About this scheme
Karnataka New Industrial Policy provides MSME-specific capital subsidy, interest reimbursement on term loans, stamp duty exemption, and SGST refund. Higher incentives for backward zones (Zone 2 & 3) and women/SC/ST entrepreneurs.
What you get
- Capital subsidy: 15% (Zone 1), 20% (Zone 2), 30% (Zone 3) — max Rs. 50 lakh
- Interest subsidy 3-5% on term loan for 5 years
- Electricity tariff concession for 5 years
- Stamp duty exemption on land
- SGST refund 50-100% based on zone
- KSSIDC raw material assistance
Who qualifies
New MSMEs in Karnataka. Investment intent registered before commercial production. Different zones (1-3) get different subsidy rates. Women/SC/ST entrepreneurs get 5% additional.
All industries qualify (no NIC restriction).
Business types
ProprietorshipsPartnershipsPrivate LimitedLLPsOne Person Companies
States
KA
How to apply
- 1Register intent on Industries Karnataka portal
- 2Obtain Udyam + commence production within 24 months
- 3Apply for incentives within 12 months of production
- 4District Single Window Committee approval
- 5Disbursement in annual tranches
- 6Annual employment + production declaration
Key terms and conditions
- Capital subsidy 15-30% based on zone
- 5-year minimum operational commitment
- Annual compliance: report by 30 June each FY
- Investment in P&M only (not building/land)
What disqualifies you
- Existing units relocating from outside KA excluded
- Real estate / pure trading excluded
- Negative list industries (liquor, tobacco) excluded
Documents typically required
- Udyam registration
- KSSIDC plot OR private land
- Project report
The content above is compiled from public information published by the scheme authority. Eligibility, benefits, and procedures are subject to change. Confirm details directly with the official portal before applying. BharatSeal does not process scheme applications.