Infrastructure

Industrial Policy

The main objectives of Industrial Policy 1996 is to active participation
of Industry in development of infrastructure. It also emphasis on development of potential growth centers, thrust for growth in the export of value added goods, encouragement of utilization of Non-conventional energy sources and co-generation, and encouragement for improvement in productivity, R & D and quality up-gradation etc. The State has been classified into three zones:-

Zone-I : Developed Areas:	Bangalore South & North Talukas and Bangalore Urban Agglomeration areas as per 1991 census
Zone-II : Developing Areas:	All the remaining parts of State -173 talukas
Zone-III: Growth Centres:	Growth Centres at Dharwad, Hassan & Raichur, Proposed Mini Growth Centres at Bijapur, Malur-Kolar District, Chitradurga, Chikmagalur,Nippani, Gadag and Bellary, and Ancillary Complex at Thoranagallum Ballary District and such other areas as may be so declared by Government in Commerce & Industries Department from time to time.

Incentives

Capital investment subsidy of 25% of fixed capital up to Rs.2.5 million, for Tiny & Small Scale Industries in Zone-II.

Capital investment subsidy of 30% of fixed capital up to Rs. 3 million, for Tiny & Small Scale Industries in Zone-III.

Additional 10% investment subsidy for installing renewable energy equipment, up to Rs.05 million

Additional 5% investment subsidy up to Rs.0.5 million for tiny and SSI in zone II & III for thrust sector projects.

Additional investment subsidy 5% of capital investment up to Rs. 0.1 million for thrust & SSI units all zones established by special category entrepreneurs.

Industrial estates promoted in Private/Co-operative sector (in Zone-II & III) shall be allowed an investment subsidy @ 20% up to Rs. 2 million for project cost up to Rs. 50 million.

Sales tax exemption or deferral for investment in small, medium, and large scale units

Five-year exemption from electricity tax on captive generation for self consumption

Special incentive package, on case-to-case basis, for projects over Rs. 1000million.

All new, tiny, and SSI units in Zone II and III exempted from stamp duty

Subsidy for SSIs of 25% of fixed capital or Rs. 2.5 million (Zone II); and 30%or Rs. 3 million (Zone III)

Additional 5% subsidy of upto Rs. 0.5 million for 100% export oriented units

Exemption from planned power cuts for 100% export oriented units

State identified priority sectors

Electronics, Telecommunication, Informatics software, Leather & Leather Products, Pharmaceuticals, Agro Food Processing, Sugar Industry, Bio-technology industries, Automobile industries.

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