Electronics & Solar Manufacturers to Get 25 per cent Capital Investment Subsidy on Land In Karnataka

The subsidy is applicable on lands extending up to 50 acres and outside Bengaluru Urban and Rural districts.

K'taka offers slew of incentives to ESDM sector
Bengaluru, Aug 19 (Aryavarth) Aimed at attracting investments and boosting competitiveness in the Electronic System Design and Manufacturing (ESDM) sector in Karnataka, the state government has announced a slew of incentives, including 25 per cent capital investment subsidy on land, a minister said on Wednesday.

“The government of Karnataka has announced a slew of incentives including capital investment subsidy of 25 per cent on the required land,” said Deputy Chief Minister C.N. Ashwath Narayan.

On Wednesday, he delivered the inaugural address of IESA Vision Summit – 2020 in virtual and made these announcements.

The subsidy is applicable on lands extending up to 50 acres and outside Bengaluru Urban and Rural districts.

Other attractive incentives include 100 per cent stamp duty and registration charges reimbursement, 100 per cent reimbursement on land conversion fee, power tariff subsidy of Rs 1 per unit for duration of five years from the month of commencement of commercial production and 100 per cent electricity duty exemption for the same duration among others.

Likewise, the government will also offer 1 per cent production linked incentive for new investments and expansions on annual turnover for a period of five years from start of operations.

“Products and activities eligible for incentives under special incentives scheme for the ESDM Sector have been identified and this comprises manufacturing and design of electronics products, semiconductor manufacturing and design, electronic manufacturing services and solar cell manufacturing,” he said.

Similarly, LED and any other electronics verticals products covered by the national policy on electronics (NPE) and national manufacturing policy (NPM) and related notifications as issued by the Government of India from time to time are also eligible.

The state government will also provide acknowledgement certificates to companies after obtaining approvals from relevant clearance committees which will be deemed as approval for downstream approvals by various other departments for an initial period of three years.

Recently, the government constituted a dedicated MNC engagement cell to act as a single point of engagement for all technology MNCs in the state to engage with the government.

“The objectives of this are to develop an engagement platform for overall innovation ecosystem development, to understand the needs of the MNCs and GCCs to provide handholding support for resolution of issues with all state government entities such as BBMP, Health Department, Industries Department, Urban Development Department and KSPCB,” said Narayan.

‘Karnataka Digital Economy Mission’ has also been set up in consultation with the industry to promote digital industry growth and investments.

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