Karnataka government has unveiled a new industrial policy 2020-2025. The move is to attract over ₹ 5.0 lakh crore to develop the state industrial climate and reduce imbalance in hinterland. It has segmented the regions into tier-1, 2 and 3.
The policy outlines interest subsidy to MSME’s for technology upgradation and it also provides priority to MSME;s with around 30 percent of its available land in industrial areas will be set aside for them.
It also provides investment subsidy for anchor industries (minimum investment Rs 100 crore) in taluks lacking any major industries; investment promotion subsidy based on turnover (ranging from 1.75 percent to 2.50 percent on turnover in each year for a period of five to 10 years and limited to 35-60 percent of VFA; incentives and concessions for development of private industrial parks.