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Focus Sectors for Investment

  • Engineering
  • Automobile and Auto Components
  • Aerospace
  • Aircraft Maintenance, Repair and Overhaul
  • Information Technology
  • Biotechnology
  • Pharmaceuticals
  • Apparels and Textiles
  • Food Processing
  • Steel and Metallurgical Industry
  • Contract Research and R&D
  • Oil Refining and Petrochemicals
  • Tourism
  • Express Highways
  • Minor Seaports
  • Minor Airports
  • Water Supply Projects
  • Waste Water Treatment Projects
  • Industrial Parks / Townships
  • Power Generation & Distribution
  • Bridges, Flyovers & Urban Transport Systems
  • Aerospace Technology & Aircraft maintenance

Investment Incentives

Investment Incentives as according to New Industrial Policy (2006-11)

  • Investment Subsidy
  • Entry Tax Exemption
  • Stamp Duty Exemption
  • Concessional Registration Charges
  • Special Concessions for Export
  • Special Incentives to Mega Industries
  • Waiver of Conversion Fee
  • Relief Package for Revival/ Rehabilitation of Sick Industries

Investment Incentives in the Information Technology Sector

Karnataka is on the forefront of Information Technology and is called the Silicon state of India. The state capital, Bangalore, has shown tremendous growth in the IT sector and is the IT capital of the country.

The Karnataka Government offers special assistance, incentives and concessions for the Information Technology industries, which have investments in fixed assets upto US$ 21.67 million

  • Entry Tax Exemption: Information Technology industries will be exempt from payment of Entry Tax on computer hardware, computer peripherals and other capital goods including captive power generation sets, during implementation stage which can be extended upto 5 years from the date of commencement of implementations
  • Power Tariff Concessions
    • Software industries will be treated as industrial (and not commercial) consumers and electricity tariff applicable to the industrial consumers will be levied on such industries
    • Software industries, which need electrical power upto 5 KVA, will be permitted to be established without any local restrictions and will be made eligible for all incentives and concessions.
    • As continuous uninterrupted and quality power supply is one of the prime requirements of sustenance and growth of Information Technology industries, these industries will be given priority in the sanctioning and servicing of power. The IT industries will also be exempt from power-cuts without any time limit.
  • Quick Clearances from Pollution Control Board: Karnataka State Pollution Control Board has simplified the procedure for seeking clearances under the Air Act and the Water Act for the software companies that use captive DG Sets
  • Concessions on Company Registration Charges IT companies taking up expansion, diversification, and modernization get concessions on registration charges
  • In order to promote investment and create an investor friendly environment for BPO sector in particular, the government has announced an explicit BPO policy



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