Karnataka State Food Processing Scheme

Sl No Scheme Component Subsidy Amount Max Cap
1

Investment Promotion Subsidy (Applicable to all promoters)

35% of the value of fixed assets (VFA) Rs. 65 Lakhs
2

Stamp Duty (Not Applicable for Category “D” Enterprises)

100% reimbursement None
3

Concessional Registration Charges (Not Applicable for Category “D” Enterprises)

Rs. 0.50 per Rs. 1000 None
4

Land Conversion Fee (Not Applicable for Category “D” Enterprises)

100% reimbursement None
5

Exemption from Entry Tax

 

 

 

a. MSME

1.   100% for 3 years for plant and machinery & Capital Goods from date of Implementation

2.   100% for 6 years for   raw materials, inputs and component parts and consumables excluding petroleum products from DCP

None

 

b. Category A Enterprises

1.   100% for 3 years for plant and machinery & Capital Goods from date of Implementation

2.   100% for 5 years for   raw materials, inputs and component parts and consumables excluding petroleum products from DCP

 

 

c. Category B Enterprises

1.   100% for 3 years for plant and machinery & Capital Goods from date of Implementation

2.   100% for 6 years for   raw materials, inputs and component parts and consumables excluding petroleum products from DCP

 

 

d. Category C Enterprises

1.  100% for 5 years for plant and machinery & Capital Goods from date of Implementation

2.   100% for 7 years for   raw materials, inputs and component parts and consumables excluding petroleum products from DCP

 

6 Subsidy for setting up Effluent Treatment Plant (ETP) in

 

 

 

a. MSME

75% of the cost of ETP 50 Lakhs

 

b. Category A, B & C Enterprises

50% of the cost of ETP 100 Lakhs

 

c. Common Facility in Food Parks, Spice parks, Sea Food Parks and Agro Processing Clusters. 

50% of the cost of ETP 200 Lakhs
7

Interest Subsidy (Only for Micro Industries)

6% per annum upto 7 years

 

8

Exemption from tax on Electricity tariff (Applicable to all)

100% upto 8 years

 

9

Reimbursement of VAT

 

 

 

a. MSME

75% of Net VAT for 5 years (Apply Annually) 100% of the Value of Fixed Assets

 

b. Category A Enterprises

60% of Net VAT for 5 years (Apply Annually) 100% of the Value of Fixed Assets

 

c. Category B Enterprises

70% of Net VAT for 5 years (Apply Annually) 100% of the Value of Fixed Assets

 

d. Category C Enterprises

80% of Net VAT for 5 years (Apply Annually) 100% of the Value of Fixed Assets
10

Subsidy for technology adoption from Recognized National Labs (MSME only)

50% of the cost 1 lakh
11

Market Fee Exemption  (All New Units)

100% for 10 years None

Definitions:

  • ‘A’ CATEGORY ENTERPRISES Projects with an investment in fixed assets above Rs.10 Crores and up to Rs.75 Crores.
  • ‘B’ CATEGORY ENTERPRISES Projects with an investment in fixed assets above Rs.75 Crores and up to Rs.150 Crores.
  • ‘C’ CATEGORY ENTERPRISES Projects with an investment in fixed assets above Rs.150 Crores.
  • ‘D’ CATEGORY ENTERPRISES The first two Agro food processing enterprises in a taluka providing a minimum direct employment of 100 persons with a minimum investment of Rs.150 Crores.

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