTATION OF PROJECT)

5. VAT Registration details

1. Local VAT office address
2. VAT TIN No. and Date of registration
6. Zone as per prevailing Industrial Policy :
Medium/Large/Mega/Ultra Mega/Super Mega
Enterprises :
9. Products Manufacturing/proposed for i)
Man ufacturin : ii)
iii)
iv)
a) Acknowledgement No :
b) Date of issue of acknowledgment :
81
11. Whether the enterprise belongs to special
category of entrepreneur i.e.
General/Women/SC/ST/Minority/
Backward Class (Category 1 & 2A only)/
PH/Ex-Servicemen :
12. Date of first machinery purchase order :

undertaken expansion/diversification /
modernization :
14. In case existing unit, undertaken expansion/


production of existing unit :
4. Existing value of fixed assets :
a. Land
b. Building
c. Plant & Machinery
d. Other Assets like electrification,

installation etc.
Total

1. Proposed date of commencement of
commercial production :
2. Proposed Installed capacity :
3. Proposed value of fixed assets as per project

report :
a. Land
b. Building
c. Plant & Machinery
d. Other Assets like electrification,
installation etc.
79
e) Contingencies `
f) Pre-operative & preliminary `
expenses
g) Margin for working `

Capital
TOTAL `
16. Means of finance

a) Promoter’s equity `
b) Institution’s equity `
c) Term Loans `
d) Seed capital/risk capital `
e) Subsidy/grants `
f) Others (Please Specify) `
TOTAL `
I/We hereby certify that the particulars given above are to the best of my /our knowledge and belief true
and correct:
Place: Signature(s)
(with seal of the company/firm)
***
80
ANNEXURE-81
APPLICATION FOR ENTRY TAX EXEMPTION ON PURCHASE OF RAW MATERIAL,

INPUTS, COMPONENTS PARTS AND CONSUMABLES (EXCLUDING PETROLEUM
PRODUCTS) DURING OPERATIONAL PHASE OF THE PROJECT

5. VAT Registration details

1. Local VAT office address
2. VAT TIN No . and Date of registration
6. Zone as per prevailing Industrial Policy :
Medium/Large/Mega/Ultra Mega/Super
Mega Enterprises :
9. Products Manufactured : i)
ii)
iii)
iv)
after commercial production
a) Acknowledgment No. :
b) Date of issue of ackn owledgment :
81
11. Whether the enterprise belongs to special
category of entrepreneur i.e.
General/Women/SC/ST/Minotiry/
Backward Class (Category 1 & 2A only)/
PH/Ex-Servicemen :

undertaken expansion/ diversification/
modernization :
13. In case existing unit undertaken expansion/

production of existing unit :
4. Value of fixed assets of existing unit :
a. Land `
b. Building `
c. Plant & Machinery `
d. Other Assets like electrification, `

installation etc.
Total `

production (first sale invoice) :
2. Installed capacity :
3. Investments made on fixed assets :
a. Land `
b. Building `
c. Plant & Machinery `
d. Other Assets like electrification, `
installation etc.
e. Contingencies `
f. Pre-operative & `
preliminaryexpenses
TOTAL of 14(3) `
82
I/We hereby certify that the particulars given above are to the best of my/our knowledge and belief, true
and correct:
Place: Signature(s)
(with seal of the company/ firm)
***
8383
ANNEXURE-22
PRO FORMA FOR ENTRY TAX EXEMPTION CERTIFICATE DURING IMPLEMENTATION

PHASE UNDER 2014-19 INDUSTRIAL POLICY
No:....................... Office of the .............

Date:.........
CERTIFICATE
Sub: Exemption of Entry Tax to M/s -----------------, ---------------------- Taluk, -------------------------
District, during implementation phase.
Ref: 1. G.O. No:CI/58/SPI/2013, dt:01-10-2014
2. FD Notification-* I/II/III/IV No:FD/01/CET/2015 dt:23-4-2015
3. G.O.------------------------, dt:-------------------
4. Letter of the Unit No.:----------------------dt:--------------------
*******
This is to certify that:
1. M/s --------------------------- is -------------------- industry located at ------------------------------- --------Taluk, -----

-------------------District.
2. The unit is registered vide No:----------------------, dt:------------------------ for the manufacture of “-------------
-------------” with -----------------------------.
3. The unit is located in Zone-------------------- as classified in the Govt. Order cited at ref.(1) above.
4. It is a new *enterprise/proposed to undertake *expansion/diversification/modernization and has cleared

in the --------------- *State Level Single Window Clearance Committee/ State High Level Clearance
Screening Committee meeting held on ----------------------------- to establish a unit for manufacture of “------
-------------------------” with a total investment of Rs.------------------ *lakh/crore.
5. The enterprise is defined as *Super Mega/Ultra Mega/Mega/Large/Medium/Small/Micro enterprise. The

*proprietor/all the partners/all the directors belong to *General/SC/ST/ Women/Women
(SC/ST)/Minority/Backward Class (Category 1 / 2A only)/Physically challenged/Ex-servicemen.
8484
6. The value of fixed assets as proposed in the project report is as below:
Sl. Investment
Description
No. (Rs. in Crores)
1 Land and Building
2 Plant and Machinery
3 Instruments and Equipments
Total
7. The unit is eligible for Entry Tax Exemption on the entry of plant and machinery and capital goods directly
involved in the production or other processing of goods and including those equipments brought for the
purpose of establishing captive power generation plant for a maximum period of --------- (-------) years
from ------------------------- i.e the date of commencement of the project implementation as envisaged by
the first purchase order No:-------------, dt:----------------- or till the completion of the project
implementation, whichever is earlier.
8. This Certificate is issued as per the Govt. Orders cited at ref.(1) to (3) above.
9. The enterprise has to fulfill the conditions as prescribed in the Govt. Orders cited at ref.(1) to (3) above.
10. The item of manufacture is not one among the 26 ineligible items listed vide Annexure-2 of the Govt.
Order cited at ref.(1) above.
Joint Director (DIC)/(ID)

To:
M/s --------------------------------.
Copy to:
1) The LVO --------------------------------------

2) Office copy
8585
ANNEXURE-23
PRO FORMA FOR ENTRY TAX EXEMPTION CERTIFICATE DURING OPERATIONAL

PHASE UNDER 2014-19 INDUSTRIAL POLICY
No:....................... Office of the .............

Date:.........
CERTIFICATE
Sub: Exemption of Entry Tax to M/s ------------------------- Limited, ---------------- Taluk &---------
---------------------- District, during operational phase.
Ref: 1. G.O. No:CI/58/SPI/2013, dt:01-10-2014
2. FD Notification *I/II/III/IV No:FD/01/CET/2015 dt:23-4-2015
3. G.O. No:---------------------------, dt:---------------------
4. Application of the enterprise No.----------------------- dt:-------------------
This is to certify that:
1. M/s --------------------------- is -------------------- industry located at ------------------------------- --------Taluk, -----

-------------------District.
2. The unit is registered vide No:--------------------------, dt:------------------ for the manufacture of “---------------
-------------------------------” with -------------------------------.
3. The unit is located in Zone-------------------- as classified in the Govt. Order cited at ref.(1) above.
4. It is a *new enterprise/taken expansion/diversification/modernization and cleared in *State Level Single

Window Clearance Committee/State High Level Clearance Screening Committee meeting held on ------
-------------- to establish a unit for manufacture of “--------------------------” with an investment of Rs.----------
------- *lakh/crore.
5. The enterprise is defined as *Super Mega/Ultra Mega/Mega/Large/Medium/Small/Micro enterprise. The
*pr opri et or/ all t he par tners/ all t he di rect ors belongs t o * Gener al /SC/ ST/
Women/Women(SC/ST)/Minority/Backward Class (Category 1/2A only)/Physically challenged/ Ex-
servicemen.
6. The value of fixed assets invested is as below:
Sl. Investment
Description
No. (Rs. in Lakh/Crore)
1 Land
2 Civil construction
4 Other fixed assets
Total
86
1. The unit is eligible for Entry Tax Exemption on the entry of goods for use as raw
materials, inputs, component parts and consumables (excluding petroleum products
like crude oil, petrol, diesel, super light diesel oil, bitumen (asphalt), tar, furnace oil,
brake fluid or clutch fluid, transformer oil, coolants, white oil, hexane, lubricating oil,
petroleum jelly, naphtha and LSHS used as consumables or for captive power
generation units) directly involved in the manufacture of “ -----------------------------------
--------” for a period of ------------ (-----------) years from -----------------------, i.e. the date
of commencement of commercial production as envisaged by the Invoice No: ----------
--------, dated:------------------------------------.
2. This Certificate is issued as per the Govt. Orders cited at ref.(1) to (3) above.
3. The enterprise has to fulfill the conditions as prescribed in the Govt. Orders cited at
ref.(1) to (3) above.
4. The item of manufacture is not one among the 26 ineligible items listed vide
Annexure-2 of the Govt. Order cited at ref.(1) above.
To:
M/s --------------------------------
-------------------------------------
---------------------------------------
Copy to:
1) The LVO-------------------------------------.
2) Office copy
87
ANNEXURE-24
ANNEXURE-25
FORMAT FOR SUBMITTING PROGRESS OF ISSUE OF ENTRY TAX EXEMPTION

CERTIFICATES FOR THE HALF YEAR ENDING ------------ UNDER 2009-14/2014-19
INDUSTRIAL POLICY
Sl. Name of the Whether the Policy Taluk *Category Size of Product
No Enterprise to certificate is and of the proposed for
whom entry tax issued for Zone entrepre - industry manufa-
exemption implementation neur cturing/
certificate is phase or manufac -
issued oper ational tured/ activity
phase
1 2 3 4 5 6 7 8
No. of persons employed Remarks
Local Other than Total with %

(Kannadigas) Local (other to local
than (Kannadigas)
Kannadigas)
9 10 11 12
*Mention the category whether General/SC/ST/Women/Women (SC/ST)/Minority/ Backward Class

[Category 1 or 2A]/Physically challenged/Ex-servicemen
Joint Director
--------------------
88
ANNEXURE-24
ANNEXURE-25
APPLICATION FORM FOR SANCTION OF INVESTMENT SUBSIDY FOR SETTING UP

OF EFFLUENT TREATMENT PLANT (ETPs)
1 Na me and address of the enterprise

2 Zone- as per Industrial Policy 2014 - 19
3. Location of the Enterprise
4 Registration No. and date
(as mentioned in EM/IEM/IL)
5 Products manufactured/processes
6 Constitution of the industry
(Proprietary/Partnership/Pvt/Ltd/Com)
(mention whether General, SC/ST, Women,
Women SC/ST, Minority, Backward
Class [Category 1/2A], Physically challenged,
Ex-servicemen)
8 Project cost details Main ETP
enterprise
1.Land
2.Buil ding
3.Plant and Machinery
4.Others
5.Working Capital
Total
9 Date of Commercial Production
(first sale Invoice)
10 Valid consent for operation (CFO) issued by
KSPCB
11 Environment Clearance Certificate (ECC)
issued by DFEE/MOEF (Wherever
applicable)
12 Environment Management Plan (EMP)
13 Actual Investment details (amount in Rs.) Main ETP
enterprise
1. Land
2. Building
3. Plant & Machinery/equipments 1.Water
pollution
equipment:
2.Air
pollution
equipment:
T otal:
4. Other fixed assets (please specify)
Grand Total
89
14 Name of the Term Loan lending Financial
Institution/Bank
1. Date of loan sanction
2. Amount of loan sanction
3. Amount of loan release
4. Date of first loan release
I/We hereby certify that the particulars given above are to the best of my/our knowledge
and belief are true and correct.
Place :
Date : Signature(s)
Name & Designation
(with seal of the company)
90
ANNEXURE-26
FIXED INVESTMENT CERTIFICATE FROM BANK / FINANCIAL INSTITUTION FOR

SANCTION OF ETP UNDER 2014-19 INDUSTRIAL POLICY
M/s -------------------------------------- of (location of the unit)--------------------------------------------------------have been

disbursed as on this date amount under the loan amounting to Rs.-------------------- sanctioned under letter No.----------
----------- Dated:------------- as shown below:
a) Term loan sanctioned Date: Amount in Rs.
b) Loan amount disbursed on (Mention all dates) Date: Amount in Rs.

i.
ii.
iii.
Total amount disbursed till date
c) Value of investment in fixed assets. As per project Actual investment
appraisal (Rs.) (mention period)
(Rs. )
A) Land (excluding lease hold) :
i. For entire unit excluding ETP
ii. For ETP only
B) Building (excluding residential,
quarters, guest houses) :
ii. For ETP only
C) Plant and Machinery :
ii. For ETP only
D) Other Assets( please specify) :
ii. For ETP only
Certified that the sanction of financial assistance to M/s--------------------------------------- for the plant at ----
---------------- has been considered on the basis of the company's assessed requirement of factory buildings and
the cost is estimated at Rs.-------------------- as per the project report.
We certify that this investment certificate is issued after verifying the bills and vouchers made available
by the unit for purposes of release of term loan instalments and based on the physical verification of the
inspecting officers. Items for which subsidy is not admissible are not included in the investment certified above.
We further certify that the investment made after 01/10/2014 are included.
We are in possession of relevant bills and vouchers on which this investment certificate is issued and
we agree to make available the same as and when required for any verification purpose before the loan liability
is discharged.
91
NOTE:
1. Please specify the period during which investment has been made on land, building
and plant & machinery
2. Please furnish the list of machineries with corresponding value
3. The investment made on old machineries/building should be excluded
4. Investment made earlier to the date of eligibility for subsidy should not be included
Signature of the Branch Manager
Place: (Name of the Institution)

Date:
//Seal//
92
ANNEXURE-27
CHARTERED ACCOUNTANT CERTIFICATE FOR SANCTION OF ETP

UNDER 2014-19INDUSTRIAL POLICY
Name of the Chartered Accountant …………………………………...

We hereby certify that M/s………………………………… ……………….(name of the industrial enterprise) has
acquired the following fixed assets up to -------------- for the enterprise at ------------(address) for manufacture of --------
----------------------------- (name of products).
Item of fixed assets Period during which investment Value in

is made(date of payment) Rs.
1.Land
i) For entire enterprise excluding ETP
ii) For ETP only
2. Factory building (please specify p eriod)
a. Amount paid to the From To
building contractors
b. Amount paid for building From To
materials
c. Amount paid for wages and From To
Salaries etc, for the building
constructions
( excluding architect’s fees and wages paid for supervision staff etc)
ii) For ETP only:

a. Amount paid to the From To
building contractors
b. Amount paid for building materials From To
c. Amount paid for wages and From To
Salaries etc. for the Building
constructions
4. Electrical installations (excluding KEB deposits)
ii) For ETP only
5. Plant a nd Machinery
ii) For ETP only
a) Water pollution equipment:
b) Air pollution equipment:
TOTAL
93
6. Loading, unloading, transportation, erection expenses etc.
ii) For ETP only
7. Misc. fixed assets (Please specify items)
ii) For ETP only
We have checked the books of account of the enterprise, bills, invoices and payment
vouchers, etc. and certify that the aforesaid information is verified and certified to be
true. We also certify that all the aforesaid items have been duly paid for and no credit is
raised against them in the books of the enterprise.
Certified that the investments certified above do not include items for which subsidy is
not allowed. Expenditure incurred on following items are not included.
A. LAND
i) Value of the open land not utilized for construction, leaving the area proposed for
immediate expansion.
ii) Expenditure incurred for land scraping for beautification and expenditure on
unsuccessful open wells/bore wells.
B. BUILDING
i) Expenditure on unproductive construction like guest house, workers/staff quarters,
canteens, cycle/scooter stands, garages, etc.
ii) Expenditure incurred on beautification of buildings, arches, decorative lights
including street lights, furniture and air conditioners, water coolers, refrigerators
such of the gadgets not directly connected with production.
iii) Expenditure incurred on the purchase of old buildings.
C. PLANT AND MACHINERY
i) All consumable materials like tool bits, files, oils, etc.
ii) Investments on tools jigs/fixtures, moulds etc. which are required repeatedly,
should not be allowed for the second time and onwards. While considering the
investments made on first purchases, only the required quantify of such items are to
be allowed. Extra quantities taken as spares are not to be allowed.
iii) Second hand machines purchased shall not be included.
Date :
Place :
CHARTERED ACCOUNTANT
Name and address and Code No.
// SEAL //
94
ANNEXURE-28
ANNEXURE-29
CHARTERED ENGINEERS/ARCHITECT'S CERTIFICATE FOR SANCTION OF ETP

I, hereby certify that as against the estimated cost of Rs............................(Rupees)........................ of the building
and civil works for M/s................................................. for their proposed project at Plot No. ...............................
the unit has so far completed the civil works as under.
01 Value of completed civil works as per estimates Rs.

ii. For ETP only
02 Amount certified for payment to the building Rs.
contractors (civil and structural)
ii. For ETP only
03 Retention Money (for civil contractor) Rs.
ii. For ETP only
04 Value of materials utilised for the completed Rs.
portion of the building
ii. For ETP only
The value of completed building certified above does not involve the area built for guest house and
residential building in the factory site.
It is further certified that built area? of the building is absolutely essential for the manufacturing/processing
activity of the industry. A detailed estimate sheet is appended to this certificate.
Place: //seal// Signature and

Date: full address
95
ANNEXURE-28
ANNEXURE-29
No……………………….. Office of the ..............,

Dt:…………..
CAPITAL SUBSIDY SANCTION ORDER FOR EFFLUENT TREATMENT PLANT (ETP)
Sub: Sanction of Capital Subsidy to M/s. ………………………….

Manufacturing ……………………………………. Product
Ref: 1. Your application for Investment Subsidy received on ……
2. Government Order No. CI/58/SPI/2013 dtd: 01.10.2014
><><><
We are pleased to inform you that the District Level Committee/State Level Committee for
sanction of capital subsidy for ETP in its meeting held on …………….. has sanctioned a subsidy
of Rs. ……………(Rs. …………. only) to your enterprise at ……………………………….. on the
basis of the investment made by your enterprise on Water Pollution Control and /or Air Pollution
Control equipments and its fixed assets. The committee has accepted the investment as
detailed below:
a) Land Rs.
b) Building Rs.
c) Plant and Machineries
i. Air pollution control equipments
ii. Water pollution control equipments
Total of c: Rs.
d) Erection/Electrification / transportation, etc. Rs.
e) Others Rs.
Grand Total (a+b+c+d+e) Rs.
Accordingly, the amount of capital subsidy to which you are eligible is determined at Rs.
……………….. (Rs………………… only) at 50%/75% of the above investment under 2014-19
Industrial Policy and limited to Rs. ………………….
You shall have to execute an agreement and draft of which is enclosed to this sanction
executed by the proprietor in case of proprietary concern, by one or more Directors duly
authorized by the Board of Directors of the company. The execution of the agreement should be
force and not revoked as on the date of execution of the agreement, should be furnished.
Erasures, if any, should be properly attested. No blank should be left in the agreement
form.
The above agreement should be executed in the presence of Officer In charge, District
96
ANNEXURE-28
ANNEXURE-29
Industries Centre/Joint Director (ID).
97
The sanction of this capital subsidy is subject to following conditions.
If the State Government is satisfied that the 50% capital subsidy has been obtained by
misrepresentation of the essential facts, furnishing of false information or if the enterprise goes
out of production within one year after receipt of subsidy, the State Government shall have the
right to claim refund of the capital subsidy of Rs…………… sanctioned, together with interest as
the State Government may charge.
The grantee shall not change the location of the whole or any part of the industrial enterprise or
effect any contraction or disposal of a part of its total fixed capital investment within a period of
one year after the enterprise receives this grant.
In the event of the capital subsidy being sanctioned, while at a later date found to be not actually
due, the grantee shall refund to Government such portion or whole amount as determined by the
Directorate of Industries and Commerce/Joint Director, District Industries Centre. In the event of
the grantee failing of refund such amount, the same shall be recovered as arrears of land
revenue.
Where the industrial enterprise goes out of production or remains closed without production
activities within one year from the date of receipt of subsidy, except in case where the enterprise
remains out of production for short period extending not more than six months due to reasons
beyond control, such as shortage of raw materials, power etc., the grantee shall refund to
Government the entire subsidy received. If the enterprise fails to refund the subsidy amount, the
same shall be recovered as arrears of land revenue.
The capital subsidy sanctioned herein is in the nature of “Grant-in-aid” and shall not be
construed as a “contract” with Government of Karnataka. The grantee shall not exercise his
right of privity of contract in the matter of release of subsidy by Government of Karnataka, who
shall release the subsidy amount as and when the grantee is eligible for the same, in such
proportions and installments as the Government may regulate. The subsidy sanctioned will be
released only through the concerned Financial Institutions/Banks.
JOINT DIRECTOR (ID)/JOINT DIRECTOR (DIC)
97
ANNEXURE-30
FORMAT FOR UNDERTAKING TO BE EXECUTED FOR ETP/ANCHOR UNIT CAPITAL

SUBSIDY
UNDERTAKING
The undertaking executed this day ------------ 20 --------- by -------- carrying on the
business of ------------------- under the name and style of M/s.-------------------------
hereinafter called the 'Grantee' of the one part in favour of the Governor of Karnataka,
represented by the Director of Industries and Commerce hereinafter called the
Government of other part WITNESSETH.
Whereas District Level Committee/State Level Committee ----------------vide
Order No. ----------- dated: ------------ has sanctioned an Investment Subsidy of Rs. ---
---------- (Rs.----------------------only) under the Government of Karnataka scheme of
Package of Incentives and Concessions (2014-19 Industrial Policy) new Industrial
investment made in the State of Karnataka to the grantee for the purpose of his
enterprise.
In consideration of the grant of Rs.--------------- (Rs. --------------- only) as per the
Order No.---------------- dated: -------------- of the Joint Director (ID)/(DIC) the receipt
whereof the grantee hereby acknowledges, the grantee agrees and covenants as
follows:
(i) If the State Government/Financial Institution concerned is satisfied that the capital
subsidy has been obtained by misrepresentation of essential fact, furnishing false
information after the reimbursement of full subsidy, the State Government/Financial
Institution concerned shall have the right to claim refund of the grant/subsidy of
Rs………….. (Rs……………. Only) paid to the grantee together with such interest
as the State Govt. /Financial Institution concerned may charge.
(ii) In the event of the subsidy being sanctioned, which at later date is found to be not
actually due, the grantee shall refund to Government such portion or the whole
amount as determined by the Joint Director, District Industries Centre/Director of
Industries and Commerce. On failure to do so, such amount shall be recovered by
the Government as arrears of land revenue.
(iii) That this grant shall not be construed as a contract and shall be in the nature of
Grant-in-Aid only and the provisions of the Indian Contract Act or that of Specific
Relief Act or any other relative statutory Acts/Provisions shall not apply in the instant
case.
(iv) That the grantee shall not exercise his right of claiming release/reimbursement of
subsidy amount out-of-turn either directly or through his attorney and that the
decision of the Government in the matter of periodic release based on the
availability of funds shall be final and binding on the grantee.
(v) The Grantee shall undertake to provide employment to local people in accordance
with Dr. Sarojini Mahishi Report and maintain the same atleast for a period of five
years from the date of release of the subsidy amount. In case the unit fails to do so,
it shall bound to return the investment subsidy amount to the Government.
98
SCHEDULE:
Sl. No. Particulars Investment details

(in rupees)
1 Land Rs.
2 Building Rs.
4. Erection/Electrification/ Rs.
transportation etc.
5. Other fixed asse ts (Please specify) Rs.
TOTAL:
In witness whereof the Grantee has set his hand on this ------------------ day of --------------
----------- two thousand ------------------------ first above mentioned.
Witness: Signature of the Grantee
1.
2.
//Common Seal of the Company//
Shall be affixed here
“Attested”
Joint Director (ID)/Joint Director (DIC)
99
ANNEXURE-
100
CERTIFICATE FROM THE BANK REGARDING DATES AND AMOUNT OF TERM
LOAN RELEASED
This is to certify that M/s. (mention name and address of the enterprise) has
been sanctioned term loan of Rs...................... under letter/sanction order No...............
dt..................... The following amounts has been released/disbursed to the enterprise as
follows
Sl. No. Date of release Amount released

in Rs.
1
2
3
4
5
Total
Signature
Place: Name of the Bank Branch
Date: Financial Institution
100
ANNEXURE-32
FORMAT OF CERTIFICATE TO BE ISSUED FROM BANK FOR CLAIMING INTEREST

SUBSIDY UNDER 2014-19 INDUSTRIAL POLICY
Name and Product Name of the Date of Amount of Rate of interest

address of bank sanction of loan released charged by bank
the loan and with dates
enterprise amount
1 2 3 4 5 6
Repayment schedule Amount of principal and Amount of Remarks

interest paid in a interest
year [i.e. financial year] subsidy
admissible
7 8 9 10
Principal Interest Due Principal Interest Date of
amount I I date I I payment
This is to certify that

1. The enterprise has paid the interest for the above period as per the scheduled dates
2. The enterprise has not claimed interest subsidy/ nor paid any upfront subsidy in any of the
Govt. of India/Govt of Karnataka scheme such as CLSS/Interest subsidy scheme to First
generation entrepreneur/ interest subsidy to SC/ST entrepreneur etc.
Name and signature of the

Bank Manager
101
ANNEXURE-
102
FORMAT FOR SANCTION ORDER OF INTEREST SUBSIDY FOR MICRO ENTERPRISES
ON TERM LOAN UNDER 2014-19 POLICY
No…………… Office of the ……………

Date:
Sanction Order
SUB: Sanction of 5%/6% Interest Subsidy for micro enterprises under 2014-19 Industrial
Policy to M/s. ……………………….. for manufacture/process of ……………………
located at ………………….
REF: 1. G.O. No.CI/58/SPI/2013 , dated 01/10/2014
2. Your application for Interest Subsidy received vide letter No. ................. on dated:
.................
********
We are pleased to inform you that the District Level Committee for sanction of Subsidy
for MSMEs, in its …… meeting held on -----------has sanctioned a total Interest Subsidy of Rs.----
----------(Rs----------only) on the basis of interest paid on term loan sanction by M/s.------------------
--- for your enterprise located at --------i.e. Zone 1/2/3/4 other than HK area and Zone 1/2 in HK
area as per 2014-19 Industrial Policy for manufacture/service activity. The Committee has
accepted the interest paid as detailed below:
Sl. Interest paid period Amount Amount of Interest

No. of interest paid subsidy accepted in
in Rs. Rs.
1.
2.
3.
4.
5.
TOTAL:
Accordingly, the amount of Interest Subsidy to which you are eligible is determined at Rs.---------
--------(Rupees------------------only) at 5%/6% of interest paid.
Erasures, if any, should be properly attested. No blank should be left in the agreement form.
Director/ Joint Director, District Industries Centre, …………. .
102
The sanction of this Interest Subsidy is subject to following conditions:
1. In the event of the Interest Subsidy being sanctioned, while at a later date found to be not
actually due, the grantee shall refund to Government such portion or whole amount as
determined by the Directorate of Industries and Commerce/Joint Director, DIC--------. In the
event of the grantee failing to refund such amount, the same shall be recovered as arrears of
land revenue.
2. The Interest Subsidy sanctioned will be released partly/fully depending upon the funds
available.
local people(Kannadigas) in accordance with terms and conditions in the para (t.) (i.) of
industries to provide employment to Kannadigas as stipulated above will be reported to the
concerned DLSWCC/SLSWCC which may recommend for recovery of subsidy sanctioned.
The enterprise is bound to return the subsidy amount to Government.
4. The Interest Subsidy sanctioned herein is in the nature of “Grant-in-aid” and shall not be
right of privities of contract in the matter of release of subsidy by Government of Karnataka, who
proportions and instalments as the Government may regulate.
Joint Director
-------------------
103
ANNEXURE-33A
FORMAT FOR SANCTION ORDER OF INTEREST SUBSIDY FOR MSMEs ON

TECHNOLOGY UPGRADATION LOAN UNDER 2014-19 POLICY
(Letter Head of KCTU)
No……………
Office of the Managing Director
Karnataka Council for Technology
Upgradation, Bengaluru
Date:
Sanction Order
SUB: Sanction of 5% Interest Subsidy for MSME enterprises under 2014-19 Industrial Policy
to M/s. ………………………..for manufacture/process of ……………………located at
………………….
REF: 1. G.O. No.CI/58/SPI/2013 , dated 01/10/201
2.
3.
********
We are pleased to inform you that the Committee for sanction of Subsidy for MSMEs, in
its …… meeting held on -----------has sanctioned an Interest Subsidy of Rs.-------------- (Rs.-------
---only) on the basis of interest paid on technology upgradation loan sanction by --------------------
-(mention name of the bank/financial institution) for your enterprise located at --------i.e. Zone
1/2/3 other than HK area and Zone1/2 in HK area as per 2014-19 Industrial Policy for
manufacture/service activity. The Committee has accepted the interest paid as detailed below:
Sl. Interest paid period Amount Amount of Interest

No. of interest paid subsidy accepted in
in Rs. Rs.
1.
2.
3.
4.
5.
TOTAL:
Accordingly, the amount of Interest Subsidy to which you are eligible is determined at Rs.---------
--------(Rupees------------------only) at 5% of interest paid.
order. The original agreement should be on Stamp paper of Rs.100/-. The agreement should be
Erasures, if any, should be properly attested. No blank should be left in the agreement form.
104
Director/Joint Director, District Industries Centre, …………. ./Managing Director (KCTU)
The sanction of this Interest Subsidy is subject to following conditions:
1. In the event of the Interest Subsidy being sanctioned, while at a later date is found to be
not actually due, the grantee shall refund to Government such portion or whole amount as
determined by the Directorate of Industries and Commerce /Joint Director, DIC--------. In the
event of the grantee failing to refund such amount, the same shall be recovered as arrears of
land revenue.
2. The Interest Subsidy sanctioned will be released partly/fully depending upon the funds
available.
local people(Kannadigas) in accordance with terms and conditions in the para (t.) (i.) of
industries to provide employment to Kannadigas as stipulated above will be reported to the
concerned DLSWCC/SLSWCC which may recommend for recovery of subsidy sanctioned.
The enterprise is bound to return the subsidy amount to Government.
4. The Interest Subsidy sanctioned herein is in the nature of “Grant-in-aid” and shall not be
right of privities of contract in the matter of release of subsidy by Government of Karnataka, who
proportions and instalments as the Government may regulate.
Managing Director Karnataka

Council of Technology
Upgradation
105
ANNEXURE-
106
PRESCRIBED FORMAT FOR ISSUE OF ELECTRICITY DUTY EXEMPTION
CERTIFICATE FOR MICRO, SMALL & MEDIUM MANUFACTURING ENTERPRISES
No:....................... Office of the .............

Date:.........
CERTIFICATE
Sub: Exemption of Certificate or Electricity Tax/Duty to M/s. --

------------------------------------------------------------
Ref: 1. G.O. No:CI/58/SPI/2013, Dt:01.10.2014
2.G.O. No: -------------------------------------- .
3.Energy Dept. Notification No.------------ dt:----
4.Unit Letter No.------------------------- dt:----------------
********
1 This is to certify that M/s. ----------------------------- is a --------------------- enterprise Filed IEM &
acknowledgment issued vide No. -------------------, Dt: ---------------------for Manufacture of “ ---
--------------------------” by Dept. of ------------------------.
2 The enterprise is located at Zone----------- as specified in the Government Order cited at
ref(1) above.
3 The enterprise is categorized as *MSME/Focused Manufacturing Sector and the
*Proprietor/All the partners/All the directors of the enterprise belong to *General/ SC/ST/
Women /Minorities/Backward Class (Category 1 & 2A only)/ Physically challenged/Ex-
serviceman
st
4 The enterprise has started Commercial production on ---------------- as envisaged by the 1
Sale Invoice. Bill No.-------------, Dt: ------------- issued by the enterprise.
5 The enterprise is entitled to avail the exemption from payment of electricity tax/duty from the
date of commencement of Commercial production i.e dt: ---------. for a period of ----------
years as per the Govt. Order and Energy Dept. Notification cited at reference above.
To,
M/s ---------------------------------.
Copy: 1 Superintending Engineer/Executive Engineer/Assistant Executive Engineer

Bescom/Chescom/Hescom/Gescom ------ -------------
2. Office Copy
106
ANNEXURE-35
APPLICATION FOR REIMBURSEMENT OF ISO/ISI/BIS SERIES CERTIFICATION

CHARGES UNDER 2014-19 INDUSTRIAL POLICY
1. Details of Enterprise
a) Name of the Enterprise :
b) Name of the Entrepreneur :
c) Constitution :
d) Office Address :
e) Factory Address :
f) Contact Details (Telephones & Mobile) :
g) E-mail :
h) Website :
2. Product/Products manufactured :
3. IEM(Part -II) No. & Date :
4. Investment (Rs. In lakhs)

a) Plant & Machinery :
b) Total :
5. No. of Persons Employed :
6. Production during last three years( Rs. in

lakhs) :
a)
:
b)
:
c)
107
7. Exports, if any-during last three years
(Rs. in lakhs)
a) :
b) :
:
c)
8. Details about the ISO/ISI/BIS certificates

a) Mention the series of ISO/ISI/BIS :
certification and certifying agency ( copy of
certificate to be enclosed)
b) Date of Issue and Period of Validity :
c) Reimbursement or Grant or Subsidy :

already received, if any, from Central Govt.
or State Govt.
9. Enclosures to be submitted along with the

Application:
a) The copy of the IEM (part-II) (Duly attested copy) :
b) The copy of the ISO/ISI/BIS certificate (duly :

attested copy)
c) Detailed statement of expenses incurred :

for obtaining certificate along with the
copies of invoices & receipts
(As in Annexure-A)
d) Chartered Accountant (CA) certificate in :

proof of investment on plant and
machinery (original) (As in Annexure-B)
e) An affidavit by the Proprietor/ Partner/Director :

of the unit stating that the status of the unit is a
Micro, Small Enterprise and also declaration
stating that this incentive has not availed
earlier from any other Government Agency
(Original). (As in Annexure-C)
:
f) Qualified manual of the Company Duly
certified
108
DECLARATION
I, (full name).................................................................. S/o................................... Managing

Director/ Director/Proprietor/Partner of M/s.......................................................................
.................................................................................................................................................
(company address), do hereby solemnly affirm and declare that the particulars stated above in
the application are true and correct to the best of my knowledge, information and belief. In case
any of the Statement/Information furnished in the application or documents found to be wrong or
incorrect or misleading, I do hereby bind myself and my/our unit to pay to the Government on
demand the full amount received as reimbursement in respect of the above mentioned activity
within 7(seven) days of demand being made to me in writing.
Place: Signature and Seal

Date: (Proprietor/Mg. Partner/Chief Executive)
Note:Your application for incentives will be processed only after you complete all the
Requirements.
For Office Use
Application No:
Remarks:
109
109
ANNEXURE-36
APPLICATION FOR INCENTIVE FOR ADOPTION/TRANSFER OF TECHNOLOGY

c) Constitution :
d) Office Address :
g) E-mail :
h) Website :
3. IEM (Part-II) No. & Date :
4. Investmenet (Rs. In lakh)

b) Total :
6. Production during last three years (Rs. in lakh)

:
a)
:
b)
:
c)
36
363
6
7. Exports, if any-during last three years (Rs. in lakh)
a) :
b) :
:
c)
8. Details of adoption/transfer of technology

:
a) Title of the technology
b) Brief note of Technology :
c) Name of the Organisation from which

technology Adopted :
d) Nature of Licence: Exclusive or Non - :

exclusive
e) Period of licence in years :
f) Total cost of adoption/transfer of :

technology

Application: :
a) The copy of the IEM (part-II) (Duly attested copy)
:
b) The copy of certificates for successful
adoption/transfer of technology issued by
transferor
:
c) An agreement copy between Transferor
and Transferee for adoption/transfer of
technology
d) The copy of ISO/BIS certificate (if any, duly :

attested copy)
e) Detailed statement of expenses incurred

for adoption/transfer of technology along
with the copies of invoices & receipts (As :
in Annexure -D)
111
f) Chartered Accountant (CA) certificate in
machinery (original) (As in Annexure-B)
g) An affidavit by the Proprietor/ Partner/Director

of the unit stating that the status of the unit is a :
Micro, Small Enterprise and also declaration
stating that this incentive has not availed
earlier from any other Government Agency
(Original) (As in Annexure-E)
DECLARATION
.................................................................................................................................................
any of the Statement/Information furnished in the application or documents are found to be
wrong or incorrect or misleading, I do hereby bind myself and my/our unit to pay to the
Government on demand the full amount received as reimbursement in respect of the above
mentioned activity, within 7(seven) days of demand being made to me in writing.

Note: Your application for incentives will be processed only after you complete all the
Requirements.
For Office Use
Application No:
Remarks:
112
112
ANNEXURE-37
APPLICATION FOR CLAIMING INCENTIVES FOR WATER HARVESTING

/CONSERVATION MEASURES UNDER 2014-19 INDUSTRIAL POLICY
c) Constitution :
d) Office Address :
g) E-mail :
h) Website :
4. Investmenet (Rs. In lakhs)

b) Total :
6. Production during last three years (Rs. in

lakh) :
a)
:
b)
:
c)
113
113
7. Exports, if any - during last three years (Rs. in
lakh)
a) :
b) :
:
c)
8. Details of Water Harvesting/Conservation
Measures :
a) The design of the water harvesting
technology :
b) Water storage capacity in case of rain
water harvesting
c) Quantity of proposed water per day & :
reused by waste water recycling/zero
discharge process
d) Whether ground water recharging facility
is provided or not? :
e) Total cost of water harvesting
:

Application:
a) The copy of the IEM (part-II) :
(Duly attested copy)
b) The copy of ISO/BIS certificate (if any, duly :

attested copy)
c) Detailed statement of expenses incurred :

for water harvesting along with the copies
of invoices & receipts (As in Annexure-F)
d) Chartered Engineers Certificate for the :

investment on construction & installation
works for the water harvesting technology
e) Chartered Accountant (CA) certificate in :

machinery (original) (As inAnnexure-B)
f) An affidavit by the Proprietor/ :

Partner/Director of the unit stating that
the status of the unit is a Micro, Small
Enterprise & also declaration stating that
this incentive has not availed earlier from
any other Government Agency (Original)
(As in Annexure-G)
114
DECLARATION
.................................................................................................................................................
mentioned activity within 7(seven) days of demand being made to me in writing.

Note:Your application for incentives will be processed only after you complete all the
Requirements.
For Office Use

Application No:
Remarks:
115
115
ANNEXURE-38
APPLICATION FOR CLAIMING INCENTIVES FOR ADOPTING ENERGY

CONSERVATION MEASURES UNDER 2014-19 INDUSTRIAL POLICY
c) Constitution :
d) Office Address :
g) E-mail :
h) Website :
4. Investmenet (Rs. In lakh)

b) Total :
6. Production during last three years

(Rs. in lakh) :
a)
:
b)
:
c)
116
116
7. Exports, if any-during last three years
(Rs. in lakh)
a) :
b) :
:
c)
8. Details of Energy Conservation Measures
a) Mention the Energy Consumption in last :
three years
b) List the energy conservation measures :
with their scope and advantage (Add
separate page if the space is insufficient)
c) The amount of energy consumption after :

the measures for a period of six months
d) Whether the enterprise is using their :

energy requirement? Yes or No.
e) If the answer is Yes to the above, then :

specify the type of the Non-Conventional
Energy Source used along with their
capacity
f) Total investment on the Energy

Conservation Measures/Use of non- :
conservational energy sources

Application:
a) The copy of the IEM (part-II) :
(Duly attested copy)
b) The copy of ISO/BIS certificate (if any, duly :

attested copy)
c) A certificate from the Chartered Engineer :
d) A certificate from the Bureau of Energy :

Efficiency or KREDL regarding the specified
reduction in the energy consumption
e) Detailed statement of expenses incurred :

towards the conservation measures along
with the copies of invoices & receipts
(As in Annexure-H )
117
f) Chartered Accountant (CA) certificate in
rpoof of investment on plant and
machinery (original) (As in Annexure - B)
:
a) An affidavit by the Proprietor/
Partner/Director of the unit stating that
the status of the unit is a Micro, Small
Enterprise and also declaration stating that
this incentive has not availed earlier from
any other Government Agency (Original)
(As in Annexure-I)
DECLARATION
.................................................................................................................................................
mentioned activity within 7(seven) days of demand being made to me in writing.

Note: Your application for incentives will be processed only after you complete all the
Requirements.
For Office Use

Application No:
Remarks:
118
118
ANNEXURE-39
FORMAT FOR SANCTION ORDER OF CAPITAL SUBSIDY FOR ANCHOR

ENTERPRISES
No: I&C/ID/ Date:..............
Sanction Order of Capital Subsidy for Anchor Enterprise
Sub: Sanction of Capital Subsidy to M/s -----------------, ---------------- Taluk, ---------

District, manufacturing of --------------------- product.
Ref: 1. Government Order No:CI/58/SPI/2013, dt:01-10-2014

2. Proposal of the Joint Director, DIC, ----------, dt:------------
3. Proceedings of the ------- meeting of the State Level Committee held on ---
-------------
><><><
It is to inform you that the Committee for sanction of Anchor unit Subsidy in its --------- meeting
held has sanctioned capital subsidy of Rs.----------- lakh (Rs. ----------------only) to your
enterprise at ---------- Taluk (Zone---------), ------------ District, on the basis of the investment
made by on fixed assets and as certified by the Joint Director, DIC, ------------- that yours is the --
----------- manufacturing enterprise in ----------- Taluk with an investment of Rs.------------ crores
and employment of above --------------persons. The committee has accepted the investment
made in fixed assets as detailed below.
Sl. Amount
Particulars
No. (Rs. in crore)
1 Land
2 Building and civil works
4 Others
Total
Accordingly, the amount of Anchor Unit Subsidy to which your enterprise is eligible is
determined as Rs.---------- lakh (Rs. -------------- only) in accordance with the Industrial Policy
2014-19 and Limited to Rs. -------------------------
You shall have to execute an agreement, the draft of which is enclosed to this sanction
executed by one or more Directors duly authorized by the Board of Directors of the company.
The execution of the agreement should be under the common seal of the company.
Erasures, if any, should be properly attested. No blank should be left in the Agreement.
The above agreement should be executed in the presence of Joint Director (DIC)------
District/Joint Director (ID).
119
119
The sanction of this capital subsidy is subject to the following conditions:-
If the State Government is satisfied that the Capital Subsidy has been obtained by mis-
representation of the essential facts, furnishing of false information or if the enterprise goes out
of production within one year after receipt of subsidy, the State Government shall have the right
to claim refund of the capital subsidy of Rs.---------lakh (Rs.-----------------only) sanctioned,
together with interest as the State Government may charge.
The grantee shall not change the location of the whole or any part of the industrial enterprise
or effect any contraction or disposal of a part of its total fixed capital investment within a period of
one year after the enterprise receives this grant.
In the event of the capital subsidy being sanctioned, while at a later date found to be not
actually due, the grantee shall refund to Government such portion or whole amount as
determined by the Directorate of Industries and Commerce/Joint Director, District Industries
Centre, ------------. In the event of the grantee failing to refund such amount, the same shall be
recovered as arrears of land revenue.
Where the industrial enterprise goes out of production or remains closed without production
activities within one year from the date of receipt of subsidy, except in case where the enterprise
remain out of production for short period extending not more than six months due to reasons
beyond control, such as shortage of raw materials, power etc. the grantee shall refund to
Government the entire subsidy received. If the enterprise fails to refund the subsidy amount the
same shall be recovered as arrears of land revenue.
The capital subsidy sanctioned herein is in the nature of “Grant-in-aid” and shall not be
right of privity of contract in the matter of release of subsidy by Government of Karnataka, who
proportions and instalments as the Government may regulate. The subsidy sanctioned will be
released directly through NEFT/RTGS to the concerned Financial Institutions/Banks.
Joint Director (ID)

& Member Secretary SLC (Anchor unit)
120
ANNEXURE-A
DETAILED STATEMENT OF EXPENDITURE INCURRED FOR OBTAINING ISO/ISI/BIS

CERTIFICATES
As per the documents and records pf M/s.----------------------------------------------- with

registered office at ----------------------------------------------- ------------------------------- and factory is
located at----------------------------------------------------------------------------------------- and IEM/SSI
registration number:------------------------------------------------------ Dated:-----------------------------.
The enterprise has incurred a total expenditure of Rs.----------------------------------- (Rs.----------
------------------------------------------only) towards the application fee, assessment/audit
fee/licence fee, training, calibration and technical consultancy charges etc. for acquiring
ISO/ISI/BIS certificate from the Certifying Agency viz.---------------------------------------------------.
The categorisation of expenditure is as follows:

Sl. No. Details of Payment Certifying Agency/ Amount (Rs.) Remarks
Organisation
a) Application Fee
b) Assessment/Audit
Fee
c) Annual/Licence Fee
d) Calibratio n/Testing
Charges
e) Technical Consultancy
Charges
f) Training Expenses
Total
(Note: The above details of payment must be supported by the duly attested copies of invoices
and receipts of payment made towards acquiring the ISO/ISI/BIS series certificates)
121
ANNEXURE-B
CHARTERED ACCOUNTANT (CA) CERTIFICATE IN INVESTMENT ON PLANT &

MACHINERY
(ON C.A. LETTER HEAD)
To Whomsoever it may Concern
Verified from the Books of Accounts of M/s. ,

with their Regd. Office at
and factory located at ,
and E.M. No.: dated: that the total
investment on Plant and Machinery (original purchase value) of the company as on date of
Application i.e. on or 31st March of Preceding financial year
stands as Rs. (Rs. ).
Name & Signature of the Chartered Accountant

with Stamp and Membership
Number
Place:
Date:
122
ANNEXURE-C
AFFIDAVIT TO BE SUBMITTED FOR CLAIMING REIMBURSEMENT OF ISO/SIS/BIS

CERTIFICATION CHARGES
I, , S/o. Sri. aged years,

Managing Director/Director/Proprietor/Partner, *M/s. , with their
Regd. Office at and factory located at
______________________________________________________, with E.M. No.:
dated: do hereby solemnly affirm and
declare as under:
The Company/Firm/Establishment is Micro/Small/Medium Enterprises* unit as per the
Government of India definition; and has been functional and in production at the time of
acquiring ISO/ISI/BIS Certification No: Date: .
The Company/Firm/Establishment continues to be an Ancillary/Micro/Small/Medium
Enterprises* unit & in production as on date.
As per books of accounts, the total investment (original purchase value) on Plant and
Machinery in the Company/Firm/Establishment* as on is Rs.
(As per Chartered Accountant Certificate dated: to this effect is attached).
(i) That the aforesaid Company/Firm/Establishment(s)* have not availed
reimbursement/subsidy/ grant/incentive* for acquiring, ISO/ISI/BIS Certification under
any Scheme operated by Central Government/State Government/Financial Institution*
etc.Or
(ii) That the aforesaid Company/Firm/Establishment(s)* have claimed and received
reimbursement/subsidy/grant/incentive for acquiring ISO/ISI/BIS Certification
amounting to Rs. (Rs. ) from (Name
of the Central Government/State Government Department/Financial Institution* vide
Draft/Cheque* No: Date: of
(Name of the Bank).
i) That the aforesaid Company/Firm/Establishment(s)* have already applied
(Name of the Central Government/State Government /
Fina ncia l I nst itut ion) * vide application d ated: _____________ _ f or
reimbursement/subsidy/grant/incentive* for acquiring ISO/ISI/BIS Certification.Or
ii) That the aforesaid Company/Firm/Establishment(s)* have not applied to any Central
Government/State Government/Financial Institution (except KCTU, Bengaluru, Govt.
of Karnataka) for reimbursement/subsidy/grant/incentive* for acquiring ISO/ISI/BIS
Certification.
That after availing reimbursement for ISIO/ISI Certification in respect of the
said Company/Firm/Establishment(s)* I shall disclose this fact on behalf of
thesaid Company/Firm/Establishment(s)* at the time of claiming/receiving
reimbursement/subsidy/grant/incentive* if any, under any other similar scheme run by
Central Government/State Government/Financial Institutions* etc.
Signed on this day of Date:
123
DEPONENT
VERIFICATION
I hereby solemnly affirm that the information given above is correct. In case above
declaration is found wrong or incorrect or misleading, I do hereby bind myself and my unit
and undertake to pay to the Government on demand the full amount received as
reimbursement in respect of above mentioned activity, within seven days of the demand
being made to me in writing.
DEPONENT
Place:
Date:
Note:
*Strike out whichever is not applicable.
(Affidavit must be on Stamp Paper of Value of Rs. 20/- duly sworn in before a Public Notary
(Duly affixed with Notary Stamp, Notary Seal and Notary Registration number) or First Class
Magistrate).
124
ANNEXURE-D
DETAILED STATEMENT OF EXPENDITURE INCURRED FOR ADOPTION OF

TECHNOLOGY
As per the documents and records of M/s. ,

with Registered Office at
and factory is located at ,
and EM/SSI Registration number: __________________________ Dated:
. The enterprise has incurred a total expenditure of Rs.
(Rs. only) for adopting Technology from the
Certifying Agency/Organization viz. .
The categorization of expenditure is as follows:
Sl. Details of payments Certifying Agency/ Amount (Rs.) Remarks

No . Organisation
a) Premium Technology Fee

b) Technology Royalty Fee
c) Calibration/Testing Charges
d) Technical Consultancy
Charges
e) Training Expenses
Total
(Note: The above details of payments must be supported by the duly attested copies of invoices and receipt of
payments made towards adopting Technology)

125
ANNEXURE-E
AFFIDAVIT TO BE SUBMITTED FOR CLAIMING REIMBURSEMENT ON TECHNOLOGY

ADOPTION
I, , S/o. Sri. , aged years,
Managing Director/Director/Proprietor/Partner, *M/s. , with
their Regd. Office at and
factory located at , with
E.M. No.: dated: do hereby solemnly
affirm and declare as under:
The Company/Firm/Establishment has been an Ancillary/Micro/Small/Medium Enterprise* as
per the Government of India definition; and has been functional and in production at the time of
adopting Technology with License No: Date: .
The Company/Firm/Establishment continues to be a Ancillary/Micro/Small/Medium Enterprise*
and functional and in production as on date.
As per books of accounts, the total investment (original purchase value) on Plant and Machinery
in the Company/Firm/Establishment* as on is Rs. (As per
Chartered Accountant Certificate dated: to this effect is attached).
i) That the aforesaid Company/Firm/Establishment(s)* have not availed

reimbursement/subsidy/grant/incentive* for adopting Technology under any scheme
operated by Central Government/State Government Department//Financial Institution*
etc.
Or
ii) That the aforesaid Company/Firm/Establishment(s)* have claimed and received
reimbursement/subsidy/grant/incentive for adopting Technology amounting to
Rs. (Rs. ) from (Name of the
Central Government/State Government Department/Financial Institution)* vide
Draft/Cheque* No: Date: of
(Name of the Bank).
i) That the aforesaid Company/Firm/Establishment(s)* have already applied to

(Name of the Central Government/State Government/Financial
Institution)* vide application dated: for reimbursement/subsidy/grant/
incentive* for adopting Technology.
Or
iii) That the aforesaid Company/Firm/Establishment(s)* have not applied to any Central
of Karnataka), for reimbursement/subsidy/grant/incentive* for adopting Technology.
That after availing reimbursement for adopting Technology in respect of the said
Company/Firm/Establishment(s)* I shall disclose this fact on behalf of the said
C om pany/ F irm/E stabli shm ent( s) * at th e t im e of claim ing/r eceiv ing
reimbursement/subsidy/grant/incentive*, if any, under any other similar scheme run by
126
DEPONENT
VERIFICATION
I hereby solemnly affirm that the information given above is correct. In case above declaration is
found wrong or incorrect or misleading, I do hereby bind myself and my unit and undertake to
pay to the Government on demand the full amount received as reimbursement in respect of
above mentioned activity, within seven days of the demand being made to me in writing.
DEPONENT
Place:
Date:
Note:
(Affidavit must be on Stamp Paper of Value of Rs. 20/- duly sworn in before a Public Notary (Duly
affixed with Notary Stamp, Notary Seal and Notary Registration number) or First Class
Magistrate).
127
ANNEXURE-F
DETAILED STATEMENT OF EXPENDITURE INCURRED FOR ADOPTION OF RAIN

WATER HARVESTING TECHNOLOGY/WASTE WATER RECYCLING/ZERO
DISCHARGING
As per the documents and records of M/s. , with Registered Office

at _________________________________________________and f act ory l ocat ed at
____________________ ______ ______________________________, and EM Part-I I number:
Dated: . The enterprise has incurred a total expenditure of Rs.
_ _ _ _ _ _ _ _ _ _ _ ( R s . _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ o n l y ) f o r a d o p t i n g R a i n Wa t e r
Harvesting/Technology/Waste
Water Recycling/Zero Discharging. The categorization of expenditure is as follows:

No. Organisation
a) Pipes fitted for Roof Water
Collection & Filtration
System
b) Roof & Underground Tanks
(Cement/Plastic) Cost
c) Machineries & Equipment
Water Water recycling
Zero Discharging
d) Consultancy Charges
Total
payments made towards adopting rain water harvesting technology/Waste water recycling/Zero discharging).

128
ANNEXURE-G
AFFIDAVIT FOR INCENTIVE ON ADOPTION OF RAIN WATER HARVESTING/WASTE

WATER RECYCLING/ZERO DISCHARGE
I, , S/o. Sri. , aged

years, Inventor/Managing Director/Director/Proprietor/Partner, *M/s. , with
their Regd. Office at and factory
located at , with
The Company/Firm/Establishment is Micro/Small/Medium Enterprise* as per the Government
of India definition; and has been functional and in production at the time of adopting Rain water
harvesting technology/Waster Water Recycling/Zero Discharging.
and functional & in production as on date.
reimbursement/subsidy/grant/incentive* for adopting Rain water harvesting
technology/Waster Water Recycling/Zero Discharging under any scheme operated by
Central Government/State Government /Financial Institution* etc. Or
reimbursement/subsidy/grant/incentive for adopting Rain water harvesting
technology/Waste Water Recycling/Zero Discharging amounting to Rs.
(Rs. ______________) from ________________ (Name of the Central
Government/State Government Department/Financial Institution)* vide Draft/Cheque*
No: Date: of (Name of the
Bank).
________________ (Name of the Central Government/State Government/
Finan cial Institution )* vide app lication dated: ______ ____ ____ f or
reimbursement/subsidy/grant/incentive*, for adopting Rain water harvesting
technology/Waste Water Recycling/Zero Discharging.
Or
of Karnataka), for reimbursement/subsidy/grant/incentive* for adopting Rain water
harvesting technology/Waste Water Recycling/Zero Discharging.
That after availing reimbursement for adopting Rain water harvesting technology/
Waste Water Recycling/Zero Discharging charges in respect of the said
Company/Firm/Establishment(s)*, I shall disclose this fact on behalf of the said
Com pan y/ F i rm / Est a blish m e nt ( s) * at t h e t im e of claim in g/ re ceiv in g
129
DEPONENT
VERIFICATION
I hereby solemnly affirm that the information given above is correct. In case above declaration
is found wrong or incorrect or misleading, I do hereby bind myself and my unit and undertake to
DEPONENT
Place:
Date:
Note:
Magistrate).
130
ANNEXURE-H
DETAILED STATEMENT OF EXPENDITURE INCURRED FOR ADOPTION OF

TECHNOLOGY
As per the documents and records of M/s. ,

with Registered Office at
and factory is located at ,
and EM Part-II number: Dated: . The
enterprise has incurred a total expenditure of Rs. (Rs.
only) for adopting the Energy Conservation measures or the Non-
Conventional Energy/Water conservation measures.
The categorization of expenditure is as follows:

No. Organisation
a) Fixed Investments
b) Supervision Charges
c) Design Charges
d) Consultancy Charges
Total
payments made towards adopting the Energy Conservation Measures and Use of Non-Conventional Energy
Sources).

131
ANNEXURE-I
AFFIDAVIT FOR INCENTIVE ON ADOPTION OF ENERGY CONSERVATION MEASURES
I, , S/o. Sri. , aged

years, Inventor/Managing Director/Director/Proprietor/Partner, * M/s. , with
their Regd. Office at and
factory located at , with
The Company/Firm/Establishment is Micro/Small/Medium Enterprise* as per the Government
of India definition; and has been functional and in production at the time of adopting the Energy
Conservation Measures and Use of Non-Conventional Energy Sources/Water conservation
measures*.
and functional and in production as on date.
reimbursement/subsidy/grant/incentive* for adopting the Energy Conservation
Measures and Use of Non-Conventional Energy Sources under any scheme operated
by Central Government/State Government /Financial Institution* etc.
Or
reimbursement/subsidy/grant/incentive for adopting the Energy Conservation
Measures and Use of Non-Conventional Energy Sources to Rs. (Rs.
) from (Name of the Central Government/
State Government Department/Financial Institution)* vide Draft/Cheque* No:
Date: of (Name of the Bank).
________________ (Name of the Central Government/State Government/
Financial Institution)* vide application dated: for
reimbursement/subsidy/grant/incentive*, for adopting the Energy Conservation
Measures and Use of Non-Conventional Energy Sources/Water Conservation
Measures.
Or
Government/State Government/Financial Institution (except KCTU, Bengaluru, Govt. of
Karnataka), for reimbursement/subsidy/grant/incentive*, for adopting the Energy
Conservation Measures and Use of Non-Conventional Energy Sources/Water
Conservation Measures.
That after availing reimbursement for adopting the Energy Conservation Measures and
Use of Non-Conventional Energy Sources/Water Conservation Measures in respect of
the said Company/Firm/Establishment(s)*, I shall disclose this fact on behalf of the said
C om p a n y/ F i rm / E st a b lis hm e n t (s ) * at t he t im e o f c la im in g/ r e c e iv ing

132
DEPONENT
VERIFICATION
I hereby solemnly affirm that the information given above is correct. In case above declaration is
found wrong or incorrect or misleading, I do hereby bind myself and my unit and undertake to
DEPONENT
Place:
Date:
Note:
133
Magistrate).
134
Guidelines for Export related Incentives & Concessions under the Industrial policy
2014-19
1. Exemption from payment of Entry Tax
For 100% EOUs and other EOUs with minimum export obligation of 50% of their total
turnover, it is proposed to provide 100% exemption from payment of Entry Tax on purchase
of 'Plant & Machinery and Capital Goods' for an initial period of three years from the date of
commencement of project implementation irrespective of zones.
It is proposed to have 100% exemption from payment of Entry Tax on purchase of raw
materials, inputs, component parts & consumables (excluding petroleum products) for an
initial period of five years from the date of commencement of commercial production
irrespective of zones.
Procedure for availing incentives during project implementation :
i) The 100% EOUs & other EOUs with minimum export obligation of 50% of their total turnover,
shall apply to the Joint Director, DICs / Managing Director, VTPC along with the checklist of
documents as below:
a. Request of the unit in their letter head
b. Application in prescribed format — Annexure - 40
c. Copy of 1st purchase order placed for machinery
d. Copy of the Project Report, duly signed by promoter
e. List of plant and machineries and other equipments with their value, required for
implementation of the project
f. Copy of the partnership deed/ Memorandum and Articles of Association/Bye -Laws
g. Copy of Single Window Clearance Committee approval letter, if any
h. Copy of approved building plan
i. Term loan sanction order, if any
j. Possession certificate of KIADB/KSSIDC or lease agreement/Land documents
k. EOU certificate issued from Cochin SEZ office
l. Bank realisation certificate for proof of exports and balance sheets of previous years
m. An undertaking regarding export obligation of more than 50% of the turnover
n. An undertaking providing employment as per Industrial Policy 2014-19
Procedure for availing incentives during Operational phase :
a. Application in prescribed format—Annexure - 40
b. An undertaking regarding export obligation of more than 50% of the turnover
c. Employment details as per Industrial Policy 2014-19
d. Date of 1st sale invoice (date of commercial production)
ii) Joint Directors, DICs / Joint Director, VTPC after having received the applications would
scrutinise as per the checklist above regarding eligibility of the incentives to unit. The date of
commencement of project shall be considered based on the 1st purchase order placed for
purchase of machinery and equipment by the enterprise and shall be the basis for
considering the incentives.
iii) Joint Directors, DICs after verification of claims shall issue entry tax exemption certificates
to the 100% EOUs and other EOUs with minimum export obligation of 50% of their total
turnover in prescribed pro forma for investments having project cost upto Rs. 50.00 crores.
iv) For 100% EOUs and other EOUs with minimum export obligation of 50% of their total
turnover with investments above Rs. 50.00 crores the proposals are to be sent to Managing
Director, VTPC for necessary action.
v) After verification of the claim of the enterprise, the entry tax exemption certificates to 100%
EOUs and other EOUs with minimum export obligation of 50% of their total turnover, shall be
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issued by Commissioner for Industrial Development and Director of Industries and
Commerce & Export Commissioner in the prescribed proforma, as in — Annexure- 41 &
41A.
Quarterly statements to head office
Quarterly statements indicating details of Entry Tax Exemption issued to 100% EOUs and other
EOUs with minimum export obligation of 50% of their total turnover, shall be furnished to
Managing Director, VTPC for consolidation and submission to Directorate of Industries &
Commerce.
2. Refund of Certification Charges
Refund of expenses incurred for obtaining statutory certifications like Conformity Europeenne
(CE), China Compulsory Certificate (CCC), GMP, Phytosanitary, Radiation etc. to the extent of
50% of expenses subject to a maximum of Rs.1.00 lakh per unit
Procedure for availing Refund of Certification Charges
i) The eligible Micro, Small, Medium & Large Enterprises shall apply to the Joint Director, DICs
/ Managing Director, VTPC along with the checklist of documents as below:
a. Application in prescribed format — Annexure-40
b. Copy of compulsory marking certificate
c. Copy of bills and receipts for the expenses incurred for getting the certificate-to be
certified by Chartered Accountant
d. Orders mandating the requirement of the compulsory marking
i) Joint Directors, DICs/Joint Director, VTPC after having received the applications would
scrutinise as per the checklist above regarding eligibility of the incentives to unit.
ii) Managing Director, VTPC after verification of claim of the enterprise shall issue orders for
refund of eligible amount in format—Annexure-42.
Quarterly statements indicating details of cases issued with orders for Refund of Certification
Charges shall be furnished by Managing Director, VTPC to Directorate of Industries &
Commerce.
3. Refund of cost incurred for Export Consultancy / Market Intelligence Studies:
Financial assistance shall be provided to exporters whose annual turnover is less than Rs. 5.00
crore for availing export consultancy by the units towards market intelligence, market studies /
surveys and documentation through recognised consultancy organisations. The assistance
shall be reimbursed to the extent of 50% of the cost subject to a maximum of Rs. 2.00 lakh.
Procedure for availing above incentive
i) The studies by consultancy organisations which have been recognised by the State
Government / Central Government/or Ministry of Commerce, GOI would be considered for
extending incentives.
ii) The eligible Micro, Small, Medium Enterprises shall apply to the Joint Director, DICs /
Managing Director, VTPC along with the checklist of documents as below:
b. Copy of Export Consultancy/Market Intelligence Studies report
c. Copy of bills and receipts for the expenses incurred for obtaining the report as certified
by Chartered Accountant during the said year.
d. Receipt from Consultancy Organisation for having received the consultancy fee.
e. Audited Balance sheet of previous 3 years
iii) Joint Directors, DICs/Joint Director, VTPC after having received the applications, would
scrutinise the proposal as per the checklist above regarding eligibility of the incentives to
unit.
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136
iv) After verification of claim of the enterprise Managing Director, VTPC shall issue orders for
Quarterly statements indicating details of cases issued with orders for Refund of Export
Consultancy/Market Intelligence Studies shall be furnished by Managing Director, VTPC to
Directorate of Industries & Commerce.
4. Brand Promotion and Quality Assurance:
Financial Assistance shall be provided to exporters whose annual turnover is less than Rs. 5.00
crore for setting up of showrooms, warehouse, displays in international department stores,
publicity campaign, testing charges, registration charges, brand promotion and assistance for
contesting anti-dumping litigations. The expenditure towards the above shall be reimbursed to
the extent of 50% of the cost subject to a maximum of Rs. 5.00 lakh.
i) The eligible Micro, Small, Medium Enterprises shall apply to the Joint Director, DICs /
Managing Director, VTPC along with the checklist of documents as below
a. Application in prescribed format —Annexure-40
b. Copy of bills and receipts for the expenses incurred for Brand Promotion / Quality
Assurance certified by Chartered Accountant
c. Receipt of payments made by implementing organisation
d. Audited Balance sheet of previous 3 years
ii) Joint Directors, DICs/Joint Director, VTPC after having received the applications, would
unit.
iii) After verification of claim of the enterprise Managing Director, VTPC shall issue orders for
Quarterly statements indicating details of cases issued with orders of financial assistance for
Brand Promotion / Quality Assurance shall be furnished to Directorate of Industries &
Commerce
5. Refund of fees for potential/individual entrepreneurs incurred for certification
courses on Export – Import Management:
Course fees paid by potential/individual entrepreneurs for acquiring certification in courses on
Export – Import Management conducted by IIFT, New Delhi and FIEO and other recognised
institutions for a minimum duration of four months shall be reimbursed to the extent of 50% of the
fees, subject to a ceiling of Rs. 25,000 per candidate per course.
Procedure for availing above incentives
ii) The eligible Micro, Small, Medium Enterprises shall apply to the Joint Director, DICs/
b. Copy of Selection letter for the course from the recognised institute
c. Copy of Course completion certificate (minimum 4 months duration)
d. Copy of fee receipt issued by the institutions
iii) Joint Directors, DICs / Joint Director, VTPC after having received the applications, would
unit.
iv) After verification of claim of the enterprise Managing Director, VTPC shall issue orders for
refund of eligible amount in format —Annexure - 45.
Half yearly statements to head office
Half yearly statements indicating details of cases issued with orders for refund of certification
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137
courses on Export – Import Management shall be furnished to Directorate of Industries &
Commerce.
6. Support for Establishment of CFSs and other export infrastructure:
Financial support towards establishment of Container Freight Stations (CFSs) and other export
infrastructure like logistic park, pre-harvest and post-harvest technology centers at potential
locations in the State would be provided as Viability Gap Fund. This would entail 25% of cost of
the project subject to a ceiling of Rs. 200 lakh. The setting up of necessary infrastructure would
be encouraged through public private partnership to support exports.
KIADB shall reserve 10/15 acres of land in all industrial areas for allotment to prospective
entrepreneurs for establishment of CFS and other export infrastructure to encourage exports.
The promoter shall bear land cost and meet the required fund in the project cost towards
establishment of CFS.
APMCs of the State would also be provided with financial assistance towards export
infrastructure to promote export in agro and food processing sector. The assistance will not be
provided for the land cost. However, APMCs shall possess required land and bear the gap
towards development of infrastructure.
Viability gap funding of approved projects would be available for one project per proponent/
developer during the policy period.
VTPC shall call for applications on PPP mode from interested proponents having following
criteria –
l Should be in possession of minimum of 10 acres of land adjoining NH / SH.
l Should have experience of minimum of 5 years in commodity exports /operating container
freight stations/warehousing / logistics anywhere in India.
l Should be a company/cooperative society/Limited Liability Partnership (LLP) in existence
of atleast 10 years.
l Should be profit making organization for the last three years
Developer will be selected by following transparent method.
i) The eligible developer/enterprise shall apply to the Joint Director, DICs / Managing Director,
VTPC along with the checklist of documents as below:
a. Application in prescribed format —Annexure - 40
b. Copy of Selection letter under PPP mode.
c. Copy of Agreement / Concession Agreement between the parties (public body- VTPC,
KSIIDC, KIADB, etc & selected private body)
d. Proof of possession of land (Copy of allotment letter / Possession Certificate by KIADB /
ownership title in case of private property)
e. Project report
f. Approval of the project by SLSWCC / DLSWCC / SLEPC
g. Approval for CFS by the competent authorities in the Ministry of Commerce / Customs as
applicable.
h. Undertaking that assets created from viability gap funding would not be disposed off
without the permission of the competent authority.
i. Undertaking that terms and conditions agreed would not be violated.
j. Undertaking to provide local employment as per Industrial Policy
k. Audited Balance sheet of last 3 years
ii) Joint Directors, DICs / Joint Director, VTPC after having received the applications, would
unit.
iii) After verification of claim of the developer/enterprise, Commissioner for Industrial
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Development and Director of Industries and Commerce & Export Commissioner shall issue
orders for sanction of eligible viability gap funding amount on case to case basis.
Yearly statements to head office
Yearly statement indicating details of cases issued with orders for viability gap funding for
establishment of CFSs and other export infrastructure shall be furnished to Directorate of
Industries & Commerce.
7. Support for creation of Export facilitation facilities, R&D and testing service:
One time support to Trade bodies/Associations for creation of Export facilitation, incubation
facilities, R&D and Testing Services etc. would be extended up to Rs.50.00 lakh or 50 percent of
cost whichever is less. The assistance will not be provided for land cost.
i) The eligible Trade bodies/Associations shall apply to the Joint Director, DICs / Managing
Director, VTPC along with the checklist of documents as below:
a. Application in prescribed format – Annexure - 40
b. Copy of the project report with full justification of the projects.
c. Copy of Board approval of prescribed user fee proposed
d. Proof of possession of land / building
e. Approval of the project by SLEPC/competent authority
unit.
iii) After verification of claim of the association/trade body, the Commissioner for Industrial
Development and Director of Industries and Commerce & Export Commissioner
shall issue the sanction order for eligible amount with approval of government in format—
Annexure – 46.
Yearly statement to head office
Yearly statement indicating details of cases issued with orders for support for creation of Export
facilitation facilities, R&D and testing service shall be furnished to Directorate of Industries &
Commerce
8. Market Development Assistance :
Financial assistance would be extended under the scheme as follows:
South American Countries
Assistance up to Rs.1.75 lakh with the following component–wise cap:
i) 75% of the economy Air Fare subject to a maximum limit of Rs. 1.00 lakh
ii) 50% of stall rentals subject to a maximum of Rs. 50,000/- (for Women & SC/ST
entrepreneurs 100% of stall rentals shall be reimbursed subject to maximum Rs. 50,000/-),
50% of freight charges subject to a maximum of Rs. 10,000/-
iii) DA of $100 per day for three working days.
Other Countries
Assistance up to Rs.1.50 lakh with the following component – wise cap:
i) 75% of the economy Air Fare subject to a maximum limit of Rs.75,000/-
ii) 50% of stall rentals subject to a maximum of Rs.50,000/- (for women & SC/ST
entrepreneurs 100% of stall rentals shall be reimbursed subject to maximum Rs.50,000/-)
iii) DA of $100 per day for three working days.
Reverse MDA for visit of overseas delegation to State as per GO No.CI:63:SPI:2013,
dated.15.03.2013 :
Under reverse MDA scheme, financial assistance shall be extended towards economy air fare,
stall rentals and TA / DA for 3 days @ $100 per day to Foreign Nationals / NRIs, individuals and /
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139
or delegations who visits Karnataka for their participation in Exhibition / Trade Fairs, Business
Meets and Market Research etc. subject to a maximum of Rs. 75000/- per delegate.
MDA for participation in International Exhibitions and Trade Fairs held within the country
as per GO No.CI:63:SPI:2013, dated.15.03.2013 :
To extend MDA scheme to delegates/members for their participation in international exhibitions,
trade fairs and B2B meets held within India at the rate of 75% of economy air fare and TA / DA of
Rs. 3000/- for 3 days subject to a maximum of Rs. 10,000/- per delegate. MSME participating in
international trade fairs held in India by taking a stall may also be extended 50% of stall rentals
with a maximum cap of Rs. 25000/- per unit.
Conditions for eligibility:
MDA :
l If the member is part of a delegation supported by State Govt. / VTPC and the expenditure
towards local conveyance and B2B meetings are being arranged, then the members are
eligible only for economy air fare and stall rentals as applicable.
l Each delegation shall not exceed 25 Nos from MSME sectors for overseas visit.
l The weightage would be given for selecting delegates from backward districts in HK1 /
HK2 / Zone 1/2/3/4 etc.
l Journey days are not considered for extending TA / DA.
l A company / unit / individuals are eligible under MDA scheme for a maximum of 4 times in
their lifetime for overseas visits.
l The company can avail the financial assistance under the scheme for visiting only one
event in a particular country, only once in their lifetime.
Reverse MDA :
l The company should have been registered in their respective countries as an enterprises /
business entity
l The delegate should be an executive / employee of the company
l Recommendation letter/Invitation letter from Embassies, Trade associations, Export
promotion councils, commodity boards or any other trade agencies, if any, in requesting to
participate in exhibition/trade fairs, Business meets and Market Research held in
Karnataka.
Procedure for availing Market Development Assistance :
i) The eligible Micro, Small, Medium Enterprises shall apply to the Joint Director, DICs/
b. Undertaking that the unit / company has not availed MDA for the country proposed in the
past.
c. The company / unit has to produce proof of stay at the location along with air travel
(boarding pass) and visa stamped.
d. A report of all business development activities undertaken by the company during the
visit to the trade fair by the unit shall be submitted after completion of the visit.
unit.
refund of eligible amount in format—Annexure – 47, 47A & 47B.
Procedure for availing Reverse Market Development Assistance :
a. The company/unit has to produce proof of stay for the location for which visa is
stamped
b. Copies of the Passport, company profile, company registration certificate, air ticket
(economy class) and boarding pass should be produced.
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c. Recommendation letter / Invitation letter from Embassies, Trade associations, Export
promotion councils, commodity boards or any other trade agencies if any in requesting
to participate in exhibition/trade fairs, Business meets and Market Research held in
Karnataka to be produced.
d. Proof for attending Trade Fair / delegation / Business exploration along with visit notes.
e. Duly filled Proforma as Annexure—40A.
f. Each delegation shall not exceed 25 representatives of MSME sectors
Proposal to be submitted by foreign trade bodies/trade association/Export promotion councils /
commodity boards or any other trade agencies along with above mentioned documents for
availing financial assistance under Reverse MDA
Quarterly statements indicating details of delegations & no. of cases provided Market
Development Assistance shall be furnished to Directorate of Industries & Commerce.
9. Reimbursement of premium paid towards Export Credit Guarantee Insurance:
Financial Assistance shall be provided to the exporters whose annual turnover is less
than Rs. 5.00 crore towards premium paid for Export Credit Guarantee Insurance for exporting
their products to risk prone countries like Africa, Latin America and CIS. The assistance would
be reimbursed to exporters to an extent of 10% premium paid subject to maximum of Rs.
50,000/- per annum.
a. Application in prescribed format – Annexure - 40
b. Copy of Certificate of ECGC premium paid on exports to the risk prone countries during
the year …………..
c. CA certificate for total exports undertaken during the year…………
d. Audited Balance sheet of previous 3 years
ii) Joint Directors, DICs / Joint Director, VTPC after having received the applications would
scrutinise the proposal as per the checklist above regarding eligibility of incentives to the unit
iii) After verification of claim of the company / firm Managing Director, VTPC shall issue
sanction orders for the eligible amount in format —Annexure – 48.
iv) ECGC to provide yearly/half yearly statements of all exporters of Karnataka who have
availed benefits under ECGC insurance schemes to VTPC for obtaining the proposal
from the exporters and also to forecast annual budgetary requirements under the
scheme.
Quarterly statements indicating details of Reimbursement of premium paid towards Export
Credit Guarantee Insurance shall be furnished to Directorate of Industries & Commerce.
10. Financial Assistance for MSME, SC/ST, Artisans and Women Entrepreneurs:
Financial Assistance to MSME, SC/ST, Artisans and Women Entrepreneurs would be extended
for their participation in exhibitions (including Dilli Haat and other Urban Haats) within the State
and outside the State, as follows:
i) Reimbursement of stall rentals up to Rs. 5,000/- within the State and Rs.10,000/- outside the
State
ii) DA of Rs. 100/- (within the State) or Rs. 150/- (outside the State) for two persons per stall for
an exhibition period of maximum 15 days
iii) Second class Railway Ticket for two persons per stall
Selection of eligible candidates for financial assistance shall be made on first come, first serve
basis and appropriate weightage for the respective categories by a committee.
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141
a. Application in prescribed format–Annexure-40
b. Selection letter issued by VTPC
c. Commodity / goods displayed in stall and details of sales
d. Proof of participation
e. Report on participation and outcome of participation with photos.
unit.
refund of eligible amount in format —Annexure-49.
Quarterly statements indicating details of cases issued with orders for Financial Assistance
for MSME, SC/ST, Artisans and Women Entrepreneurs shall be furnished to Directorate of
Industries & Commerce
11. Support for development of exports in Gherkins, Rose Onions and Floriculture:
It is proposed to provide 10% of the financial assistance for procurement of imported seeds by
exporters and towards training expenses for the farmers for the adoption of scientific methods in
the growth of quality Gherkins, Rose Onion and Floriculture for exports subject to maximum of
Rs. 5.00 lakhs.
A. Procedure for availing Support for development of exports in Gherkins, Rose Onions
and Floriculture :
i) This scheme may be availed by Associations, Trade bodies & Corporates/Enterprises
engaged in contract farming and export of Gherkins, Rose Onions and Floriculture with buy
back arrangements with farmers/growers.
ii) The financial assistance towards training is available for each farmer one time only.
iii) The eligible Associations / Trade bodies / Corporates / Enterprises shall apply to the Joint
Director, DICs / Managing Director, VTPC along with the checklist of documents as below:
a. Application in prescribed format – Annexure-40
b. Copy of invoices and cost incurred towards import of seeds
c. Total cost incurred on import of seeds duly certified by CA
d. Cost incurred towards training of farmers with details duly attested by CA
e. Copies of contract farming agreements with farmers
f. Proof of training given to the farmers
g. Attendance sheets of training given to farmers
h. Proof of exports undertaken by Associations/Trade bodies/Corporates/Enterprises with
the value addition for the seeds imported.
iv) Joint Directors, DICs/Joint Director, VTPC after having received the applications, would
unit.
v) After verification of claim of the associations/trade bodies/Corporates/Enterprises , the
Managing Director, VTPC shall issue orders for financial assistance of eligible amount in
format —Annexure – 50.
Quarterly statements indicating details of cases issued with orders for Support for development
of exports in Gherkins, Rose Onions and Floriculture shall be furnished to Directorate of
Industries & Commerce.
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Annexure – 40
Application for Export Related Incentives & Concessions under
Industrial Policy 2014-19
1. Name of the incentive & concessions

applied for
2. Name of the Firm/Organisation
3. Constitution of the Firm Ltd./ Pvt. Ltd./ Partnership/Proprietorship/

Organisation registered under societies act
/Others
(Please tick)
4. Name of contact person

Mobile No.
5. Address (For Communication)
6. Address (Registered Office)
7. Address (Works / Factory)
8. Location of the unit Zone 1/2/3/4/HK1/HK2
9. Whether SC/ST/ General/Women

Entrepreneurs/Artisan category
10. Telephone No: Office

Works
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11. Fax : ..............................................................
12. Website :
..............................................................
13. E mail ID :
..............................................................
14. Year of Establishment :
..............................................................
15. Nature of business: (please tick) :
...............................................................
a) Manufacturer
b) Trader Micro/Small/Medium & Large
c) Service Provider Enterprises/EOUs/Others
d) Association/Trade bodies
16. Products Manufactured
17. Commodities Exported
18. Countries to where exports are made
19. Financial Information:
a) Paid up capital :
b) Authorised Capital :
c) Annual Turnover (Previous financial year) :
20. Production during last three years

(Rs. in lakh)
a) :
b) :
c) :
21. Exports, if any – during last three years
a) :
b) :
c) :
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20. Composition of Sales
a) Domestic : Rs..................................%.................
b) Exports :
Rs..................................%.................
c) Others :
Rs..................................%.................
d) Total :
Rs..................................%.................
21. No. Of Employees
a) Managerial :
b) Workers :
22. Please provide the following details as applicable (Enclose Photo copy of the Document)
a) IEC Code : ...........................................................
b) VAT/TIN No. : ...........................................................
c) CST : ...........................................................
d) PAN No : ...........................................................
e) Service Tax No. : ...........................................................
f) IEM Copy/SIA Approvals : ...........................................................
g) Trade License No. : ...........................................................
h) VTPC Membership No. : ...........................................................
i) Other Professional Membership details : ...........................................................
j) Name of the Bankers : ...........................................................
k) Any other detail : ...........................................................
23. Brief information on Export activities/Business :
Documents to be attached to the application

a) Copy of the IEC Certificate
b) Copy of the TIN No./VAT Registration Certificate
c) Copy of the PAN
d) Copy of the Service Tax Registration Certificate
e) Copy of the IEM Copy/SIA Approvals
f) Copy of the Trade License No.
g) Copy of the EOU Certificate issued by Cochin SEZ
h) Copies of last 3 years balance sheet
i) Bank realisation certificate for proof of exports
j) Copies of caste certificate for SC/ST Entrepreneurs
144
DECLARATION
I, (full name) ………………………………S/o …………………………Managing Director /

Director/Proprietor/Partner of M/s ……………………………………………………………..
(complete address), do hereby solemnly affirm and declare that the particulars stated above
in the application are true and correct to the best of my knowledge, information and belief.
In case any of the statement/information furnished in the application or documents are
found to be wrong or incorrect or misleading, I do hereby bind myself and my / our unit to
pay to the Government on demand the full amount received as exemption / reimbursement in
espect of the above mentioned activity, within 7 (seven) days of demand being made to me in
writing.
Place........................
Date......................… Signature andSeal
(Proprietor/Mg. Partner/Chief Executive)
Note: Your application for Incentive will be processed only after you have completed
all the requirements.
For Office Use
Application No :
Remarks :
145
Annexure-40A
Application for MDA and Reverse MDA
Ref. No. Date

1 Name of the Firm with Full Address
2 Approval Letter No. and date from VTPC

3 Whether Medium / Small / Micro / small merchant
exporters.
(Please attach self-certified copy of MSME Registration,
where applicable and self-certified IEC copy)
4 Date of VAT Registration
5 Date of Obtaining PAN Number
6 Date of Service TAX Registration
7 FOB value of exports during last three years, year Year (Rs. in lakh)
wise (if any)
8 Particulars of fair/exhibition/buyer – Name:
seller meets Place:
Duration of event
From To
9 Details of the organisers of the event like ITPO/EPCs
/ other recognised agencies
I 10 I Date of actual departure from India Date
(Pls. attach photocopy of Passport duly highlighting
date of departure)
(Vice - Versa for Reverse MDA)
11 Date of actual Arrival to India after completing the Date

event (Pls. attach photocopy of Passport duly
highlighting date of Arrival )
(Vice - Versa for Reverse MDA)
12 Name & Designation of Person who attended the
fair / exhibition along with passport particulars/No.
13 No. of claims taken under MDA from State
Government and Date of releases.
14 Are you a Member of VTPC Yes / No
If yes please mention VTPC
Membership Number.
15 IEC Code
16 Products exported and to which countries products
are exported
17 Annual Turnover of the previous year
146
18 Whether the organisation has been charged/
prosecuted/debarred/blacklisted under
investigation under Export & Import Policy of India
or any other law framed by Govt. of India relating to
export and import business?
19 Whether assistance availed from other Govt. Bodies / Yes / No

EPCs/Commodity Boards/Authorities etc. for the
activity under reference.(if yes, please give full details)
20 Expenditure incurred
a. Actual return air fare by economy class Rs.
b. Actual expenditure incurred on space rent, if any
(please enclose the original air ticket / boarding pass
along with self certified photocopies of receipt, bank
advice etc. for payment towards space rent. Rs.
c. TA / DA Total (a + b + C)
21 Amount claimed Rs.
DECLARATION
I solemnly declare that the particulars given in the above statement are correct, I also
undertake that any financial assistance granted to us on the basis of this declaration shall be
liable to be refunded to VTPC, if at any time, any information furnished in this application/
declaration is found to be wrong or incorrect or misleading.
Place........................
Date......................… Signature & Seal
(Name and Designation)
Check List:
1. Copy of Air ticket

2. Copy of VISA, Passport, Boarding Passes
3. Copy of Firm Registration
4. Copy of Invitation letter informing to participate in the International Trade fairs/
B2B meetings
5. Detailed report on participation highlighting impact on exports / business prospects.
147
ANNEXURE-41
Entry Tax Exemption Certificate to 100% EOUs & other EOUs with minimum export
obligation of 50% of their total turnover for procurement of plant and machinery and
capital goods as per 2014-19 policy
No............. Date: ............

CERTIFICATE
Sub: Exemption of Entry Tax to 100% EOU enterprise/other EOUs
to M/s. ...............................
Ref: 1. G.O. No. CI. 58.SPI.2013 Dated: 01.10.2014.
2. F.D. Notification No. FD:01:CET:2015 dated. 23.04.2015
3. Letter from Joint Director, DIC/Joint Director, VTPC ...........
4. Application of the unit M/s. .......................... dated: ...............
1) M/s. .............................................................. is a Micro/Small/Medium/Large Enterprises

located at ............................................... taluk, ................................District.
2) The enterprise is registered vide No. ............................. Dated: ........................ for

manufacture of .................................. with GOI/GOK.
3) The enterprise is located at zone 1/2/3 /4/HK1/HK2 as classified in the Govt.Order cited at
ref(1) above.
4) The enterprise is registered as 100% EOU vide No. …………. dtd: with Development
Commissioner......................, Government of India.
5) The enterprise is eligible for 100% Entry Tax Exemption on Plant and Machinery and on
Capital goods for a period of 3 years from..................... i.e. the date of commencement of
project implementation as envisaged by the purchase order No. .......................... dated:
................................
6) This Certificate is issued as per the Govt. Orders cited at reference (1) & (2) above.
7) This sanction is subject to fulfilling –

a. Local employment criteria as per Industrial Policy 2014-19
b. Export obligation of minimum 50% of its total turnover
JD, DICs/Commissioner for Industrial

Development and Director of Industries
and Commerce & Export Commissioner
148
ANNEXURE-41A
Entry Tax Exemption Certificate to 100% EOUs & other EOUs with minimum export
obligation of 50% of their total turnover on purchase of raw materials, inputs,
components and consumables (excluding petroleum products) as per 2014-19 policy
No............. Date: ............
CERTIFICATE
Sub: Exemption of Entry Tax to 100% EOU enterprise/other EOUs
to M/s...........................
2. F.D. Notification No. FD:01:CET:2015 dated.23.04.2015
3. Letter from Joint Director, DIC/Joint Director, VTPC .......
4. Application of the unit M/s. .......................... dated: ..........

1) M/s. .............................................................. is a Micro/Small/Medium/Large Enterprises
located at ............................................... taluk, ................................District.
3) The enterprise is located at zone 1/2/3 /4/HK1/HK2 as classified in the Govt.Order cited at
ref(1) above.
4) The enterprise is registered as 100% EOU vide No. …………. dtd: with Development
Commissioner .........................., Government of India.
5) The enterprise is eligible for 100% entry tax exemption on the entry of any goods for use as
raw materials, inputs, component parts and consumables (excluding petroleum products
like crude oil, petrol, diesel, super light diesel oil, bitumen tar, furnace oil, break fuel or
clutch fluid, transformer oil, coolants, white oil, hexane, lubricating oil, petroleum jelly,
naphtha and LSHS used as consumables or for captive power generation enterprises) for
a period of 5 years from..................i.e. the date of commencement of commercial
production, as envisaged by the first sale Invoice/Bill No...................................... dated:
............................
6) This Certificate is issued as per the Govt. Orders cited at reference (1) & (2) above.
7) This sanction is subject to fulfilling –
a. Local employment criteria as per Industrial Policy 2014-19
b. Export obligation of minimum 50% of its total turnover
JD, DICs/ Commissioner for Industrial

Development and Director of Industries
and Commerce & Export Commissioner
149
ANNEXURE-42
Refund of Certification Charges as per 2014-19 Industrial Policy
No............. Date: ............

OFFICE ORDER
Sub: Refund of Certification Charges to Micro, Small, Medium &
Large Enterprises
2. Letter from Joint Director, DIC/ Joint Director, VTPC ...........
1) M/s. ...............................................is a Micro/Small/Medium/Large Enterprises located at

..........................................taluk, ................................ District.

3) The enterprise is located at zone 1 / 2/3 /4 HK1/HK2 as classified in the Govt. Order cited at
ref(1) above.
4) M/s ............................... has incurred a total expenditure of Rs. ........................ for

obtaining statutory certifications like Conformity Europeenne (CE), China Compulsory
Certificate (CCC), GMP, Phytosanitary, Radiation etc. as per the Industrial Policy cited
under ref (1)
5) The unit is hereby accorded sanction for an amount of Rs. ..................being 50% of the
expenses subject to a maximum of Rs. 1 lakh towards obtaining statutory certificates
viz.................
6) This sanction is subject to fulfilling of local employment criteria as per Industrial Policy
2014-19.
Managing Director, VTPC
150
ANNEXURE-43
Refund of cost incurred for Export Consultancy/Market Intelligence studies

as per 2014-19 Industrial Policy
No............. Date: ............

OFFICE ORDER
Sub: Refund of costs incurred for Export consultancy/Market
intelligence studies to M/s.................................
Ref: 1. G.O. No. CI. 58.SPI.2013 Dated: 01.10.2014
1) M/s. .............................................................. is a Micro/Small/Medium Enterprises located

at ............................................... taluk, ................................ District.

manufacture of .................................. with GOI/GOK
3) The enterprise is located at zone 1/2/3/4/HK1/HK2 as classified in the Govt. Order cited at
ref(1) above.
4) M/s .................................................has incurred a total expenditure of Rs..........................

towards cost for Export consultancy/market intelligence studies
expenses towards export consultancy by the unit towards market intelligence, market
studies/surveys and documentation through recognised consultancy organisations subject
to a maximum of Rs. 2 lakh
2014-19.
151
ANNEXURE-44
Financial Assistance for Brand Promotion and Quality Assurance

No............. Date: ............
OFFICE ORDER
Sub: Financial Assistance for Brand Promotion and Quality
Assurance to M/s. ................................
Ref: 1. G.O. No. CI. 58.SPI.2013 Dated: 01.10.2014
1) M/s. ......................................................is a Micro/Small/Medium Enterprises located at

........................................... taluk, ................................ District.

manufacture of .................................. with GOI/GOK
3) The enterprise is located at zone 1/2/3/4/HK1/HK2 as classified in the Govt. Order cited at
ref(1) above.
4) M/s...............................................has incurred a total expenditure of Rs......................

towards Financial Assistance for Brand Promotion and Quality Assurance
expenses towards setting up of showrooms, warehouse, displays in international
department stores, publicity campaign, testing charges, registration charges, brand
promotion and assistance for contesting anti-dumping litigations, subject to a maximum of
Rs. 5.00 lakh.
2014-19.
152
ANNEXURE-45
Refund of fees incurred by Potential/individual Entrepreneurs for certification courses

on Export-Import management as per 2014-19 Industrial Policy
No............. Date: ............

OFFICE ORDER
Sub: Refund of fees for Certification Courses on Export-Import
management to M/s. ................................
2. Letter from Joint Director, DIC/ Joint Director, VTPC .......
3. Application of the unit M/s. .......................... dated: .........
1) M/s. .......................................... is a Micro/Small/Medium Enterprises located at
...................................... taluk, ................................ District.

3) The enterprise is located at Zone 1/2/3 /4/HK1/HK2 as classified in the Govt. Order cited at
ref(1) above.
4) M/s.........................................has incurred a total expenditure of Rs............................

towards cost incurred for certification course on Export-Import management
expenses towards reimbursement of 50% of the course fees, subject to a ceiling of Rs.
25,000 per candidate per course
153
ANNEXURE-46
Support for creation of Export Facilitation Facilities, R&D and Testing Service
No............. Date: ............

OFFICE ORDER
Sub: Support for creation of Export Facilitation Facilities, R&D and
Testing Service to ................................
3. Application of the unit M/s. .......................... dated: .............

1) M/s....................................................... is a Trade body/Association located at
.................................... taluk, ................................ District.
2) The organisation is located at Zone 1/2/3 /4/HK1/HK2 as classified in the Govt.

Order cited at ref(1) above.
3) The organisation has ........................... no. of exporters as its members
4) M/s.....................................has incurred a total expenditure of Rs..................

towards support for creation of Export Facilitation Facilities, R&D and Testing
Service
5) The unit is hereby accorded sanction for an amount of Rs. ..................being 50% of
the cost subject to a maximum of Rs. 50.00 Lakhs towards the creation of the
facility.
Commissioner for Industrial Development

and Director of Industries and Commerce &
Export Commissioner
154
ANNEXURE-47
Assistance under Market Development Assistance for South American countries

No............. Date: ............
OFFICE ORDER
Sub: MDA for M/s. ................................
1) M/s. ............................................... is a Micro/Small/Medium Enterprises located at

....................................... taluk, ................................ District.
manufacture of .................................. with GOI GOK.
3) The enterprise is located at Zone 1/ 2/3 /4/HK1/HK2 as classified in the Govt. Order cited at
ref(1) above.
4) The unit is promoted by General Entrepreneurs/SC/ST/Women.
5) M/s........................... has incurred a total expenditure of Rs. ................. towards :
i. Economy air fare Rs............ to ............... country (South American countries)
ii. Stall rentals Rs................
iii. Freight charges towards prototypes / samples Rs.................
iv. DA/Halting expenditure of Rs....................
The above have been verified from the expenditure statement certified by the chartered
accountant.
6) The unit is eligible for assistance of Rs.................. under MDA subject to maximum
of Rs. 1.75 lakh as follows:
i. 75% of economy air fare limited to Rs. 1 lakh
ii. 50% of stall rental limited to Rs. 50000 (For SC/ST and Women Entrepreneurs, stall
rental 100% limited to Rs. 50000)
iii. 50% freight charges limited to Rs. 10000
iv. DA at $100 per day limited to 3 working days.
7) The unit is hereby accorded sanction for an amount of Rs. .................. as per parameters at
sl.no. 6.
2014-19.
155
ANNEXURE-47A
Assistance under Market Development Assistance for all countries except South
America as per 2014-19 Industrial Policy
No............. Date: ............

OFFICE ORDER
Sub: MDA for M/s. ................................
2. Letter from Joint Director, DIC/ Joint Director, VTPC .............
1) M/s. ............................................ is a Micro/Small/Medium Enterprises located at

............................... taluk, ................................ District.
manufacture of .................................. with GOI / GOK.
ref(1) above.
4) The unit is promoted by General Entrepreneurs/SC/ST/Women.
5) M/s........................ has incurred a total expenditure of Rs................... towards :
i. Economy air fare Rs.............. to ................... country. (other than South American
countries)
ii. Stall rentals Rs...................
iii. Freight charges towards prototypes/samples Rs.........................
iv. DA/ Halting expenditure of Rs......................
accountant.
6) The unit is eligible for assistance of Rs.......................under MDA subject to maximum of
Rs. 1.5 lakh as follows:
i. 75% of economy airfare limited to Rs. 75000
ii. 50% of stall rental limited to Rs. 50000 (For SC/ST and Women Entrepreneurs, stall
rental 100% limited to Rs.50000)
iii. 50% freight charges limited to Rs. 10000
iv. DA at $100 per day limited to 3 working days.
7) The unit is hereby accorded sanction for an amount of Rs. .................. as per parameters
at sl.no. 6.
2014-19.
156
ANNEXURE-47B
Assistance under Reverse Market Development Assistance for all countries as per
2014-19 Industrial Policy
No............. Date: ............
OFFICE ORDER
Sub: Reverse MDA for M/s. ................................
1) M/s. .............................................................. is a Micro/Small/Medium Enterprises located

at ...............................................

manufacture of .................................. with Government of ....................
3) M/s............................ has incurred a total expenditure of Rs..................... towards :

i. Economy airfare Rs................... from...................country.
ii. Stall rentals Rs.....................
iii. Freight charges on moving goods Rs.......................
iv. Halting expenditure of Rs....................
accountant.
4) The unit is eligible for assistance of Rs....................under Reverse MDA for economy air
fare, stall rentals and TA / DA for 3 days at $100 per day to Foreign Nationals / NRIs,
individuals and / or delegations who visits Karnataka for their participation in Exhibition /
Trade Fairs, Business Meets and Market Research etc., subject to a maximum of Rs.
75000/- per delegate.
sl.no. 4.
157
ANNEXURE-48
Reimbursement of Export Credit Guarantee Insurance Premium

under 2014-19 policy
No............. Date: ............

OFFICE ORDER
Sub: Reimbursement of Export Credit Guarantee Insurance
Premium to M/s. ................................. for the year..............
1) M/s. ............................................... is a Micro/Small/Medium Enterprises located at

..................................... taluk, ................................ District.

3) The enterprise is located at Zone 1/2/3 /4/ HK1/HK2 as classified in the Govt. Order cited at
ref(1) above.
4) The unit has an export turnover of less than Rs. 5 crores.
5) M/s............................................... has incurred a total expenditure of Rs....................... as

premium paid towards Export Credit Guarantee insurance for export of goods to risk-prone
countries as per the copy of certificate issued by ECGC Regional office vide no...................
dated................
6) The unit is hereby accorded sanction for an amount of Rs. ................. being 10% of Export
Credit Guarantee Insurance premium paid, subject to a limit of Rs. 50000 per annum.
158
ANNEXURE-49
Financial Assistance for MSME/SC/ST/Artisans and Women Entrepreneurs for
participation in exhibitions within and outside the State
No............. Date: ............
OFFICE ORDER
Sub: Financial assistance for M/s. ................................for
participation in exhibitions within and outside the State
1) M/s. .............................................................. is a Micro/Small/Medium Enterprise located
at ............................................... taluk, ................................ District. The enterprise is in
the category of MSME/SC/ST/Artisan/Women.
ref(1) above.
4) M/s .................................... has incurred a total expenditure of Rs. ..................... towards
participation in ........... exhibition in Karnataka/outside Karnataka as follows :
i. Stall rentals Rs.................
ii. Halting expenditure of Rs........................
iii. Travel expenditure of Rs.......................
accountant. The unit is promoted by General Entrepreneurs/SC/ST/Women.
5) The unit is eligible for assistance of Rs....................under the policy as follows:
i. Stall rental of Rs...........limited to Rs. 5000 within state/Rs.10000 outside state
ii. Halting expenses of Rs.......... limited to Rs. 100 per person per day within state and Rs.
150 per person per day outside state, 2 persons and for a maximum of 15 days.
iii. Travel expenses of Rs........... limited to second-class railway tickets for 2 persons per
stall.
sl.no. 5.
159
ANNEXURE-50
Financial assistance for Procurement of Imported Seeds and Training of Farmers in

development of exports of Gherkins, Rose Onions And Floriculture as per
2014-19 Industrial Policy
No.............
Date: ............
OFFICE ORDER
Sub: Financial Assistance for procurement of imported seeds and
training of farmers for developing exports of Gherkins, Rose
Onions and Floriculture to Associations/Trade bodies/
Corporates/Enterprises to M/s. ................................
1) M/s................................................ is an Association/Trade body, Micro/Small/Medium

Enterprises located at ............................ taluk, ........................District.

production and export of Gherkins/Rose Onions/Floriculture with GOI/GOK.
ref(1) above.
4) M/s .........................has incurred a total expenditure of Rs.....................towards :
i. Procurement of ................. kg. of imported seeds from .................country.

ii. Training of ................ number of farmers in adopting scientific methods at ..............
(location in Karnataka).
5) The unit is hereby accorded sanction for an amount of Rs.............. amounting to 10% of the
total expenditure incurred subject to a maximum of Rs. 5.00 lakhs .
160

Karnataka Industrial Policy 2014-19 Operative Guidelines

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Karnataka Industrial Policy 2014-19 Operative Guidelines

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GOVERNMENT OF KARNATAKA

DEPARTMENT OF INDUSTRIES AND COMMERCE

APPROVED VIDE GOVT. LETTER NO: CI 58/SPI/2013 DTD:07/05/2015

SL. NO. PARTICULARS PAGE NO.

1 List of Service Enterprises Eligible for Package of 42

Guidelines for Export Related Incentives & Concessions 134-141

40 Application for Export Related Incentives & Concessions 142 - 145

(i) To maintain an industrial growth rate of 12 % per annum

1.0 DEFINITIONS OF VARIOUS TERMS USED IN THE POLICY

1.01 MICRO ENTERPRISES - Investment up to Rs. 25 lakh

1.04 MICRO ENTERPRISES - Investment up to Rs. 10 lakh

1.08 LARGE PROJECT/ INDUSTRY/ ENTERPRISE:

1.09 MEGA PROJECT/INDUSTRY/ENTERPRISE

1.13 VALUE OF ELIGIBLE FIXED ASSETS (VFA) :

1.15 NEW INDUSTRIAL ENTERPRISE:

1.16 EXPANSION / DIVERSIFICATION / MODERNIZATION:

1.17 DATE OF COMMENCEMENT OF COMMERCIAL PRODUCTION:

1.18 INVESTMENT / CAPITAL INVESTMENT:

1.20 UNIT(S)/ ENTERPRISES(S) PROMOTED BY SC/ST WOMEN ENTREPRENEURS:

1.21 UNIT(S) / ENTERPRISES(S) PROMOTED BY WOMEN ENTREPRENEURS:

1.22 UNIT(S) / ENTERPRISES(S) PROMOTED BY MINORITIES ENTREPRENEURS:

1.23 UNIT(S) PROMOTED BY BACKWARD class (CATEGORY 1 & 2A ONLY)

1.24 UNIT(S) PROMOTED BY PHYSICALLY CHALLENGED ENTREPRENEURS:

1.25 UNIT(S) PROMOTED BY EX-SERVICEMAN ENTREPRENEURS: Means those

1.26 DATE OF COMMENCEMENT OF PROJECT IMPLEMENTATION:

1.34 Anchor Industry:

1.35 Captive Power Plant:

a) Micro Enterprises i) Other than Hyderabad Karnataka Area

Small Enterprises i) Other than Hyderabad Karnataka Area

Medium i) Other than Hyderabad Karnataka Area

II. SC/ST CATEGORY ENTREPRENEURS:

b) Small Enterprises. i) Other than Hyderabad Karnataka Area

c) Medium i) Other than Hyderabad Karnataka Area

III. Women Entrepreneurs:

b) Small Enterprises i) Other than Hyderabad Karnataka Area

c) Medium i) Other than Hyderabad Karnataka Area

IV. Minorities, Backward class (Category 1 & 2A only), Physically

a) Micro Enterprises i) Other than Hyderabad Karnataka Area

b) Small Enterprises. i) Other than Hyderabad Karnataka Area

c) Medium i) Other than Hyderabad Karnataka Area

District Level Committee for Sanction of Investment Promotion Subsidy:

B) EXEMPTION FROM PAYMENT OF STAMP DUTY & CONCESSIONAL REGISTRATION

General Other than Hyderabad 100% Re. 1 per Rs. 1000

II. Large, Mega, Ultra Mega, Super Mega Enterprises:

AREA AND ZONE RATE OF CONCESSIONAL

Procedure for Issue of Stamp Duty and Concessional Registration Charges:

C) REIMBURSEMENT OF LAND CONVERSION FINE:

General Other than Hyderabad Karnataka Area-Zone 1,2 100%

II. LARGE, MEGA, ULTRAMEGA AND SUPER MEGA ENTERPRISES

Category of Area and zone During implementation During operational phase

General Other than 100% Exemption from On raw materials,

Zone 4 NIL NIL

Zone 4 NIL NIL

Zone 4 NIL NIL

Zone 4 NIL NIL

II. LARGE, MEGA, ULTRA MEGA AND SUPER MEGA ENTERPRISES

COMMITTEE FOR SANCTION OF SUBSIDY FOR ETPs:

SCRUTINY OF ETP SUBSIDY CLAIM:

H) TECHNOLOGY UPGRADATION, QUALITY CERTIFICATION FOR MSMEs

The Committee for sanction of Subsidy:

Sl. No. Designation Role

Incentives to Micro and Small Enterprises for obtaining ISO Certification:

The Committee for sanction of Subsidy: