Karnataka DIC Subsidy Scheme 2023-24
Empowering MSMEs with financial support and incentives to boost industrial growth across Karnataka.
Quick Eligibility Check
Karnataka Industrial Zones
Karnataka is divided into three industrial zones with different subsidy structures to promote balanced regional development.
Zone 1
KS DIC - With effect from 13.08.2020 to 12.08.2025
Districts in Zone 1
Hyderabad Karnataka Region (Kalyana Karnataka) - Bidar, Kalaburagi, Yadgir, Raichur, Koppal, Ballari (except Bellary City Municipal Corporation limits), Vijayanagara
These are the most backward regions of Karnataka with special focus on industrial development.
| Sl No | Subsidy | General Category | SC/ST/Women/Minority/Ex-Services/Physically | ||
|---|---|---|---|---|---|
| % of Subsidy | Max. | % of Subsidy | Max. | ||
| 1 | Investment Promotion Subsidy | ||||
| Micro | 30% of VFA | 25 Lakhs | 35% of VFA | 30 Lakhs | |
| Small | 25% of VFA | 100 Lakhs | 30% of VFA | 105 Lakhs | |
| Medium | 40% of VFA | - | 40% of VFA | - | |
| 2 | Exemption for Stamp Duty for MSME | 100% | 5 Years | 100% | 5 Years |
| 3 | Concessional Registration charges for MSME | ₹1/- per every ₹1000/- | - | ₹1/- per every ₹1000/- | - |
| 4 | Reimbursement of land Conversions Fee | 100% | - | 100% | - |
| 5 | Exemption from Tax on Electricity Tariff | 100% | 7 Years | 100% | 8 Years |
| 6 | Power Subsidy (Micro & Small only) | ₹1/- per unit Consumed | 3 Years | ₹1/- per unit Consumed | 3 Years |
Notes:
- Micro & Small units can avail investment subsidy per year maximum of 10% of turnover only, from Date of commercial Production (Max of 5 Years)
Maximum Subsidy over 5 Years: 10% of Turnover each year, over 5 year period (or) Maximum Limit of Subsidy, whichever is lower - Medium units can avail investment subsidy per year maximum of 2.50% of turnover only, from Date of commercial Production (Max of 6 Years)
Maximum Subsidy over 6 Years: 40% of VFA (or) 6 Years period, whichever is reached earlier
Zone 2
KS DIC - With effect from 13.08.2020 to 12.08.2025
Districts in Zone 2
Uttara Kannada, Kodagu, Shivamogga, Chikkamagaluru, Hassan, Chamarajanagara, Mysuru (except Mysuru City Municipal Corporation limits), Mandya, Tumakuru (except Tumakuru City Municipal Corporation limits), Davangere, Chitradurga, Haveri, Gadag, Dharwad (except Hubballi-Dharwad Municipal Corporation limits), Bagalkote, Belagavi (except Belagavi City Municipal Corporation limits)
These are moderately developed regions with good potential for industrial growth.
| Sl No | Subsidy | General Category | SC/ST/Women/Minority/Ex-Services/Physically | ||
|---|---|---|---|---|---|
| % of Subsidy | Max. | % of Subsidy | Max. | ||
| 1 | Investment Promotion Subsidy | ||||
| Micro | 25% of VFA | 20 Lakhs | 30% of VFA | 25 Lakhs | |
| Small | 20% of VFA | 90 Lakhs | 25% of VFA | 95 Lakhs | |
| Medium | 35% of VFA | - | 35% of VFA | - | |
| 2 | Exemption for Stamp Duty for MSME | 100% | 5 Years | 100% | 5 Years |
| 3 | Concessional Registration charges for MSME | ₹1/- per every ₹1000/- | - | ₹1/- per every ₹1000/- | - |
| 4 | Reimbursement of land Conversions Fee | 100% | - | 100% | - |
| 5 | Exemption from Tax on Electricity Tariff | 100% | 6 Years | 100% | 7 Years |
| 6 | Power Subsidy (Micro & Small only) | ₹1/- per unit Consumed | 3 Years | ₹1/- per unit Consumed | 3 Years |
Notes:
- Micro & Small units can avail investment subsidy per year maximum of 10% of turnover only, from Date of commercial Production (Max of 5 Years)
Maximum Subsidy over 5 Years: 10% of Turnover each year, over 5 year period (or) Maximum Limit of Subsidy, whichever is lower - Medium units can avail investment subsidy per year maximum of 2.50% of turnover only, from Date of commercial Production (Max of 5 Years)
Maximum Subsidy over 5 Years: 40% of VFA (or) 6 Years period, whichever is reached earlier
Zone 3
KS DIC - With effect from 13.08.2020 to 12.08.2025
Districts in Zone 3
Bengaluru Urban, Bengaluru Rural, Ramanagara, Chikkaballapura, Kolar, Bellary City Municipal Corporation limits, Mysuru City Municipal Corporation limits, Tumakuru City Municipal Corporation limits, Hubballi-Dharwad Municipal Corporation limits, Belagavi City Municipal Corporation limits, Mangaluru City Municipal Corporation limits, Kalaburagi City Municipal Corporation limits
These are highly developed regions with established industrial infrastructure.
| Sl No | Subsidy | General Category | SC/ST/Women/Minority/Ex-Services/Physically | ||
|---|---|---|---|---|---|
| % of Subsidy | Max. | % of Subsidy | Max. | ||
| 1 | Investment Promotion Subsidy | ||||
| Micro | NIL | NIL | 10% of VFA | 10 Lakhs | |
| Small | NIL | NIL | 10% of VFA | 25 Lakhs | |
| Medium | NIL | NIL | NIL | NIL | |
| 2 | Exemption for Stamp Duty for MSME | NIL | NIL | 75% | 5 Years |
| 3 | Concessional Registration charges for MSME | NIL | NIL | NIL | NIL |
| 4 | Reimbursement of land Conversions Fee | NIL | NIL | 75% | - |
| 5 | Exemption from Tax on Electricity Tariff | NIL | NIL | 100% | 4 Years |
| 6 | Power Subsidy (Micro & Small only) | NIL | NIL | NIL | NIL |
Notes:
- Micro & Small units can avail investment subsidy per year maximum of 10% of turnover only, from Date of commercial Production (Max of 5 Years)
Maximum Subsidy over 5 Years: 10% of Turnover each year, over 5 year period (or) Maximum Limit of Subsidy, whichever is lower
Karnataka DIC Subsidy Calculator
Input Details
Estimated Benefits
Investment Promotion Subsidy
₹ 0
Stamp Duty Exemption
₹ 0
Land Conversion Fee Reimbursement
₹ 0
Electricity Tax Exemption (Annual)
₹ 0
Power Subsidy (Annual)
₹ 0
Total Estimated Benefits
₹ 0
Important Notes:
- • This calculator provides an estimate based on the Karnataka Industrial Policy 2020-25
- • Actual subsidy amounts may vary based on detailed assessment by DIC officials
- • For Micro & Small units, investment subsidy is limited to 10% of turnover per year
- • For Medium units, investment subsidy is limited to 2.50% of turnover per year
- • Please consult with DIC officials for exact eligibility and subsidy calculations
Eligibility Criteria
Understanding the eligibility requirements for Karnataka DIC subsidies is crucial for successful application.
General Eligibility
- New MSME units established in Karnataka with fixed capital investment
- Units must be registered with District Industries Centre (DIC)
- Units must have Udyam Registration Certificate
- Units must commence commercial production during the policy period (13.08.2020 to 12.08.2025)
- Units must provide employment to at least 70% Kannadigas on an overall basis and 100% in case of Group D employees
MSME Classification
| Enterprise | Investment in Plant & Machinery | Annual Turnover |
|---|---|---|
| Micro | Up to ₹1 Crore | Up to ₹5 Crore |
| Small | Up to ₹10 Crore | Up to ₹50 Crore |
| Medium | Up to ₹50 Crore | Up to ₹250 Crore |
Ineligible Industries
- Breweries, distilleries and units manufacturing tobacco products
- Units engaged in mining, stone crushing, and quarrying
- Hotels, resorts, and real estate ventures
Application Process
Follow these steps to apply for Karnataka DIC subsidies and incentives.
Registration
Register your enterprise with District Industries Centre (DIC) and obtain Udyam Registration Certificate.
Project Implementation
Set up your enterprise and commence commercial production during the policy period.
Documentation
Prepare all required documents including project report, investment details, land documents, and statutory approvals.
Subsidy Application
Submit subsidy application through the Karnataka Udyog Mitra portal or directly at the DIC office.
Verification
DIC officials will verify your application and conduct site inspection if required.
Approval & Disbursement
Upon approval, subsidies will be disbursed as per the guidelines of the scheme.
Frequently Asked Questions
Find answers to common questions about Karnataka DIC subsidies.
Quick Eligibility Check
Answer a few questions to determine if your business qualifies for Karnataka DIC subsidies.
1. Is your business registered as an MSME under Udyam Registration?
Not Eligible
Key Benefits for MSMEs
The Karnataka government offers comprehensive support to MSMEs through various subsidies and incentives to promote industrial growth and development.
Investment Promotion Subsidy
Up to 35% of Value of Fixed Assets (VFA) for eligible enterprises, with maximum limits based on enterprise size and zone.
Stamp Duty Exemption
100% exemption from stamp duty for up to 5 years in Zone 1 and Zone 2, and 75% exemption for special categories in Zone 3.
Power Subsidy
₹1 per unit consumed for Micro & Small enterprises for up to 3 years, helping reduce operational costs significantly.
Tax Exemptions
100% exemption from tax on electricity tariff for up to 8 years depending on the zone and category of the enterprise.
Land Conversion Fee Reimbursement
100% reimbursement of land conversion fee in Zone 1 and Zone 2, and 75% for special categories in Zone 3.
Additional Benefits
Special incentives for SC/ST, women, minorities, ex-servicemen, and physically challenged entrepreneurs.
Need Expert Assistance with Government Schemes?
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