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Subsidies

Karnataka State Industrial Subsidies / Incentives


Investment Subsidy for Micro/Small Industries


Incentive Name Micro Small Medium
Zone-1 General 100% 100% - 7 Years Rs. 1 per Unit
Zone-1 Special 100% 100% - 8 Years Rs. 1 per Unit
Zone-2 General 100% 100% - 6 Years Rs. 1 per Unit
Zone-2 Special 100% 100% - 7 Years Rs. 1 per Unit
Zone-3 General -NIL- -NIL- -NIL-
Zone-3 Special 75% 100% - 7 Years -NIL-

Subsidy for MSME Units

Stamp Duty Power Tariff (9% on Bill) Power rate (For 3 Years)
Zone-1 General 30% & Max. 25L 25% & Max. 100L 2.5%/ 6 Years/
Zone-1 Special 35% & Max. 30L 30% & Max. 105L 40% of VFA
Zone-2 General 25% & Max. 20L 20% & Max. 90L 2.5%/ 5 Years/ 35% of VFA
Zone-2 Special 30% & Max. 25L 25% & Max. 95L 2.5%/ 5 Years/ 35% of VFA
Zone-3 General -NIL- -NIL- -NIL-
Zone-3 Special 10% & Max. 10L 10% & Max. 25L -NIL-

Schemes of MSME


Credit Linked Capital Subsidy Scheme for Technology Upgradation (CLCSS)


Description:

Technology up-gradation would ordinarily mean induction of state- of-the-art or near state-of-the-art technology. In varying mosaic of technology obtaining in more than 7,500 products in Indian small-scale sector, technology up-gradation would mean a significant step up from present technology level to a substantially higher one involving improved productivity, and/or improvement in quality of products and/or improved environmental conditions including work environment for the unit. It includes installation of improved packaging techniques as well as anti-pollution measures and energy conservation machinery. Further, units in need of introducing facilities for in-house testing and on-line quality control would qualify for assistance, as the same is a case of technology up- gradation.

Replacement of existing equipment/technology with same equipment/technology will not qualify for subsidy under this scheme, nor would scheme be applicable to units upgrading with second hand machinery.

Nature of Assistance: For Micro & Small units

The revised scheme aims at facilitating technology up-gradation by providing 15% up-front capital subsidy to SSI units, including tiny, khadi, village and coir industrial units, on institutional finance availed of by them for induction of well-established and improved technologies in specified sub-sectors/products approved under the scheme.


Who Can Apply?

Eligible beneficiaries include sole proprietorships, partnerships, co- operative societies, and private and public limited companies in the SSI sector. Priority shall be given to women entrepreneurs.


Prime Minister Employment Generation Programme (PMEGP)


Description:

The scheme is implemented by Khadi and Village Industries Commission (KVIC), as the nodal agency at the national level. At the state level, the scheme is implemented through State KVIC Directorates, State Khadi and Village Industries Boards (KVIBs) and District Industries Centres (DICs) and banks. The Government subsidy under the scheme is routed by KVIC through the identified banks for eventual distribution to the beneficiaries/ entrepreneurs in their bank accounts.


Nature of Assistance:

  • • 1,500 sq. mtrs. fully air conditioned built up area.
  • • 16,000 sq. mtrs. open space with hard standing base.
  • • Facility of cafeteria including open theater.
  • • Separate entry and exit gates.
  • • Ample parking space to accommodate more than 1,000 cars.
  • • 500 KVA un-interrupt power supply through DG set. 24 hours water supply.
  • • Facility available for conference and business meetings

Who Can Apply?

Entrepreneurs

Micro & Small Enterprises Cluster Development Programme (MSE-CDP)


Description:

Ministry of Micro, Small and Medium Enterprises (MSME), Government of India (GoI) has adopted cluster development approach as a key strategy for enhancing productivity and competitiveness as well as capacity building of Micro and Small Enterprises (MSEs) and their collectives in the country. Clustering of units also enables providers of various services to them, including banks and credit agencies, to provide their services more economically, thus reducing costs and improving availability of services for these enterprises.


Nature of Assistance:

  • • Diagnostic study
  • • Soft intervention
  • • Setting up of Common Facility Centres (CFCs)
  • • Infrastructure development (Up-gradation/New)

Cost of project and Govt of India assistance:

  • • Diagnostic study - Maximum cost Rs.2.50 lakhs.
  • • Soft interventions - Maximum cost of project Rs.25.00 lakh, with GoI contribution of 75% (90% for special category States and for clusters with more than 50% women/micro/village/SC/ST units).
  • • Hard interventions i.e., setting up of CFCs – maximum eligible project cost of Rs.15.00 crore with GoI contribution of 70% (90% for special category States and for clusters with more than 50% women/micro/village/SC/ST units).
  • • Infrastructure development in the new/existing industrial estates/areas. Maximum eligible project cost Rs.10.00 crore, with GoI contribution of 60% (80% for special category States and for clusters with more than 50% women/micro/SC/ST units).

Who Can Apply?

Industrial association/Consortium, Clusters


Scheme of Fund for Regeneration of Traditional Industries (SFURTI)


Description:

Scheme of Fund for Regeneration of Traditional Industries (SFURTI), a programme of Ministry of Micro Small and Medium Enterprises, Government of India, aims to organize the traditional industries and artisans and producers into collectives and provide them with support in order to make quality and competitive products to ensure long-term sustainability of the sector and its artisans.


Nature of Assistance:

This scheme focusses upon physical infrastructure creation, technology upgradation, training, product development, innovation, design interventions, marketability, improved packaging and marketing infrastructure with aim to improve artisanal income.


Who Can Apply?

To be able to get selected as a cluster under the SFURTI Scheme, beneficiaries have to fulfil the following eligibility criteria.

  • • There must be 500 beneficiary families comprising micro-enterprises or artisans, service providers, traders, suppliers of raw materials.
  • • These beneficiary families must be located in one or two revenue sub-divisions in a district.
  • • These clusters must belong to bamboo, khadi, honey and village industries.
  • • The geographical distribution of clusters must include 10% area from the North-Eastern region.
  • Following is a list of potential applicants of SFURTI scheme,

  • • Non-Government Organizations (NGOs)
  • • Semi-Government institutions
  • • State and Central Government field functionaries
  • • Panchayati Raj institutions (PRIs)
  • • Central and State Government institutions
  • • Corporate responsibility foundations
  • • Private sector with special SPV

Schemes under Ministry Of Agriculture


SFAC-VCA: Venture Capital Assistance(Interest Free Loan)

  • • For Agro Industries
  • • 26% on Capital
  • • Maximum Rs.50 Lakhs

SFAC- Equality Grant: FPO’S Equity Grant and Credit Guarantee Fund Scheme

  • • For Farmer Producer Companies
  • • 15 Lakhs for FPC

AIF-Agriculture Infrastructure Fund

  • • For Agro based Industries
  • • 3% Interest Rebate on Agri loans
  • • Upto Rs. 200 Lakhs

Seed Processing – NSC

  • • Boosting of Seed Process
  • • 40% on Project Cost
  • • Max. 60 Lakhs

NABARD/ DMI Schemes for Infrastructure of Storage & Market


Agriculture Market Infrastructure (AMI under ISAM)


a. Storage Infra
  • • Rural godown Non A/C Warehouse
  • • 25% or 33.33% on Eligible Project Cost
  • • Max, Subsidy of Rs. 37.50 / 50 Lakhs

b. Storage Infra
  • • Ginning, Seed Process, Oil & primary Processing
  • • 25% or 33.33% on Eligible Project Cost
  • • Max. Subsidy of Rs. 25/30 Lakhs

National Horticulture Board (NHB) / NHM


Cold Storage

  • • Subsidy for Cold Storage Under Scheme-2
  • • Type-1 of NHB @ 35% on Project Cost
  • • Upto Max. of RS. 2.38 Crores

NLM (National Live Mission) Poultry/ Sheep/ Goat/ Dairy/ Piggery Etc.


Subsidies for Poultry/ Sheep/ Goat/ Dairy/ Piggery Etc.


Dairy Breed

  • • Herd of 200 Animals
  • • Maximum Project Cost: 400 Lakhs
  • • 50% of the Project Cost
  • • Max Subsidy of Rs.200 Lakhs

Rural Poultry Farming

  • • 1000 Hen + 100 rooster birds
  • • Maximum Project Cost: 50 Lakhs
  • • 50% of the Project Cost
  • • Maximum Subsidy of Rs.25 Lakhs

Sheep/ Goats Farming

  • • 500 females + 25 Males
  • • Maximum Project Cost: 100 Lakhs
  • • 50%vof the Project Cost
  • • Maximum Subsidy of Rs.50 Lakhs

Piggery Farming

  • • 100 Females + 10 Males
  • • Maximum Project cost: 60 Lakhs
  • • 50% of the Project Cost
  • • Maximum Subsidy of Rs.30 Lakhs

MOFPI-Ministry Of Food Processing Industries

Applicable Items: Cereals, Grains, Spices, Fruits, Vegetable, Poultry, Mdat, Fishes, Daily items & Other related food products Processing

Pradhan Mantri Kisan SAMPADA Yojana

Government of India (GOI) has approved a new Central Sector Scheme – Pradhan Mantri Kisan SAMPADA Yojana (Scheme for Agro-Marine Processing and Development of Agro-Processing Clusters) with an allocation of Rs. 6,000 crore for the period 2016-20 coterminous with the 14th Finance Commission cycle. The scheme will be implemented by Ministry of Food Processing Industries (MoFPI). Pradhan Mantri Kisan SAMPADA Yojana

PM Kisan SAMPADA Yojana is a comprehensive package which will result in creation of modern infrastructure with efficient supply chain management from farm gate to retail outlet. It will not only provide a big boost to the growth of food processing sector in the country but also help in providing better returns to farmers and is a big step towards doubling of farmers income, creating huge employment opportunities especially in the rural areas, reducing wastage of agricultural produce, increasing the processing level and enhancing the export of the processed foods.

The following schemes will be implemented under PM Kisan SAMPADA Yojana:

  • • Mega Food Parks
  • • Integrated Cold Chain and Value Addition Infrastructure
  • • Creation/ Expansion of Food Processing/ Preservation Capacities (Unit Scheme)
  • • Infrastructure for Agro-processing Clusters
  • • Creation of Backward and Forward Linkages
  • • Food Safety and Quality Assurance Infrastructure
  • • Human Resources and Institutions

Production Linked Incentive Scheme for Food Processing Industry (PLISFPI)

PLISFPI for implementation during 2021-22 to 2026-27 has an outlay of Rs. 10,900 crore. The objective of the scheme is:

  • • To support the creation of global food manufacturing champions
  • • Promote Indian brands of food products
  • • Increase employment opportunities for off-farm jobs
  • • • Ensure remunerative prices of farm produce and higher income to farmers.

PM Formlisation of Micro Food Processing Enterprises Scheme

Ministry of Food Processing Industries (MoFPI), in partnership with the State/ UT Governments, has launched an all India Centrally Sponsored PM Formalisation of Micro food processing Enterprises Scheme (PM FME Scheme) for providing financial, technical and business support for upgradation of existing micro food processing enterprises.


Other Sector


APEDA-Agriculture & Processed Food Products Export Dev. Authority (for Agro., Food Dairy, Meat based Industries)

  • • 40% / 75% Subsidy on Specified Machinery as per Guidelines
  • • Up to Rs. 200 Lakhs
  • • Applicable Machinery – Color Sorter, Soils, Compressor, Destoner, Graders, Separator, Metal Detectors, Sensor etc,
  • • (APEDA is applicable for existing units only & having Direct Export obligation)