KARNATAKA INDUSTRIAL POLICY 2020-2025
Vision: To create an ecosystem with inclusive, balanced and sustainable development of the state. An equitable allocation of funds to all zones of the state is the main objective of the policy which promotes the overall industrial development. Taluks are categorized as zone 1, zone 2, zone 3 based on the backwardness in the industrial development.

MSME	Zone1	Zone2	Zone3
Investment promotion subsidy
Micro	30% of VFA(value of fixed asset) Upto 25lakhs	25% of VFA Upto 20lakhs	Nil
Small	25% of VFA Upto 100lakhs	20% of VFA Upto 90lakhs	Nil
Medium	40% of VFA for max 6yrs	35% of VFA for max 5yrs	Nil
Exemption from stamp duty
General category	100%	100%	Nil
Special category	100%	100%	75%
Reimbursement of land conversion fee
General category	100%	100%	Nil
Special category	100%	100%	75%
Exemption from electricity tariff
General category	100% for 7yrs	100% for 6yrs	Nil
Special category	100% for 8yrs	100% for 7yrs	100% for 4yrs
Power subsidy
Micro	INR 1 per unit for 3yrs	INR 1 per unit for 3yrs	Nil
Small	INR 1 per unit for 3yrs	INR 1 per unit for 3yrs	Nil
Interest subsidy on technology upgradation loan
General category	5% for 6yrs	5% for 5yrs	5% for 5yrs
Special category	5% for 6yrs	5% for 5yrs	5% for 5yrs
Technology adoption
General category	25% of cost up to 50,000rs	25% of cost up to 50,000rs	25% of cost up to 50,000rs
Special category	50% of cost up to 1lakh	50% of cost up to 1lakh	50% of cost up to 1lakh

  LARGE, MEGA, ULTRA MEGA AND SUPER MEGA ENTERPRISES

Criteria	Zone 1	Zone 2	Zone 3
Exemption from stamp duty	100%	75%	Nil
Reimbursement from land conversion fee	100%	100%	Nil
Investment subsidy for Anchor industries	10crores	7crores	Nil
Investment promotion subsidy
Large enterprises	45%VFA for 7yrs, if turnover is 2.25%	40%VFA for 6yrs, If turnover is 2.25%	Nil
Mega enterprises	50%VFA for 8yrs, if turnover is 2.00%	45%VFA for 7yrs, if turnover is 2.00%	Nil
Ultra-mega enterprises	55%VFA for 9yrs, if turnover is 1.85%	50%VFA for 8yrs, if turnover is 1.85%	Nil
Super mega enterprises	60%VFA for 10yrs, if turnover is 1.75%	55%VFA for 9yrs, if turnover is 1.75%	Nil