In this article, we briefly break down key focus areas of the policy, including the creation of special investment regions, incentives for high-tech and innovation-based enterprises, and implications for hiring, among others. Your email address will not be published. Other incentives include – exemption from stamp duty and concessional registration charges; reimbursement of land conversion fee; tax exemption on electricity tariff for MSMEs; and power subsidy for MSMEs. Encourage women entrepreneurship: The policy encourages women entrepreneurship as well as entrepreneurship from Special category like SC/ST/Differently abled/Ex-servicemen. Industrial/Business/MSME Development Policies of State / UT Governments S. No. The Karnataka State Cabinet has approved the new industrial policy for 2020-2025 which focus on labour, and land reforms providing jobs. Late last week, on July 23, the state cabinet of the Karnataka government approved the New Industrial Policy for 2020-25. Rajasthan Rajasthan Industrial Development Policy For large enterprises with investment on fixed assets between INR 100 million (US$1.33 million) and INR 2.5 billion (US$33.39 million), the policy offers an investment promotion subsidy based on their turnover. The minimum wage will be revised periodically based on consumer price index, inflation and other such factors. Several areas are under considered for Special Investment Regions, like Dharwad, Gadag, Haveri and Belgaum Districts, Bagalkote, Bijapur, Bellary, Hassan, Koppal, Mysore, Mangalore and Raichur. The Karnataka Industrial Policy 2020-25 is aimed at the states holistic development and the promotion of Tier II and Tier III cities. The policy was issued by a notification dated 13 th August 2020. The Government of Karnataka launched the New Industrial Policy for 2014-2019 with the intention to revive the state’s financial growth and improve employment prospects. India Briefing is produced by Dezan Shira & Associates. Special investment regions would have an area of about 100 sq.km and be categorized as industrial townships. It plans to make arrangements for adequate availability of power, water and transportation for industrial areas. The state has a coastline of 300 km with 12 minor ports and one major port in Mangaluru (formerly Mangalore). Karnataka is also a popular destination for auto, electronics, food processing, heavy machinery, and the textiles industry. Incentives will be rolled out to direct greater investment to the industrially backward districts. The Karnataka State Cabinet on 23 July 2020 approved the New Industrial Policy for 2020-2025 that aims to attract Rs five lakh crore worth investments over the next five years, and create about two million jobs to help mitigate the economic impact of the Covid-19 crisis. Wide range of fiscal and policy incentives for businesses under the Karnataka Industrial Policy, 2014-19 with simplified procedures for investment. The policy also stipulates that MSMEs qualify for interest subsidy on technology upgradation loans of up to 10 percent for a period of five years. The Karnataka cabinet on Thursday approved a new industrial policy for 2020-2025 in which it said it aimed to ensure that 70% overall employment in all fresh investments go to local Kannadigas. Dezan Shira & Associates´ brochure offers a comprehensive overview of the services provided by the firm. The new industrial policy of Karnataka is expected to push mobile production in value terms in the state to Rs 30,000 crore and create 1.2 lakh jobs by 2023, mobile handset and electronics body ICEA said on Sunday. It says that the Department of Industries and Commerce along with the Department of Employment and Training would concentrate on issues related to quality training and certification. This category only includes cookies that ensures basic functionalities and security features of the website. Micro, Small, and Medium-Sized Enterprises (MSMEs) will be given production turnover-based subsidies to encourage innovation. Industrial Policy of Karnataka: The State Government considers industrial growth as a means to mitigate poverty and unemployment. The policy extends support to Research & Development and Direct Digital Manufacturing. The policy and package of incentives and concessions will come into effect from 13 th August 2020 and will be valid for 5 years or until a new policy is announced. At least 70% of the workforce should ideally comprise of locals. Labor reforms under the policy: An amendment to the Factories Act, 1948 will ensure that women workers who work the night shift in factories, that is between 7pm to 6am, are registered. Establish new industrial corridors: The policy proposes the establishment of new industrial corridors within the state to boost industrial growth. Wage revisions: The minimum wage will be periodically revised based on factors like inflation and consumer price index (CPI). Depending on the zone where they are based, MSMEs can be exempted from stamp duty on land registration. MSMEs will also be offered a 100 percent exemption from tax on power tariffs for a period of seven years in Zone-1, six years in Zone-2, and five years in Zone-3. The State government is in the process of notifying a new industrial policy and will also release a special relief package for MSMEs, said Minister for … Karnataka also hosts the highest number of R&D centers, technical and medical institutions, and startup enterprises in India. Karnataka is best known for its software industry and now biotechnology. The land conversion fee can be reimbursed up to 100 percent for enterprises in Zones-1 and 2 and 75 percent for those in Zone-3. Minister for Large and Medium-scale Industries Jagadish Shettar on Tuesday said that the new industrial policy will be finalised soon and the cabinet will also give its approval. Post was not sent - check your email addresses! Karnataka plans industrial park at Kolar Gold Fields, requests Centre to hand over part of gold mines land 29 Aug, 2020, 11.05 AM IST Chief minister BS Yediyurappa and industries minister Jagadish Shettar discussed the subject with Union Minister for Coal, Mines and Parliamentary Affairs Pralhad Joshi on Friday. 100% of the employees should be hired locally. 11 Administration of the Policy . The state is India’s largest software exporter, largest producer of aerospace and defense equipment, has the largest biotech hub, and is the largest producer of coffee in the country. Micro and small enterprises can avail reimbursement of power tariffs at the rate of INR 1 per unit for a period of three years. The Karnataka Cabinet on Thursday cleared the State’s New Industrial Policy 2020-25. In August, Karnataka announced New Industrial Policy (NIP) 2020-25 which has a provision to incentivise mobile manufacturing. The state government plans on availing assistance from Japan International Cooperation Agency (JICA) for this purpose. The Industrial Employment (Standing Order) Act, 1946 has been amended to permit fixed term employment or contract employment. The first SIR will encompass the Dharwad, Belagavi, Gadag and Haveri districts. Moving beyond the capital, Bengaluru: The new industrial policy groups Karnataka’s districts into three zones to develop areas considered to be industrially backward. Industries minister Jagadish Shettar (File photo) BENGALURU: The Karnataka government is all set to roll out a new industrial policy (2020-2025) with an ambitious plan to attract Rs 5 lakh crore investments over the next five years and maintain 10% yearon-year growth. The state’s approach of ushering in an environment of industrialization reflects its objective of improving per capita income, promoting higher capital formation and creating large employment opportunities. In Zone-2, it is 55 percent VFA for 2.5 percent turnover for six years and 45 percent VFA for large enterprises in Zone-3 showing a 2.5 percent turnover rate. The sectors encouraged include automobiles and auto components, pharmaceuticals, medical devices, knowledge-based industries, electric vehicles, and logistics, among others. Bengaluru (Karnataka) [India], July 23 (ANI): The Karnataka State Cabinet on Thursday approved the new Industrial Policy for 2020-2025. Kaveri Online Services – Property Registration Made Easier, How to Apply for Voter ID card in Karnataka, District-Wise COVID-19 Cases In Karnataka, List of 2021 Karnataka Government Holidays, How to Pay Traffic Fines Online in Bangalore, How to Obtain A Marriage Certificate in Karnataka. Other incentives include: The new policy encourages local hiring and as much direct employment as possible. The first such region or SIR will encompass the Dharwad, Gadag, Haveri, and Belagavi districts of Karnataka. For enterprises run by persons belonging to a special category – women, members of the Dalit and Adivasi communities, ex-servicepersons, members from minority communities, and persons with disabilities – there are separate incentives. It also set up India’s first notified engineering and manufacturing SEZ in 2009. The amended Rules were notified on June 30, 2020. Micro and small enterprises will be offered interest subsidies if they secure loans from public service banks at an annual rate of three percent for five years. Karnataka clears its New Industrial Policy 2020-25. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. Andhra Pradesh unveils its new industrial policy. You also have the option to opt-out of these cookies. Sections 64 and 65 have been amended to extend overtime hours to a total of 125 hours per quarter. The firm assists foreign investors throughout Asia from offices across the world, including in Delhi and Mumbai. Local jobs creation: The policy will require new industrial projects to create as much direct employment as possible and hire locally – a minimum of 70 percent of the workforce should consist of locals and 100 percent in the case of Group D type of employees (housekeeping and sanitation staff, non-technical posts, drivers, etc.). Meanwhile, Bengaluru has been ranked the fourth-best city for investment in India. Bengaluru (Karnataka) [India], July 23 (ANI): The Karnataka State Cabinet on Thursday approved the new Industrial Policy for 2020-2025. India’s economy is showing signs of recovery after witnessing major COVID-19 led business disruptions. 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