US$66.89 billion). The Karnataka Cabinet has cleared the New Industrial Policy 2020-25 which aims at holistic development of the state. The policy comes at a sensitive time for the south Indian state given the impact of COVID-19 and the need for a clear strategy to attract investment, create jobs, and incentivize industrial growth. The first such region or SIR will encompass the Dharwad, Gadag, Haveri, and Belagavi districts of Karnataka. Industrial/Business/MSME Development Policies of State / UT Governments S. No. REGISTER TODAY. The Karnataka Industrial Policy 2020-25 is aimed at the states holistic development and the promotion of Tier II and Tier III cities. 100% of the employees should be hired locally. The investment promotion subsidy will be based on 10 percent on turnover each year for a period of five years and limited to 20 to 30 percent of value of fixed assets (VFA). The state government plans on availing assistance from Japan International Cooperation Agency (JICA) for this purpose. Aequs is Karnataka's first third-party IT SEZ outside Bengaluru. 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. Read on to know the highlights of the policy. This is aimed at developing industrially backwards areas. The amended Rules were notified on June 30, 2020. Late last week, on July 23, the state cabinet of the Karnataka government approved the New Industrial Policy for 2020-25. Stay Ahead of the curve in Emerging Asia. The Karnataka State Cabinet has approved the new industrial policy for 2020-2025 which focus on labour, and land reforms providing jobs. 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. The state is home to the Pavagada Solar Park, which has an installed capacity of 2,000 MW, the largest in the country, of which 1,400 MW is operational. Sections 64 and 65 of the Factories Act have been amended to extend overtime hours to 125 hours per quarter. Policy . Post was not sent - check your email addresses! The industrially backward districts come under Zone-1 and Zone-2 while more industrially developed districts are classified under Zone-3 and Zone-4. 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. Wide range of fiscal and policy incentives for businesses under the Karnataka Industrial Policy, 2014-19 with simplified procedures for investment. 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 … The first SIR will encompass the Dharwad, Belagavi, Gadag and Haveri districts. The policy looks beyond Bengaluru with an aim to promote Tier-2 and -3 cities as engines of economic growth. A number of reforms have been introduced under the policy. Exports from the state stood at around US$17.4 billion in 2018-19, which is 5.3 percent of India’s total exports. Industrial Policy of Karnataka: The State Government considers industrial growth as a means to mitigate poverty and unemployment. The total installed power capacity in Karnataka stands at 28,400 MW. While Karnataka saw its proposals shoot up 154% in the first 10 months of 2020 over the comparable period last year, the national numbers witnessed a 11.9% drop during the same period. You also have the option to opt-out of these cookies. Overall, Karnataka stands fourth in merchandise exports in the national export basket. The minimum wage will be revised periodically based on consumer price index, inflation and other such factors. Read on to know the highlights of the policy. Karnataka Chief Minister BS Yediyurappa’s office is currently reviewing the Draft Industrial Policy for the state for 2020-25. 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. Wide range of fiscal and policy incentives for businesses under the Karnataka Industrial Policy, 2014-19 with simplified procedures for investment. Improved Labour Market Information System: The policy focuses on creation of an improved Labour Market Information System (LMIS) in order to help in the assessment of labour market and their needs. Good news for students with OCI cards or Overseas […], Stories are the best way for children to learn about […], Some of the villages in Karnataka are the most […], Here is a list of 2021 Bank holidays in Karnataka. August 11, 2020 by Raggi Mudde. The State Government on Thursday unveiled the new Industrial Policy 2020-25 aimed to ensure holistic development of the state. The firm assists foreign investors throughout Asia from offices across the world, including in Delhi and Mumbai. Aequs is Karnataka's first third-party IT SEZ outside Bengaluru. In January 2017, Karnataka Department of Commerce and Industries introduced an NRI policy to attract investments from non-resident Kannadigas. This category only includes cookies that ensures basic functionalities and security features of the website. Image Credit: ANI. Incentives will be rolled out to direct greater investment to the industrially backward districts. It also set up India’s first notified engineering and manufacturing SEZ in 2009. Meanwhile, Bengaluru has been ranked the fourth-best city for investment in India. Karnataka has a new Industrial Policy. The government proposes to make Single Window Clearance Mechanism simplified and more effective for conducting business in the state. In addition, subsidies will be offered for enterprises that set up effluent treatment plants within their premises. 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. Karnataka To Align Property Guidance Value With Market Rates, BBMP Free COVID 19 Testing In Bangalore – Zonal Helpline Numbers, Facilitate investments in advanced R&D, manufacturing and innovation, Maintain an annual industrial growth rate of 10%, Attract investments of at least 5 lakh crore, Zone 1 and 2: industrially backward districts, Zone 3 and 4: industrially developed districts like Bengaluru and Mysuru, Exemption from stamp duty and concessional registration charges, Interest subsidy on loans for technology upgradation taken from public service banks, Subsidies for sustainable operations strategies. Bengaluru (Karnataka) [India], July 23 (ANI): The Karnataka State Cabinet on Thursday approved the new Industrial Policy for 2020-2025. 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.). Micro, Small, and Medium-Sized Enterprises (MSMEs) will be given production turnover-based subsidies to encourage innovation. It also aims to generate employment opportunities for 20 lakh people. This website uses cookies to improve your experience while you navigate through the website. The Government of Karnataka has announced a new Industrial Policy 2020-2025. 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. The subsidy will be based on 10 percent of their turnover each year for five years and will be limited to 20 – 30 percent of the value of their  fixed assets (VFA) based on the zone. In January 2017, Karnataka Department of Commerce and Industries introduced an NRI policy to attract investments from non-resident Kannadigas. Rajasthan Rajasthan Industrial Development Policy The new Karnataka Industrial Policy envisions emerging as a “global leader in advanced manufacturing, research and development, and innovation and to create an ecosystem for an inclusive, balanced and sustainable development of the State.”. ನೂತನ ಕೈಗಾರಿಕಾ ನೀತಿ 2020-25 ಕ್ಕೆ ಸಚಿವ ಸಂಪುಟ ಅನುಮೋದನೆ: ಸಚಿವ ಜಗದೀಶ ಶೆಟ್ಟರ್‌ In August, Karnataka announced New Industrial Policy (NIP) 2020-25. These cookies will be stored in your browser only with your consent. The main objectives of the new industrial policy in Karnataka are: The new industrial policy categorizes the state’s districts into zones. (adsbygoogle = window.adsbygoogle || []).push({}); Necessary cookies are absolutely essential for the website to function properly. Various beneficial schemes like Suvarna Kayaka Kaushalyabhivruddhi Yojana (SKKY) are set to be revised. Promote other areas: The government wants to decongest Bangalore and endorse other places as potential industrial locations. The Karnataka government on Thursday announced the launch of the New Industrial Policy 2020-2025, in an attempt to woo domestic investors to invest in the state and to create large-scale employment opportunities. The State Government on Thursday unveiled the new Industrial Policy 2020-25 aimed to ensure holistic development of the state. Late last week, on July 23, the state cabinet of the Karnataka government approved the New Industrial Policy for 2020-25. 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. 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. Karnataka is also a popular destination for auto, electronics, food processing, heavy machinery, and the textiles industry. Promote Karnataka as a hub for entrepreneurs: The State Government wants to promote Karnataka as a hub for entrepreneurs. Karnataka also hosts the highest number of R&D centers, technical and medical institutions, and startup enterprises in India. We'll assume you're ok with this, but you can opt-out if you wish. including the most recent legal, tax and accounting changes that affect your business. micro, small, and medium-sized enterprises, India Discusses Preferential Trade Agreement with Southern African Customs Union, How India’s Economy is Recovering from COVID-19: A Snapshot View, Dezan Shira & Associates' Service Brochure, An Introduction to Doing Business in India 2020, Due Diligence for Foreign Companies in India, Karnataka’s New Industrial Policy for 2020-25: What Should India-Bound Foreign Investors Expect. The state has a coastline of 300 km with 12 minor ports and one major port in Mangaluru (formerly Mangalore). Karnataka clears its New Industrial Policy 2020-25. The sectors encouraged include automobiles and auto components, pharmaceuticals, medical devices, knowledge-based industries, electric vehicles, and logistics, among others. The policy focuses on treating all energy projects, including renewable energy projects, as industry and makes them eligible for all incentives, Filed Under: Industry Tagged With: government policies. These concessions are not applicable to loans obtained from the Karnataka State Financial Corporation and commercial banks that are not listed under the credit linked capital subsidy scheme of the government of India. Establish new industrial corridors: The policy proposes the establishment of new industrial corridors within the state to boost industrial growth. 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. Each SIR will be categorized as an industrial township and have an area of 100 sq. 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. 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. The policy was issued by a notification dated 13 th August 2020. These cookies do not store any personal information. Sector focus of the policy: Key focus sectors have been identified under the policy – automobiles and auto components, pharmaceuticals, medical devices, engineering and machine tools, knowledge-based industries, logistics, renewable energy, aerospace, defense, and electric vehicles. On July 23, the state cabinet of the Karnataka government approved the New Industrial Policy for 2020-25. 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 Industrial Employment (Standing Order) Act, 1946 has been amended to permit fixed term employment or contract employment. Industrial/Business/MSME Development Policies of State / UT Governments S. No. The policy focuses on export promotion, renewable energy projects and is focused on providing support to enterprises that adopt energy efficiency measures. The Karnataka Industrial Policy 2020-25 is aimed at the states holistic development and the promotion of Tier II and Tier III cities. The new industrial policy of Karnataka is expected to push mobile production in value terms in the state to Rs 30,000 crore and create 1.2 lakh jobs by 2023, mobile handset and electronics body ICEA said on Sunday. The policy highlights aerospace, machine tool, steel & cement sectors as focus industries. Annexwe 1 Definitions . Sections 64 and 65 have been amended to extend overtime hours to a total of 125 hours per quarter. Earlier, the proposal was made in the Karnataka Industrial policy, 2020-25, by the State government to give impetus to growth of industry; and in the … Notify me of follow-up comments by email. It is mandatory to procure user consent prior to running these cookies on your website. Rajasthan Rajasthan Industrial Development Policy Filed Under: Industry Tagged With: government policies. In Zone-1, 65 percent of VFA will be offered for a turnover rate of 2.75 percent for a period of seven years. But opting out of some of these cookies may affect your browsing experience. Previous Article « India Discusses Preferential Trade Agreement with Southern African Customs Union, Next Article How India’s Economy is Recovering from COVID-19: A Snapshot View ». Annexure 5 Zonal Classification . Currently, the Karnataka Industrial Areas Development Board quotes a maximum of Rs 2.9 crore per acre at the Haralur-Muddenahalli industrial area in … Special focus on MSME: There is special focus on the micro, small and medium (MSME) sector to strengthen it in the state. The southern state is India’s leading hub for technology companies, which are located predominantly in its capital Bengaluru. The key sectors identified by the policy include. Encourage women entrepreneurship: The policy encourages women entrepreneurship as well as entrepreneurship from Special category like SC/ST/Differently abled/Ex-servicemen. 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 policy will be “pro-industry and aligned with recent reforms, such as amendments to the Land Reforms Act, the Labour Act, and Karnataka Industries (Facilitation) (Amendment) Act. Bengaluru (Karnataka) [India], July 23 (ANI): The Karnataka State Cabinet on Thursday approved the new Industrial Policy for 2020-2025. non-technical staff, drivers, housekeeping staff, etc. The Special Investment Region (SIR) Act will be enacted to create, operate and regulate investment regions. The Factories Act, 1948 has been amended with respect to women working the night shift in factories. 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. Bengaluru (Karnataka) [India], July 23 (ANI): The Karnataka State Cabinet on Thursday approved the new Industrial Policy for 2020-2025. The New Industrial Policy 2020-25 outlines investment promotion subsidies for enterprises according to their scale of production, turnover, and whether they are operated by persons belonging to special categories. State Name of the Policy Year URL State Governments 1. Karnataka is a state in Southern India. In August, Karnataka announced New Industrial Policy (NIP) 2020-25 which has a provision to incentivise mobile manufacturing. Development of industry, trade and service sector promotes higher capital formation, improves per capita income level and absorbs surplus work force. Overall, the new industrial policy seeks to attract investment worth INR 5 trillion (approx. The new industrial policy of Karnataka is expected to push mobile production in value terms in the state to Rs 30,000 crore and create 1.2 lakh jobs by 2023, mobile handset and electronics body ICEA said on Sunday. The state 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. Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. Gujarat announces its Industrial Policy, 2020. To fulfil this objective it has plans for establishment of new industrial areas through KIADB (Karnataka Industrial Areas Development Board). The draft version of the policy mandated the minimum direct employment for 100 employees for the initial investment of INR 2.5 billion (US$33.39 million) and additional employment of 20 personnel for every additional investment of INR 500 million (US$6.67 million). Other incentives include: The new policy encourages local hiring and as much direct employment as possible. (More in the section below.). Special investment regions would have an area of about 100 sq.km and be categorized as industrial townships. Your email address will not be published. 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