State Profile of Karnataka

Operative Guidelines On Package Of Incentives And Concessions Under Karnataka Agribusiness & Food Processing Policy (2015)

Karnataka Agricultural Produce Processing and Export Corporation limited KAPPEC) shall be the State Nodal Agency for Food Processing

The existing single window clearance system shall continue to clear the projects for agribusiness & food processing sector also. https://ebiz.karnataka.gov.in/kum/index.aspx

The 100% exemption of tax on electricity tariff for the initial period of 8 years irrespective of zonal classification.

Investment promotion subsidy @ 35% of the value of fixed assets (VFA) irrespective of zonal and promoter classification up to a maximum of Rs.65 Lakhs for MSME.

Interest subsidy of 6% per annum on term loans will be provided to Micro enterprises irrespective of promoter classification. This interest subsidy is payable to financial institutions on behalf of the enterprise only if the enterprise has not defaulted in payment of either principle or interest instalments.

The amount of interest subsidy will be effective rate of interest (after deducting interest subsidy receivable by any institution/s under any Government of India scheme) is 6% per annum whichever is less irrespective of promoter classification. The period of interest subsidy is for 7 years irrespective of zonal classification.

Exemption from Stamp Duty for MSME, Category A, B & C enterprises

Concessional Registration Charges for MSME, Category A, B & C enterprises. For all loan documents, lease deeds and sale deeds, the registration charges shall be at a concessional rate @ Rs.0.50 per Rs.1000 irrespective of promoter classification for MSME, Category ‘A’, ‘B’ & ‘C’ enterprises

100% Reimbursement of land conversion fee for MSME, Category A, B & C enterprises

100% exemption from entry tax for 3 years on plant and machinery and capital goods and 6 years for raw materials, inputs and component parts and consumables excluding petroleum products from the date of commencement of project implementation and from the date of commencement of commercial production respectively irrespective of zonal classification.

New Agricultural Produce Processing Industries are exempted from payment of market fee for a period of ten years in respect of purchases of agricultural produce by such industries

Not Applicable

Not Applicable

New Agricultural Produce Processing Industries are exempted from payment of market fee for a period of ten years in respect of purchases of agricultural produce by such industries(ETP).

One time capital subsidy to an extent of 75% of the cost subject to a maximum of Rs.50 Lakhs for MSMEs in respect of ETPs costing less than Rs.1 crore.

Further, one time capital subsidy to an extent of 50% of the cost of ETPs subject to a ceiling of Rs.100 Lakhs for Category ‘A’, ‘B’ & ‘C’ enterprises irrespective of zonal classification.

One time capital subsidy to an extent of 50% of the cost of ETPs subject to a ceiling of Rs.200 Lakhs for setting up of Effluent Treatment Plants (ETPs) as a common facility in Food Parks, Spice Parks, Sea Food Parks or a place where the cluster of food processing & agribusiness enterprises are located irrespective of promoter and zonal classification.

50% of the cost (max Rs.1 Lakh) for MSME irrespective of promoter classification