ON PACKAGE OF INCENTIVES AND CONCESSIONS UNDER...

GOVERNMENT OF KARNATAKA DEPARTMENT OF INDUSTRIES AND COMMERCE

Operative Guidelines

ON PACKAGE OF INCENTIVES AND CONCESSIONS UNDER

KARNATAKA INDUSTRIAL POLICY 2014-19

APPROVED VIDE GOVT. LETTER NO: CI 58/SPI/2013 DTD:07/05/2015

CONTENTS

SL. NO. PARTICULARS PAGE NO.

1 Acknowledgement 1

2 Introduction 2

3 Definitions of various terms used in the policy 2-6

4 Investment Promotion Subsidy 7-13

5 Exemption from Payment of Stamp Duty and Concessional Registration Charges

13-15

6 Reimbursement of Land Conversion Fine 15-16

7 Exemption from Payment of Entry Tax 17-20

8 Subsidy for Setting up of Effluent Treatment Plant (ETP) 20-21

9 Interest Subsidy for Micro Enterprise 21-22

10 Exemption from Tax on Electricity Tariff 22-23

11 Technology Upgradation, Quality Certification For MSMEs

23-29

12 Water Harvesting and Conservation Measures for

Manufacturing MSMEs

30-31

13 Energy Conservation Measures for MSME

manufacturing enterprises

31-32

14 Land/Shed allotment by KIADB and KSSIDC at

concessional rates to SC/ST entrepreneurs

32

15 Reimbursement of the Cost Of Preparation of Project

Reports

32

16 Encouragement For Anchor Industries 33

17 Interest Free Loan To Large,Mega, Ultra Mega, Super

Mega Enterprises On Net VAT And CST

34-36

18 Interest free loan to focused manufacturing sector 37

19 Classification of Taluks in Karnataka into Zones for the

purpose of Administration of Incentives and

Concessions

38-41

LIST OF ANNEXURES

ANNEXURE NUMBER

PARTICULARS

PAGE NO.

1 List of Service Enterprises Eligible for Package of

Incentives and Concessions

42

2 List Of Industrial Activities/Enterprises Not Eligible for

Incentives and Concessions

43

3A Terms and Conditions for Sanction of Incentives and

Concessions

44-47

4 Application for Sanction of Investment Promotion

Subsidy

48-50

5 Statement of Fixed Assets Created by the Enterprise 51-52

6 Fixed Investment Certificate from the Bank/Financial

Institution

53-54

7 Civil Engineer’s/Architect’s Certificate for Investment in

Building and Other Civil Works

55

8 Form Of Declaration Regarding Employment of Local

Persons

56-57

9 Chartered Accountant Certificate 58-59

10 Investigation Report of Assistant Director/Deputy

Director Of DIC

60-61

11 Agenda Notes for Sanction of Investment Promotion

Subsidy in the DLC Meeting

62-64

12 Format for Sanction Order of Investment Promotion

Subsidy

65-66

13 Format of Undertaking to be Executed for Investment

of Promotion Subsidy

67-68

14 Format for Submi tting Progress of Sanction of

Investment of Promotion Subsidy

69

15 Application for Stamp Duty and Concessional

Registration Charges

70-72

16 Format for Issue of Stamp Duty Exemption and

Concessional Registration Charges Certificate (Land

Documents)

73-74

17 Format for Issue of Stamp Duty Exemption and

Concessional Registration Charges Certificate (Loan

Documents)

75

18 Format for Sanction Order for Reimbursement of Land

Conversion Fine

76

19 Format For Submitting Progress Of Sanction Of

Reimbur sement Of Land Conversion Fine

77

20 Application for Entry Tax Exemption on Purchase of

Plant & Machinery During Implementation of Project

78-80

21 Application for Entry Tax Exemption on Purchase of

Raw Materials, Inputs During Operation of Project

81-83

22 Pro forma for Entry Tax Exemption Certificate During

Implementation Phase

84-8

23 Pro forma for Entry Tax Exemption Certificate During

Operational Phase

86-87

24 Format for Submitting Progress of Issue of Entry Tax

Exemption Certificates

88

25 Application for Sanction of Investment Subsidy for setting up of Effluent Treatment Plant

89-90

26 Fixed Investment Certificate from the Bank/Financial Institution for Sanction of Effluent Treatment Plant

91-92

27 Chartered Accountant Certificate for Sanction of Effluent Treatment Plant

93-94

28 Chartered Engineer’s/Architect’s Certificate for Sanction of Effluent Treatment Plant

95

29 Capital Subsidy Sanction Order for EffluentTreatment Plant

96-97

30 Format for Undertaking to be Executed For ETP/Anchor unit Capital Subsidy

98 -99

31 Certificate from Bank Regarding Dates and Amount of Term Loan Released

100

32 Format of Certificate to be Issued from Bank for Claiming Interest Subsidy

101

33 Format for Sanction Order of Interest Subsidy For Micro Enterprises on Term Loan

102 -103

33A Format for Sanction Order of Interest Subsidy for MSME s on Technology Upgradation Loan

104 -105

34 Prescribed Format for Issue of Electricity Duty

Exemption Certificate for Micro, Small & Medium

Manufacturin g Enterprise

106

35 Application for Reimbursement of ISO/ISI/BIS Series Certification Charges.

107 -109

36 Application for Incentive For Adoption/Transfer of Technology

110 -112

37 Application for Claiming Incentives for Water Harvesting/ Conservation Measures

113 -115

38 Application for Claiming Incentives for Energy

Conservation Measures

116 -118

39 Format for Sanction Order of Capital Subsidy for

Anchor Enterprise

119 -120

A Detailed Statement of Expenditure incurred for

obtaining ISO/ISI/BI S Certificate

121

B Chartered Accountant Certificate on Investment in Plant

& Machinery

122

C Affidavit to be Submitted for Claiming Reimbursement

of ISO/ISI/BIS Certification Charges

123 -124

D Detailed Statement of Expenditure incurred for

Adoption o f Technology

125

E Affidavit to be Submitted for Claiming Reimbursement

on Technology Adoption

126 -127

F Detailed Statement of Expenditure incurred for

Adoption of Rain Water Harvesting/Waste Water

Recycling/Zero Discharge

128

G Affidavit for Incentive on Adoption of Rain Water Harvesting/Waste Water Recycling/Zero Discharge

129 -130

H Detailed Statement of Expenditure incurred for Energy


131

I Affidavit for Incentive on Adoption of Energy


132 -133

Guidelines for Export Related Incentives & Concessions

134-141

40 Application for Export Related Incentives & Concessions 142 - 145

40A Application for MDA and Reverse MDA 146-147

41 Entry Tax Exemption Certificate to 100% EOUs & other EOUs with minimum export obligation of 50% of their total turnover for procurement of plant and machinery and capital goods

148

41A Entry Tax Exemption Certificate to 100% EOUs & other EOUs with minimum export obligation of 50% of their total turnover on purchase of raw materials, inputs, components and consumables (excluding petroleum products)

149

42 Refund of Certification Charges 150

43 Refund of cost incurred for Export Consultancy/ 151

Market Intelligence studies

44 Financial Assistance for Brand Promotion and Quality Assurance

152

45 Refund of fees incurred by Potential/Individual Entrepreneurs for certification courses

153

46 Support for creation of Export Facilitation Facilities, R&D and Testing Service

154

47 Assistance under Market Development Assistance for South American countries

155

47A Assistance under Market Development Assistance for all countries except South America

156

47B Assistance under Reverse Market Development Assistance for all countries

157

48 Reimbursement of Export Credit Guarantee Insurance premium

158

49 Financial Assistance for MSME/SC/ST/Artisans and Women Entrepreneurs for participation in exhibitions within and outside the State

159

50 Financial assistance for Procurement of Imported Seeds and Training Of Farmers in development of exports of Gherkins, Rose Onions And Floriculture

160

1

ACKNOWLEDGEMENT

The Government of Karnataka, through the Commerce and Industries Department, has announced New Industrial Policy 2014-19, for a period of five years with effect from 1-10-14 offering various incentives and concessions to new investments in the State. In order to administer the package of incentives and concessions, the Department of Industries and Commerce now desires to bring out operative guidelines. This is a useful guiding tool for both field level officers and also the investors.

The definitions, formats, procedures for claiming and sanctioning of various benefits are fully explained. The narration is simple so that it is understood by every reader. The scopes for seeking frequent clarifications and also for interpretations are minimized. It is noted that the intentions of the Government of Karnataka promised in the Industrial Policy will be put into practice with these operative guidelines.

2

INTRODUCTION

The Government of Karnataka has announced the New Industrial Policy 2014-19, vide Government Order No. CI 58 SPI 2013 Bengaluru Dated: 1-10-2014.

The objectives of the Karnataka Industrial Policy 2014 -19 are as follows:

(i) To maintain an industrial growth rate of 12 % per annum

(ii) To enhance the contribution of manufacturing sector to the state GDP from present level of 16.87 % to 20% by the end of the policy period

(iii) To attract investment of Rs. 5 lakh crore

(iv) To create employment opportunities for 15 lakh persons

(v) To create an environment to enhance ease of doing business in the State.

Government desires to achieve these objectives through various policy measures and one of these is providing attractive package of incentives and concessions to various categories of MSMEs, Large, Mega, Ultra Mega and Super Mega enterprises. The above industrial policy and package of incentives and concessions shall come into effect from 01.10.2014 and will have a span of five years i.e upto 30.9.2019.

1.0 DEFINITIONS OF VARIOUS TERMS USED IN THE POLICY

As per the MSMED Act, 2006, Manufacturing Enterprises are classified based on the investment in plant and machinery as mentioned below:

1.01

1.02

1.03

MICRO ENTERPRISES - Investment up to Rs. 25 lakh

SMALL ENTERPRISES - Investment above Rs. 25 lakh

and up to Rs. 500 lakh

MEDIUM ENTERPRISES - Investment above Rs. 500 lakh and up to Rs. 1000 lakh

As per the MSMED Act, 2006, Service Enterprises are classified based on investment in equipment as mentioned below:

1.04

1.05

1.06

MICRO ENTERPRISES - Investment up to Rs. 10 lakh

SMALL ENTERPRISES - Investment above Rs. 10 lakh and up to Rs. 200 lakh

MEDIUM ENTERPRISES - Investment above Rs. 200 lakh and upto Rs. 500 lakh

1.07

Plant and Machinery S.O. 1722(E) – In exercise of the powers conferred by sub-section (1) of 2006) herein referred to as the said Act, the Central Government specifies the following items, the cost of which shall be excluded while calculating the investment in plant and machinery in the case of the enterprises mentioned in Section 7(1)(a) of the said Act, namely:

(i) equipment such as tools, jigs, dyes, moulds and spare parts for maintenance and the cost of consumables stores

(ii) installation of plant and machinery (iii) research and development equipment and pollution control equipment (iv) power generation set and extra transformer installed by the enterprise as

per regulations of the State Electricity Board (v) bank charges and service charges paid to the National Small Industries

Corporation or the State Small Industries Corporation (vi) procurement or installation of cables, wiring, bus bars, electrical control

panels (not mounted on individual machines), oil circuit breakers or miniature circuit breakers which are necessarily to be used for providing electrical power to the plant and machinery or for safety measures

(vii) gas producer plants (viii) transportation charges (excluding sales-tax or value added tax and

excise duty) for indigenous machinery from the place of the manufacture to the site of the enterprise

(ix) charges paid for technical know-how for erection of plant and machinery; (x) such storage tanks which store raw material and finished produces and

are not linked with the manufacturing process; and (xi) fire fighting equipment

While calculating the investment in plant and machinery, refer to above, the original price thereof, irrespective of whether the plant and machinery are new or second-hand, shall be taken into account provided that in the case of imported machinery, the following shall be included in calculating the value, namely;

(I) Import duty (excluding miscellaneous expenses such as transportation from the port to the site of the factory, demurrage paid at the port);

(ii) Shipping charges; (iii) Customs clearance charges; and (iv) Sales tax or value added tax

Government of Karnataka follows the same definition for administrating package of incentives and concessions.

1.08 LARGE PROJECT/ INDUSTRY/ ENTERPRISE: An Industrial Enterprise which is not classified as Micro, Small and Medium Enterprise and with investments up to Rs. 250 crore shall be classified as large enterprise.

1.09 MEGA PROJECT/INDUSTRY/ENTERPRISE Projects with an investment on fixed assets above Rs. 250 crore and up to Rs. 500 crore.

1.10 ULTRA MEGA PROJECT/INDUSTRY/ENTERPRISE Projects with an investment on fixed assets above Rs. 500 crore and up to Rs. 1000 crore

1.11 SUPER MEGA PROJECT INDUSTRY/ENTERPRISE: Projects with an investment in fixed assets above Rs. 1000 crore

3

1.12

100% EXPORT ORIENTED ENTERPRISES (EXPORT ORIENTED ENTERPRISES.):

A 100% export oriented enterprise is an industrial enterprise exporting its entire production, excluding the permitted levels by Govt. of India from time to time of domestic tariff area sales of manufacturing goods, including repair, reconditioning re-engineering and rendering of services. Such Enterprises may be set up either under the Export Oriented Enterprises or under EPEP (Export Promotion Industrial Park) Scheme or under EHTP (Electronic Hardware Technology Park) Scheme or STP (Software Technology Park) Scheme or SEZ (Special Economic Zone).

1.13 VALUE OF ELIGIBLE FIXED ASSETS (VFA) : Value of Eligible Fixed Assets shall mean the total investment made on land, building, plant & machinery and such other productive assets like tools, jigs, and fixtures, dies, utilities like boilers, compressors, diesel generating sets, cranes, material handling equipments and such other equipments directly related to production purposes.

1.14

1.15

EXISTING INDUSTRIAL ENTERPRISE: Shall mean an enterprise gone into commercial production/servicing on or before 30.09.2014 or the enterprise which are declared as pipeline status enterprise under 2009-14 policy.

NEW INDUSTRIAL ENTERPRISE: New enterprise for sanction of incentives and concession under 2014-19 policy shall mean an enterprise whose commencement of project implementation takes place on or after 1-10-2014.

1.16 EXPANSION / DIVERSIFICATION / MODERNIZATION: Shall mean new manufacturing facility set up by an existing enterprise within the existing facility or in new site or in an adjacent vacant site for manufacturing o f product already being manufactured with or without upgradation of technology or the process and/or a totally new product would be treated as expansion/diversification/modernization for the purpose of incentives under the policy 2014-19. Further, the enterprise to be eligible for incentives and concessions under expansion/diversification/modernization program has to increase the installed capacity by at least 25% of the declared capacity or average production during immediate 3 years prior to commencement of commercial production in the expanded/modernized/diversified enterprises ,whichever is more and has to make an additional investment of 25% of the original fixed investments of the existing unit (original fixed investment means, the investments prior to first sale invoiced raised for the initial investment i.e. prior to expansion /diversification/modernization program)

1.17 DATE OF COMMENCEMENT OF COMMERCIAL PRODUCTION: Date of issue of first sale invoice after trial production either by new unit or after expansion/diversification/modernization.

1.18 INVESTMENT / CAPITAL INVESTMENT: For the purpose of package of incentives and concessions, investment/capital investment shall mean investment made in fixed assets of the Enterprise.

4

1.19

UNIT(S) / ENTERPRISES(S) PROMOTED BY SC/ST ENTREPRENEURS: Means those units/enterprises exclusively by SC/ST entrepreneur as a proprietary concern or all partners or directors of Partnership Firms/Co- operative Societies/Private Limited companies or any other legal entity belong to SC/ST, Community.

1.20

UNIT(S)/ ENTERPRISES(S) PROMOTED BY SC/ST WOMEN ENTREPRENEURS: Means those units/enterprises exclusively by SC/ST Women entrepreneurs as a proprietary concern or all partners or directors of Partnership Firms/Co- operative Societies/Private Limited companies or any other legal Entity belong to SC/ST, Community and are women.

1.21

UNIT(S) / ENTERPRISES(S) PROMOTED BY WOMEN ENTREPRENEURS: Means those units/enterprises exclusively by Women entrepreneur as a proprietary concern or all partners or directors of Partnership Firms/Co- operative Societies/Private Limited companies or any other legal Entity are women.

1.22

UNIT(S) / ENTERPRISES(S) PROMOTED BY MINORITIES ENTREPRENEURS: Means those units/enterprises exclusively by Minority community Entrepreneur as a proprietary concern or all the partners or directors of the Partnership Firms/Co-operative Societies/Private Limited companies or any other legal Entity belong to Minority Community.

1.23

UNIT(S) PROMOTED BY BACKWARD class (CATEGORY 1 & 2A ONLY) ENTREPRENEURS:

Means those unit(s) established exclusively by a Backward class (Category 1 & 2A only) entrepreneur as a proprietary concern or all the partners or directors of the Partnership Firms/Co-operative Societies/Private Limited companies or any other or any other legal entity belong to Backward class (Category 1 and 2A Only) as per the notifications issued by GOK from time to time.

1.24

UNIT(S) PROMOTED BY PHYSICALLY CHALLENGED ENTREPRENEURS: Means those unit(s) established exclusively by a physically challenged Entrepreneur as a proprietary concern or all the partners or directors of the Partnership Firms/Co-operative Societies/Private Limited companies or any other legal entity are physically challenged persons

1.25

UNIT(S) PROMOTED BY EX-SERVICEMAN ENTREPRENEURS: Means those unit(s) established exclusively by an Ex-Serviceman entrepreneur as a proprietary concern or all the partners or directors of the Partnership Firms/Co-operative Societies/Private Limited companies or any other legal entity are Ex-Servicemen.

1.26 DATE OF COMMENCEMENT OF PROJECT IMPLEMENTATION: Shall mean the date on which the unit has taken any ONE of the following effective steps and whichever is earlier.

i. Date of entering lease or sale agreement of the premises (either Land or building) ii. Date on which possession certificate of the plot or shed is taken

from KIADB/KSSIDC or any other agency iii. Date of approval of building plan by competent authority iv. Date of release of first instalment of loan from Financial Institution Bank v. Date of placement of first purchase order for plant & machinery

5

1.27 NET VAT (FOR THE PURPOSE OF INCENTIVES AND CONCESSIONS OF 2014-19 POLICY)

Net VAT means output VAT minus input VAT.

1.28 APPROVED PRIVATE INDUSTRIAL AREAS/ESTATES Shall mean the industrial areas/ estates formed with the approval of the DLSWCC/ SLSWCC or SHLCC.

1.29 HEALTH CARE FACILITY CENTRE Shall mean hospital having minimum facilities to provide medical assistance to employees and to attend any casualty taking place in the industrial areas. This shall be supported with certificate from Health Department.

1.30 DLSWCC Shall mean District Level Single Window Clearance Committee for consideration of application from entrepreneurs intending to establish industries with the investment up to Rupees Fifteen crore (15 crores) each to be set up in the respective districts. This was constituted under the Karnataka Industries (Facilitation) Act, 2002 and notified under Notification No.CI 208 SPI 2002, Bengaluru Dated 4

th August, 2004 and Amended vide Notification dtd:

04/01/2014

1.31 SLSWCC Shall mean State Level Single Window Clearance Committee for consideration of application from entrepreneurs intending to establish industries with the investment of above Rupees Fifteen crore (15 crore) up to Rupees One Hundred crore (100) each to be set up in the State. This was constituted under the Karnataka Industries (Facilitation) Act, 2002 and notified under Notification No.CI 162 SPI 2001, Bengaluru Dated 26

th July, 2004 and Amended vide

Notification dtd:04/01/2014

1.32 SHLCC Shall mean State High Level Clearance Committee for consideration of application from entrepreneurs intending to establish industries with the investment of above Rupees One Hundred crore (100 crore) each to be set up in the State. This was constituted under the Karnataka Industries (Facilitation) Act, 2002 and notified under Notification No.CI 162 SPI 2001, Bengaluru Dated 26

th July, 2004 Amended vide Notification dtd:04/01/2014

1.33 Employment: Direct Employment shall mean employees who are on the rolls of the respective companies which will include contact labour engaged in production line. It will however not include casual labour. The percentage of contract labour engaged should not exceed 30% of total labour force.

1.34 Anchor Industry: The first two manufacturing enterprises in a taluk providing a minimum direct employment to 150 persons with a minimum investment of 250 crore are called Anchor Industries. The definition applies to taluks where no such industry exists at present.

1.35 Captive Power Plant: Means a power plant set up by a unit to generate electricity primarily for its own use.

6

7

a)

A) INVESTMENT PROMOTION SUBSIDY: Investment promotion subsidy shall be available to Micro, Small Enterprises and Medium Manufacturing and eligible service sector Enterprises as per Annexure-1 as detailed below:

I. GENERAL CATEGORY ENTREPRENEURS:

a) Micro Enterprises i) Other than Hyderabad Karnataka Area Zone 1: 25% Value of Fixed Assets (VFA) (max. Rs. 15.00 lakh) Zone 2: 20% Value of Fixed Assets (VFA) (max. Rs. 12.00 lakh) Zone 3: 15% Value of Fixed Assets (VFA) (max. Rs. 9.00 lakh) Zone 4: Nil ii) Hyderabad Karnataka Area HK Zone 1: 30% Value of Fixed Assets (VFA) (max. Rs. 18.00 lakh)

HK Zone 2: 25% Value of Fixed Assets (VFA) (max. Rs. 15.00 lakh)

b)

Small Enterprises i) Other than Hyderabad Karnataka Area Zone 1: 20% Value of Fixed Assets (VFA) (max. Rs. 40.00 lakh) Zone 2: 15% Value of Fixed Assets (VFA) (max. Rs. 30.00 lakh) Zone 3: 10% Value of Fixed Assets (VFA) (max. Rs. 20.00 lakh) Zone 4: Nil ii) Hyderabad Karnataka Area HK Zone 1: 25% Value of Fixed Assets (VFA) (max. Rs. 45.00 lakh)

HK Zone 2: 20% Value of Fixed Assets (VFA) (max. Rs. 40.00 lakh)

c)

Medium manufacturing Enterprises (as defined in MSMED ACT and those who provide minimum 25 direct employment)

i) Other than Hyderabad Karnataka Area Zone 1 : Rs. 50.00 lakh Zone 2 : Rs. 40.00 lakh Zone 3 : Rs. 30.00 lakh Zone 4 : Nil ii) Hyderabad Karnataka Area HK Zone 1 : Rs. 55.00 lakh

HK Zone 2 : Rs. 50.00 lakh

II. SC/ST CATEGORY ENTREPRENEURS:

Micro Enterprises i) Other than Hyderabad Karnataka Area

Zone 1: 30% Value of Fixed Assets (VFA) (max. Rs. 18.00 lakh)

35% Value of Fixed Assets (VFA) (max. Rs. 20.00 lakh)

– in Respect of SC/ST Women entrepreneurs



– in Respect of SC/ST Women entrepreneurs

Zone 3: 20% Value of Fixed Assets (VFA) (max. Rs. 12.00 lakh

of SC/ST Women entrepreneurs.


– in Respect of SC/ST Women entrepreneur



– in Respect of SC/ST Women entrepreneur.

8

ii) Hyderabad Karnataka Area

HK Zone 1: 35% Value of Fixed Assets (VFA) (max. Rs. 20.00 lakh) 40% Value of Fixed Assets (VFA) (max. Rs. 22.00 lakh) - in respect of SC/ST women entrepreneurs.

HK Zone 2: 30% Value of Fixed Assets (VFA) (max. Rs. 18.00 lakh) 35% Value of Fixed Assets (VFA) (max. Rs. 20.00 lakh) - in respect of SC/ST women entrepreneurs

b) Small Enterprises . i) Other than Hyderabad Karnataka Area Zone 1: 25%Value of Fixed Assets (VFA) (max. Rs. 45.00 lakh )

30%Value of Fixed Assets (VFA) (max. Rs. 50.00 lakh ) - in respect of SC/ST women entrepreneurs.

Zone 2: 20% Value of Fixed Assets (VFA) (max. Rs. 35.00 lakh ) 25% Value of Fixed Assets (VFA) (max. Rs. 40.00 lakh) - in respect of SC/ST women entrepreneurs.

Zone 3: 15% Value of Fixed Assets (VFA) (max. Rs. 25.00 lakh) 20% Value of Fixed Assets (VFA) (max. Rs. 30.00 lakh ) - in respect of SC/ ST women entrepreneurs.

Zone 4: 10% Value of Fixed Assets (VFA) (max. Rs. 10.00 lakh) 15% Value of Fixed Assets (VFA) (max. Rs. 15.00 lakh) - in respect of SC/ ST women entrepreneurs.

ii) Hyderabad Karnataka Area HK Zone 1: 30% Value of Fixed Assets (VFA) (max. Rs. 50.00 lakh )

35% Value of Fixed Assets (VFA) (max. Rs. 55.00 lakh ) - in respect of SC/ST women entrepreneurs.

HK Zone 2: 25% Value of Fixed Assets (VFA) (max. Rs. 45.00 lakh ) 30% Value of Fixed Assets (VFA) (max. Rs. 50.00 lakh) - in respect of SC/ST women entrepreneurs

c) Medium manufacturing Enterprises (as defined in MSMED ACT and those who provide minimum 25 direct employment)

i) Other than Hyderabad Karnataka Area Zone 1: Rs. 55.00 lakh

Rs. 60.00 lakh - in respect of SC/ST women entrepreneurs

Zone 2: Rs. 45.00 lakh Rs. 50.00 lakh - in respect of SC/ST women entrepreneurs



ii) Hyderabad Karnataka Area HK Zone 1: Rs. 60.00 lakh

Rs. 65.00 lakh - in respect of SC/ST women entrepreneurs.

HK Zone 2: Rs. 55.00 lakh Rs. 50.00 lakh - in respect of SC/ST women entrepreneurs.

III. Women Entrepreneurs:

a) Micro Enterprises i) Other than Hyderabad Karnataka Area

Zone 1: 30% Value of Fixed Assets (VFA) (max. Rs. 18.00 lakh) 35% Value of Fixed Assets (VFA) (max. Rs. 20.00 lakh) in respect of SC/ST Women entrepreneurs.

11

Zone 2: 25% Value of Fixed Assets (VFA) (max. Rs. 15.00 lakh) 30% Value of Fixed Assets (VFA) (max. Rs. 18.00 lakh) in respect of SC/ST women entrepreneurs.

Zone 3: 20% Value of Fixed Assets (VFA) (max. Rs. 12.00 lakh) 25% Value of Fixed Assets (VFA) (max. Rs. 15.00 lakh) in respect of SC/ST women entrepreneurs


ii) Hyderabad Karnataka Area HK Zone 1: 35% Value of Fixed Assets (VFA) (max. Rs. 20.00 lakh)

40% Value of Fixed Assets (VFA) (max. Rs. 22.00 lakh) in respect of SC/ ST women entrepreneurs.

HK Zone 2: 30% Value of Fixed Assets (VFA)(max.Rs.18.00 lakh) 35% Value of Fixed Assets (VFA) (max. Rs. 20.00 lakh) in respect SC/ST Women entrepreneurs.

b) Small Enterprises

i) Other than Hyderabad Karnataka Area Zone 1: 25% Value of Fixed Assets (VFA) (max. Rs. 45.00 lakh)

30% Value of Fixed Assets (VFA) (max. Rs. 50.00 lakh) in respect of SC/ST women entrepreneurs.



20% Value of Fixed Assets (VFA) (max. Rs. 30.00 lakh) in respect of SC/ ST women entrepreneurs.

Zone 4: 10% Value of Fixed Assets (VFA) (max. Rs. 10.00 lakh) 15% Value of Fixed Assets (VFA) (max. Rs. 15.00 lakh) in respect of SC/ ST women entrepreneurs.

ii) Hyderabad Karnataka Area

HK Zone 1: 30% Value of Fixed Assets (VFA) (max. Rs. 50.00 lakh) 35% Value of Fixed Assets (VFA) (max. Rs.55.00 lakh) in respect of SC/ST women entrepreneurs.

HK Zone 2: 25% Value of Fixed Assets (VFA) (max. Rs. 45.00 lakh) 30% Value of Fixed Assets (VFA) (max. Rs. 50.00 lakh) in respect of SC/ ST women entrepreneurs.


i) Other than Hyderabad Karnataka Area Zone 1: Rs. 55.00 lakh

Rs. 60.00 lakh- in respect of SC/ST women entrepreneurs.

Zone 2: Rs. 45.00 lakh Rs. 50.00 lakh- in respect of SC/ST women entrepreneurs

Zone 3: Rs. 35.00 lakh Rs. 40.00 lakh- in respect of SC/ST women entrepreneurs.

Zone 4: Rs. 20.00 lakh Rs. 25.00 lakh- in respect of SC/ST women entrepreneurs.

9

10

ii) Hyderabad Karnataka Area HK Zone 1: Rs. 60.00 lakh

Rs. 65.00 lakh - in respect of SC/ST women entrepreneurs

HK Zone 2: Rs. 55.00 lakh Rs. 60.00 lakh - in respect of SC/ST women entrepreneurs

IV. Minorities, Backward class (Category 1 & 2A only), Physically Challenged and Ex-Service Entrepreneurs.

a) Micro Enterprises i) Other than Hyderabad Karnataka Area Zone 1: 30% Value of Fixed Assets (VFA) (max. Rs. 17.00 lakh) Zone 2: 25% Value of Fixed Assets (VFA) (max. Rs. 15.00 lakh) Zone 3: 20% Value of Fixed Assets (VFA) (max. Rs. 12.00 lakh) Zone 4: Nil ii) Hyderabad Karnataka Area HK Zone 1: 35% Value of Fixed Assets (VFA) (max. Rs. 20.00 lakh) HK Zone 2: 30% Value of Fixed Assets (VFA) (max. Rs. 18.00 lakh)

b) Small Enterprises. i) Other than Hyderabad Karnataka Area Zone 1: 25% Value of Fixed Assets (VFA) (max. Rs. 45.00 lakh) Zone 2: 20% Value of Fixed Assets (VFA) (max. Rs. 35.00 lakh) Zone 3: 15% Value of Fixed Assets (VFA) (max. Rs. 25.00 lakh) Zone 4: Nil ii) Hyderabad Karnataka Area HK Zone 1: 30% Value of Fixed Assets (VFA) (max. Rs. 50.00 lakh) HK Zone 2: 25% Value of Fixed Assets (VFA) (max. Rs. 45.00 lakh)


i) Other than Hyderabad Karnataka Area Zone 1: Rs. 55.00 lakh Zone 2: Rs. 45.00 lakh Zone 3: Rs. 35.00 lakh Zone 4: Nil ii) Hyderabad Karnataka Area HK Zone 1: Rs. 60.00 lakh HK Zone 2: Rs. 55.00 lakh

The investment promotion subsidy is available only to Enterprises availing term loan of minimum 50% of fixed assets from KSFC/KSIIDC /Banks/Other Recognised Financial Institutions from RBI.

The quantum of investment promotion subsidy shall be computed on the Value of Fixed Assets (VFA) as approved/certified by the financial institutions/commercial banks/chartered accountant certificate/civil engineer certificate or actual investment in fixed assets at site, whichever is less.

Total quantum of investment promotion subsidy for any industrial enterprise shall not exceed the prescribed upper limit, including for expansion, modernization, diversification, which is inclusive of investment subsidy availed under earlier package of incentives on fixed assets.

Wherever MSMEs avail any kind of subsidy or grant on fixed assets/capital expenditure/project cost under any other schemes/policies of Government of Karnataka/Government of India, only differential amount of subsidy, if any would be sanctioned.

All eligible Enterprises under 2014-19 Industrial Policy shall submit application in the prescribed format along with the documents for sanction of subsidy before the concerned District Industries Centre within a period from 12 months from the date of commencement of

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commercial production. Enterprises that fail to comply to this deadline will not be eligible for investment promotion subsidy.

Other terms and conditions not specifically mentioned herein above but indicated in the Government Order No. CI/58/SPI/2013 dated: 01.10.2014 and subsequent amendments, clarifications issued by the Government thereon shall apply mutatis-mutandis.

Procedure for claiming Investment Promotion Subsidy:

Eligible industrial enterprises shall apply with the following documents to the concerned District Industries Centre.

a) Duly filled in Application in the prescribed format as in Annexure–4

b) Statement of Fixed Assets in prescribed format in Annexure–5

c) Original Investment certificate issued by the KSFC/KSIIDC/Bank/Other financial institutions in prescribed format as in Annexure–6

d) Original Certificate from Civil Engineer/Architect in prescribed format in respect of investment made in building as in Annexure–7

e) Form of declaration regarding employment of local persons in the prescribed format as in Annexure–8

f) Original investment certificate from Chartered Accountant in prescribed format as in Annexure–9 in respect of small and medium enterprises

g) A copy of the Project report duly signed by the Promoter

h) Copy of Land documents/records

i) Copy of term loan sanction orders from KSFC/KSIIDC/Bank/Other financial institutions recognized by RBI

j) Copy of First sale invoice

k) Copy of IEM acknowledgment – Part -II

l) Copy of registered partnership deed/Memorandum and Articles of Association/byelaws

m) Copy of Caste certificates in respect of SC/ST minorities/Backward class (category 1 & 2A only) issued by competent authority and appropriate certificate/documents in respect of Physically Challenged/Ex-servicemen entrepreneurs

n) Copy of power sanction/power serviced, letter

o) VAT Registration Certificate from Commercial Tax Department if applicable

p) Certificate from the Textile Department for not availed subsidy in respect of Textile based industries including Readymade Garment/Certified from Department of Agriculture/ Horticulture for not availed subsidy in respect of Agro Food Processing Industry in any of the Government of Karnataka/India Schemes

q) Copy of approved building plan Or Copy of license obtained from competent authority

Scrutiny of Investment Promotion Subsidy claim for sanction:

The concerned Member Secretary of the District Level Committee for Sanction of Investment Promotion Subsidy on receipt of application shall personally verify the genuineness of the claim with reference to the documents furnished by the enterprise. On satisfying the documents furnished by the enterprise, shall take up physical verification of the enterprise with the approval of the Joint Director, and shall arrange to place the proposal before the District Level Committee for sanction of investment promotion subsidy to the applicant enterprise.

The scrutiny of Investment Promotion Subsidy application has to be done in the following manner.

(i) Land, actually utilized for factory building required for Installation of plant and machinery, storage of raw material, finished goods, drying yards, soaking pits etc.

(ii) Investment made on the factory building required for housing plant and machinery and storage of raw materials, finished goods, drying yards, soaking pits and such other structures directly related to the production purposes shall only be considered.

(iii) Reasonable area constructed for office use within the factory premises shall be considered

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not exceeding more than 25% of investment on factory building and other items as stated in (ii) above.

(iv) Investment made on Guest/Rest house, Decorative arch entrances, high-rise compound walls and such other non-essential structures should be excluded.

(v) Value of building has to be accepted as certified by the KSFC/KSIIDC/Bank/Other Financial institutions and it should be cross checked with reference to the Chartered Engineer's certificate and Chartered Accountant certificate. The least amount of value shall be accepted.

(vi) The plant and machineries installed in the enterprise have to be verified with reference to the statement of fixed assets, investment certified by the KSFC/KSIIDC/Bank/Other financial institutions and investment certified by chartered Accountant. The least amount of value shall be accepted.

(vii) Miscellaneous items like cctv, office furniture and goods carrier shall be excluded. However, computers, printers and fax machines can be considered.

(viii) The cost of old/second hand machinery and equipment shall be excluded for computing the investment in the plant and machinery. However imported second hand machinery brought into the country for the first time by the enterprise shall be considered, subject to such machineries shall have residual life span of minimum five years certified by a chartered engineer.

(ix) Any other investments directly made by the enterprise on eligible fixed asset items, has to be certified by the KSFC/KSIIDC/Bank/Other financial institutions and it must be considered by obtaining the bills and receipts. This is subject to the physical verification of such assets and the payments of more than Rs. 20,000 should be by cheque/D.D. However the condition of availing 50% term loan on eligible fixed assets is applicable.

(x) Member Secretary, DLC is responsible for attestation of documents and verification of local employment details. He has to submit the investigation report to the Joint Director, District Industries Centre as per Annexure-10 and thereafter prepare agenda notes for the DLC as per the Annexure-11 , with the approval of Joint Director, DIC.

(xi) On obtaining approval from District Level Committee (DLC), the Joint Director, District Industries Centre shall issue the Sanction order as per Annexure-12 . The enterprise, on receipt of the Sanction order, shall furnish the undertaking as per Annexure-13

(xii) The Joint Director DIC shall submit monthly progress report on investment promotion subsidy in the prescribed format as per Annexure-14

District Level Committee for Sanction of Investment Promotion Subsidy: "A" Category Districts

1 Joint Director, District Industries Centre Chairman

2 Lead Bank Manager Member

3 Manager, KSFC Member

4 D.D. (KVI) - Zilla Panchayath Member

5 Deputy Director, District Industries Centre Member Secretary

"B" Category Districts

1 Joint Director, District Industries Centre Chairman

2 Lead Bank Manager Member

3 Manager, KSFC Member

4 D.D. (KVI) - Zilla Panchayath Member

5 Assistant Director, District Industries Centre Member Secretary

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The Directorate will maintain state Seniority list of Investment promotion subsidy. Separate seniority will be maintained for different types of subsidies such as Interest Subsidy, ETP Subsidy and Reimbursement of NA Conversion sanctioned by the DLCs . Similarly, separate seniority will also be maintained in respect of SC/ST and women category entrepreneurs. The funds for the sanctioned will be released to Enterprises strictly on the seniority list depending upon the funds released by the Govt. The Joint Director DICs shall submit all the sanctioned cases in the DLC every month in the format as per Annexure-14. The proposal for release of sanctioned pending subsidy shall be sent by the Joint Directors as per the circular instructions and formats issued by the Directorate to Joint Directors from time to time. Based on the proposals received from the Joint Directors, releases will be done by Directorate. Separate record for sanctions, releases and pendency shall be maintained by Joint Directors of all the DLC Sanctioned cases.

NOTE: The sanctioned Investment Promotion and other Subsidy amount will be released to the units as per availability of grants from the Government time to time depending upon Seniority.

B) EXEMPTION FROM PAYMENT OF STAMP DUTY & CONCESSIONAL REGISTRATION CHARGES

Stamp duty to be paid in respect of (i) loan agreements, credit deeds, mortgage and hypothecation deeds executed for availing loans from State Government Including VAT loan from C&I Department and/or State Financial Corporation, National Level Financial Institutions, Commercial Banks, RRBs, Co-operative Banks, KVIB/KVIC, Karnataka State SC/ST Development Corporation, Karnataka State Minority Development Corporation and other institutions which may be notified by the Government from time to time for the initial period of five years only, and (ii) for lease deeds, lease-cum-sale and absolute sale deeds executed by industrial enterprises in respect of industrial plots, sheds, industrial tenements by KIADB, KSSIDC, KEONICS, Industrial Co-operatives and approved private industrial estates shall be exempted as below:

I. MSMEs:

CATEGORY OF ENTREPRENEUR

AREA AND ZONE RATE OF STAMP DUTY EXEMPTION

CONCESSIONAL REGISTRATION CHARGES

General Other than Hyderabad Karnataka Area-Zone 1,2

100% Re. 1 per Rs. 1000

Zone 3 75% Re. 1 per Rs. 1000

Zone 4 Nil Nil

Hyderabad Karnataka Area-Zone 1,2

100% Re. 1 per Rs. 1000

SC/ST Other than Hyderabad Karnataka Area-Zone 1,2,3

100% Rs. 0.50 per Rs. 1000

Zone 4 75% Rs. 0.50 per Rs. 1000

Hyderabad Karnataka Area- Zone 1,2

100% Rs. 0.50 per Rs. 1000

Women Other than Hyderabad Karnataka Area-Zone 1,2,3

100% Rs. 0.50 per Rs. 1000

Zone 4 75% Rs. 0.50 per Rs. 1000


100% Rs. 0.50 per Rs. 1000

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Minorities, Backward Class (category 1 &2 0nly) Physically challenged & Ex- Servicemen

Other than Hyderabad Karnataka Area-Zone 1,2,3

100% Rs. 0.50 per Rs. 1000

Zone 4 Nil Nil


100% Rs. 0.50 per Rs. 1000

II. Large, Mega, Ultra Mega, Super Mega Enterprises:

AREA AND ZONE RATE OF

STAMP DUTY

EXEMPTION

CONCESSIONAL

REGISTRATION

CHARGES

Other than Hyderabad Karnataka Area-Zone 1 & 2 100% Re. 1 per Rs. 1000

Zone 3 75% Re. 1 per Rs. 1000

Zone 4 NIL NIL

Hyderabad Karnataka Area-Zone 1 & 2 100% Re. 1 per Rs. 1000

NOTE: The exemption of stamp duty and concessional registration charges are also applicable to lands purchased under Section 109 of the KLR Act 1961, and also for direct purchase of industrially converted lands for the projects approved by SHLCC/SLSWCC/DLSWCC. This incentive will also be applicable for the land transferred by KIADB to land owners as compensation for the land acquired. The exemption of stamp duty and concessional registration charges are also available for registration of final sale deed in respect of lands, sheds, plots, industrial tenements after the expiry of lease period at the rate as specified in the Industrial Policy which was in vogue at the time of execution of lease-cum-sale deed.

Procedure for Issue of Stamp Duty and Concessional Registration Charges: The eligible enterprises shall apply On-line in E-udyami portal( www.kum.karnataka.gov.in) along with the required documents as per checklist. A hard copy of application and documents shall also be filed to the concerned officers mentioned below.

Sector Officer with whom the application to be filed.

Micro, Small and Medium and Large Enterprises within project cost of Rs. 50.00 crores

Joint Director, District Industries Centre.

Large and Mega Enterprises Directorate, Department of Industries & Commerce above Rs. 50.00 crores

The documents (checklist) to be furnished by the enterprise for claiming stamp duty exemption and concessional registration charges are given below

1. Duly filled in prescribed application form as per Annexure-15

2. Attested copy of the project report duly signed by the promoter

3. Attested copy of partnership deed/Memorandum and Articles of Association/Bye-laws

4. Attested copy of IEM acknowledgment part-I or part II or Industrial license or 100% EOU certificate

5. Attested copy of the DLSWCC/SLSWCCC/SHLCC approval obtained by the unit/copy of government order, if issued.

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6. Attested copy of shed /land allotment order/possession certificate

7. Attested copy of unregistered lease deed/lease-cum-sale deed

8. Form of declaration regarding employment of local person in Annexure-8 in case of existing unit

9. Attested copy of approval order/permission obtained from revenue department under section 109 of KLR Act for purchase of land

10. Details of existing investment in case of Expansion/Modernisation/Diversification

The concerned office after verification of eligibility of the enterprise has to issue the Stamp duty exemption & Concessional Registration Charges certificate to the enterprise in accordance with the Revenue Departments notifications dated: 21/01/2015 and in prescribed format as in Annexure-16 in respect of registration of Land documents and in Annexure-17 in respect of loan documents. However, while purchasing the converted land, the Stamp Duty Exemption and concessional registration charges shall be extended only if the same is not claimed earlier

C) REIMBURSEMENT OF LAND CONVERSION FINE: The payment of land conversion fee for converting the land from agriculture use to industrial use will be reimbursed as detailed below:

I. MICRO, SMALL AND MEDIUM ENTERPRISES:

CATEGORY OF ENTREPRENEUR

AREA AND ZONE RATE OF

General Other than Hyderabad Karnataka Area-Zone 1,2 100%

Zone 3 75%

Zone 4 NIL

Hyderabad Karnataka Area-Zone 1,2 100%

SC/ST Other than Hyderabad Karnataka Area-Zone 1,2,3 100%

Zone 4 75%


Women Other than Hyderabad Karnataka Area-Zone 1,2,3 100%

Zone 4 75%


Minorities, Backward Class (category 1 &2 0nly) Physically challenged & Ex-Servicemen

Other than Hyderabad Karnataka Area-Zone 1,2,3 100% Zone 4 NIL


II. LARGE, MEGA, ULTRAMEGA AND SUPER MEGA ENTERPRISES

AREA AND ZONE RATE OF REIMBURSEMENT.

Other than Hyderabad Karnataka Area-Zone 1,2 100%

Zone 3 75%

Zone 4 NIL

Hyderabad Karnataka Area-Zone 1,2 100

Reimbursement of Land Conversion fine is available only to Manufacturing MSMEs and Large, Mega, Ultra Mega and Super Mega and Selected Service Enterprises listed at Annexure-1.

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The waiver of conversion fine will be reimbursed to the eligible enterprises after implementation of projects i.e. after commencement of the commercial production by the enterprises. Procedure for claiming land conversion fine reimbursement

The eligible Micro, Small, Medium, Large Mega, Ultra Mega and Super Mega enterprises, shall apply to the respective Joint Director, District Industries Centres along with the following documents for claiming reimbursement of conversion fine:

i Application in plain paper/letterhead

ii Copy of the IEM acknowledgment part II or industrial license

iii Copy of approved building plan and building construction license

iv Copy of Land documents/records

v Copy of land conversion order issued by Revenue Department and Copy of receipt/challan as proof of payment made towards land conversion charges

vi Copy of Project Report, duly signed by the promoter

vii Copy of Single Window Clearance Committee approvals/Govt. order, if any

viii Copy of ESCOMs power sanction and service letter

ix Copy of First Sale Invoice in respect of individual enterprises

x Copy of Layout map showing the land utilization in respect of individual enterprises

xi Copy of Partnership deed/memorandum and Articles of Association/Bye-laws

Scrutiny of the claims received for waiver of land conversion fine reimbursement.

The Joint Director, District Industries Centre after verification of the eligibility of the MSMEs and also large projects less than 50 crores investments the proposals has to be placed before the DLC for sanctions and issue the sanction order in the prescribed format as in Annexure-18 and maintain separate seniority list of such sanctions. In respect of large projects with the investments above 50 crores and Mega, Ultra Mega and Super Mega projects the proposal shall be verified and recommended to the Directorate with the above documents duly attested. The directorate on receipt of the complete proposal from the JD DICs, shall issue sanction order with the approval of Commissioner for Industrial Development and Director of Industries & Commerce in the prescribed format. The head office shall also maintain a separate seniority list of such sanctions.

The Joint Directors DIC's shall submit the progress of all such sanction in the DLCs on half yearly basis in the prescribed format as in Annexure-19.

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D) EXEMPTION FROM PAYMENT OF ENTRY TAX :

I. MICRO, SMALL AND MEDIUM ENTERPRISES

Category of entrepreneur

Area and zone

During implementation

During operational phase

General Other than Hyderabad Karnataka Area Zone 1, 2 & 3 and HK Zone 1 & 2

100% Exemption from payment of Entry Tax on 'Plant & Machinery and capital goods' for an initial period of three (3) years from the date of commencement of project implementation. For this purpose, the term Plant & Machinery and Capital Goods also includes Plant & Machinery and Equipments procured for captive generation of electricity.

On raw materials, inputs, component parts & consumables (excluding petroleum products) [wherever applicable] for a period of Five (5) years from the date of commencement of commercial production.

Zone 4 NIL NIL

SC/ST Entrepreneur

s

Other than Hyderabad Karnataka Area- Zone 1,2,3 and HK Zone 1 & 2


On raw materials, inputs, component parts & consumables (excluding petroleum products) [wherever applicable] for a period of six (6) years from the date of commencement of commercial production.

Zone 4 NIL NIL

Women Entrepreneur s

Other than Hyderabad Karnataka Area- Zone 1,2,3 and HK Zone 1 & 2.

100% Exemption from payment of Entry Tax on 'Plant & Machinery and capital goods' for an initial period of three (3) years from the date

On raw materials, inputs, component parts & consumables (excluding petroleum products) [wherever applicable] for a

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of commencement of project implementation. For this purpose, the term Plant & Machinery and Capital Goods also includes Plant & Machinery and Equipments procured for captive generation of electricity.

period of six (6) years from the date of commencement of commercial production.

Zone 4 NIL NIL

Minorities, Backward class (category 1 &2 0nly) Physically challenge Ex- Servicemen

Other than Hyderabad

Karnataka Area- Zone 1,2,3 and HK

Zone 1 & 2


On raw materials, inputs, component parts & consumables (excluding petroleum products) [wherever applicable] for a period of six (6) years from the date of commencement of commercial production.

Zone 4 NIL NIL

II. LARGE, MEGA, ULTRA MEGA AND SUPER MEGA ENTERPRISES

In other than HK Zone 1, 2 & 3 and HK Zone 1 & 2 these units are eligible for 100% exemption from payment of Entry Tax on 'Plant & Machinery and Capital Goods' for an initial period of three years for Large and Mega and five years for Ultra Mega and Super Mega enterprises from the date of commencement of project implementation. For this purposes, the Plant and Machinery and Capital Goods also includes Plant & Machinery and Equipments procured for captive generation of electricity / power.

On raw materials, inputs, component parts & consumables (excluding petroleum products) [wherever applicable] for a period of five years from the date of commencement of commercial production. In respect of Mega, Ultra Mega and Super Mega Enterprises, additional One, Two and Three years will be allowed respectively for operational period.

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III. Entry Tax Exemption to Focused Manufacturing Sectors i.e. Automotive, Machine Tool (excluding Steel & Cement) Ultra Mega and Super Mega projects.

Entry tax exemption during project implementation and operational period (excluding petroleum products) will be as under:

In Zone 1, 2 & 3 and HK Zone – 1 & 2 are eligible for 100% exemption from payment of Entry Tax on 'Plant & Machinery and Capital Goods' for an initial period of five years from the date of commencement of project implementation. For this purpose, the term Plant & Machinery and Capital Goods also includes Plant & Machinery, equipment etc. including machineries for captive generation of Electricity.

On raw materials, inputs, component parts & consumables (excluding petroleum products) [wherever applicable] for a period of nine years from the date of commencement of commercial production.

Procedure for availing Entry Tax Exemption:

For claiming Entry Tax Exemption during implementation stage i.e. for plant and machinery, the eligible enterprises shall apply On-line in E-udyami portal (www.kum.karnataka.gov.in) along with the required documents as per checklist. A hard copy of application and documents shall also be filed to the concerned officers mentioned below.

Sector Officer with whom the application to be filed.

Micro, Small and Medium and

Large Enterprises within project

cost of Rs. 50.00 crore

Joint Director, District Industries Centre

Large, Mega, Ultra Mega and

Super Mega Enterprises

including focused

manufacturing sector industry

above Rs. 50.00 crore .

Directorate, Department of Industries & Commerce

The documents (checklist) to be furnished by the enterprises for Entry tax exemption Certificate during project implementation are given below.

a. Application in prescribed format in Annexure-20

b. Copy of the IEM Acknowledgment Part I filed with GOI for establishment of Enterprise or part II for having commenced the production or industrial licence

c. Copy of 1st

purchase order placed for machinery

d. Copy of the Project Report, duly signed by promoter

e. Copy of DLSWCC/SLSWCC/SHLCC approval letter or Government Order wherever applicable

f. Land documents/records

g. Term loan sanction order by Bank/Financial Institution, if applicable

h. VAT registration copy issued by the Commercial Tax Dept

i. Copy of partnership deed/Memorandum and Articles of Association/Bye-laws along with the certificate of incorporation of company

j. List of Plant and machineries and other equipments with their value required for implementation of the project

For claiming the Entry Tax Exemption during operational phase i.e. on raw materials, inputs, component parts & consumables (excluding petroleum products), the eligible enterprise shall apply with the following documents.

a. Application in prescribed format as per Annexure-21

b. Copy of the IEM acknowledgment Part II filed with GOI for having started the production or industrial license

c. Copy of DLSWCC/SLSWCC/SHLCC approval letter OR Government Order wherever applicable if any.

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d. Copy of First sale invoice

e. Land documents/records

f. Term loan sanction order, if any, and investment certificate issued by Banks, Financial Institutions in the prescribed Annexure-6

g. CA certificate in the prescribed format as per Annexure-9

h. Form of declaration regarding employment of local persons in Annexure-8

i. VAT registration copy issued by the Commercial Tax Dept.

j. Copy of partnership deed/Memorandum and Articles of Association/Bye-laws along with Certificate of Incorporation of Company

k. Detail Statement of annual requirement of raw materials/inputs/components and consumables for which entry tax exemption is claimed

The Joint Director, District Industries Centre after verification of the claim of the enterprise has to issue the entry tax exemption certificate to the enterprise in the prescribed pro forma as in Annexure-22 and 23 respectively in respect of MSMEs and large enterprises for the investments upto Rs. 50 crore. The large enterprises above Rs. 50 crore investments and Mega, Ultra Mega and Super Mega projects have to be verified by the Joint Director(DIC) and recommend to Directorate for issue of certificate. The Joint Director (ID) after scrutiny of the proposal shall issue the entry tax exemption certificate in the prescribed format as in Annexure-22 and 23 respectively.

The Joint Director, District Industries Centre shall furnish half yearly statement indicating the entry tax exemption certificates issued in the prescribed format as in Annexure-24.

E) SUBSIDY FOR SETTING UP EFFLUENT TREATMENT PLANT (ETP)

Subsidy for setting effluent treatment plant is available as follows:

I. Manufacturing MSMEs: (General category entrepreneurs)

One time capital subsidy up to 50% of the cost of ETPs, subject to a ceiling of Rs. 50 lakh in respect of HK Zone 1 & 2, other than Hyderabad Karnataka Zone 1, 2, 3 and Rs. 25 lakh in other than Hyderabad Karnataka Zone 4

II. Manufacturing MSMEs: (Women, SC/ST , Minorities, Backward class (Category 1 and 2A) Physically Handicapped, and Ex-servicemen Entrepreneurs)

One time capital subsidy up to 75% of the cost of ETPs, subject to a ceiling of Rs. 100 lakh in respect of HK Zone 1&2, other than Hyderabad Karnataka Zone 1, 2, 3, and Rs. 50 lakh in other than Hyderabad Karnataka Zone 4, respectively.

III. Large, Mega, Ultra Mega, Super Mega Enterprises and Common Effluent Treatment Plant (CETP) in Private Industrial Area Layouts

One time capital subsidy up to 50% of the cost of Effluent Treatment Plants (ETPs) subject to a ceiling of Rs. 200 lakh in respect of HK Zone 1 & 2. Other than HK Zone 1, 2, 3, and Rs. 100 lakh in other than HK zone.

PROCEDURE FOR CLAIMING SUBSIDY FOR ETPs

Eligible MSMEs, Large Mega, Ultra Mega and Super Mega Enterprises shall file an application in duplicate in the prescribed format to the respective Joint Director District Industries Centre with the following documents.

a. Application in the prescribed format as in Annexure-25

b. Detailed Project report

c. Copy of the term loan sanctioned letter from financial institution, if any

d. IEM filed after commercial production/Industrial Licence

e. Partnership Deed/Memorandum and Articles of Association along with certificate of incorporation of company.

f. Investment on ETP certified by financial institution if applicable as per Annexure-26

g. C. A. certificate for self financed cases as per Annexure-27

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h. Chartered Engineers/Architects certificate as per Annexure-28

i. Consent For Operation (CFO) issued by KSPCB and shall be valid as on date of application and sanction

j. Environment Clearance Certificate (ECC) issued by DFEE/MOEF, wherever applicable

k. Form of declaration regarding employment of local persons in prescribed format (As in Annexure-8)

l. Environment Management Plan

COMMITTEE FOR SANCTION OF SUBSIDY FOR ETPs:

1 Commissioner for Industrial Development and Director of Industries and Commerce

Chairman

2 Member Secretary, KSPCB Member

3 Director, Technical Cell, Department of Ecology and Environment Department

Member

4 Director, Technical Cell, Commerce and Industries Department

Member

5 Joint Director (ID), Industries and Commerce Department

Member

Secretary

6 Concerned Joint Director, District Industries Centre Invitee

SCRUTINY OF ETP SUBSIDY CLAIM:

The application for capital subsidy shall be filed in the prescribed format as per Annexure-25 with the concerned Joint Director DIC’s along with the above documents. The Joint Director shall scrutinize the applications with reference to the documents submitted and take up the physical inspection of the ETP jointly with the local KSPCB officer. At the spot the Joint Director shall verify the working of the ETP, Capacity of the plant, investments made towards the civil works, equipments, effluents discharged from the processing plant, treatment process, and usage of treated water. He shall also verify the records maintained and test reports in random. After satisfaction of the investments and working of the ETP, the Joint Directors shall place before the District Level Committee with detailed report for the projects upto Rs. 50 crore. After approval in the District Level Committee sanction order as per Annexure-29 is to be issued. For the projects above Rs.50 crore the Joint Director DIC's shall recommend to the Directorate and the Joint Director (ID) shall make arrangements to place before the committee constituted as above for sanction and issue sanction orders as per Annexure-29. The enterprise shall execute an agreement/undertaking as in Annexure-30 before release of funds

Separate seniority shall be maintained at the district level and also at the state level for sanctions made and releases shall be made to the enterprises’ bank account as when the funds are released by the government.

The above One time Capital Subsidy is available only to ETP and not for Sewage Treatment Plant (STP). For the purpose of calculation of investment on ETPs, wherein both Air Pollution Control Equipments and Water Pollution Control Equipments and its fixed assets are considered

F) INTEREST SUBSIDY FOR MICRO ENTERPRISE:.

Interest subsidy at 5% to General category entrepreneurs and 6% to SC/ST, Women, Minority, Backward Class (category 1 & 2A only), Physically challenged & Ex-servicemen entrepreneurs on term loans shall be provided to micro manufacturing enterprises who avail term loan from

21

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bank/financial institutions subject to prompt repayment of the loan installments. The interest subsidy is payable only on the interest actually paid to financial institutions and not defaulted in payment of principle or interest installments. The amount of interest subsidy will be effective rate of interest (after deducting interest subsidy receivable by any institutions/ under any Government of India scheme) or 5% / 6% per annum whichever is less.

The period of interest subsidy is 6 years, 5 years and 4 years in other than HK Zone-1, Zone-2 and Zone-3 and 7 years and 6 years in HK Zone 1 and 2, respectively. Interest subsidy shall be applicable/eligible from the date of 1

st loan released by Bank/Financial institution. However the

enterprises has to claim the benefit only after commencement of commercial production.

Documents to be furnished for claiming Interest Subsidy:

a. Application on letterhead/plain paper

b. IEM Part – II

c. Bank/financial institution term loan sanction letter

d. Certificate from the bank regarding dates and amount of term loan released as in Annexure-31

e. Copy of First Sale Invoice

f. Certification from the bank for claiming interest subsidy in the prescribed pro forma as in Annexure-32

Scrutiny :

The Joint Director District Industries Centre on receipt of completed application shall verify the claims and working condition of the enterprise. He should also verify with the term loan sanctioned bank/financial institution whether the enterprise has claimed/or paid interest subsidy in any of the Govt. of India/Govt. of Karnataka scheme such as CLSS/Technology upgradation scheme/Interest subsidy scheme to First generation entrepreneur/interest subsidy to SC/ST entrepreneur etc. After satisfaction of the claims the Joint Director DIC shall place it before the DLC for sanction of eligible interest subsidy and issue sanction order as per Annexure-33.

Separate seniority list and register shall be maintained by the Joint Director DIC. As and when the funds are available the Joint Director DIC shall recommend for releases of sanctioned interest subsidy amount.

G) Exemption from Tax on Electricity Tariff

I. Micro, Small & Medium Manufacturing Enterprises for general category entrepreneurs

100% exemption of tax on electricity tariff for the initial period of six years, five years, four years, in Zone 1, Zone 2 and Zone 3 other than HK area and seven and six years in HK Zone 1 and HK Zone 2 area respectively.

II. Micro, Small & Medium Manufacturing Enterprises for SC/ST, Women, Physically Challenged, Backward Class (category 1 &2A only) and Ex-Servicemen Entrepreneurs

100% exemption of tax on electricity tariff for the initial period of seven years, six years, five years, four years in Zone 1, Zone 2, Zone 3 and Zone 4 in other than HK area and eight and seven years in HK Zone 1 and HK Zone 2 area, respectively.

III. Additional package of incentives and concessions to Focused Manufacturing sector i.e. Automotive, Machine Tool (excluding steel and cement) Ultra Mega and Super Mega

100% Electricity duty exemption for a period of Nine years (09), Eight years (08) & Seven years (07) years in Zone 1, 2 & 3 of other than Hyderabad Karnataka Area respectively and Ten (10) & Nine (09) years in Zone 1 & 2 of Hyderabad Karnataka area, respectively.

Documents to be furnished for claiming the Electricity Duty Exemption Certificate:

a. Application on letterhead/plain paper

b. IEM Part – II

c. First Sale Invoice

d. Land documents

e. ESCOMs power sanction letter and service letter with R.R. No. and date

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f. Copies of the 1st

and latest electricity bills with receipt

g. Copy of Govt. Order approving the project in respect of focused manufacturing sector

Scrutiny:

After verifying the application of the enterprises and satisfying the genuineness of the facts, electricity duty exemption certificate in the prescribed format as in Annexure-34 shall be issued to the eligible industrial enterprises by the Joint Director, District Industries Centre as per Energy Department notification No: EN/171/EBS/2015 dated: 02/05/2015 in respect of MSME sector and shall recommend to the Directorate in respect of focused manufacturing sector. Based on the recommendation of Joint Director, DICs, the Joint Director (ID) will issue the exemption certificate as per Annexure-34 with the approval of Commissioner for Industrial Development.

H) TECHNOLOGY UPGRADATION, QUALITY CERTIFICATION FOR MSMEs

I) Interest subsidy on Technology Upgradation (TU) Loan

Category Non HK area HK area

Zone 1, 2 & 3 Zone 1& 2

General Category 5 % 5 %

SC/ST, Women, PC, Minority, BC ( category 1 & 2A only) & Ex-Servicemen

5 % 5 %

The New or the existing Micro and Small Manufacturing Enterprises which undertakes Expansion/Modernisation/Diversification programme (Both own and financed enterprises), which have availed loan from KSFC/KSIIDC/Scheduled Commercial Banks, which are not covered under CLCSS of GoI, are eligible to Claim an interest subsidy of 5% on Technology Upgradation loans. The interest subsidy is payable only on the interest actually paid to the financial institutions and not defaulted in payment of principal or interest.

The period of interest subsidy is 5 years, 4 years and 3 years in all Zones including Hyderabad- Karnataka area.

Interest subsidy shall be available from the date of 1st

loan release, however the enterprises have to claim the benefit only after commencement of commercial production.

Documents to be furnished for claiming interest Subsidy on TU Loan:

i. Application on letterhead/plain paper

ii. IEM Part –II

iii. Bank/financial institution term loan sanction letter

iv. Investment Certificate in the prescribed form from bank/financial institution-as in Annexure-6 .

v. Copy of First Sale Invoice

vi. Certification from the bank for claiming interest subsidy in the prescribed format - as in Annexure-32

vii.Fixed assets investments details as in Annexure-5 .

The Eligible Micro and Small Enterprises shall file the application along with the documents mentioned above to the respective Joint Director, District Industries Centre or KCTU, Bengaluru.

24

Role of the Joint Director, District Industries Centre:

The Joint Directors, District Industries Centres on receipt of the complete application and above documents shall visit the enterprise and verify the working condition. After confirming the existence and satisfactory working of the enterprise, the Joint Director shall recommend the applications to KCTU for sanction of interest subsidy.

Role of KCTU:

The complete application received by the KCTU directly, if any, will be sent to respect District Industries Centres. The Joint Directors will verify as per above para and recommend to KCTU. The Managing Director, KCTU will arrange to place the application received from the Joint Directors DICs, for the approval of the Sanctioning Committee under the chairmanship of Commissioner for Industrial Development and Director of Industries and Commerce.

The Managing Director, KCTU will issue the Sanction Orders based on the Committee decisions as per Annexure-33A. The Managing Director, KCTU will release the Subsidy based on the availability of the funds.

The Committee for sanction of Subsidy:

Sl. No. Designation Role


Chairman

2 Additional Director (MSME) Member

3 Joint Director (ID) Member

4 Reprentative of M.D. KSFC Member

5 Joint Director of respective Districts Member

6 Managing Director, KCTU Member Secretary

II) ISO Series Certification


Zone 1, 2 & 3 Zone 1& 2

General Category 75% - max Rs. 75,000 75% - max Rs. 75,000

SC/ST, Women,PC, Minority, BC (category 1 & 2A only) & Ex-Servicemen

75% - max Rs. 1.00 lakh 75% - max Rs. 1.00 lakh

Incentives to Micro and Small Enterprises for obtaining ISO Certification:

The New or the existing Micro and Small Manufacturing Enterprises which undertakes Expansion/ Modernisation/Diversification programme (Both own and financed enterprises) have emerged as dynamic and vibrant sector of Indian Economy and it has been making significant contribution to industrial production, export and employment generation. The process of economic liberalization and market reforms has opened up the Indian Micro and Small Enterprises to the global competition. In order to enhance the competitive strength of the Micro and Small Enterprises, the Government introduced an incentive scheme for their quality improvement and environment management. The scheme provides incentive to those micro and small enterprises that have acquired ISO 9000/ISO 14001/HACCP certifications/Other Nationally and Internationally recognised Certifications. The scheme for reimbursement of ISO series Certification Charges in operation since 1998 has now been enlarged so as to include reimbursement of expenses for acquiring ISO 14001 certification also.

24

25

The Salient features of the Scheme:

The Scheme envisages reimbursement of charges of acquiring ISO Series Certifications to the extent of 75% of the expenditure incurred by the MSEs towards the payment of Accreditation fee, Consultation fee, Training and Calibration charges (till the unit gets the certificate) subject to a maximum of Rs. 75,000/- in respect of General category entrepreneurs and Rs. 1,00,000/- in respect of SC/ST, Women, PC, Minority, BC (category 1 & 2A only) & Ex- Servicemen.

It is a Government of Karnataka Scheme administered by Karnataka Council for Technological Upgradation.

The Scheme shall provide one time reimbursement only. The amount of incentive/subsidy/grant already availed for acquiring ISO Series Certification under any Central Govt. (including DC, MSME Incentive Scheme)/State Govt./Financial Institution shall be adjusted against the entitlement of reimbursement. It means that the total entitlement of reimbursement of acquiring one or more than one certification shall be up to the maximum limit of Rs. 75,000/- in respect of General category entrepreneurs and Rs. 1,00,000/- in respect of SC/ST, Women, PC, Minority, BC( Category 1 & 2A only) & Ex- Servicemen only. In case a unit has received reimbursement/subsidy/grant from Central Govt./State Govt./Financial Institution against any one of the certifications for an amount less than maximum limit of Rs. 75,000/- in respect of General category entrepreneurs and Rs. 1,00,000/- in respect of SC/ST, Women, PC, Minority, BC (Category 1 & 2A only) & Ex- Servicemen, the unit shall be eligible to receive the balance amount only.

Eligible Micro and Small Enterprises shall file the application in the prescribed format (Annexure-35) along with the documents mentioned in the format to the respective Joint Director, District Industries Centre or KCTU, Bengaluru.


The Joint Directors, District Industries Centres on receipt of the complete application shall inspect the enterprise and verify the working condition of the enterprise. After confirming the existence and satisfactory working of the enterprise, the Joint Director shall recommend the applications to KCTU for sanction of incentive for reimbursement of charges towards acquiring ISO Certification.

Role of KCTU:

The Complete application received by the KCTU directly, if any, will be sent to respect District Industries Centres. The Joint Directors will verify as per above para and recommend to KCTU. The Managing Director, KCTU will arrange to place the application for the approval of the Sanctioning Committee under the chairmanship of Commissioner for Industrial Development and Director of Industries and Commerce.

The Managing Director, KCTU will issue the Sanction Orders based on the Committee decisions. The Managing Director, KCTU will release the Subsidy based on the availability of the funds.

The Committee for sanction of Subsidy:

Sl.No. Designation Role


Chairman

2 Additional Director (MSME) Member


4 Representative of M.D. KSFC Member



25

26

III) BIS Certification


Zone 1, 2 3 & 4 Zone 1& 2

General Category 50% -max. Rs. 20,000 to BIS & 25% -max. Rs. 50,000 for Test Equipments

50% -max. Rs. 20,000 to BIS & 25% -max. Rs. 50,000 for Test Equipments

SC/ST, Women, PC, Minority, BC (category 1 & 2A only) & Ex-Servicemen

50% -Max. Rs. 20,000 to BIS & 50% -Max. Rs. 1.00 lakh for Test Equipments

50% -max Rs. 20,000 to BIS & 50% -max. Rs. 1.00 Lakh for Test Equipments

Incentives to Micro and Small Enterprises obtained BIS Product Certification:

Based on Karnataka Industrial Policy 2014-19, KCTU is providing incentives to MSEs obtained BIS Product Certification. The monitory benefit will be as under.

Schemes envisages reimbursement of fees payable to BIS and reimbursement of testing equipment as per the above table.

The incentive is extended to The New or the existing Micro and Small Manufacturing Enterprises which undertakes Expansion/Modernisation/Diversification programme (Both own and financed enterprises) in all the zones in the state.

The Eligible Micro and Small Enterprises shall file the application in the prescribed format (Annexure- 35) along with the documents mentioned in the format to the respective Joint Director, District Industries Centre or KCTU, Bengaluru.


The Joint Directors, District Industries Centres on receipt of the complete application shall inspect and verify the working condition of the enterprise. After confirming the existence of the enterprise, the Joint Director shall recommend the applications to KCTU for sanction of incentive for reimbursement of charges towards acquiring BIS Certification.

Role of KCTU:

The Complete application received by the KCTU directly will be sent to respective District Industries Centres for the verification of the working condition of the enterprise. The Applications, which have been recommended by the Joint Directors, will be placed for the approval of the Sanctioning Committee under the chairmanship of Commissioner for Industrial Development and Director of Industries and Commerce.

The Managing Director, KCTU will issue the Sanction Orders based on the Committee’s decisions. The Managing Director, KCTU will release the Subsidy based on the availability of the funds.

The Committee for sanction of Incentive:



Chairman

2 Additional Director (SSI) Member


4 The Director, BIS, Branch Office, Blore Member



26

27

IV) Technology Adoption


Zone 1, 2, 3 & 4 Zone 1& 2

General Category 25% - max. Rs. 50,000 25% - max. Rs. 50,000


50% - max. Rs. 1.00 lakh 50% - max. Rs. 1.00 lakh

Incentive for Technology Adoption:

The objective of technology adoption will be to facilitate an enterprise aimed at meeting the technology needs on a demand driven basis. The following specific scheme will be implemented by KCTU:

Technology transfer & promotion services look into the entire gamut of activities of matching the technology needs with the available indigenous technologies and scout for foreign sources if required.

The silent features of the scheme are:

i) An incentive of 25% of the cost up to a maximum of Rs. 50,000/- to General category units in all Zones including HK Zones and 50% of the cost up to a maximum of Rs. 1,00,000/- to SC/ST, Women, PC, Minority, BC (Category 1 & 2A only) & Ex-Servicemen in all Zones including HK zones for adopting technology from National Laboratories.

ii) The incentive is extended to the New and also to existing Micro and Small Manufacturing Enterprises which undertakes Expansion/Modernisation/Diversification programme (Both own and financed enterprises) in all the zones in the state.

The Eligible Micro and Small Enterprises shall file the application in the prescribed format (Annexure- 36) along with the documents mentioned in the format to the respective Joint Director, District Industries Centre or KCTU, Bengaluru.


The Joint Director, District Industries Centre on receipt of the complete application shall inspect and verify the working condition of the enterprise. After confirming the existence of the enterprise and after confirming that the enterprise has successfully implemented the new technology, the Joint Director shall recommend the applications to KCTU for sanction of incentive for reimbursement of charges towards Technology adoption.

Role of KCTU:


The Managing Director, KCTU will issue the Sanction Orders based on the Committee decisions. The Managing Director, KCTU will release the Subsidy based on the availability of the funds.



1 Commissioner for Industrial Development and Directorof Industries and Commerce

Chairman



4 Member

5 Joint Directors of respective Districts Member


27

28

V) Technology Business Incubation Centre

In order to strengthen the manufacturing sector, particularly small and medium enterprises and to enable them to compete better under the pressure caused by liberalization and moderation it is envisaged in the Karnataka Industrial Policy 2014-19 to increase their competitiveness, it is proposed to promote Technology Business Incubators/ Accelerators with the active involvement of private sector in identified potential locations in the State. This Technology Business Incubator will aim to build on the strengths of small decentralised Technology Development Groups and are expected to spawn high value MSEs. Government assistance per incubation centre will be in the form of providing financial assistance for creation of basic infrastructure facilities as follows


Zone 1, 2, 3 & 4 Zone 1& 2

General Category 25% - max. Rs. 50.00 lakhs 25% - max. Rs. 50.00 lakhs


50% - max. Rs. 75.00 lakhs 50% - max. Rs. 75.00 lakhs

The main objective of the scheme is to promote emerging technological and knowledge-based innovative ventures that seek the nurturing of ideas from professionals beyond the traditional activities of Micro, Small & Medium Enterprises (MSMEs). Such entrepreneurial ideas have to be fostered and developed in a supportive environment before they become attractive for venture capital. Hence the need arises for incubation centres: to promote and support untapped creativity of individual innovators and to assist them to become technology based entrepreneurs. It also seeks to promote networking and forging of linkages with other constituents of the innovation chain for commercialization of their developments.

Implementing Agencies:

The Scheme will be implemented by Host Institutions, like:

i Indian Institutes of Technology (IITs)

ii National Institutes of Technology (NITs)

iii Engineering Colleges

iv Technology Development Centres, Tool Rooms, etc.

v Other recognised R&D and/or Technical Institutes/Centres etc.

vi Recognized Industrial Associations and NGOs

vii Micro and Small manufacturing enterprises

Role of KCTU:

The Complete application received by the KCTU will be sent to respective District Industries Centres for the Appraisal Report of the Project. The Applications, which have been recommended by the Joint Directors, will be placed for the approval of the Government.

The State Level Sanctioning Committee will sanction projects and the funds will be released through KCTU.

The composition of the State level Committee is as under:


1 Commissioner for Industrial Development an

Director of Industries and Commerce

d Chairman




28

29

Mode of release of funds

Subject to availability of funds and based on the progress made by the implementing agency, the KCTU with the approval of the Commissioner for Industrial Development and Director of Industries and Commerce will release the amount in installments.

VI) Recycling of electronic waste and plastic waste

Additional Investment promotional subsidy of 5% as stated below are eligible for Recycling of electronic waste and plastic waste.


Zone 1, 2 & 3 Zone 1& 2

General Category 5% - max. Rs. 10.00 lakhs 5% - max. Rs. 10.00 lakhs


5% - max. Rs. 15.00 lakhs 5% - max. Rs. 15.00 lakhs

The sanction of additional investment promotion subsidy to the above eligible enterprises shall be as per procedure laid down as stated under the head Investment Promotion Subsidy. The Joint Directors shall sanction additional subsidy at the time of sanction of investment promotion subsidy.

29

30


Zone 1, 2 & 3 Zone 1& 2

General Category 50% - max. Rs. 1.00 lakh 50% - max. Rs. 1.00 lakh

SC/ST, Women, PC, Minority, BC & Ex-Servicemen


I) WATER HARVESTING AND CONSERVATION MEASURES ONLY FOR MANUFACTURING MSME ENTERPRISES

The components of the scheme and incentives offered is as follows:

I) Rainwater harvesting

ii) Wastewaterecycling Category Non HK area HK area

Zone 1, 2 & 3 Zone 1& 2

General Category 50% - max. Rs. 5.00 lakh 50% - max. Rs. 5.00 lakh

SC/ST, Women, PC, Minority, BC

Ex- Servicemen

& 75% - max. Rs. 7.5 lakh 75%- max. Rs. 7.5 lakh

iii) Zero discharge process Category Non HK area HK area

Zone 1, 2 & 3 Zone 1& 2

General Category 50% - max. Rs. 5.00 lakh 50% - max. Rs.5.00 lakh

SC/S,TWomen, PC, Minority, BC &

Ex-Servicemen


Rainwater harvesting is a method of augmenting rainwater, storing and using. Rainwater harvesting assures a more continuous and reliable access to water. This method is also environmental friendly.

Broadly, rainwater can be harvested in two ways: 1. Rooftop Rainwater Harvesting, and 2. Open surface run-off harvesting.

Waste water recycling and Water conservation will result in recapturing the base line for current water usage and reduction in wastage of ground water or supply from water sources. Industries should adopt strategies to use sewage discharge, industrial discharge, storm water recycling to efficiently adopt systems to tackle environmental, health and pollution risks and also reduce stress on water pollution.

The Zero Discharge Process means no discharge through any media out of the factory premises. To achieve pollution prevention & Waste minimization at manufacturing enterprises, the incentive is extended to New or the existing Micro and Small Manufacturing Enterprises which undertakes Expansion/ Modernisation/ Diversification programme (Both own and financed enterprises) in all Zones.

The Industrial areas in the State are facing problems of acute shortage of water supply. This has hampered the Industrial production. Therefore, Karnataka Industrial Policy 2014-19 has incorporated an incentive to small and medium manufacturing enterprises for adopting water harvesting/conservation measures within their premises.

The Eligible Small and Medium Enterprises shall file the application in the prescribed format (Annexure-37) along with the documents mentioned in the format to the respective Joint Director, District Industries Centre or KCTU, Bengaluru.


The Joint Director, District Industries Centre on receipt of the complete application shall inspect and verify the working condition of the enterprise. After confirming the existence of theenterprise, the Joint incentive.

Director shall recommend the applications to KCTU for sanction of

30

31

Role of KCTU:


The Managing Director, KCTU will issue the Sanction Orders based on the Committee’sdecisions. The Managing Director, KCTU will release the Subsidy based on the availability of the funds.



1 Commissioner for Industrial Development and

Director of Industries and Commerce

Chairman



4 Water Supply, Rural Development, B’lore Member


J) ENERGY CONSERVATION ONLY FOR MSME MANUFACTURING ENTERPRISES IN ALL ZONES

Government of Karnataka in its Karnataka Industrial Policy 2014-19 has encouraged by way of offering following incentives and concessions the practise of Energy Conservation Methods and the use of non-conventional energy sources.

i) Practicing Energy Conservation measures resulting in reduction of Energy Consumption of at least 10% of earlier consumption: 10% of capital cost (max. Rs. 5.00 lakh for general category entrepreneurs) and max. 7.5 lakh for SC/ST/Women/Minorities/Backward Class (Category 1 & 2A only)/Physically Challenged Ex-servicemen Enterpreneurs.

ii) Use of non-conventional energy sources: 10% of capital cost (max. Rs. 5.00 lakh for general category entrepreneurs) and max. 7.5 lakhs for SC/ST/Women/Minorities/Backward Class (Category 1 & 2A only)/Physically Challenged/Ex-servicemen Entrepreneurs.

iii) Subsidy of Rs. 0.50 per unit to general category entrepreneur and subsidy of Rs. 0.75 per unit to SC/ST/Women/Minorities/Backward Class (Category 1 & 2A only)/Physically Challenged/Ex-servicemen entrepreneurs for Captive Power Generated and consumed through Solar and Wind energy sources only.

The Eligible New or the existing Micro and Small Manufacturing Enterprises which undertakes Expansion/Modernisation/Diversification programmes (Both own and financed enterprises) shall file the application in the prescribed format (Annexure-38) along with the documents mentioned in the format to the respective Joint Director, District Industries Centre or KCTU, Bengaluru.


The Joint Director, District Industries Centre on receipt of the complete application shall inspect and verify the working condition of the enterprise. After confirming the existence of the enterprise and successful implementation of the Scheme, the Joint Director shall recommend the applications to KCTU for sanction of incentive.

Role of KCTU:


The Managing Director, KCTU will issue the Sanction Orders based on the Committee decisions.

32

The Managing Director, KCTU will release the Subsidy based on the availability of the funds.




Chairman



4 The General Manager, KREDL, B’lore Member


The Energy conservation measures include the energy audit, adoption of new energy saving equipments, technology, cooling towers etc.

K) LAND/SHED ALLOTMENT BY KIADB AND KSSIDC AT CONCESSIONAL RATES TO SC/ST ENTREPRENUERS.

40% subsidy for other than HK Zone 1 & 2 with a ceiling limit of Rs. 15.00 lakh, 30% subsidy for other than HK Zone 3 with ceiling limit of Rs. 25.00 lakh and 25% for other than HK Zone 4 with ceiling limit of Rs. 35.00 lakh. Similarly, 40% for HK Zone 1 & 2 with ceiling limit of Rs. 25.00 lakh for HK Zone 1 and Rs. 20.00 lakh for HK Zone 2.

This concession is in addition to the investment promotion subsidy provided at (A) above.

The funds required for the above subsidy shall be provided out of Special Component Plan and Tribal Sub Plan. Existing guidelines/Govt. Order implemented through DIC (Central Cell) shall be followed.

L) REIMBURSEMENT OF THE COST OF PREPARATION OF PROJECT REPORTS

Reimbursement of the75% of cost of preparation of project reports up to Rs. 2.00 lakh, per unit, prepared by TECSOK and CEDOK required for which bank loans are sanctioned. The Joint Directors shall verify that the enterprise has commenced the activity for which the project report has been prepared. In case the activity for which the project report is prepared and the activity commenced by the enterprise differ, then the above incentive shall not be considered. The above subsidy is eligible only to MSME Enterprises belonging to Women/SC, ST and Minorities, Backward Class (Category 1 & 2A), Physically Challenged and Ex-servicemen entrepreneurs only.

Eligible industrial enterprises shall apply for reimbursement only after the commencement of commercial production with following documents to the District Industries Centre.

a. Application in letter head.

b. Copy of Project report prepared by TECSOK/CEDOK

c. Copy of term loan sanction orders from KSFC/KSIIDC/Bank/Other financial institution

d. Copy of First sale invoice

e. Copy of acknowledgment after commencement of commercial production for having filed IEM

f. Form of declaration regarding employment of local persons in prescribed format Annexure-8

g. Copy of the bill and receipt for having paid fees/charges to the TECSOK/CEDOK

h. Copy of certificate issued by the Competent Authority that the Proprietor, all Partners, Directors belong to Women/SC/ST/Minorities/Physically Challenged/Backward Class (Category 1 & 2A)/Ex-servicemen entrepreneurs

i. Certificate from the TECSOK/CEDOK for having prepared the project report of the claimant enterprise

33

Scrutiny, Sanction & Releases

The Joint Director, District Industries Centre on receipt of completed application should visit the enterprise and verify the claims and thereafter shall arrange to place the proposal before the District Level Committee for reimbursement of cost of preparation of project report and after approval shall issue a formal sanction order by the Joint Director, District Industries Centre. Funds shall be released to the units depending upon the availability. Separate register for sanctions and releases shall be maintained by the District Industries Centres.

M) Encouragement for Anchor Industries:

To encourage investments in taluks where there are no industries with investments above Rs. 250 crore and direct employment of 150 persons investment promotion subsidy is proposed.

The first two manufacturing enterprises in a taluk providing a minimum direct employment of 150 persons with a minimum investment of Rs. 250 crore (Two hundred and fifty crore) are called as Anchor Industries. The definition applies to taluks where no such industry exists at present.

State Government proposes to promote Anchor Industries in at least 20 taluks during the policy period in order to encourage dispersal of industries throughout the State and creation of local employment. At present there are 135 taluks without any Anchor Industry.

Anchor Industries will be eligible for special investment subsidy as follows.

The anchor units will be provided with an investment subsidy of Rs. 20.00 crore in HK Zone 1 and Rs. 15.00 crore in all other Zones. Anchor Unit subsidy will be applicable only in taluks where no industrial enterprises of the above size exist at present.

If the anchor unit invests more than Rs. 1,000 crore (one thousand crore) following additional incentives will be granted.

a) Interest free loan equal to 100% Net VAT plus CST from the date of commencement of commercial production for 18 years but not exceeding 125 % of the Value of Eligible Fixed Assets created.

The loan availed in the first year shall be repaid in the 11th year and the second year in the 12th year & so on.

This incentive is limited to either the period or loan limits whichever is reached earlier and no carry forward is permitted.

b) The quantum of all incentives and concessions put together should not exceed 125% of the Value of Eligible Fixed Assets created.

Procedure to claim Anchor Unit Subsidy

a. The eligible unit for sanction of Anchor Unit Subsidy shall file an application along with the required documents in duplicate in the same form i.e. Annexure-4 followed for sanction of investment promotion subsidy to the concerned Joint Directors, District Industries Centre. The concerned Joint Director shall verify the claims and after physical verification recommend the eligible proposal to the Directorate, Department of Industries and Commerce for sanction of Anchor Unit Subsidy. The Joint Director, District Industries Centre while recommending the proposal shall certify that the unit has invested more than Rs. 250 crore with minimum employment of 150 members and there are no such units in the taluk at present.

b. The Directorate of I&C on receipt of the proposal from the Joint Director, District Industries Centre shall scrutinize and after random checkup, will place the subject before the Committee (constituted for sanction of investment subsidy for ETPs) for sanction of eligible Anchor subsidy. After obtaining the approval from the Committee, the Joint Director (ID) shall issue the sanction order to the unit as in Annexure-39.

c. Release of sanctioned subsidy amount:

After the unit obtaining sanction orders, shall execute an agreement as in Annexure-30. The Directorate of I&C on obtaining funds from the Government, shall release the money to the unit's Bank account.

33

34

Investment range on fixed assets (

Interest free loan in other than Hyderabad Karnataka area

Interest free loan in Hyderabad Karnataka area

Large Enterprises: (i.e. investment on

fixed assets above Rs. 10 crore to Rs. 250 crore)

Minimum direct

Employment 20

Number for first Rs.

10 crore & additional

35 employment for

every additional

investment of Rs.50

crore proportionately.

100% of Net VAT + CST will be

sanctioned as interest free loan

from the date of commencement

of commercial production as

follows

Zone Max. Investment

Period limit

1 9 65% of VFA

2 8 50% of VFA

3 7 40% of VFA

The loan shall be repaid as follows : The

loan availed in the first year shall be

repaid in the 11th year and the second

year in the 12th year & so on. This

incentive is limited to either the period

or loan limits whichever is reached

earlier and no carry forward is permitted.


sanctioned as interest free loan

from the date of commencement

of commercial production as

follows


Period limit

1 10 75% of VFA

2 9 60% of VFA

The loan shall be repaid as follows:

The loan availed in the first year

shall be repaid in the 11th year and

the second year in the 12th year & so

on.

This incentive is limited to either the

period or loan limits whichever is

reached earlier and no carry forward

is permitted.

N) Interest free loan to Large, Mega, Ultra Mega and Super Mega Enterprises on Net

VAT and CST.

All Large, Mega, Ultra Mega & Super Mega Enterprises established in Zones 1, 2, 3 and HK Zone 1 & 2 will be eligible for an interest free loan on Net VAT and CST, subject to industries providing minimum number of direct employment as specified.

I I I I I I I I

35

Investment range on fixed assets

(Rs. crore)



Mega Enterprises :

(i.e. investment on fixed assets above

Rs. 250 crore up to

Rs. 500 crore)

Minimum direct Employment 200 Number for first Rs. 250 crore & additional 40 employment for every additional investment of Rs. 50 crore

100% of Net VAT + CST will be sanctioned as interest free loan from the date of commencement of commercial production as follows



Period limit

1 10 80% of VFA

2 9 60% of VFA

I 3 I 8 I 50% of VFA I

The loan availed in the first year shall be repaid in the 11

th year

and the second year in the 12th

year & so on.



Period limit

1 11 90% of VFA

I 2 I 10 I 75% of VFA I


The loan availed in the first year shall be repaid in the 11

th year

and the second year in the 12th

year & so on.



(Rs. crore)



Ultra Mega Enterprises


Rs. 500 crore up to

Rs. 1000 crore)

Minimum direct Employment 400 Number for first Rs.500 crore & additional 40 employment for every additional investment of Rs. 50 crore proportionately.




Period limit

1 11 85% of VFA

2 10 75% of VFA

3 9 60% of VFA

The loan shall be repaid as follows :




Period limit

1 12 95% of VFA

I 2 I 11 I 85% of VFA I




I I I I

35

36

Investment range on fixed assets (Rs.

crore)




100% of Net VAT + CST will be Super Mega sanctioned as interest free loan sanctioned as interest free loan from

Enterprises: from the date of commencement of commercial production as follows

the date of commencement of commercial production as follows

(i.e. investment on Zone Max. Investment Zone Max. Investment

fixed assets above Period limit Period limit

Rs. 1000 crore) 1 13 95% of VFA

2 12 85% of VFA

1 14 100% of

VFA

Minimum direct I 3 I 11 I 75% of VFA I I 2 I 13 I 95% of VFA I

Employment 800 Number for first Rs. 1000 crore and additional 40 employment for every additional investment of Rs. 200 crore

Zone Max. Period Investment limit11395% of VFA 21285% of VFA31175% of VFA The loan shall be repaid as follows :



Zone Max. PeriodInvestment limit114100% of VFA21395% of VFA The loan shall be repaid as follows:



37

O) Interest free loan to Focused Manufacturing Sector i.e., Automotive machine tool ( excluding steel & cement) on Net VAT and CST.


(Rs. crore)



Ultra Mega

Enterprises


Rs. 500 crore up to

Rs. 1000 crore)

Minimum direct Employment 400 Number for first Rs. 500 crore & additional 40 employment for every additional investment of Rs. 50 crore proportionately.




Period limit

1 14 100% of VFA

I 2 I 13 I 90% of VFA I



This incentive is limited to either t h e period or loan limits whichever is reached earlier and no carry forward is permitted.


Period limit

1 13 90% of VFA

2 12 80% of VFA

I 3 I 11 I 75% of VFA I





(Rs. crore)



Ultra Mega

Enterprises


Rs. 500 crore up to

Rs. 1000 crore)

Minimum direct Employment 400 Number for first Rs. 500 crore & additional 40 employment for every additional investment of Rs. 50 crore proportionately.




Period limit

1 14 100% of VFA

2 13 90% of VFA

I 3 I 12 I 80% of VFA I





Period limit

1 16 100% of VFA

I 2 I 15 I 100% of VFA I




Note: Separate operative guidelines for Interest free loan to Large, Mega, Ultra Mega and Super Mega Enterprises on Net VAT and CST will be issued.

38

Classification of Taluks in Karnataka into Zones for the purpose of administering Incentives & Concessions under 2014-19 policy

Sl. No.

Districts

T otal No. of T aluks

Hyderabad Karnataka A r ea taluks

Other than Hyderabad Karnataka Area taluks

HK Zone 1

HK Zone 2

Zone 1

Zone 2

Zone 3

Zone 4

1 2 3 4 5 6 7 8 9

1 B'lore (U) 4 - - - - - Anekal

- - - - - B'lore (N)

- - - - - B'lore (S)

- - - - - B'lore (E)

2 B'lore (R) 4 - - - - - Devanahalli

- - - - - D'ballapura

- - - - - Hoskote

- - - - - Nelamangala

3 Ramanagara 4 - - - - Magadi Ramanagara

- - - - Channapattana -

- - - - Kanakapura -

4 Chitradurga 6 - - - Hiriyur - -

- - - Molkalmuru - -

- - Holalkere Chitradurga - -

- - - Hosadurga Challakere -

5 Davanagere 6 - - Channagiri Honnali Davanagere -

- - Jagalur - Harihar -

- -

Harappanahalli - - -

6 Chikka- ballapura

6 - - Gudibande Chintamani Gowribidanur -

- - Bagepalli Chickaballapura Siddlaghatta -

7 Kolar 5 - - Mulbagal - Kolar -

- - Srinivasapura - Bangarpet -

- - - - Malur -

8 Shivamogga 7 - - Soraba Hosanagara Shivamogga -

- - - - Bhadravathi

-

- - - - Sagar -

- - - - Shikaripura -

- - - - Thirthahalli -

Sl.

No.

Districts

T otal

No. of

T aluks

Hyderabad

Karnataka

A r ea taluks

Other than Hyderabad Karnataka Area taluks

HK Zone 1

HK Zone 2

Zo ne 1

Zone 2

Zone 3

Zone 4

1 2 3 4 5 6 7 8 9

9 Tumakuru 10 - - - Madhugiri Tumakuru

- - - - T uruvekere -

- - - Koratagere T iptur -

- - - Gubbi Chikkanaya

kanahalli

-

- - - Sira Kunigal -

- - - Pavagada - -

10 Chama -

rajnagar

4 - - Yelandur Chamaraj- anagar

- -

- - Gundlupet Kollegal - -

11 Chikk- amagaluru

7 - - - Kadur Chikkamagaluru -

- - - Mudigere Shringeri -

- - - Tarikere Koppa -

- - - - N R Pura -

12 Dakshina

Kannada

5 - - - - Mangaluru -

Bantwal Puttur

- - - - Sulya -

- - - - Belthangadi -

13 Hassan 8 - - Arakalgud Arasikere Hassan -

- - Belur C R Patna Sakleshpura -

- - - H N Pura - -

- - - Alur - -

14 Kodagu 3 - - Virajpet Madikeri - -

- - - Somwarpet - -

15 Mandya 7 - - Malavalli Srirangapatna Mandya -

- - - Nagamangala Maddur -

- - - K R Pet - -

- - - Pandavapura - -

16 Mysuru 7 - - Periyapatna Hunsur Mysuru -

- - H D Kote T N Pura Nanjangud -

- - - K R Nagara - -

39

Sl.

No.

Districts

T otal No. of

T aluks

Hyderabad

Karnataka Area Taluks

Other than Hyderabad Karnataka Area Taluks

HK Zone 1

HK Zone 2

Zone 1

Zone 2

Zone 3

Zone

4

1 2 3 4 5 6 7 8 9

17 Udupi 3 - - - - Udupi -

- - - - Kundapura -

- - - - Karkala -

18 Bagalkot e 6 - - - Bilagi Bagalkote -

- - - Badami Mudhol -

- - - - Jamkhandi -

- - - - Hunagund -

19 Belagavi 10 - - - - Belagavi -

- - - Bailhongal Athani -

- - - Soundathi Hukkeri -

- - - Chikkodi Gokak -

- - - Raibag Khanapur -

- - - - Ramdurg -

20 Vijapura 5 - - Muddebihal Sindgi - -

- - B Bagewadi Indi - -

- - - Vijapura - -

21 Dharwad 5 - - - - Dharwad -

- - - - Hubballi -

- - - Navalgund Kalghatagi -

- - - - Kundaghol -

22 Gadag 5 - - Nargund Mundargi Gadag -

- - Ron - Shirahatti -

23 Haveri 7 - - Hirekerur Savanur Ranebennur -

- - Hanagal Shiggaon Byadagi -

- - - Haveri - -

24 Uttara Kannada

11 - - - Honnavar Karwar -

- - - Sirsi Haliyal -

- - - Mundagod Supa -

- - - Yellapura Bhatkal -

- - - Siddapura Ankola -

- - - - Kumta -

40

Sl.

No.

Districts

T otal

No. of

T aluks

Hyderabad

Karnataka

Area Taluks

Other than Hyderabad Karnataka Area Taluks

HK Zone 1

HK Zone 2

Zone 1

Zone 2

Zone 3

Zone 4

1 2 3 4 5 6 7 8 9

25 Ballari 7 H B Halli Ballari - - - -

Hadagalli Hosapete - - - -

Kudligi Sandur - - - -

- Siraguppa - - - -

26 Bidar 5 Bhalki Bidar - - - -

Humnabad - - - - -

Basava Kalyana

- - - - -

Aurad - - - - -

27 Kalaburagi

7 Kalaburagi Sedam - - - -

Afzalpur Chittapur - - - -

Aland Chincholi - - - -

Jewargi - - - -

28 Y adgir 3 Yadgir - - - - -

Shahapur - - - - -

Shorapur - - - - -

29 Koppal 4 Kushtagi Koppal - - - -

Yelburga Gangavathi - - - -

30 Raichur 5 Sindhanur Raichur - - - -

Manvi - - - - -

Lingasugur - - - - -

Devadurga - - - - -

Total 176 20 11 23 51 62 9

41

ANNEXURE - 1

LIST OF SERVICE ENTERPRISES ELIGIBLE FOR PACKAGE OF INCENTIVES AND CONCESSIONS

Applicable to projects approved by DLSWCC, SLSWCC and SHLCC only

1. Logistics facilities supporting to industries

a) Container Freight Station Operators

b) Warehouses

c) Cold Storages and cold chain for logistic support to Food Processing Industry

d) Material handling equipment (except transport vehicles and good carriers)

2. Powder coating/Painting Enterprises, Industrial paintings, etc. engaged in job work

3. Weigh bridges and health care facility set up within the KIADB/KSSIDC industrial areas/estates

4. Material/Product Testing Laboratory

Further the State Level Coordination Committee in its 114th

meeting held on 03/02/2015 has included the following service activities eligible for incentives and concession under 2014-19 Industrial policy

1. Flour Mills

2. Maintenance and repairs of all types of equipments

3. Tailoring

4. General Engineering, Fabrication, Motor rewinding, Automobile servicing and repairs, Electro Plating etc.

5. All types of Printing

It was also decided in the meeting that the above activities will be either micro/small enterprises and established in the rural areas, approval of DLSWCC/SLSWCC/SHLCC is not mandatory.

State Level Coordination Committee is empowered to add/delete service activities listed in this Annexure.

42

ANNEXURE - 2

LIST OF INDUSTRIAL ACTIVITIES / ENTERPRISES NOT ELIGIBLE FOR INCENTIVES AND CONCESSIONS

1. Breweries & Distilleries of all types excluding winery

2. Khandasari and Jaggery making enterprises

3. Photo Studios & Color Processing and instant photo printing Enterprises

4. Photo Copying, Xerox Machines, Fax Machines, Data Entry, Data Recovery

enterprises

5. Fertilizer Mixing units

6. Units engaged in Re-packing of Drugs/Medicines/Chemicals without any processing or value addition

7. All types of Saw Mills excluding manufacture of particle board/Low Density Fiber Board (LDF)/Medium Density Fiber Boards(MDF)/High Density Fiber Boards (HDF)

8. Beedies/Cigarettes/Cigars/Gutka & other Tobacco based products manufacturing enterprises

9. Azoic/Reactive Dyes manufacturing enterprises

10. Fire Cracker manufacturing enterprises

11. Industries manufacturing and/or utilizing Ozone depleting substances

12. Laundries including Power Laundries

13. Brick making Enterprises including Cement Hollow Blocks excluding Wire Cut & Fly Ash Bricks and Refractory Bricks

14. Poultry excluding hatcheries

15. Popcorn and Ice candy making Enterprises excluding Ice Cream Manufacturing

16. Coffee roasting and Grinding units having installed capacity of less than 2MT/day capacity

17. Clock and Watch/Mobile/Computer and Hardware equipments repair enterprises

18. Cassette recording (Audio & video) enterprises

19. Cyanide Manufacturing enterprises

20. Mining and Mining Equipments

21. Lime kiln / burnt lime units

22. X-ray clinics and clinical/pathological laboratories and scanning, M.R.I. testing enterprises

23. All industries of mobile nature like rigs, concrete/tar mixing plants/hot mix plants including site oriented industries

24. Units engaged in manufacture of Chrysolite Asbestos (White crystal)

25. All types of Saloons, Spas, Massaging Centers etc.

26. All types of hotels/restaurants/resorts/amusement parks etc.

43

ANNEXURE - 3A

TERMS & CONDITIONS FOR SANCTION OF INCENTIVES AND CONCESSIONS

a) The Industrial Policy 2014-19 will come into force from the date of issue of enabling Government order and will be in operation for five years or as revised by the Government. Once the new Industrial Policy 2014-19 comes into operation the Industrial Policy 2009-14 stands withdrawn. However, Enterprises which have been sanctioned and have partly availed incentives and concessions under earlier policies shall continue to enjoy those benefits as per respective sanction orders.

b) The applicability of the Industrial Policy 2009-14 or Industrial Policy 2014-19 for the Projects which are under implementation (pipeline projects) at the time of announcement of Industrial Policy 2014-19 is decided as follows:

(i) Projects/Enterprises cleared through District level, State Level and State High Level Clearance Committee during the 2009-14 Policy period and if they have availed any of the incentives and concessions for the project as per 2009-14 policy are eligible to avail other incentives and concessions under 2009-14 policy only.

(ii) If any unit including self financed project has taken any one of the following effective steps and the date of any one of these steps is before the date of issue of Government Order of the new Industrial Policy 2014-19, then the unit shall avail incentives as per policy2009-14 only.

1. Date of entering lease or sale agreement of the premises(either land or building)

2. Date on which possession certificate of the plot or shed is taken from KIADB/KSSIDC or any other agency

3. Date of approval of building plan by competent authority

4. Date of release of first installment of loan from Financial Institution/Bank.

5. Date of placement of first purchase order for plant and machinery.

(iii) If any enterprise has not taken any effective steps, not invested any amount and not availed any incentives and concessions during the 2009-14 policy period, they shall avail incentives as per Industrial Policy 2014-19 only.

c) The Projects which are under implementation (pipeline projects) at the time of announcement of Industrial Policy 2014-19 as explained above shall commence commercial production before 31/08/2017 failing which their eligibility to avail incentives as per Industrial Policy 2009-14 will lapse. They will not be eligible to claim incentives either under Industrial Policy 2014-19.

d) Incentives and concessions under this policy shall primarily be available only for Manufacturing Enterprises/Industries, and specified categories of enterprises/industries related service enterprises as listed in Annexure 1 will also be eligible for incentives and concessions.

e) The incentives and concessions under this policy will be available to all new and additional investments made during the policy period for establishment of new enterprises and expansion/diversification/modernization (as defined in Annexure 5U.)

f) The Stamp duty exemptions, Entry tax exemptions and Exemption on tax on electricity tariff as per the 2014-19 Policy will come in to effect only after the issuance of enabling notifications by Revenue, Finance and Energy departments respectively.

g) Irrespective of the location, industrial activities/enterprises as listed in Annexure–2 will not be eligible for any incentives and concessions.

h) Enterprises can avail incentives and concessions under only one policy of the Industries Department.

i) Investment Promotion Subsidy will be available only to enterprises availing a minimum of 44

50% term loans on eligible fixed assets from Financial Institution/Banks. Such eligible units shall claim Investment Promotion subsidy within one year from the date of commencement of commercial production

j) There is no restriction on the quantum of loan to be availed from the financial institutions for availing tax based incentives. Own financed units are also eligible for tax based incentives.

k) The value of eligible fixed assets as approved by the financial institutions/commercial banks will be the basis for computation of quantum of investment promotion subsidy. Commerce and Industries Department will prescribe a standard format for a certificate to be issued by financial institutions/commercial banks keeping in view the definition of fixed assets, intangible assets and the assets not eligible for sanction of incentives and concessions.

l) While calculating the value of eligible fixed assets created during expansion /diversification/ modernization of an enterprise only additional new investments shall be considered. The original investment for which subsidy has already been sanctioned shall not be accounted.

m) Investment Promotion Subsidy sanctioned to enterprises will be released in two to four installments depending upon the availability of budgetary resources.

n) Manufacturing Enterprises and Service Enterprises have been classified as Micro, Small and Medium Enterprises (MSME) based on investment in plant & machinery/equipment as per the MSMED Act, 2006.

The incentives and concessions under this policy will recon these definitions of MSME and they? shall automatically stand revised to the revision made by Government of India from time to time, and eligible incentives and concessions will be as per new definition from the date of change in the definitions.

o) Further, an industrial unit which is not classified as Micro, Small and Medium Enterprise, the State Government has defined as Large Scale Enterprise, Mega Enterprise, Ultra Mega Enterprise, Super Mega Enterprise based on the investment defined as detailed at C,D,E.F in Annexure 5 of 2014-19 Industrial Policy

p) The incentives and concessions under this policy will recon these definitions of Large Scale Enterprise, Mega Enterprise, Ultra Mega Enterprise, Super Mega Enterprise and shall automatically stand revised to the revision made by State Government from time to time and eligible incentives and concessions will be as per the new definition from the respective date of change in the definitions

q) VAT /CST related Incentives:

i. Interest free loan on VAT and CST means, the eligible enterprise have to pay the prevailing VAT and CST and later claim interest free loan of net VAT and CST from Commerce and Industries Department.

ii. VAT related incentive will be provided only with reference to the sales attributed to the production from the new investments.

iii. VAT related incentive will be in respect of the sales meant for final consumers within the State only. The sales made by the industrial unit to other dealers within the State who in turn make inter-State sales, stock transfer or export sales, will not be eligible for the VAT related incentive.

iv. The sales made out of the goods imported or stock transferred or purchased from other States and sold within Karnataka without substantive value addition of at least 25%of the input cost will be specifically excluded from purview of the VAT incentive.

v. On introduction of GST, no compensatory incentive will be provided in case of abolition of CST or any other tax or change in rate of tax, which currently accrues to the State Government. However, VAT related incentive will be converted to SGST related incentive with scope as originally approved.

vi. Investment made within a period of maximum five years from commencement of the project implementation will be considered to determine the quantum and period of the incentive package.

45

r) The total incentives and concessions under this policy in different heads is limited to 100% of the Value of eligible Fixed Assets (VFA) created by a new unit or unit taking up expansion/ modernization/diversification during the policy period in all areas including Hyderabad Karnataka Area (except for an Anchor Industry as separate limits are fixed).

s) For Ultra Mega and Super Mega units where SHLCC approves investments to be made in phases, the tax related incentive will commence from the date of commencement of commercial production in the first phase and these incentives will be proportionate to the investments in the first phase and will automatically graduate to the next level depending on the actual investments made.

Entry Tax exemptions on plant and machinery for such units will be available for each phase separately but the Entry Tax exemption on raw material is reckoned from the date of commencement of commercial production in the first phase only.

t)Employment Criteria for units availing incentives and concessions under Industrial Policy 2014-19 are as follows:

i. All new industrial investment projects shall endeavour to create maximum possible additional direct employment opportunities with a minimum employment of 70% to Kannadigas on an overall basis and 100% in case of Group D employees.

ii. Implementation of provisions of labour act for women should be complied with wherever applicable.

iii. Protection for women employees must be provided by the companies and provisions of Sexual Harassment of Women at Work Place (Prevention, Protection and Redressal) Act 2013 to be implemented in true spirit.

iv. District Industries Centers will monitor the compliance of employment to Kannadigas for a period of initial 5 years. Failure of the industries to provide employment to Kannadigas as stipulated above will be reported to the concerned DLSWCC/SLSWCC/SHLCC which may recommend for recovery of incentives and concessions sanctioned to the unit.

u) The manufacturing industries shall comply with the corporate social responsibility (CSR) obligations as per the section 135 of the Companies Act 2013.

v) Investments made by any existing/new unit/entrepreneur/partnership firm/companies etc. on land, building, plant & machinery acquired from any financial institution/bank under Sec 29 of SFCs Act, SARFAESI Act, Debt Recovery Tribunal, or any of the acts or any tribunal etc. are not eligible for any investment promotion subsidy. However, this condition does not apply to tax based incentives i.e. the promoters after take over can either expand, modernize, diversify and/or revive the industry.

w) Removing anomaly in granting APMC cess waiver to agro based industries as per Industrial Policy 2009-14 and Integrated Agro Business Development Policy 2011.

APMC cess waiver facility was provided to agro based industries in both Industrial Policy 2009-14 and Integrated Agro Business Development Policy 2011. The Industrial Policy 2009-14 provides APMC cess waiver for a period of five, four and three years for the eligible industries in zone 1, 2 and 3 respectively.

Integrated Agro Business Development Policy 2011 provides for APMC cess waiver for eligible industries up to10 years throughout the State without any zonal restrictions.

Joint Directors of DICs are the nodal officers to grant the concession under both policies.

The enabling Government orders after the amendment to the APMC Act were issued on April 6, 2011 and March16, 2013 for the above policies, respectively.

Agro based industries which have gone into production between April 6, 2011 and March 16, 2013 have obtained APMC cess waiver certificate from Joint Directors, DICs under the Industrial Policy 2009-14, though theoretically they were eligible to avail the

46

47

concessions for longer durations under integrated agro business policy 2011, but for want of amendment to APMC Act 1966.

Now Joint Directors of DICs are permitted to issue revised APMC cess waiver certificate for the units which have availed APMC cess concessions under Industrial Policy 2009- 14 for the extended/balance period under Integrated Agro BusinessPolicy 2011. They should ensure that the period of this concession shall not exceed 10 years.

x) Separate operational guidelines for administration of these incentives and concessions will be issued for the guidance of the concerned agencies and officers with the approval of the State Level Coordination Committee under the Chairmanship of the Additional Chief Secretary/Principal Secretary to Government, Commerce & Industries Department.

y) State Level Coordination Committee shall be the authority to interpret the policy measures, incentives and concessions detailed in this policy (including those in previous policies wherever applicable) and its decision shall be final.

48

ANNEXURE-4

APPLICATION FOR SANCTION OF INVESTMENT PROMOTION SUBSIDY UNDER 2014-19 POLICY

1. Name of the Enterprise

2. Address of the Enterprise a. Factory/works b. Office address

3 Taluk and Zone as per 2014-19 Industrial Policy

Taluk: Zone: Other than H-K area : 1/2/3/4

H-K area: 1/2

4(a) Registration No. and date (As mentioned in EM/IEM/IL)

4(b) ESI/EPF Registration No. and date.

4(c) VAT Registration No. and date

4(d) Electric Power Connection RR No. (Power, Line).

4(e) Electric Power Connection RR No. (Lighting).

5. Size of the enterprise (mention whether) Micro/Small/Medium Enterprise

6. Whether the unit established is recycling electronic waste/plastic waste

7 Products Manufactured i)

ii)

iii)

8. Constitution of the industry(mention whether Proprietary/Partnership/Private /Public Limited Company) or any other legal entity

9. Category to which the entrepreneur belong (mention whether general; SC/ST; women; women SC/ST; Minority; Backward Class [Category 1/2A]; physically challenged; ex-servicemen)

10 Is it new industry or existing industry undertaken expansion/diversification/ modernization.

11. Date of commencement of commercial production (As per first sale invoice)

12. Project Cost: (Amount in Rs)

Land:

Building:

Plant and Machinery:

Others:

Working Capital Margin:

TOTAL

49

13 Name of the term loan lending financial institution

Date of loan sanctioned

Amount of loan sanctioned

Amount of loan release

Date of 1st instalment of loan released

14. Actual Investment details : (Amount in Rs.)

Land:

Building

Plant and Machinery

Transportation:

Electrification:

Erection and Installation charges of machineries:

Others:

TOTAL

15. Means of finance: (Amount in Rs.)

Own/Share capital

Term loans

Others (please specify)

TOTAL

16. Employment provided in the new enterprises

Executive/Top level

Managerial

Supervisory/Skilled

Un skilled/Semi skilled

TOTAL

17. Additional employment in case of expansion/ modernization/diversification

Existing

Additional

Executive/Top level

Managerial

Supervisory/Skilled

Un skilled/Semi skilled

TOTAL

18. Declaration by the Enterprise: I / We hereby certify that the particulars given above for the purpose of sanction of Investment Promotion Subsidy from the Government of Karnataka are to the best of my/our knowledge and belief, are true and correct.

Place : Date : Signature(s)

Name and Designation of the Proprietor/Managing Partner/Managing

Director/Authorised Person

50

19. Certificate by the Assistant Director/Deputy Director/Joint Director of District Industries Centre.

I hereby certify that the particulars given by the applicant were verified by me with reference to documents furnished by the applicant and found to be true and correct. I further certify that the proprietor/all partners/all directors belong to General category/ SC/ST/Women/Women (SC/ST)/ Minority/Backward class(Category 1/2A)/Physically Challenged/Ex-servicemen I further certify that the total investment in fixed assets in new enterprises/in expansion, diversification, modernization of the existing enterprise could be considered for promotion subsidy is Rs. ………………….., and is eligible for 10%/15%/20%/25%/30%/35% investment Promotion Subsidy of Rs. ………………….. A sum of Rs…………………. being the investment made on items on which subsidy, is not admissible as per details shown in the Annexure-5 statements are disallowed.

The declaration in Annexure-8 regarding employment of local persons has been verified and certified that the enterprise has provided minimum 70% employment to Kannadigas on an overall basis (including 100% employment to local people in Group D employees ).

Place :

Date : Signature & Seal of the Member Secretary, of DLC /Joint Director DIC.

51

ANNEXURE-5

STATEMENT OF FIXED ASSETS CREATED BY THE ENTERPRISE UNDER 2014-19 INDUSTRIAL POLICY

PART – A : Investment on land

Location of the land (mention Taluk/Indl. Area/Indl. Estate)

Sy. No./ Plot No.

Purchased /alloted/ acquired by who m

Date of purchase/ sale deed/ allotment

Payment Details Date Amount Payment

by cash/ cheque/ DD

Cheque/ DD No.

Value accepted by DIC

PART – B : Investment on Building

Sl. No.

Details Built up area

Rate per sq.ft./ Cu. ft. at which the enterprise

has constructed

Total value claimed by

the enterprise

Value accepted by DIC

Remarks

1. Production building (area in Sq.ft.)

2. Godown (area in Sq.ft.)

3. Office building (area in Sq.ft.)

4. D.G.set Room (area in Sq.ft.)

5, Water tank (area in Cu.ft.)

6. Bore well

7. Compound wall (running feet)

8. Drying yard (area in Sq.ft)

9. Others (specify)

52

PART – C : Investment on Plant and Machinery, Electrification, Erection and installation

Transportation, etc.

Sl. No.

Particulars of fixed assets / capital expenditure

Name of the and address of the supplier

Date of placement of order

Date of bill / invoice

Amoun t of bill/ invoice

Mode of pay - ment cheque/ DD/ cash

Cheque/ DD No and date

Receipt No. Date

i. Plant and Machinery and other productive assets

ii. Electrification

iii. Erection and installation

iv . Transportation

v. Other assets

Signature of the Proprietor/Managing Partner/Managing Director of the Industrial

Enterprises with seal

PART D

Certified that original bills and vouchers as per above and physical verification of enterprise has been done by me with reference to above fixed assets statements and found correct. No items for which subsidy is inadmissible is included in the statement.

Following items which are included in statement are disallowed as they are not eligible for Investment Promotion Subsidy for the reasons stated against each item.

Sl. No. Name of the item Amount disallowed Reasons for rejection

Signature of the Member Secretary of DLC

53

ANNEXURE-6

FIXED INVESTMENT CERTIFICATE FROM THE BANK / FINANCIAL INSTITUTIONS REQUIRED UNDER 2014-19 POLICY

M/s.………………………………………………………………......................................(mention name of the enterprise)factory located at …………………………………………………….. (mention factory location of the enterprise) have been sanctioned term loan under order/letter No:------------------ dtd:.......................... and have been disbursed the amounts of Rs. ........................ The investment made by the enterprise is as shown below:

Sl. No. Particulars Date Amount (in Rs.)

a. Term loan sanctioned

b. Loan amount disbursed on (mention all the dates and amount of loan disbursed

sanctioned as per above letters)

Total amount disbursed as on ……………

c. Value of investment in fixed assets As per project

appraisal Actual investment including promoter’s

investment i) Land (excluding lease

hold)

ii) Building (excluding residential quarters/guest houses) .

iii) Plant and machinery (excluding technical knowhow, engineering fees,

feasibility study, etc.)

iv) Other assets, tools, jigs dies, DG sets, boilers, etc. (please specify the items)

TOTAL

Certified that the sanction of financial assistance to M/s.………………… ………………………. for the enterprises at ……………………………… has been considered on the basis of the company's assessed requirement of factory buildings and the cost is estimated at Rs. ……………………. as per the project report.

We certify that this investment certificate is issued after verifying the bills and vouchers made available by the enterprise for purposes of release of Term loan Installments (including promoter's investments and based on the physical verification of the inspecting Officers. Items

54

for which subsidy is not admissible are not included in the investment certified above. And also certified that the investment made on second hand plant and machinery is not included.

The enterprises is covered/not covered under KVIC/KVIB/PMEGP/KSEP margin money scheme and any other subsidy scheme.

We are in possession of relevant bills and vouchers on which this investment certificate is issued and we agree to make available the same as and when required for any verification purpose, before the loan liability is discharged.

Signature of the

Branch Manager/Manager

Place : (Name of the Bank/Institution)

Date : // SEAL //

Note: All columns should be filled without leaving any columns blank

55

ANNEXURE-7

CIVIL ENGINEER / ARCHITECT'S CERTIFICATE FOR INVESTMENT IN BUILDING AND OTHER CIVIL WORKS UNDER 2014-19 POLICY

I, hereby certify that as against the estimated cost of Rs. …………………….. ………………………………………………….….of the building and civil works for M/s………………………………………………………..(mention the enterprise name) for their project at ………………… (mention the location of the enterprise). The enterprise has completed the civil works and the particulars are as under:

Sl. No. Particulars Amount (in Rs.)

1. Value of completed civil works as per estimates

2. Amount certified for payment to the building (civil and structural) contractors

3. Reten tion money (from civil contractor)

4. Value of materials utilized for the completed portion of building

The value of completed building certified above do not involve the area built for guest houses, and residential building in the factory site.

It is further certified that built area of the building is absolutely essential for the manufacturing/processing activity of the industry.

Place : Signature and full address Civil engineer/chartered engineer's/architect's

Date : // SEAL //


56

ANNEXURE-8

1 Name of the Industrial enterprises

2 Address: Village/town/taluk/district

FORM OF DECLARATION REGARDING EMPLOYMENT OF 'LOCAL PERSONS' REQUIRED UNDER 2014-19 POLICY

3. Product

4. Year of establishment 5. Proprietor/partnership/Pvt. ltd./

Ltd 6. Name of the Administrative

Officer in charge of recruitment (Kannadiga or Non - Kannadiga)

7. Registered as MSM E, large/mega projects No. and date

M/s.

OFFICE I

FACTORY

8. Employment details (excluding Casual workers and ‘Badli’ workers)Particulars Group

A Group B

Group C Group D Total

A. Total no. employees

B. No. of local persons (Kannadigas) therein

C. Percenta ge of local persons (Kannadigas) to total

9. I/We understand that the percentage of local people (Kannadigas) is not less than 70% on an overall basis and 100% in case of Group D categories employees.

I/We hereby undertake to make up the deficiency before the disbursement of subsidy.

10. I/We further understand that eligibility of my/our industrial enterprises, undertaking for incentives and concessions from the Government of Karnataka is contingent upon my fulfilling minimum local employment as per the Dr. Sarojini Mahishi Report to the satisfaction of the State Government.

Place: Date:

Signature of authorized person

“Verified by me”

Member Secretary, DLC

57

1. LOCAL PERSON (Kannadiga) is defined as one who has at least fifteen years domiciled in the State of Karnataka.

2. This declaration should be signed by a person duly authorized to do so by the Industrial undertaking.

Group A – Executive/Top level Group B – Managerial Group C – Supervisory/Skilled/Clerical Group D – Unskilled/Semi skilled

58

ANNEXURE-9

CHARTERED ACCOUNTANT CERTIFICATE REQUIRED UNDER 2014-19 POLICY

Name of the Chartered Accountant …………………………………...We hereby certify that M/s………………………………… ………………. (name of the industrial unit) has acquired the following fixed assets up to -------------- for the unit at ------------(address) for manufacture of -- ----------------------------------- (name of products).

Item of fixed assets Period during whic h investment is made (date of payment)

Value Rs.

1.Land I ) For entire unit excluding ETP ii) For ETP only

2. Factory building (please specify period)

I) For entire unit excluding ETP

a. Amount paid to the Building contractors

Fr om To Rs.

b. Amount paid for building materials

From To Rs.

c. Amount paid for wages and Salaries etc, for the Building constructions.

From To Rs.

(excluding architect’s fees and wages paid for supervision staff etc.)

ii) For ETP only:

a. Amount paid to the Building contractors

From To Rs.

b. Amount paid for building materials From To Rs.

c. Amount paid for wages and Salaries etc. for the Building constructions.

From To Rs.


4.Electrical installations (excluding KEB deposits) i) For entire unit excluding ETP ii) For ETP only

Rs.

5. Plant and Machinery i) For entire unit excluding ETP ii) For ETP only

Rs.

6. Loading, unloading, transportation, erection expenses etc. i) For entire unit excluding ETP ii) For ETP only

Rs.

7. Misc. fixed assets(Please specify items) i) For entire unit excluding ETP ii) For ETP only

Rs.

59

We have checked the books of account of the unit, bills, invoices and payment vouchers etc. and certify that the aforesaid information is verified and certified to be true. We also certify that all the aforesaid items have been duly paid for and no credit is raised against them in the books of the unit.

Certified that the investments certified above do not include items for which subsidy is not allowed. Expenditure incurred on following items are not included.

A. LAND

i) Value of the open land not utilized for construction, leaving the area proposed for immediate expansion.

ii) Expenditure incurred for land scraping for beautification and expenditure on unsuccessful open wells/bore wells.

B. BUILDING

I) Expenditure on unproductive construction like guest house, workers/staff quarters, canteens, cycle/scooter stands, garages etc.

ii) Expenditure incurred on beautification of buildings, arches, decorative lights including street lights, furniture and air conditioners, water coolers, refrigerators such of the gadgets not directly connected with production

iii) Expenditure incurred on the purchase of old buildings

C. PLANT AND MACHINERY

i) All consumable materials like tool bits, files, oils etc.

ii) Investments on tools jigs/fixtures, moulds etc. which are required repeatedly, should not be allowed for the second time and onwards. While considering the investments made on first purchases, only the required quantify(quantity?) of such items are to be allowed. Extra quantities taken as spares are not to be allowed.

iii) Second hand machines purchased shall not be included.

Date :

Place : // SEAL // CHARTERED ACCOUNTANT

Name: ........................... Code No:............


60

ANNEXURE-10

INVESTIGATION REPORT OF ASST. DIRECTOR/DY. DIRECTOR OF DIC. UNDER 2014- 19 POLICY

1 Name of the enterprise M/s.

2 Address of the Enterprise a. Factory/ works b. Office address

3 Taluk and Zone as per 2014-19 Industrial Policy Taluk : Zone: Other than H-K area : 1/2/3/4 H-K area: 1/2

4 Category to which the entrepreneur belong (mention whether general, SC/ST, women, women Sc/ST, minority, backward Class [Category 1/2A], physically challenged; Ex-servicemen)

5

Constitution (With name of Proprietor / Partners / Directors)

6 Whether new enterprise/Undertaken Expansion/Modernization/ Diversification Programme

7 Size of the enterprise Micro/Small/Medium

Regn No. and date

8 In case of new industrial enterprise the date of commencement of production

9 In case of expansion, actual date of commencement of production of existing industrial enterprise and date of completion of expansion/modernization/ diversification of project

10 Items manufactured/processing by the Enterprise

11 Project Cost (in Rs.) (Please indicate item-wise details)

Land

Building

Plant and machinery

Others

Working Capital Margin

TOTAL

12 Name of the lending Institution

13 Date and Amount of loan sanction

14 Date of 1st

release

61

15 Means of finance As per project appraisal Actual investment

KSFC/Bank/Term Loan

Own finance


TOTAL

16 Details of fixed capital investment Period of

investment made Details of Capital investment acceptabl e (Amount in Rs.)

a) Land

b) Building

c) Plant & Machinery

d) Others Miscellaneous fixed asset (Please Specify)

TOTAL

17 Employment provided Original (in case of new enterprises)

Additional (in case of expansion enterprise)

Total Local Total Local

a) Top/Executive level

b) Managerial

c) Supervisor/Skilled

d) Semi Skilled/Un skilled

TOTAL

18 Percentage of local employment (Kannadigas) in the enterprise

19 Amount of subsidy recommended Amount

Eligible Fixed capital investments Rs.

Eligible general Investment Promotion subsidy - 10/15/20/25/30/35 %

Rs.

Additional Investment promotion subsidy of 5% with a ceiling limit of *Rs. 10 lakhs for General Category/Rs.15 lakh for SC/ST / Women / Backward Class [Category 1 & 2A] / Physically Challenged/Ex- servicemen in Zone - 1, 2,3 in non H-K area and Zone-1, 2 in H-K area for having established recycling of electronic waste/plastic waste

Total eligible Investment Promotion Subsidy Rs.

20 General remarks/recommendation (A brief report on working of the enterprise)

Declaration: I .......................................... (name of the officer and designation should be mentioned) have

visited the above enterprise on .........................(mention date of visit) and physically verified the assets created which is found to be correct to the best of my knowledge.

Place : Date :

Name and signature of the officer, with designation

62

ANNEXURE-11

AGENDA NOTES FOR SANCTION OF INVESTMENT PROMOTION SUBSIDY IN THE DLC MEETING HELD ON …………….(under 2014-19 policy)

1 Name of the enterprise M/s.

2 Address of the Enterprise a. Factory/works b.

Offic e address

3 Taluk and Zone as per 2014-19 Industrial Policy Taluk: Zone: Other than H-K area : 1/2/3/4 H-K area : 1/2

4 Constitution (With name of Proprietor/Partners/Directors)

5 Category to which the entrepreneur belong (mention whether General, SC/ST, Women, Women SC/ST Minority, Backward Class [Category 1/2A], Physically Challenged, Ex-servicemen)

6 Whether new enterprise/Undertaken Expansion / Modernization / Diversification Programme

7 Size of the enterprises Micro/Small/Medium

Regn. No. and date

8. In case of new industrial enterprise the date of commencement of production

9 In case of expansion, actual date of commencement of production of existing industrial enterprise and date of completion of expansion/ modernization/diversification of project

10 Date of application filed with DIC for sanction of subsidy with all the required documents

11 Items manufactured/processing by the Enterprises

12

Project Cost (in. Rs) (Please indicate item-wise details)

Land

Building

Plant and machinery

Others

Working Capital Margin

TOTAL

13 Name of the lending Institution

14 Date and Amount of loan sanction

63

15 Date of 1st release

16 Means of finance As pe r project appraisal

Actual investment

KSFC/Bank/Term Loan

Own finance


TOTAL

17

Investment certified by different source/agency

Details of fixed capital investment (Amount in Rs.)

Land Building Plant & Machinery

Other assets

Total

a. As per claim of the enterprise

b. As per certificate of

financial institution

c. As per chartered

accountant

d. As per investigation

report of Asst.

Director or Deputy

Director

e. As per Joint Director

DIC

18 Period during which the investment : Shown in Col 17 above is made (please specify the investment made in different periods)

19 Employment provided Original (in case of new enterprises)

Additional (in case of expansion enterprise)

Total Local Tot al Local

a) Top/Executive level

b) Managerial

c) Supervisor/Skilled

d) Semi Skilled/Un skilled

TOTAL

20 Percentage of local employment (Kannadiga) in the enterprise

21. Recommendation :

1. As per the details, the enterprises is located at ……………………….(mention the

factory address of the unit) and taluk classified in *Zone-1/2/3/4 of Non HK area /

*Zone-1/2 of H-K area (*strike out whichever is not applicable). The enterprise has

availed term loan of Rs……………. from ………………...............................................

(mention the financial institution) for the manufacture of …………………................

2. The entrepreneur belong to *General/SC/ST/Women/Women (SC/ST)/ Minority/

Backward Class [Category 1/2A]/Physically challenged/Ex-servicemen and the

enterprises is eligible for Investment Promotion Subsidy on accepted fixed capital

investment of Rs. ………….. under 2014-19 Industrial Policy at *10/15/20/25/30/35%

(*strike out whichever is not applicable) value of fixed assets and the amount of eligible

subsidy at the above rate works out to Rs. ...................... limited to the maximum amount

of Rs. .........................

64

3. Additional Investment promotion subsidy of Rs. .......................... at 5% with a ceiling

limit of *Rs. 10 lakh for General Category/Rs. 15 lakh for SC/ST/Women/Backward

Class [Category 1 & 2A]/Physically Challenged/Ex-servicemen in Zone-1, 2, 3 in Non

HK area and Zone-1, 2 in HK area for having established recycling of electronic waste

and plastic waste. The subject is placed before the DLC for consideration.

Place: AD/DD Date: Member Secretary DLC

65

ANNEXURE-12

FORMAT FOR SANCTION ORDER OF INVESTMENT PROMOTION SUBSIDY UNDER 2014-19 POLICY

Government of Karnataka Department of Industries and Commerce

No. …………… Office of the …………… Date:

Sanction Order

SUB: Sanction of 10/15/20/25/30/35% Investment Promotion Subsidy/additional 5% for having established recycling of electronic waste/plastic waste under 2014-19 Industrial Policy to M/s. ………………………..for manufacture/process of …………………… located at ………………….

REF: 1. G.O.No.CI/58/SPI/2013, dated 01/10/2014 2. Your application for Investment Promotion Subsidy received vide letter No. ................. dated: .................

******** We are pleased to inform you that the District Level Committee for sanction of

Investment Promotion Subsidy for MSMEs in its ……Meeting held on -----------has sanctioned a total Investment Promotion Subsidy of Rs.-------------- (Rupees----------only) on the basis of investment made on fixed assets of your enterprise located at --------i.e. Zone-1/2/3/4 other than HK area and Zone-1/2 in HK area as per 2014-19 Industrial Policy for manufacture/service activity. The Committee has accepted the investment as detailed below:

Sl. No.

Particulars Amount Rs.

1. Land

2. Building

3. Plant & Machinery

4. Erection/Electrification/transportation, etc.

5. Other fixed assets (Please specify)

TOTAL:

Accordingly, the amount of Investment Promotion Subsidy to which you are eligible is determined at Rs.----------------- (Rupees------------------only) at 10/15/20/25/30/35% and additional 5% subsidy of Rs. ....................for having established recycling of electronic waste and plastic waste i.e. total eligible subsidy determined at Rs. …………. on the above investment under 2014-19 Industrial Policy.

You shall have to execute an agreement, in the draft format enclosed to this sanction order. The original agreement should be on Stamp paper of Rs. 100/-. The agreement should be executed by the proprietor in case of proprietary concern, by one or more directors duly authorized by the board of directors of the company. The execution of the agreement should be under the common seal of the company, by all the partners in case of partnership concern. However, if any one of the partners holds a general power of attorney, he may execute the agreement on behalf of the remaining partners and furnish a certified true copy of the power of attorney. When the agreement is executed by a holder of general power of attorney, a certificate signed by all the partners on behalf of the firm to the effect that the general power of attorney is in force and not revoked as on the date of execution of the agreement, should be furnished. The Erasures, if any, should be properly attested No blank should be left in the agreement form.

66

The above agreement should be executed in the presence of Assistant Director/Deputy Director/Joint Director, District Industries Centre, …………. .

The sanction of this Investment Promotion Subsidy is subject to following conditions:

1. In the event of the Investment Promotion Subsidy being sanctioned, while at a later date found to be not actually due, the grantee shall refund to Government such portion or whole amount as determined by the Directorate of Industries and Commerce/Joint Director, DIC--------. In the event of the grantee failing to refund such amount, the same shall be recovered as arrears of land revenue.

2. The Investment Promotion Subsidy sanctioned will be released partly/fully depending upon the funds available.

3. The Joint Director, District Industries Centre shall monitor the employment provided to local people (Kannadigas) in accordance with terms and conditions in the para (t.) (I.) of Annexure-3A of 2014-19 Industrial Policy for an initial period of five years. Failure of the industries to provide employment to Kannadigas as stipulated above will be reported to the concerned DLSWCC/SLSWCC which may recommend for recovery of subsidy sanctioned. The enterprise is bound to return the subsidy amount to Government.

4. The Investment Promotion Subsidy sanctioned herein is in the nature of “Grant-in-aid” and shall not be construed as a “contract” with Government of Karnataka. The grantee shall not exercise his right of privities of contract in the matter of release of subsidy by Government of Karnataka, who shall release the subsidy amount as and when the grantee is eligible for the same, in such proportions and instalments as the Government may regulate.

Joint Director District Industries Centre

--------------------

67

ANNEXURE-13

FORMAT OF UNDERTAKING TO BE EXECUTED FOR INVESTMENT PROMOTION SUBSIDY UNDER 2014-19 POLICY

UNDERTAKING

The undertaking executed this day ------------ 200 --------- by -------- carrying on the business of ------------------- under the name and style of M/s.------------------------- herein after called the 'Grantee' of the one part in favour of the Governor of Karnataka, represented by the Director of Industries and Commerce herein after called the Government of other part WITNESSETH.

Where as District Level Committee ---------------- vide Order No. ----------- dated: ----------- - has sanctioned an Investment Promotion Subsidy of Rs. ------------- (Rs. ---------------------- only) under the Government of Karnataka scheme of Package of Incentives and Concessions (2009- 14 Industrial Policy) new Industrial investment made in the State of Karnataka to the grantee for the purpose of his enterprises.

In consideration of the grant of Rs.---------------(Rs. --------------- only) as per the Order No.---------------- dated: -------------- of the Joint Director, District Industries Centre --------- the receipt whereof the grantee hereby acknowledges, the grantee agrees and covenants as follows:

i If the State Government/Financial Institution concerned is satisfied that the investment subsidy has been obtained by misrepresentation of essential fact, furnishing false information after the reimbursement of full subsidy, the State Government/Financial Institution concerned shall have the right to claim refund of the grant/subsidy of Rs. ………….. (Rs. ……………. only) paid to the grantee together with such interest as the State Govt./Financial Institution concerned may charge.

ii In the event of the subsidy being sanctioned, which at later date is found to be not actually due, the grantee shall refund to Government such portion or the whole amount as determined by the Joint Director, District Industries Centre/Director of Industries and Commerce. On failure to do so, such amount shall be recovered by the Government as arrears of land revenue.

iii That this grant shall not be construed as a contract and shall be in the nature of Grant-in- Aid only and the provisions of the Indian Contract Act or that of Specific Relief Act or any other relative statutory Acts/Provisions shall not apply in the instant case.

iv That the grantee shall not exercise his right of claiming release/reimbursement of subsidy amount out-of-turn either directly or through his attorney and that the decision of the Government in the matter of periodic release based on the availability of funds shall be final and binding on the grantee.

v The Grantee shall undertake to provide employment to local people (Kannadigas) in accordance with terms and conditions in the para (t) (i) of Annexure-3A of the 2014-19 Industrial Policy and maintain the same at least for a period of five years from the date of release of the subsidy amount. In case the enterprise fails to do it shall be bound to return the subsidy amount to the Government.

68

SCHEDULE:

Sl. No. Particulars Investment details (Amount in rupees)

1 Land Rs.

2 Building Rs.

3. Plant and Machinery Rs.

4. Erection/Electrification/

transportation etc.

Rs.

5. Other fixed assets (Please specify) Rs. TOTAL:

In witness whereof the Grantee has set his hand on this ------------------ day of ------------------------- two thousand ------------------------ first above mentioned.

Witness: Signature of the Grantee

1.

2. //Common Seal of the Company//

Shall be affixed here

“Attested”

AD/DD/JD, DIC

69

ANNEXURE-14

FORMAT FOR SUBMITTING PROGRESS OF SANCTION OF INVESTMENT PROMOTION SUBSIDY UNDER 2009-14/2014-19 INDUSTRIAL POLICY FOR THE

MONTH ENDING

Sl. No.

Name and address of the Unit

End Product

District Taluk Name of the Assembly

constituency

DLC No. & Date of Meeting held

Policy Package

Zone as per

Industrial policy

Category of Entrepreneur

(SC/ST/ Women/ Gen/PH)

1 2 3 4 5 6 7 8 9 10

Micro/

Small/

Medium

Type of finance

(F. Instituti

ons or self)

Please

specify the

F.I. &

branch

New unit/ Expn/ Diversification

/Modernization

please specify

Invest-

ment on

fixed

assets in Rs.

Subsidy

Sanctioned

in

percentage

(%)

Amount of

Subsidy

sanctioned

in Rs.

Working Status

No. of

employment

generated

In case Expansion/

Modernisation/

Diversification units

earlier subsidy

sanctioned and

releases

details

Rema rks

11 12 13 14 15 16 17 18 19 20

*Mention the category whether General/SC/ST/Women/Women (SC/ST)/Minority/ Backward Class [Category 1 or 2A]/Physically Challenged/Ex-servicemen


--------------------

70

ANNEXURE-15

APPLICATION FOR STAMP DUTY EXEMPTION AND CONCESSIONAL REGISTRATION CHARGES UNDER 2014-19 INDUSTRIAL POLICY

1. Name of the enterprise :

2. Full address for communication :

3. Proposed location of the enterprise :

4. Full Office Address (if it is different from Sl. No. 3) :

5. Zone as per Industrial Policy :

6. Constitution of the enterprise (please specify whether proprietorship/partnership

firm/company etc.) :

7. Size of the Industry whether Micro/Small/ Medium/Large/Mega/Ultra Mega/Super Mega Enterprises :

8. Products Manufacturing/proposed for Manufacturing :

i)

ii)

iii)

iv)

9. Industrial Entrepreneur Memorandum Filed

a) Acknowledgment No :

b) Date of issue of acknowledgment :

10 W hether the enterprise belongs to special category of entrepreneur i.e. Women/SC/

ST/Minotiry/Backward Class (Category 1 &

2A only)/PH/Ex-Servicemen :

11. Details of land allotted/Purchased and cost of land, if any

1. Agency allotted land (Mention KIADB /KSSIDC/KSIIDC/KEONICS etc.) :

2. In case of purchase (Mention whether section 109 or already converted land) :

12. Detail of Term loan sanctioned, if any

1. Name of the Bank Branch :

2. Amount of Term loan sanctioned : ` 3. Date of Term loan sanctioned :

13. Is it new industry or existing industry undertaken expansion/diversification/ modernization :

14. In case existing unit undertaken expansion/ diversification/modernization

1. Date of commencement of commercial

product ion of existing unit :

2. Installed capacity of existing products :

3. Proposed capacity under expansion :

4. Existing value of fixed assets :

a) Land `

b) Building `

c) Plant & Machinery `

d) Other Assets like electrification,

installation etc. `

Total `

15. In case of New Industry

1. Proposed date of commencement of

commercial production :

2. Proposed Installed capacity :

3. Propo sed value of fixed assets as per

project report :

a) Land `

b) Building `

71

b) Building `

c) Plant & Machinery `

d) Other Assets like electrification, installation etc.

`

e) Contingencies `

f) Pre-operative & preliminary expenses

`

g) Margin for working

Capital

`

TOTAL `

16 Means of finance

a) Promoter’s equity `

b) Institutions’ equity `

c) Term Loans `

d) Seed capital/risk capital `

e) Subsidy/Grants `

f) Others (Please Specify) `

TOTAL `

Declaration by the applicant:

I/We hereby certify that the particulars given above are to the best of my/our knowledge, belief, true and correct:

Place: Signature(s)

Date : Name & Designation (with seal of the company/firm)

***

72

ANNEXURE-16

FORMAT FOR ISSUE OF STAMP DUTY EXEMPTION AND CONCESSIONAL REGISTRATION CHARGERS (FOR LAND DOCUMENTS) UNDER 2014-19 INDUSTRIAL

POLICY

No: Office of

the………………

Certificate

Date:

Subject: Issue of Stamp Duty Exemption and Concessional Registration

chargers certificate to M/s ------------------------------------reg.

Reference: 1. Govt. Order No. CI/58/SPI/2013 dated: 01/10/2014

2. Revenue Dept. Notification No. ------------------------- dated:--------

3. Application of the enterprise dated:………………….

This is to certify that :

******

1) M/s ---------------------------------------------- represented by Sri. --------------------------------------- --- is a *proprietor/partner/managing director/director. It is a proposed *new/expansion/ modernization/diversification unit obtained *IEM/IL from *Govt. of Karnataka/Govt. of India vide acknowledgment No.--------------------------- dated:-------------------

2) As per Govt. No. CI/58/SPI/2013 dated:01/10/2014 the enterprise is proposed to be situated in Zone-------- of *Hyderabad Karnataka area/Other than Hyderabad Karnataka area. The enterprise is defined as *Super Mega/Ultra Mega/Mega/Large/ Medium/Small/Micro enterprise. The *proprietor/all partners/all directors belong to *General/SC/ST/Women/Minority/Backward Class (Category 1/2A only)/Physically Handicap/Ex-servicemen.

3) The project has been approved by *DLSWCC/SLSWCC/SHLCC in its meeting held on ----- ------------- *and Govt. Order No.-------------------------- dated---------------- is issued.

4) The enterprise has been allotted *land/plot/shed to the extent of acres in *KIADB/KSSIDC/KEIONICS/Industrial Co-operative society in industrial area for the manufacturing/service activity of or the enterprise has obtained permission from the *Deputy Commissioner district/Government or *the enterprise has purchased converted land to the extent of from .

5) The enterprise is eligible for *100%/75% Stamp duty exemption and the Registration charges payable at *Re.1 /0.50 for every Rs.1000/- value of *lease/lease cum sale/absolute sale agreement

6) It is certified that the enterprise is not listed in Annexure-2 of the industrial activities not eligible for incentives and concession as per Govt. Order No. CI/58/SPI/2013 dated: 01/10/2014.

73

To,

M/s

Joint Director DIC/ID

75 75

Copy to,

1. Sub registrar, taluk and district

2. Joint Director DIC,

3. Office copy. * Strike out whichever is not applicable

76 76

74

77 77

FORMAT FOR ISSUE OF STAMP DUTY EXEMPTION AND CONCESSIONAL REGISTRATION CHARGERS (FOR LOAN DOCUMENTS) UNDER 2014-19 INDUSTRIAL

POLICY

No: Office of

the………………

Certificate

Date:

Subject: Issue of Stamp Duty Exemption and Concessional Registration chargers

certificate to M/s ------------------------------------reg.

Reference: 1. Govt. Order No. CI/58/SPI/2013 dated:01/10/2014

2. Revenue Dept. Notification No. ------------------------- dated:---------

3. Application of the enterprise dated:………………….

******


1) M/s ---------------------------------------------- represented by Sri. ----------------------------------------- is a *proprietor/partner/managing director/director. It is a proposed *new/expansion /modernization/diversification unit obtained *IEM/IL from *Govt. of Karnataka/Govt. of India vide acknowledgment No.--------------------------- dated:-------------------

2) As per Govt. No. CI/58/SPI/2013 dated:01/10/2014 the enterprise is proposed to be situated in Zone-------- of *Hyderabad Karnataka area/Other than Hyderabad Karnataka area. The enterprise is defined as *Super Mega/Ultra Mega/ Mega/ Large/ Medium /Small/Micro enterprise. The *proprietor/all partners/all directors belong to *General /SC/ST/Women/Minority/Backward Class (Category 1/2A only)/Physically handicap/Ex- servicemen.

3) The project has been approved by *DLSWCC/SLSWCC/SHLCC in its meeting held on ------- ----------- *and Govt. Order No.-------------------------- dated---------------- is issued.

4) The enterprise has been sanctioned (mention *term loan/working capital loan/VAT loan) ofRs. by (mention name of the* bank/financial institution/Government) for*manufacturing of /service activity .

5) The enterprise is eligible for *100%/75% Stamp duty exemption and the Registration charges payable at *Re.1/0.50 for every Rs. 1000/- value on loan agreement and all other documents in respect of loan sanctioned as stated in Sl. No. 4.

6) It is certified that the enterprise is not listed in Annexure-2 of the industrial activities not eligible for incentives and concession as per Govt. Order No. CI/58/SPI/2013 datae:01/10/2014.

To, M/s

Joint Director DIC/ID

Copy to, 1. Sub registrar, taluk and district 2. Joint Director DIC, 3. Office copy

78 78

* Strike out whichever is not applicable

79 79

FORMAT FOR SANCTION ORDER FOR REIMBURSEMENT OF LAND CONVERSION FINE UNDER 2014-19 INDUSTRIAL POLICY

GOVERNMENT OF KARNATAKA

Department of Industries and Commerce

No. Office of the …………….

Dated : …………………..

SANCTION ORDER

Ref: 1. G.O. No. CI/58/SPI/2013 dtd: 01.10.2014 2. Revenue Department Land Conversion Order No. 3. Proceeding of the ............DLC meeting held on ............. 4. Application of M/s. ………………. Dtd:…………

********* M/s. ………………………………….. have made an application cited in ref(4) for

grant of reimbursement of Land Conversion Fine paid for conversion of ………… acres of land which was in the name of Sri/Smt. …………….. situated in Survey No. ….. No.……… of …………….. Village, ……………… Taluk, …………… District for having established industry for manufacture of ……………... The enterprise has obtained IEM acknowledgment/Industrial license vide No. ………. Dtd: ……… for this purpose.

The enterprise has paid the Land Conversion Charges of Rs. ………… in accordance with the Land Conversion Order cited at ref(2) and submitted the copy of challan for having paid the conversion Charges.

It is certified that the enterprise's requirement of land has been examined in detail and found that ………. acres of land was essential for setting up the said industry. It is eligible for exemption from payment of conversion fine for conversion of the above land from agricultural to non-agricultural industrial purpose, in terms of G.O. No. CI /58/SPI/2013 dtd: 01.10.2014.

The entrepreneur belongs to.............................(mention categoryGeneral/SC/ST/Women/Women(SC/ST)/Minorities/Backward Class (Category 1 & 2A)/Physically Challenged/Ex-servicemen). The unit is located in *Zone 1/2/3 other than Hyderabad Karnataka area/*Zone 1/2 of Hyderabad Karnataka area. Accordingly the enterprise is sanctioned Rs........................(in figures and words) as reimbursement of land conversion fee to the extent of *100%/75% of fee paid to the Government.

office *Strike out whichever is not applicable

JOINT DIRECTOR District Industries Centre

…….. District or

Joint Director (ID), Head

80 80

FORMAT FOR SUBMITTING PROGRESS OF SANCTION OF REIMBURSEMENT OF LAND CONVERSION FINE UNDER 2009-14/2014-19 INDUSTRIAL POLICY FOR THE

HALF YEAR ENDING SEPTEMBER /MARCH

Sl. No. Name of the

Enterprise to whom

land conversion

Charges is

reimbursed

DLC

meeting

No. and date

Policy Taluk

and

Zone

*Category of entrepreneur

Size of the

industry

Product manufac-

tured/ activity

Amount of land

conversion Charges paid

to Government

% Amount in Rs.

1 2 3 4 5 6 7 8 9 10

No. of persons employed Remarks

Local

(Kannadigas)

Other than

Local (other

than Kannadigas)

Total with %

to local

(Kannadigas)

13 14 15 16

*Mention the category whether General/SC/ST/Women/Women (SC/ST)/ Minority/ Backward Class [Category 1 or 2A]/Physically challenged/Ex-servicemen


--------------------

81 81

APPLICATION FOR ENTRY TAX EXEMPTION ON PURCHASE OF PLANT AND MACHINERY (DURING IMPLEMENTATION OF PROJECT)




4. Full Office Address

(if it is different from Sl. No. 3) :

5. VAT Registration details

1. Local VAT office address

2. VAT TIN No. and Date of registration

6. Zone as per prevailing Industrial Policy :

7. Constitution of the enterprise (please specify whether proprietorship/partnership firm/company etc.) :

8. Size of the Industry whether Micro/Small/

Medium/Large/Mega/Ultra Mega/Super Mega

Enterprises :

9. Products Manufacturing/proposed for Man ufacturin :

i)

ii)

iii)

iv)


a) Acknowledgement No :

b) Date of issue of acknowledgment :

11. Whether the enterprise belongs to special category of entrepreneur i.e.

General/Women/SC/ST/Minority/ Backward Class (Category 1 & 2A only)/ PH/Ex-Servicemen :

12. Date of first machinery purchase order :

13. Is it new industry or existing industry undertaken expansion/diversification /

modernization :

14. In case existing unit, undertaken expansion/

diversification/modernization


production of existing unit :



4. Existing value of fixed assets :

a. Land

b. Building

c. Plant & Machinery

d. Other Assets like electrification,

installation etc.

Total


1. Proposed date of commencement of

commercial production :

2. Proposed Installed capacity :

3. Proposed value of fixed assets as per project

report :

a. Land

b. Building

c. Plant & Machinery


installation etc.

79

e) Contingencies `

f) Pre-operative & preliminary

expenses

`

g) Margin for working

Capital

`

TOTAL `

16. Means of finance

a) Promoter’s equity `

b) Institution’s equity `

c) Term Loans `

d) Seed capital/risk capital `

e) Subsidy/grants `

f) Others (Please Specify) `

TOTAL `


I/We hereby certify that the particulars given above are to the best of my /our knowledge and belief true and correct:

Place: Signature(s)

Date : Name & Designation (with seal of the company/firm)

***

80

ANNEXURE-81

81

APPLICATION FOR ENTRY TAX EXEMPTION ON PURCHASE OF RAW MATERIAL, INPUTS, COMPONENTS PARTS AND CONSUMABLES (EXCLUDING PETROLEUM

PRODUCTS) DURING OPERATIONAL PHASE OF THE PROJECT




4. Full Office Address

(if it is different from Sl. No. 3) :

5. VAT Registration details

1. Local VAT office address

2. VAT TIN No . and Date of registration

6. Zone as per prevailing Industrial Policy :

7. Constitution of the enterprise (please specify

whether proprietorship/partnership

firm/company etc.) :

8. Size of the Industry whether Micro/Small/

Medium/Large/Mega/Ultra Mega/Super Mega Enterprises :

9. Products Manufactured : i)

ii)

iii)

iv)


after commercial production

a) Acknowledgment No. :

b) Date of issue of ackn owledgment :

11. Whether the enterprise belongs to special

category of entrepreneur i.e.

General/Women/SC/ST/Minotiry/ Backward Class (Category 1 & 2A only)/

PH/Ex-Servicemen :

12. Is it new industry or existing industry undertaken expansion/ diversification/

modernization :

13. In case existing unit undertaken expansion/

diversification/modernization

1. Date of commencement of commercial production of existing unit :



4. Value of fixed assets of existing unit :

a. Land `

b. Building `

c. Plant & Machinery `


installation etc.

`

Total `



production (first sale invoice) :

2. Installed capacity :

3. Investments made on fixed assets :

a. Land `

b. Building `

c. Plant & Machinery `


installation etc.

`

e. Contingencies `

f. Pre-operative & preliminaryexpenses

`

TOTAL of 14(3) `

82

83 83


I/We hereby certify that the particulars given above are to the best of my/our knowledge and belief, true and correct:

Place: Signature(s)

Date : Name & Designation (with seal of the company/ firm)

***

ANNEXURE-22

84 84

PRO FORMA FOR ENTRY TAX EXEMPTION CERTIFICATE DURING IMPLEMENTATION PHASE UNDER 2014-19 INDUSTRIAL POLICY

Government of Karnataka


No:....................... Office of the .............

Date:.........

CERTIFICATE

Sub: Exemption of Entry Tax to M/s -----------------, ---------------------- Taluk, ------------------------- District, during implementation phase.

Ref: 1. G.O. No:CI/58/SPI/2013, dt:01-10-2014

2. FD Notification-* I/II/III/IV No:FD/01/CET/2015 dt:23-4-2015

3. G.O.------------------------, dt:-------------------

4. Letter of the Unit No.:----------------------dt:--------------------

*******

This is to certify that:

1. M/s --------------------------- is -------------------- industry located at ------------------------------- --------Taluk, ----- -------------------District.

2. The unit is registered vide No:----------------------, dt:------------------------ for the manufacture of “------------- -------------” with -----------------------------.

3. The unit is located in Zone-------------------- as classified in the Govt. Order cited at ref.(1) above.

4. It is a new *enterprise/proposed to undertake *expansion/diversification/modernization and has cleared in the --------------- *State Level Single Window Clearance Committee/ State High Level Clearance Screening Committee meeting held on ----------------------------- to establish a unit for manufacture of “------ -------------------------” with a total investment of Rs.------------------ *lakh/crore.

5. The enterprise is defined as *Super Mega/Ultra Mega/Mega/Large/Medium/Small/Micro enterprise. The *proprietor/all the partners/all the directors belong to *General/SC/ST/ Women/Women (SC/ST)/Minority/Backward Class (Category 1 / 2A only)/Physically challenged/Ex-servicemen.

85 85

6. The value of fixed assets as proposed in the project report is as below:

Sl. No.

Description Investment

(Rs. in Crores)

1 Land and Building

2 Plant and Machinery

3 Instruments and Equipments

Total

7. The unit is eligible for Entry Tax Exemption on the entry of plant and machinery and capital goods directly involved in the production or other processing of goods and including those equipments brought for the purpose of establishing captive power generation plant for a maximum period of --------- (-------) years from ------------------------- i.e the date of commencement of the project implementation as envisaged by the first purchase order No:-------------, dt:----------------- or till the completion of the project implementation, whichever is earlier.

8. This Certificate is issued as per the Govt. Orders cited at ref.(1) to (3) above.

9. The enterprise has to fulfill the conditions as prescribed in the Govt. Orders cited at ref.(1) to (3) above.

10. The item of manufacture is not one among the 26 ineligible items listed vide Annexure-2 of the Govt. Order cited at ref.(1) above.

Joint Director (DIC)/(ID)

To: M/s --------------------------------.

Copy to:

1) The LVO -------------------------------------- 2) Office copy

*Strike out whichever is not applicable

ANNEXURE-23

86 86

PRO FORMA FOR ENTRY TAX EXEMPTION CERTIFICATE DURING OPERATIONAL PHASE UNDER 2014-19 INDUSTRIAL POLICY


No:....................... Office of the ............. Date:.........

CERTIFICATE

Sub: Exemption of Entry Tax to M/s ------------------------- Limited, ---------------- Taluk &--------- ---------------------- District, during operational phase.

Ref: 1. G.O. No:CI/58/SPI/2013, dt:01-10-2014

2. FD Notification *I/II/III/IV No:FD/01/CET/2015 dt:23-4-2015

3. G.O. No:---------------------------, dt:---------------------

4. Application of the enterprise No.----------------------- dt:-------------------

This is to certify that:

1. M/s --------------------------- is -------------------- industry located at ------------------------------- --------Taluk, ----- -------------------District.

2. The unit is registered vide No:--------------------------, dt:------------------ for the manufacture of “--------------- -------------------------------” with -------------------------------.

3. The unit is located in Zone-------------------- as classified in the Govt. Order cited at ref.(1) above.

4. It is a *new enterprise/taken expansion/diversification/modernization and cleared in *State Level Single Window Clearance Committee/State High Level Clearance Screening Committee meeting held on ------ -------------- to establish a unit for manufacture of “--------------------------” with an investment of Rs.---------- ------- *lakh/crore.

5. The enterprise is defined as *Super Mega/Ultra Mega/Mega/Large/Medium/Small/Micro enterprise. The * p r o p r i e t o r / a l l t h e p a r t n e r s / a l l t h e d i r e c t o r s b e l o n g s t o * G e n e r a l / S C / S T / Women/Women(SC/ST)/Minority/Backward Class (Category 1/2A only)/Physically challenged/ Ex- servicemen.

6. The value of fixed assets invested is as below:

Sl. No.

Description Investment

(Rs. in Lakh/Crore) 1 Land

2 Civil construction


4 Other fixed assets

Total

87 87

1. The unit is eligible for Entry Tax Exemption on the entry of goods for use as raw materials, inputs, component parts and consumables (excluding petroleum products like crude oil, petrol, diesel, super light diesel oil, bitumen (asphalt), tar, furnace oil, brake fluid or clutch fluid, transformer oil, coolants, white oil, hexane, lubricating oil, petroleum jelly, naphtha and LSHS used as consumables or for captive power generation units) directly involved in the manufacture of “ ----------------------------------- --------” for a period of ------------ (-----------) years from -----------------------, i.e. the date of commencement of commercial production as envisaged by the Invoice No: ---------- --------, dated:------------------------------------.

2. This Certificate is issued as per the Govt. Orders cited at ref.(1) to (3) above.

3. The enterprise has to fulfill the conditions as prescribed in the Govt. Orders cited at ref.(1) to (3) above.

4. The item of manufacture is not one among the 26 ineligible items listed vide Annexure-2 of the Govt. Order cited at ref.(1) above.


To: M/s -------------------------------- ------------------------------------- ---------------------------------------

Copy to:

1) The LVO-------------------------------------. 2) Office copy


ANNEXURE-25 ANNEXURE-24

88 88

FORMAT FOR SUBMITTING PROGRESS OF ISSUE OF ENTRY TAX EXEMPTION CERTIFICATES FOR THE HALF YEAR ENDING ------------ UNDER 2009-14/2014-19

INDUSTRIAL POLICY

Sl.

No Name of the

Enterprise to whom entry tax

exemption certificate is

issued

Whether the certificate is issued for

implementation phase or oper ational phase

Policy Taluk and Zone

*Category

of entrepre - neur

Size of the industry

Product proposed for manufa-

cturing/ manufac - tured/ activity

1 2 3 4 5 6 7 8

No. of persons employed Remarks

Local

(Kannadigas)

Other than

Local (other than Kannadigas)

Total with %

to local (Kannadigas)

9 10 11 12

*Mention the category whether General/SC/ST/Women/Women (SC/ST)/Minority/ Backward Class [Category 1 or 2A]/Physically challenged/Ex-servicemen


--------------------


89 89

APPLICATION FORM FOR SANCTION OF INVESTMENT SUBSIDY FOR SETTING UP OF EFFLUENT TREATMENT PLANT (ETPs)

1 Na me and address of the enterprise

2 Zone- as per Industrial Policy 2014 - 19

3. Location of the Enterprise

4 Registration No. and date (as mentioned in EM/IEM/IL)

5 Products manufactured/processes

6 Constitution of the industry (Proprietary/Partnership/Pvt/Ltd/Com)

7 Category to which the entrepreneur belong (mention whether General, SC/ST, Women, Women SC/ST, Minority, Backward Class [Category 1/2A], Physically challenged, Ex-servicemen)

8 Project cost details Main enterprise

ETP

1.Land

2.Buil ding

3.Plant and Machinery

4.Others

5.Working Capital

Total

9 Date of Commercial Production (first sale Invoice)

10 Valid consent for operation (CFO) issued by KSPCB

11 Environment Clearance Certificate (ECC) issued by DFEE/MOEF (Wherever applicable)

12 Environment Management Plan (EMP)

13 Actual Investment details (amount in Rs.) Main enterprise

ETP

1. Land

2. Building

3. Plant & Machinery/equipments 1.Water pollution equipment:

2.Air pollution equipment:

T otal:

4. Other fixed assets (please specify)

Grand Total

90 90

14 Name of the Term Loan lending Financial Institution/Bank

1. Date of loan sanction

2. Amount of loan sanction

3. Amount of loan release

4. Date of first loan release


I/We hereby certify that the particulars given above are to the best of my/our knowledge and belief are true and correct.

Place : Date : Signature(s)

Name & Designation (with seal of the company)

ANNEXURE-26

91 91

FIXED INVESTMENT CERTIFICATE FROM BANK / FINANCIAL INSTITUTION FOR SANCTION OF ETP UNDER 2014-19 INDUSTRIAL POLICY

M/s -------------------------------------- of (location of the unit)--------------------------------------------------------have been disbursed as on this date amount under the loan amounting to Rs.-------------------- sanctioned under letter No.---------- ----------- Dated:------------- as shown below:

a) Term loan sanctioned Date: Amount in Rs.

b) Loan amount disbursed on (Mention all dates) Date: Amount in Rs. i.

ii.

iii.

Total amount disbursed till date

c) Value of investment in fixed assets. As per project appraisal (Rs.)

Actual investment (mention period) (Rs. )

A) Land (excluding lease hold) :

i. For entire unit excluding ETP

ii. For ETP only

B) Building (excluding residential,

quarters, guest houses) :


ii. For ETP only

C) Plant and Machinery :


ii. For ETP only

D) Other Assets( please specify) :


ii. For ETP only

Certified that the sanction of financial assistance to M/s--------------------------------------- for the plant at ---- ---------------- has been considered on the basis of the company's assessed requirement of factory buildings and the cost is estimated at Rs.-------------------- as per the project report.

We certify that this investment certificate is issued after verifying the bills and vouchers made available by the unit for purposes of release of term loan instalments and based on the physical verification of the inspecting officers. Items for which subsidy is not admissible are not included in the investment certified above.

We further certify that the investment made after 01/10/2014 are included.

We are in possession of relevant bills and vouchers on which this investment certificate is issued and we agree to make available the same as and when required for any verification purpose before the loan liability is discharged.

92 92

NOTE:

1. Please specify the period during which investment has been made on land, building

and plant & machinery

2. Please furnish the list of machineries with corresponding value

3. The investment made on old machineries/building should be excluded

4. Investment made earlier to the date of eligibility for subsidy should not be included

Signature of the Branch Manager

Place: (Name of the Institution)

Date:

//Seal//

ANNEXURE-27

93 93

CHARTERED ACCOUNTANT CERTIFICATE FOR SANCTION OF ETP UNDER 2014-19INDUSTRIAL POLICY

Name of the Chartered Accountant …………………………………... We hereby certify that M/s………………………………… ……………….(name of the industrial enterprise) has acquired the following fixed assets up to -------------- for the enterprise at ------------(address) for manufacture of -------- ----------------------------- (name of products).

Item of fixed assets Period during which investment is made(date of payment)

Value in Rs.

1.Land i) For entire enterprise excluding ETP

ii) For ETP only

2. Factory building (please specify p eriod)

i) For entire enterprise excluding ETP

a. Amount paid to the building contractors

From To


From To

c. Amount paid for wages and Salaries etc, for the building constructions

From To

( exclud ing arch itect’s fees and wages paid for supervision staff etc)

ii) For ETP only:

a. Amount paid to the building contractors

From To


From

To

c. Amount paid for wages and Salaries etc. for the Building constructions

From To


4. Electrical installations (excluding KEB deposits) i) For entire enterprise excluding ETP ii) For ETP only

5. Plant a nd Machinery i) For entire enterprise excluding ETP ii) For ETP only a) Water pollution equipment:

b) Air pollution equipment:

TOTAL

94 94

6. Loading, unloading, transportation, erection expenses etc. i) For entire enterprise excluding ETP ii) For ETP only

7. Misc. fixed assets (Please specify items) i) For entire enterprise excluding ETP ii) For ETP only

We have checked the books of account of the enterprise, bills, invoices and payment vouchers, etc. and certify that the aforesaid information is verified and certified to be true. We also certify that all the aforesaid items have been duly paid for and no credit is raised against them in the books of the enterprise.

Certified that the investments certified above do not include items for which subsidy is not allowed. Expenditure incurred on following items are not included.

A. LAND

i) Value of the open land not utilized for construction, leaving the area proposed for immediate expansion.

ii) Expenditure incurred for land scraping for beautification and expenditure on unsuccessful open wells/bore wells.

B. BUILDING

i) Expenditure on unproductive construction like guest house, workers/staff quarters, canteens, cycle/scooter stands, garages, etc.

ii) Expenditure incurred on beautification of buildings, arches, decorative lights including street lights, furniture and air conditioners, water coolers, refrigerators such of the gadgets not directly connected with production.

iii) Expenditure incurred on the purchase of old buildings.

C. PLANT AND MACHINERY

i) All consumable materials like tool bits, files, oils, etc.

ii) Investments on tools jigs/fixtures, moulds etc. which are required repeatedly, should not be allowed for the second time and onwards. While considering the investments made on first purchases, only the required quantify of such items are to be allowed. Extra quantities taken as spares are not to be allowed.

iii) Second hand machines purchased shall not be included.

Date :

Place :

CHARTERED ACCOUNTANT

Name and address and Code No.

// SEAL //


95 95

CHARTERED ENGINEERS/ARCHITECT'S CERTIFICATE FOR SANCTION OF ETP UNDER 2014-19 INDUSTRIAL POLICY

I, hereby certify that as against the estimated cost of Rs............................(Rupees)........................ of the building and civil works for M/s................................................. for their proposed project at Plot No. ............................... the unit has so far completed the civil works as under.

01 Value of completed civil works as per estimates i. For entire unit excluding ETP

ii. For ETP only

Rs.

02 Amount certified for payment to the building contractors (civil and structural)


ii. For ETP only

Rs.

03 Retention Money (for civil contractor) i. For entire unit excluding ETP

ii. For ETP only

Rs.

04 Value of materials utilised for the completed portion of the building


ii. For ETP only

Rs.

The value of completed building certified above does not involve the area built for guest house and residential building in the factory site.

It is further certified that built area? of the building is absolutely essential for the manufacturing/processing activity of the industry. A detailed estimate sheet is appended to this certificate.

Place: //seal// Signature and Date: full address


96 96

GOVERNMENT OF KARNATAKA Department of Industries and Commerce

No……………………….. Office of the ..............,

Dt:…………..

CAPITAL SUBSIDY SANCTION ORDER FOR EFFLUENT TREATMENT PLANT (ETP)

Sub: Sanction of Capital Subsidy to M/s. …………………………. Manufacturing ……………………………………. Product

Ref: 1. Your application for Investment Subsidy received on ……

2. Government Order No. CI/58/SPI/2013 dtd: 01.10.2014

><><><

We are pleased to inform you that the District Level Committee/State Level Committee for sanction of capital subsidy for ETP in its meeting held on …………….. has sanctioned a subsidy of Rs. ……………(Rs. …………. only) to your enterprise at ……………………………….. on the basis of the investment made by your enterprise on Water Pollution Control and /or Air Pollution Control equipments and its fixed assets. The committee has accepted the investment as detailed below:

a) Land Rs.

b) Building Rs.

c) Plant and Machineries i. Air pollution control equipments

ii. Water pollution control equipments

Total of c: Rs.

d) Erection/Electrification / transportation, etc. Rs.

e) Others Rs.

Grand Total (a+b+c+d+e) Rs.

Accordingly, the amount of capital subsidy to which you are eligible is determined at Rs. ……………….. (Rs………………… only) at 50%/75% of the above investment under 2014-19 Industrial Policy and limited to Rs. ………………….

You shall have to execute an agreement and draft of which is enclosed to this sanction order. The original agreement should be on Stamp paper of Rs. 100/-. The agreement should be executed by the proprietor in case of proprietary concern, by one or more Directors duly authorized by the Board of Directors of the company. The execution of the agreement should be under the common seal of the company, by all the partners in case of partnership concern. However, if any one of the partners holds a general power of attorney, he may execute the agreement on behalf of the remaining partners and furnish a certified true copy of the power of attorney. When the agreement is executed by a holder of general power of attorney, a certificate signed by all the partners on behalf of the firm to the effect that the general power of attorney is in force and not revoked as on the date of execution of the agreement, should be furnished.

Erasures, if any, should be properly attested. No blank should be left in the agreementform.

The above agreement should be executed in the presence of Officer In charge, District


97 97

Industries Centre/Joint Director (ID).

97 97

The sanction of this capital subsidy is subject to following conditions.

If the State Government is satisfied that the 50% capital subsidy has been obtained by misrepresentation of the essential facts, furnishing of false information or if the enterprise goes out of production within one year after receipt of subsidy, the State Government shall have the right to claim refund of the capital subsidy of Rs…………… sanctioned, together with interest as the State Government may charge.

The grantee shall not change the location of the whole or any part of the industrial enterprise or effect any contraction or disposal of a part of its total fixed capital investment within a period of one year after the enterprise receives this grant.

In the event of the capital subsidy being sanctioned, while at a later date found to be not actually due, the grantee shall refund to Government such portion or whole amount as determined by the Directorate of Industries and Commerce/Joint Director, District Industries Centre. In the event of the grantee failing of refund such amount, the same shall be recovered as arrears of land revenue.

Where the industrial enterprise goes out of production or remains closed without production activities within one year from the date of receipt of subsidy, except in case where the enterprise remains out of production for short period extending not more than six months due to reasons beyond control, such as shortage of raw materials, power etc., the grantee shall refund to Government the entire subsidy received. If the enterprise fails to refund the subsidy amount, the same shall be recovered as arrears of land revenue.

The capital subsidy sanctioned herein is in the nature of “Grant-in-aid” and shall not be construed as a “contract” with Government of Karnataka. The grantee shall not exercise his right of privity of contract in the matter of release of subsidy by Government of Karnataka, who shall release the subsidy amount as and when the grantee is eligible for the same, in such proportions and installments as the Government may regulate. The subsidy sanctioned will be released only through the concerned Financial Institutions/Banks.

JOINT DIRECTOR (ID)/JOINT DIRECTOR (DIC)

ANNEXURE-30

98 98

FORMAT FOR UNDERTAKING TO BE EXECUTED FOR ETP/ANCHOR UNIT CAPITAL SUBSIDY

UNDERTAKING

The undertaking executed this day ------------ 20 --------- by -------- carrying on the business of ------------------- under the name and style of M/s.------------------------- hereinafter called the 'Grantee' of the one part in favour of the Governor of Karnataka, represented by the Director of Industries and Commerce hereinafter called the Government of other part WITNESSETH.

Whereas District Level Committee/State Level Committee ----------------vide Order No. ----------- dated: ------------ has sanctioned an Investment Subsidy of Rs. --- ---------- (Rs.----------------------only) under the Government of Karnataka scheme of Package of Incentives and Concessions (2014-19 Industrial Policy) new Industrial investment made in the State of Karnataka to the grantee for the purpose of his enterprise.

In consideration of the grant of Rs.--------------- (Rs. --------------- only) as per the Order No.---------------- dated: -------------- of the Joint Director (ID)/(DIC) the receipt whereof the grantee hereby acknowledges, the grantee agrees and covenants as follows:

(i) If the State Government/Financial Institution concerned is satisfied that the capital subsidy has been obtained by misrepresentation of essential fact, furnishing false information after the reimbursement of full subsidy, the State Government/Financial Institution concerned shall have the right to claim refund of the grant/subsidy of Rs………….. (Rs……………. Only) paid to the grantee together with such interest as the State Govt. /Financial Institution concerned may charge.

(ii) In the event of the subsidy being sanctioned, which at later date is found to be not actually due, the grantee shall refund to Government such portion or the whole amount as determined by the Joint Director, District Industries Centre/Director of Industries and Commerce. On failure to do so, such amount shall be recovered by the Government as arrears of land revenue.

(iii) That this grant shall not be construed as a contract and shall be in the nature of Grant-in-Aid only and the provisions of the Indian Contract Act or that of Specific Relief Act or any other relative statutory Acts/Provisions shall not apply in the instant case.

(iv) That the grantee shall not exercise his right of claiming release/reimbursement of subsidy amount out-of-turn either directly or through his attorney and that the decision of the Government in the matter of periodic release based on the availability of funds shall be final and binding on the grantee.

(v) The Grantee shall undertake to provide employment to local people in accordance with Dr. Sarojini Mahishi Report and maintain the same atleast for a period of five years from the date of release of the subsidy amount. In case the unit fails to do so, it shall bound to return the investment subsidy amount to the Government.

99 99

SCHEDULE:

Sl. No. Particulars Investment details (in rupees)

1 Land Rs.

2 Building Rs.

3. Plant and Machinery Rs. 4. Erection/Electrification/

transportation etc.

Rs.

5. Other fixed asse ts (Please specify) Rs.

TOTAL:

In witness whereof the Grantee has set his hand on this ------------------ day of -------------- ----------- two thousand ------------------------ first above mentioned.

Witness: Signature of the Grantee

1.

2. //Common Seal of the Company//

Shall be affixed here

“Attested”

Joint Director (ID)/Joint Director (DIC)

ANNEXURE-100

100 100

CERTIFICATE FROM THE BANK REGARDING DATES AND AMOUNT OF TERM LOAN RELEASED

This is to certify that M/s. (mention name and address of the enterprise) has been sanctioned term loan of Rs...................... under letter/sanction order No............... dt..................... The following amounts has been released/disbursed to the enterprise as follows

Sl. No. Date of release Amount released in Rs.

1

2

3

4

5

Total

Signature Place: Name of the Bank Branch Date: Financial Institution

101 101

Repayment schedule Amount of principal and interest paid in a

year [i.e. financial year]

7 8

Principal Interest Due amount I I date

Principal Interest Date of

I I payment

ANNEXURE-32

FORMAT OF CERTIFICATE TO BE ISSUED FROM BANK FOR CLAIMING INTEREST SUBSIDY UNDER 2014-19 INDUSTRIAL POLICY

Name and address of

the enterprise

Product Name of the bank

Date of sanction of loan and amount

Amount of loan released with dates

Rate of interest charged by bank

1 2 3 4 5 6

Amount of interest subsidy admissible

Remarks

9 10

This is to certify that

1. The enterprise has paid the interest for the above period as per the scheduled dates

2. The enterprise has not claimed interest subsidy/ nor paid any upfront subsidy in any of the

Govt. of India/Govt of Karnataka scheme such as CLSS/Interest subsidy scheme to First

generation entrepreneur/ interest subsidy to SC/ST entrepreneur etc.

Name and signature of the Bank Manager

ANNEXURE-102

102 102

FORMAT FOR SANCTION ORDER OF INTEREST SUBSIDY FOR MICRO ENTERPRISES ON TERM LOAN UNDER 2014-19 POLICY


No…………… Office of the …………… Date:

Sanction Order

SUB: Sanction of 5%/6% Interest Subsidy for micro enterprises under 2014-19 Industrial Policy to M/s. ……………………….. for manufacture/process of …………………… located at ………………….

REF: 1. G.O. No.CI/58/SPI/2013 , dated 01/10/2014 2. Your application for Interest Subsidy received vide letter No. ................. on dated: .................

******** We are pleased to inform you that the District Level Committee for sanction of Subsidy

for MSMEs, in its …… meeting held on -----------has sanctioned a total Interest Subsidy of Rs.---- ----------(Rs----------only) on the basis of interest paid on term loan sanction by M/s.------------------ --- for your enterprise located at --------i.e. Zone 1/2/3/4 other than HK area and Zone 1/2 in HK area as per 2014-19 Industrial Policy for manufacture/service activity. The Committee has accepted the interest paid as detailed below:

Sl. No.

Interest paid period Amount of interest paid

in Rs.

Amount of Interest subsidy accepted in

Rs.

1.

2.

3.

4.

5.

TOTAL:

Accordingly, the amount of Interest Subsidy to which you are eligible is determined at Rs.--------- --------(Rupees------------------only) at 5%/6% of interest paid.

You shall have to execute an agreement, in the draft format enclosed to this sanction order. The original agreement should be on Stamp paper of Rs. 100/-. The agreement should be executed by the proprietor in case of proprietary concern, by one or more directors duly authorized by the board of directors of the company. The execution of the agreement should be under the common seal of the company, by all the partners in case of partnership concern. However, if any one of the partners holds a general power of attorney, he may execute the agreement on behalf of the remaining partners and furnish a certified true copy of the power of attorney. When the agreement is executed by a holder of general power of attorney, a certificate signed by all the partners on behalf of the firm to the effect that the general power of attorney is in force and not revoked as on the date of execution of the agreement, should be furnished. The Erasures, if any, should be properly attested. No blank should be left in the agreement form.

The above agreement should be executed in the presence of Assistant Director/Deputy Director/ Joint Director, District Industries Centre, …………. .

103 103

The sanction of this Interest Subsidy is subject to following conditions:

1. In the event of the Interest Subsidy being sanctioned, while at a later date found to be not actually due, the grantee shall refund to Government such portion or whole amount as determined by the Directorate of Industries and Commerce/Joint Director, DIC--------. In the event of the grantee failing to refund such amount, the same shall be recovered as arrears of land revenue.

2. The Interest Subsidy sanctioned will be released partly/fully depending upon the funds available.

3. The Joint Director, District Industries Centre shall monitor the employment provided to local people(Kannadigas) in accordance with terms and conditions in the para (t.) (i.) of Annexure-3A of 2014-19 Industrial Policy for an initial period of five years. Failure of the industries to provide employment to Kannadigas as stipulated above will be reported to the concerned DLSWCC/SLSWCC which may recommend for recovery of subsidy sanctioned. The enterprise is bound to return the subsidy amount to Government.

4. The Interest Subsidy sanctioned herein is in the nature of “Grant-in-aid” and shall not be construed as a “contract” with Government of Karnataka. The grantee shall not exercise his right of privities of contract in the matter of release of subsidy by Government of Karnataka, who shall release the subsidy amount as and when the grantee is eligible for the same, in such proportions and instalments as the Government may regulate.

Joint Director

District Industries Centre

-------------------

104 104

ANNEXURE-33A

FORMAT FOR SANCTION ORDER OF INTEREST SUBSIDY FOR MSMEs ON TECHNOLOGY UPGRADATION LOAN UNDER 2014-19 POLICY

(Letter Head of KCTU)

No……………

Office of the Managing Director Karnataka Council for Technology

Upgradation, Bengaluru Date:

Sanction Order

SUB: Sanction of 5% Interest Subsidy for MSME enterprises under 2014-19 Industrial Policy to M/s. ………………………..for manufacture/process of ……………………located at ………………….

REF: 1. G.O. No.CI/58/SPI/2013 , dated 01/10/201 2. 3.

******** We are pleased to inform you that the Committee for sanction of Subsidy for MSMEs, in

its …… meeting held on -----------has sanctioned an Interest Subsidy of Rs.-------------- (Rs.------- ---only) on the basis of interest paid on technology upgradation loan sanction by -------------------- -(mention name of the bank/financial institution) for your enterprise located at --------i.e. Zone 1/2/3 other than HK area and Zone1/2 in HK area as per 2014-19 Industrial Policy for manufacture/service activity. The Committee has accepted the interest paid as detailed below:

Sl. No.

Interest paid period Amount of interest paid

in Rs.

Amount of Interest subsidy accepted in

Rs.

1.

2.

3.

4.

5.

TOTAL:

Accordingly, the amount of Interest Subsidy to which you are eligible is determined at Rs.--------- --------(Rupees------------------only) at 5% of interest paid.

You shall have to execute an agreement, in the draft format enclosed to this sanction order. The original agreement should be on Stamp paper of Rs.100/-. The agreement should be executed by the proprietor in case of proprietary concern, by one or more directors duly authorized by the board of directors of the company. The execution of the agreement should be under the common seal of the company, by all the partners in case of partnership concern. However, if any one of the partners holds a general power of attorney, he may execute the agreement on behalf of the remaining partners and furnish a certified true copy of the power of attorney. When the agreement is executed by a holder of general power of attorney, a certificate signed by all the partners on behalf of the firm to the effect that the general power of attorney is in force and not revoked as on the date of execution of the agreement, should be furnished. The Erasures, if any, should be properly attested. No blank should be left in the agreement form.

105 105

The above agreement should be executed in the presence of Assistant Director/Deputy Director/Joint Director, District Industries Centre, …………. ./Managing Director (KCTU)

The sanction of this Interest Subsidy is subject to following conditions:

1. In the event of the Interest Subsidy being sanctioned, while at a later date is found to be not actually due, the grantee shall refund to Government such portion or whole amount as determined by the Directorate of Industries and Commerce /Joint Director, DIC--------. In the event of the grantee failing to refund such amount, the same shall be recovered as arrears of land revenue. 2. The Interest Subsidy sanctioned will be released partly/fully depending upon the funds available. 3. The Joint Director, District Industries Centre shall monitor the employment provided to local people(Kannadigas) in accordance with terms and conditions in the para (t.) (i.) of Annexure-3A of 2014-19 Industrial Policy for an initial period of five years. Failure of the industries to provide employment to Kannadigas as stipulated above will be reported to the concerned DLSWCC/SLSWCC which may recommend for recovery of subsidy sanctioned. The enterprise is bound to return the subsidy amount to Government. 4. The Interest Subsidy sanctioned herein is in the nature of “Grant-in-aid” and shall not be construed as a “contract” with Government of Karnataka. The grantee shall not exercise his right of privities of contract in the matter of release of subsidy by Government of Karnataka, who shall release the subsidy amount as and when the grantee is eligible for the same, in such proportions and instalments as the Government may regulate.

Managing Director Karnataka Council of Technology

Upgradation

ANNEXURE-106

106 106

PRESCRIBED FORMAT FOR ISSUE OF ELECTRICITY DUTY EXEMPTION CERTIFICATE FOR MICRO, SMALL & MEDIUM MANUFACTURING ENTERPRISES


No:....................... Office of the ............. Date:.........

CERTIFICATE

Sub: Exemption of Certificate or Electricity Tax/Duty to M/s. -- ------------------------------------------------------------

Ref: 1. G.O. No:CI/58/SPI/2013, Dt:01.10.2014 2.G.O. No: -------------------------------------- . 3.Energy Dept. Notification No.------------ dt:---- 4.Unit Letter No.------------------------- dt:----------------

********

1 This is to certify that M/s. ----------------------------- is a --------------------- enterprise Filed IEM & acknowledgment issued vide No. -------------------, Dt: ---------------------for Manufacture of “ --- --------------------------” by Dept. of ------------------------.

2 The enterprise is located at Zone----------- as specified in the Government Order cited at ref(1) above.

3 The enterprise is categorized as *MSME/Focused Manufacturing Sector and the *Proprietor/All the partners/All the directors of the enterprise belong to *General/ SC/ST/ Women /Minorities/Backward Class (Category 1 & 2A only)/ Physically challenged/Ex- serviceman

4 The enterprise has started Commercial production on ---------------- as envisaged by the 1st

Sale Invoice. Bill No.-------------, Dt: ------------- issued by the enterprise.

5 The enterprise is entitled to avail the exemption from payment of electricity tax/duty from the date of commencement of Commercial production i.e dt: ---------. for a period of ---------- years as per the Govt. Order and Energy Dept. Notification cited at reference above.


To, M/s ---------------------------------.

Copy: 1 Superintending Engineer/Executive Engineer/Assistant Executive Engineer Bescom/Chescom/Hescom/Gescom ------ -------------

2. Office Copy *Strike out whichever is not applicable

107 107

ANNEXURE-35

APPLICATION FOR REIMBURSEMENT OF ISO/ISI/BIS SERIES CERTIFICATION CHARGES UNDER 2014-19 INDUSTRIAL POLICY

1. Details of Enterprise

a) Name of the Enterprise

b) Name of the Entrepreneur

c) Constitution

d) Office Address

e) Factory Address

f) Contact Details (Telephones & Mobile)

g) E-mail

h) Website

:

:

:

:

:

:

:

:

2. Product/Products manufactured :

3. IEM(Part -II) No. & Date :

4. Investment (Rs. In lakhs)

a) Plant & Machinery

b) Total

:

:

5. No. of Persons Employed :

6. Production during last three years( Rs. in

lakhs)

a)

b)

c)

:

:

:

7. Exports, if any-during last three years (Rs. in lakhs)

a)

b)

c)

:

:

:

8. Details about the ISO/ISI/BIS certificates

a) Mention the series of ISO/ISI/BIS certification and certifying agency ( copy of certificate to be enclosed)

b) Date of Issue and Period of Validity

c) Reimbursement or Grant or Subsidy already received, if any, from Central Govt. or State Govt.

:

:

:

9. Enclosures to be submitted along with the

Application:

a) The copy of the IEM (part-II) (Duly attested copy)

b) The copy of the ISO/ISI/BIS certificate (duly attested copy)

c) Detailed statement of expenses incurred for obtaining certificate along with the copies of invoices & receipts (As in Annexure-A)

d) Chartered Accountant (CA) certificate in proof of investment on plant and machinery (original) (As in Annexure-B)

e) An affidavit by the Proprietor/ Partner/Director of the unit stating that the status of the unit is a Micro, Small Enterprise and also declaration stating that this incentive has not availed earlier from any other Government Agency (Original). (As in Annexure-C)

f) Qualified manual of the Company Duly certified

:

:

:

:

:

:

108

109

109

109

DECLARATION

I, (full name).................................................................. S/o................................... Managing Director/ Director/Proprietor/Partner of M/s....................................................................... ................................................................................................................................................. (company address), do hereby solemnly affirm and declare that the particulars stated above in the application are true and correct to the best of my knowledge, information and belief. In case any of the Statement/Information furnished in the application or documents found to be wrong or incorrect or misleading, I do hereby bind myself and my/our unit to pay to the Government on demand the full amount received as reimbursement in respect of the above mentioned activity within 7(seven) days of demand being made to me in writing.

Place: Signature and Seal Date: (Proprietor/Mg. Partner/Chief Executive)

Note:Your application for incentives will be processed only after you complete all the Requirements.

Application No: For Office Use

Remarks:

ANNEXURE-36

363

6

36

APPLICATION FOR INCENTIVE FOR ADOPTION/TRANSFER OF TECHNOLOGY UNDER 2014-19 INDUSTRIAL POLICY




c) Constitution

d) Office Address

e) Factory Address


g) E-mail

h) Website

:

:

:

:

:

:

:

:


3. IEM (Part-II) No. & Date :

4. Investmenet (Rs. In lakh)


b) Total

:

:


6. Production during last three years (Rs. in lakh)

a)

b)

c)

:

:

:

7. Exports, if any-during last three years (Rs. in lakh)

a)

b)

c)

:

:

:

8. Details of adoption/transfer of technology

a) Title of the technology

b) Brief note of Technology

c) Name of the Organisation from which technology Adopted

d) Nature of Licence: Exclusive or Non -

exclusive

e) Period of licence in years

f) Total cost of adoption/transfer of

technology

:

:

:

:

:

:


Application:


b) The copy of certificates for successful

adoption/transfer of technology issued by

transferor

c) An agreement copy between Transferor

and Transferee for adoption/transfer of technology

d) The copy of ISO/BIS certificate (if any, duly

attested copy)

e) Detailed statement of expenses incurred

for adoption/transfer of technology along

with the copies of invoices & receipts (As

in Annexure -D)

:

:

:

:

:

111

112

112

112

112

f) Chartered Accountant (CA) certificate in proof of investment on plant and machinery (original) (As in Annexure-B)

g) An affidavit by the Proprietor/ Partner/Director

of the unit stating that the status of the unit is a : Micro, Small Enterprise and also declaration stating that this incentive has not availed earlier from any other Government Agency (Original) (As in Annexure-E)

DECLARATION I, (full name).................................................................. S/o................................... Managing Director/ Director/Proprietor/Partner of M/s....................................................................... ................................................................................................................................................. (company address), do hereby solemnly affirm and declare that the particulars stated above in the application are true and correct to the best of my knowledge, information and belief. In case any of the Statement/Information furnished in the application or documents are found to be wrong or incorrect or misleading, I do hereby bind myself and my/our unit to pay to the Government on demand the full amount received as reimbursement in respect of the above mentioned activity, within 7(seven) days of demand being made to me in writing.

Place: Signature and Seal Date: (Proprietor/Mg. Partner/Chief Executive) Note: Your application for incentives will be processed only after you complete all the Requirements.

Application No:

For Office Use

Remarks:

113

113

113

113

ANNEXURE-37

APPLICATION FOR CLAIMING INCENTIVES FOR WATER HARVESTING /CONSERVATION MEASURES UNDER 2014-19 INDUSTRIAL POLICY




c) Constitution

d) Office Address

e) Factory Address


g) E-mail

h) Website

:

:

:

:

:

:

:

:



4. Investmenet (Rs. In lakhs)


b) Total

:

:


6. Production during last three years (Rs. in

lakh)

a)

b)

c)

:

:

:

7. Exports, if any - during last three years (Rs. in

lakh)

a)

b)

c)

:

:

:

8. Details of Water Harvesting/Conservation Measures

a) The design of the water harvesting technology

b) Water storage capacity in case of rain water harvesting

c) Quantity of proposed water per day & reused by waste water recycling/zero discharge process

d) Whether ground water recharging facility is provided or not?

e) Total cost of water harvesting

:

:

:

:

:


Application:


b) The copy of ISO/BIS certificate (if any, duly attested copy)

c) Detailed statement of expenses incurred for water harvesting along with the copies of invoices & receipts (As in Annexure-F)

d) Chartered Engineers Certificate for the investment on construction & installation works for the water harvesting technology

e) Chartered Accountant (CA) certificate in proof of investment on plant and machinery (original) (As inAnnexure-B)

f) An affidavit by the Proprietor/ Partner/Director of the unit stating that the status of the unit is a Micro, Small Enterprise & also declaration stating that this incentive has not availed earlier from any other Government Agency (Original) (As in Annexure-G)

:

:

:

:

:

:

114

115

115

115

115

DECLARATION I, (full name).................................................................. S/o................................... Managing Director/ Director/Proprietor/Partner of M/s....................................................................... ................................................................................................................................................. (company address), do hereby solemnly affirm and declare that the particulars stated above in the application are true and correct to the best of my knowledge, information and belief. In case any of the Statement/Information furnished in the application or documents are found to be wrong or incorrect or misleading, I do hereby bind myself and my/our unit to pay to the Government on demand the full amount received as reimbursement in respect of the above mentioned activity within 7(seven) days of demand being made to me in writing.


Note:Your application for incentives will be processed only after you complete all the Requirements.

Application No:

For Office Use

Remarks:

116

116

116

116

ANNEXURE-38

APPLICATION FOR CLAIMING INCENTIVES FOR ADOPTING ENERGY CONSERVATION MEASURES UNDER 2014-19 INDUSTRIAL POLICY




c) Constitution

d) Office Address

e) Factory Address


g) E-mail

h) Website

:

:

:

:

:

:

:

:



4. Investmenet (Rs. In lakh)


b) Total

:

:



a)

b)

c)

:

:

:

7. Exports, if any-during last three years (Rs. in lakh)

a)

b)

c)

:

:

:

8. Details of Energy Conservation Measures

a) Mention the Energy Consumption in last three years

b) List the energy conservation measures with their scope and advantage (Add separate page if the space is insufficient)

c) The amount of energy consumption after the measures for a period of six months

d) Whether the enterprise is using their energy requirement? Yes or No.

e) If the answer is Yes to the above, then specify the type of the Non-Conventional Energy Source used along with their capacity

f) Total investment on the Energy Conservation Measures/Use of non- conservational energy sources

:

:

:

:

:

:

9. Enclosures to be submitted along with the Application:


b) The copy of ISO/BIS certificate (if any, duly attested copy)

c) A certificate from the Chartered Engineer

d) A certificate from the Bureau of Energy Efficiency or KREDL regarding the specified reduction in the energy consumption

e) Detailed statement of expenses incurred towards the conservation measures along with the copies of invoices & receipts (As in Annexure-H )

:

:

:

:

:

117

118 118

118

f) Chartered Accountant (CA) certificate in rpoof of investment on plant and machinery (original) (As in Annexure - B)

:

a) An affidavit by the Proprietor/ Partner/Director of the unit stating that the status of the unit is a Micro, Small Enterprise and also declaration stating that this incentive has not availed earlier from any other Government Agency (Original) (As in Annexure-I)

DECLARATION I, (full name).................................................................. S/o................................... Managing Director/ Director/Proprietor/Partner of M/s....................................................................... ................................................................................................................................................. (company address), do hereby solemnly affirm and declare that the particulars stated above in the application are true and correct to the best of my knowledge, information and belief. In case any of the Statement/Information furnished in the application or documents are found to be wrong or incorrect or misleading, I do hereby bind myself and my/our unit to pay to the Government on demand the full amount received as reimbursement in respect of the above mentioned activity within 7(seven) days of demand being made to me in writing.


Note: Your application for incentives will be processed only after you complete all the Requirements.

Application No:

Remarks:

For Office Use

119 119

119

ANNEXURE-39

FORMAT FOR SANCTION ORDER OF CAPITAL SUBSIDY FOR ANCHOR ENTERPRISES


No: I&C/ID/ Date:..............

Sanction Order of Capital Subsidy for Anchor Enterprise

Sub: Sanction of Capital Subsidy to M/s -----------------, ---------------- Taluk, --------- District, manufacturing of --------------------- product.

Ref: 1. Government Order No:CI/58/SPI/2013, dt:01-10-2014 2. Proposal of the Joint Director, DIC, ----------, dt:------------ 3. Proceedings of the ------- meeting of the State Level Committee held on --- -------------

><><><

It is to inform you that the Committee for sanction of Anchor unit Subsidy in its --------- meeting held has sanctioned capital subsidy of Rs.----------- lakh (Rs. ----------------only) to your enterprise at ---------- Taluk (Zone---------), ------------ District, on the basis of the investment made by on fixed assets and as certified by the Joint Director, DIC, ------------- that yours is the -- ----------- manufacturing enterprise in ----------- Taluk with an investment of Rs.------------ crores and employment of above --------------persons. The committee has accepted the investment made in fixed assets as detailed below.

Sl. No.

Particulars Amount (Rs. in crore)

1 Land

2 Building and civil works


4 Others

Total

Accordingly, the amount of Anchor Unit Subsidy to which your enterprise is eligible is determined as Rs.---------- lakh (Rs. -------------- only) in accordance with the Industrial Policy 2014-19 and Limited to Rs. -------------------------

You shall have to execute an agreement, the draft of which is enclosed to this sanction order. The original agreement should be on Stamp paper of Rs. 100/-. The agreement should be executed by one or more Directors duly authorized by the Board of Directors of the company. The execution of the agreement should be under the common seal of the company.

Erasures, if any, should be properly attested. No blank should be left in the Agreement.

The above agreement should be executed in the presence of Joint Director (DIC)------ District/Joint Director (ID).

The sanction of this capital subsidy is subject to the following conditions:-

If the State Government is satisfied that the Capital Subsidy has been obtained by misrepresentation of the essential facts, furnishing of false information or if the enterprise goes out of production within one year after receipt of subsidy, the State Government shall have the right to claim refund of the capital subsidy of Rs.---------lakh (Rs.-----------------only) sanctioned, together with interest as the State Government may charge.

The grantee shall not change the location of the whole or any part of the industrial enterprise or effect any contraction or disposal of a part of its total fixed capital investment within a period of one year after the enterprise receives this grant.

In the event of the capital subsidy being sanctioned, while at a later date found to be not actually due, the grantee shall refund to Government such portion or whole amount as determined by the Directorate of Industries and Commerce/Joint Director, District Industries Centre, ------------. In the event of the grantee failing to refund such amount, the same shall be recovered as arrears of land revenue.

Where the industrial enterprise goes out of production or remains closed without production activities within one year from the date of receipt of subsidy, except in case where the enterprise remain out of production for short period extending not more than six months due to reasons beyond control, such as shortage of raw materials, power etc. the grantee shall refund to Government the entire subsidy received. If the enterprise fails to refund the subsidy amount the same shall be recovered as arrears of land revenue.

The capital subsidy sanctioned herein is in the nature of “Grant-in-aid” and shall not be construed as a “contract” with Government of Karnataka. The grantee shall not exercise his right of privity of contract in the matter of release of subsidy by Government of Karnataka, who shall release the subsidy amount as and when the grantee is eligible for the same, in such proportions and instalments as the Government may regulate. The subsidy sanctioned will be released directly through NEFT/RTGS to the concerned Financial Institutions/Banks.

Joint Director (ID)

& Member Secretary SLC (Anchor unit)

120

121

ANNEXURE-A

DETAILED STATEMENT OF EXPENDITURE INCURRED FOR OBTAINING ISO/ISI/BIS

CERTIFICATES

As per the documents and records pf M/s.----------------------------------------------- with registered office at ----------------------------------------------- ------------------------------- and factory is located at----------------------------------------------------------------------------------------- and IEM/SSI registration number:------------------------------------------------------ Dated:-----------------------------. The enterprise has incurred a total expenditure of Rs.----------------------------------- (Rs.---------- ------------------------------------------only) towards the application fee, assessment/audit fee/licence fee, training, calibration and technical consultancy charges etc. for acquiring ISO/ISI/BIS certificate from the Certifying Agency viz.---------------------------------------------------.

The categorisation of expenditure is as follows:

Sl. No. Details of Payment Certifying Agency/

Organisation

Amount (Rs.) Remarks

a) Application Fee

b) Assessment/Audit

Fee

c) Annual/Licence Fee

d) Calibratio n/Testing

Charges

e) Technical Consultancy

Charges

f) Training Expenses

Total

(Note: The above details of payment must be supported by the duly attested copies of invoices and receipts of payment made towards acquiring the ISO/ISI/BIS series certificates)

ANNEXURE-B

CHARTERED ACCOUNTANT (CA) CERTIFICATE IN INVESTMENT ON PLANT & MACHINERY

(ON C.A. LETTER HEAD)

To Whomsoever it may Concern

Verified from the Books of Accounts of M/s. , with their Regd. Office at and factory located at , and E.M. No.: dated: that the total investment on Plant and Machinery (original purchase value) of the company as on date of Application i.e. on or 31

st March of Preceding financial year

stands as Rs. (Rs. ).

Number

Place:

Date:

Name & Signature of the Chartered Accountant

with Stamp and Membership

122

ANNEXURE-C

123

AFFIDAVIT TO BE SUBMITTED FOR CLAIMING REIMBURSEMENT OF ISO/SIS/BIS CERTIFICATION CHARGES

I, , S/o. Sri. aged years, Managing Director/Director/Proprietor/Partner, *M/s. , with their Regd. Office at and factory located at ______________________________________________________, with E.M. No.: dated: do hereby solemnly affirm and declare as under:

The Company/Firm/Establishment is Micro/Small/Medium Enterprises* unit as per the Government of India definition; and has been functional and in production at the time of acquiring ISO/ISI/BIS Certification No: Date: .

The Company/Firm/Establishment continues to be an Ancillary/Micro/Small/Medium Enterprises* unit & in production as on date.

As per books of accounts, the total investment (original purchase value) on Plant and Machinery in the Company/Firm/Establishment* as on is Rs. (As per Chartered Accountant Certificate dated: to this effect is attached).

(i) That the aforesaid Company/Firm/Establishment(s)* have not availed reimbursement/subsidy/ grant/incentive* for acquiring, ISO/ISI/BIS Certification under any Scheme operated by Central Government/State Government/Financial Institution* etc.Or

(ii) That the aforesaid Company/Firm/Establishment(s)* have claimed and received reimbursement/subsidy/grant/incentive for acquiring ISO/ISI/BIS Certification amounting to Rs. (Rs. ) from (Name of the Central Government/State Government Department/Financial Institution* vide Draft/Cheque* No: Date: of (Name of the Bank).

i) That the aforesaid Company/Firm/Establishment(s)* have already applied (Name of the Central Government/State Government / F i n a n c i a l I n s t i t u t i o n ) * v i d e a p p l i c a t i o n d a t e d : _ _ _ _ _ _ _ _ _ _ _ _ _ _ f o r reimbursement/subsidy/grant/incentive* for acquiring ISO/ISI/BIS Certification.Or

ii) That the aforesaid Company/Firm/Establishment(s)* have not applied to any Central Government/State Government/Financial Institution (except KCTU, Bengaluru, Govt. of Karnataka) for reimbursement/subsidy/grant/incentive* for acquiring ISO/ISI/BIS Certification.

That after availing reimbursement for ISIO/ISI Certification in respect of the said Company/Firm/Establishment(s)* I shall disclose this fact on behalf of thesaid Company/Firm/Establishment(s)* at the time of claiming/receiving reimbursement/subsidy/grant/incentive* if any, under any other similar scheme run by Central Government/State Government/Financial Institutions* etc.

Signed on this day of Date:

VERIFICATION

DEPONENT

I hereby solemnly affirm that the information given above is correct. In case above declaration is found wrong or incorrect or misleading, I do hereby bind myself and my unit and undertake to pay to the Government on demand the full amount received as reimbursement in respect of above mentioned activity, within seven days of the demand being made to me in writing.

Place:

Date:

Note:

*Strike out whichever is not applicable.

DEPONENT

(Affidavit must be on Stamp Paper of Value of Rs. 20/- duly sworn in before a Public Notary (Duly affixed with Notary Stamp, Notary Seal and Notary Registration number) or First Class Magistrate).

124

ANNEXURE-D

125 125

DETAILED STATEMENT OF EXPENDITURE INCURRED FOR ADOPTION OF TECHNOLOGY

As per the documents and records of M/s. , with Registered Office at and factory is located at , and EM/SSI Registration number: __________________________ Dated: . The enterprise has incurred a total expenditure of Rs. (Rs. only) for adopting Technology from the Certifying Agency/Organization viz. . The categorization of expenditure is as follows:

Sl.

No .

Details of payments Certifying Agency/ Organisation


a) Premium Technology Fee

b) Technology Royalty Fee

c) Calibration/Testing Charges

d) Technical Consultancy

Charges

e) Training Expenses

Total

(Note: The above details of payments must be supported by the duly attested copies of invoices and receipt of

payments made towards adopting Technology)


126 126

ANNEXURE-E

AFFIDAVIT TO BE SUBMITTED FOR CLAIMING REIMBURSEMENT ON TECHNOLOGY ADOPTION

I, , S/o. Sri. , aged years,Managing Director/Director/Proprietor/Partner, *M/s. , with their Regd. Office at and factory located at , with E.M. No.: dated: do hereby solemnly affirm and declare as under:

The Company/Firm/Establishment has been an Ancillary/Micro/Small/Medium Enterprise* as per the Government of India definition; and has been functional and in production at the time of adopting Technology with License No: Date: .

The Company/Firm/Establishment continues to be a Ancillary/Micro/Small/Medium Enterprise* and functional and in production as on date.


i) That the aforesaid Company/Firm/Establishment(s)* have not availed reimbursement/subsidy/grant/incentive* for adopting Technology under any scheme operated by Central Government/State Government Department//Financial Institution* etc.

Or

ii) That the aforesaid Company/Firm/Establishment(s)* have claimed and received reimbursement/subsidy/grant/incentive for adopting Technology amounting toRs. (Rs. ) from (Name of theCentral Government/State Government Department/Financial Institution)* vide Draft/Cheque* No: Date: of (Name of the Bank).

i) That the aforesaid Company/Firm/Establishment(s)* have already applied to (Name of the Central Government/State Government/Financial Institution)* vide application dated: for reimbursement/subsidy/grant/ incentive* for adopting Technology.

Or

iii) That the aforesaid Company/Firm/Establishment(s)* have not applied to any Central Government/State Government/Financial Institution (except KCTU, Bengaluru, Govt. of Karnataka), for reimbursement/subsidy/grant/incentive* for adopting Technology.

That after availing reimbursement for adopting Technology in respect of the said Company/Firm/Establishment(s)* I shall disclose this fact on behalf of the said C o m p a n y / F i r m / E s t a b l i s h m e n t ( s ) * a t t h e t i m e o f c l a i m i n g / r e c e i v i n g reimbursement/subsidy/grant/incentive*, if any, under any other similar scheme run by Central Government/State Government/Financial Institutions* etc.

127 127


VERIFICATION

DEPONENT


Place:

Date:

Note:


DEPONENT


128 128

ANNEXURE-F

DETAILED STATEMENT OF EXPENDITURE INCURRED FOR ADOPTION OF RAIN WATER HARVESTING TECHNOLOGY/WASTE WATER RECYCLING/ZERO

DISCHARGING

As per the documents and records of M/s. , with Registered Office a t _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ a n d f a c t o r y l o c a t e d a t _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ , a n d E M P a r t - I I n u m b e r : Dated: . The enterprise has incurred a total expenditure of Rs. _ _ _ _ _ _ _ _ _ _ _ ( R s . _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ o n l y ) f o r a d o p t i n g R a i n Wa t e r Harvesting/Technology/Waste

Water Recycling/Zero Discharging. The categorization of expenditure is as follows:

Sl.

No.

Details of payments Certifying Agency/ Organisation


a) Pipes fitted for Roof Water Collection & Filtration System

b) Roof & Underground Tanks (Cement/Plastic) Cost

c) Machineries & Equipment Water Water recycling Zero Discharging

d) Consultancy Charges

Total


payments made towards adopting rain water harvesting technology/Waste water recycling/Zero discharging).

Place: Signature and Seal

Date: (Proprietor/Mg. Partner/Chief Executive)

129 129

ANNEXURE-G

AFFIDAVIT FOR INCENTIVE ON ADOPTION OF RAIN WATER HARVESTING/WASTE WATER RECYCLING/ZERO DISCHARGE

I, , S/o. Sri. , aged years, Inventor/Managing Director/Director/Proprietor/Partner, *M/s. , with their Regd. Office at and factory located at , with E.M. No.: dated: do hereby solemnly affirm and declare as under:

The Company/Firm/Establishment is Micro/Small/Medium Enterprise* as per the Government of India definition; and has been functional and in production at the time of adopting Rain water harvesting technology/Waster Water Recycling/Zero Discharging.

The Company/Firm/Establishment continues to be a Ancillary/Micro/Small/Medium Enterprise* and functional & in production as on date.


i) That the aforesaid Company/Firm/Establishment(s)* have not availed reimbursement/subsidy/grant/incentive* for adopting Rain water harvesting technology/Waster Water Recycling/Zero Discharging under any scheme operated by Central Government/State Government /Financial Institution* etc. Or

ii) That the aforesaid Company/Firm/Establishment(s)* have claimed and received reimbursement/subsidy/grant/incentive for adopting Rain water harvesting technology/Waste Water Recycling/Zero Discharging amounting to Rs. (Rs. ______________) from ________________ (Name of the Central Government/State Government Department/Financial Institution)* vide Draft/Cheque* No: Date: of (Name of the Bank).

i) That the aforesaid Company/Firm/Establishment(s)* have already applied to ________________ (Name of the Central Government/State Government/ F i n a n c i a l I n s t i t u t i o n ) * v i d e a p p l i c a t i o n d a t e d : _ _ _ _ _ _ _ _ _ _ _ _ _ _ f o r reimbursement/subsidy/grant/incentive*, for adopting Rain water harvesting technology/Waste Water Recycling/Zero Discharging.

Or

ii) That the aforesaid Company/Firm/Establishment(s)* have not applied to any Central Government/State Government/Financial Institution (except KCTU, Bengaluru, Govt. of Karnataka), for reimbursement/subsidy/grant/incentive* for adopting Rain water harvesting technology/Waste Water Recycling/Zero Discharging.

That after availing reimbursement for adopting Rain water harvesting technology/ Waste Water Recycling/Zero Discharging charges in respect of the said Company/Firm/Establishment(s)*, I shall disclose this fact on behalf of the said C o m p a n y / F i r m / E s t a b l i s h m e n t ( s ) * a t t h e t i m e o f c l a i m i n g / r e c e i v i n g reimbursement/subsidy/grant/incentive*, if any, under any other similar scheme run by Central Government/State Government/Financial Institutions* etc.


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VERIFICATION

DEPONENT


Place:

Date:

Note:


DEPONENT


131

ANNEXURE-H

DETAILED STATEMENT OF EXPENDITURE INCURRED FOR ADOPTION OF TECHNOLOGY

As per the documents and records of M/s. , with Registered Office at and factory is located at , and EM Part-II number: Dated: . The enterprise has incurred a total expenditure of Rs. (Rs. only) for adopting the Energy Conservation measures or the Non- Conventional Energy/Water conservation measures. The categorization of expenditure is as follows:

Sl.

No.

Details of payments Certifying Agency/

Organisation


a) Fixed Investments

b) Supervision Charges

c) Design Charges

d) Consultancy Charges

Total


payments made towards adopting the Energy Conservation Measures and Use of Non-Conventional Energy

Sources).

Place: Signature and Seal

Date: (Proprietor/Mg. Partner/Chief Executive)

ANNEXURE-I

AFFIDAVIT FOR INCENTIVE ON ADOPTION OF ENERGY CONSERVATION MEASURES

I, , S/o. Sri. , aged years, Inventor/Managing Director/Director/Proprietor/Partner, * M/s. , withtheir Regd. Office at andfactory located at , with E.M. No.: dated: do hereby solemnly affirm and declare as under:

The Company/Firm/Establishment is Micro/Small/Medium Enterprise* as per the Government of India definition; and has been functional and in production at the time of adopting the Energy Conservation Measures and Use of Non-Conventional Energy Sources/Water conservation measures*.

The Company/Firm/Establishment continues to be a Ancillary/Micro/Small/Medium Enterprise* and functional and in production as on date.


i) That the aforesaid Company/Firm/Establishment(s)* have not availed reimbursement/subsidy/grant/incentive* for adopting the Energy Conservation Measures and Use of Non-Conventional Energy Sources under any scheme operated by Central Government/State Government /Financial Institution* etc.

Or

ii) That the aforesaid Company/Firm/Establishment(s)* have claimed and received reimbursement/subsidy/grant/incentive for adopting the Energy ConservationMeasures and Use of Non-Conventional Energy Sources to Rs. (Rs. ) from (Name of the Central Government/State Government Department/Financial Institution)* vide Draft/Cheque* No: Date: of (Name of the Bank).

i) That the aforesaid Company/Firm/Establishment(s)* have already applied to ________________ (Name of the Central Government/State Government/ Financial Institution)* vide application dated: for reimbursement/subsidy/grant/incentive*, for adopting the Energy Conservation Measures and Use of Non-Conventional Energy Sources/Water Conservation Measures.

Or

ii) That the aforesaid Company/Firm/Establishment(s)* have not applied to any Central Government/State Government/Financial Institution (except KCTU, Bengaluru, Govt. of Karnataka), for reimbursement/subsidy/grant/incentive*, for adopting the Energy Conservation Measures and Use of Non-Conventional Energy Sources/Water Conservation Measures.

That after availing reimbursement for adopting the Energy Conservation Measures and Use of Non-Conventional Energy Sources/Water Conservation Measures in respect of the said Company/Firm/Establishment(s)*, I shall disclose this fact on behalf of the said C o m p a n y / F i r m / E s t a b l i s h m e n t ( s ) * a t t h e t i m e o f c l a i m i n g / r e c e i v i n g reimbursement/subsidy/grant/incentive*, if any, under any other similar scheme run by Central Government/State Government/Financial Institutions* etc.


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VERIFICATION

DEPONENT


Place:

Date:

Note:


DEPONENT

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Guidelines for Export related Incentives & Concessions under the Industrial policy 2014-19

1. Exemption from payment of Entry Tax

For 100% EOUs and other EOUs with minimum export obligation of 50% of their total turnover, it is proposed to provide 100% exemption from payment of Entry Tax on purchase of 'Plant & Machinery and Capital Goods' for an initial period of three years from the date of commencement of project implementation irrespective of zones.

It is proposed to have 100% exemption from payment of Entry Tax on purchase of raw materials, inputs, component parts & consumables (excluding petroleum products) for an initial period of five years from the date of commencement of commercial production irrespective of zones.

Procedure for availing incentives during project implementation :

i) The 100% EOUs & other EOUs with minimum export obligation of 50% of their total turnover, shall apply to the Joint Director, DICs / Managing Director, VTPC along with the checklist of documents as below:

a. Request of the unit in their letter head

b. Application in prescribed format — Annexure - 40

c. Copy of 1st

purchase order placed for machinery

d. Copy of the Project Report, duly signed by promoter

e. List of plant and machineries and other equipments with their value, required for implementation of the project

f. Copy of the partnership deed/ Memorandum and Articles of Association/Bye -Laws

g. Copy of Single Window Clearance Committee approval letter, if any

h. Copy of approved building plan

i. Term loan sanction order, if any

j. Possession certificate of KIADB/KSSIDC or lease agreement/Land documents

k. EOU certificate issued from Cochin SEZ office

l. Bank realisation certificate for proof of exports and balance sheets of previous years

m. An undertaking regarding export obligation of more than 50% of the turnover

n. An undertaking providing employment as per Industrial Policy 2014-19

Procedure for availing incentives during Operational phase :

a. Application in prescribed format—Annexure - 40

b. An undertaking regarding export obligation of more than 50% of the turnover

c. Employment details as per Industrial Policy 2014-19

d. Date of 1st sale invoice (date of commercial production)

ii) Joint Directors, DICs / Joint Director, VTPC after having received the applications would scrutinise as per the checklist above regarding eligibility of the incentives to unit. The date of commencement of project shall be considered based on the 1st purchase order placed for purchase of machinery and equipment by the enterprise and shall be the basis for considering the incentives.

iii) Joint Directors, DICs after verification of claims shall issue entry tax exemption certificates to the 100% EOUs and other EOUs with minimum export obligation of 50% of their total turnover in prescribed pro forma for investments having project cost upto Rs. 50.00 crores.

iv) For 100% EOUs and other EOUs with minimum export obligation of 50% of their total turnover with investments above Rs. 50.00 crores the proposals are to be sent to Managing Director, VTPC for necessary action.

v) After verification of the claim of the enterprise, the entry tax exemption certificates to 100% EOUs and other EOUs with minimum export obligation of 50% of their total turnover, shall be

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issued by Commissioner for Industrial Development and Director of Industries and

Commerce & Export Commissioner in the prescribed proforma, as in — Annexure- 41 & 41A.

Quarterly statements to head office

Quarterly statements indicating details of Entry Tax Exemption issued to 100% EOUs and other EOUs with minimum export obligation of 50% of their total turnover, shall be furnished to Managing Director, VTPC for consolidation and submission to Directorate of Industries & Commerce.

2. Refund of Certification Charges

Refund of expenses incurred for obtaining statutory certifications like Conformity Europeenne (CE), China Compulsory Certificate (CCC), GMP, Phytosanitary, Radiation etc. to the extent of 50% of expenses subject to a maximum of Rs.1.00 lakh per unit

Procedure for availing Refund of Certification Charges

i) The eligible Micro, Small, Medium & Large Enterprises shall apply to the Joint Director, DICs / Managing Director, VTPC along with the checklist of documents as below:

a. Application in prescribed format — Annexure-40

b. Copy of compulsory marking certificate

c. Copy of bills and receipts for the expenses incurred for getting the certificate-to be certified by Chartered Accountant

d. Orders mandating the requirement of the compulsory marking

i) Joint Directors, DICs/Joint Director, VTPC after having received the applications would scrutinise as per the checklist above regarding eligibility of the incentives to unit.

ii) Managing Director, VTPC after verification of claim of the enterprise shall issue orders for

refund of eligible amount in format—Annexure-42.


Quarterly statements indicating details of cases issued with orders for Refund of Certification Charges shall be furnished by Managing Director, VTPC to Directorate of Industries & Commerce.

3. Refund of cost incurred for Export Consultancy / Market Intelligence Studies:

Financial assistance shall be provided to exporters whose annual turnover is less than Rs. 5.00 crore for availing export consultancy by the units towards market intelligence, market studies / surveys and documentation through recognised consultancy organisations. The assistance shall be reimbursed to the extent of 50% of the cost subject to a maximum of Rs. 2.00 lakh.

Procedure for availing above incentive

i) The studies by consultancy organisations which have been recognised by the State Government / Central Government/or Ministry of Commerce, GOI would be considered for extending incentives.

ii) The eligible Micro, Small, Medium Enterprises shall apply to the Joint Director, DICs / Managing Director, VTPC along with the checklist of documents as below:


b. Copy of Export Consultancy/Market Intelligence Studies report

c. Copy of bills and receipts for the expenses incurred for obtaining the report as certified by Chartered Accountant during the said year.

d. Receipt from Consultancy Organisation for having received the consultancy fee.

e. Audited Balance sheet of previous 3 years

iii) Joint Directors, DICs/Joint Director, VTPC after having received the applications, would scrutinise the proposal as per the checklist above regarding eligibility of the incentives to unit.

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iv) After verification of claim of the enterprise Managing Director, VTPC shall issue orders for



Quarterly statements indicating details of cases issued with orders for Refund of Export Consultancy/Market Intelligence Studies shall be furnished by Managing Director, VTPC to Directorate of Industries & Commerce.

4. Brand Promotion and Quality Assurance:

Financial Assistance shall be provided to exporters whose annual turnover is less than Rs. 5.00 crore for setting up of showrooms, warehouse, displays in international department stores, publicity campaign, testing charges, registration charges, brand promotion and assistance for contesting anti-dumping litigations. The expenditure towards the above shall be reimbursed to the extent of 50% of the cost subject to a maximum of Rs. 5.00 lakh.


i) The eligible Micro, Small, Medium Enterprises shall apply to the Joint Director, DICs / Managing Director, VTPC along with the checklist of documents as below

a. Application in prescribed format —Annexure-40

b. Copy of bills and receipts for the expenses incurred for Brand Promotion / Quality Assurance certified by Chartered Accountant

c. Receipt of payments made by implementing organisation

d. Audited Balance sheet of previous 3 years

ii) Joint Directors, DICs/Joint Director, VTPC after having received the applications, would scrutinise the proposal as per the checklist above regarding eligibility of the incentives to unit.

iii) After verification of claim of the enterprise Managing Director, VTPC shall issue orders for



Quarterly statements indicating details of cases issued with orders of financial assistance for Brand Promotion / Quality Assurance shall be furnished to Directorate of Industries & Commerce

5. Refund of fees for potential/individual entrepreneurs incurred for certification courses on Export – Import Management:

Course fees paid by potential/individual entrepreneurs for acquiring certification in courses on Export – Import Management conducted by IIFT, New Delhi and FIEO and other recognised institutions for a minimum duration of four months shall be reimbursed to the extent of 50% of the fees, subject to a ceiling of Rs. 25,000 per candidate per course.

Procedure for availing above incentives

ii) The eligible Micro, Small, Medium Enterprises shall apply to the Joint Director, DICs/ Managing Director, VTPC along with the checklist of documents as below:


b. Copy of Selection letter for the course from the recognised institute

c. Copy of Course completion certificate (minimum 4 months duration)

d. Copy of fee receipt issued by the institutions

iii) Joint Directors, DICs / Joint Director, VTPC after having received the applications, would scrutinise the proposal as per the checklist above regarding eligibility of the incentives to unit.

iv) After verification of claim of the enterprise Managing Director, VTPC shall issue orders for

refund of eligible amount in format —Annexure - 45.

Half yearly statements to head office

Half yearly statements indicating details of cases issued with orders for refund of certification

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courses on Export – Import Management shall be furnished to Directorate of Industries & Commerce.

6. Support for Establishment of CFSs and other export infrastructure:

Financial support towards establishment of Container Freight Stations (CFSs) and other export infrastructure like logistic park, pre-harvest and post-harvest technology centers at potential locations in the State would be provided as Viability Gap Fund. This would entail 25% of cost of the project subject to a ceiling of Rs. 200 lakh. The setting up of necessary infrastructure would be encouraged through public private partnership to support exports.

KIADB shall reserve 10/15 acres of land in all industrial areas for allotment to prospective entrepreneurs for establishment of CFS and other export infrastructure to encourage exports. The promoter shall bear land cost and meet the required fund in the project cost towards establishment of CFS.

APMCs of the State would also be provided with financial assistance towards export infrastructure to promote export in agro and food processing sector. The assistance will not be provided for the land cost. However, APMCs shall possess required land and bear the gap towards development of infrastructure.

Viability gap funding of approved projects would be available for one project per proponent/ developer during the policy period.

VTPC shall call for applications on PPP mode from interested proponents having following criteria –

l Should be in possession of minimum of 10 acres of land adjoining NH / SH.

l Should have experience of minimum of 5 years in commodity exports /operating container freight stations/warehousing / logistics anywhere in India.

l Should be a company/cooperative society/Limited Liability Partnership (LLP) in existence of atleast 10 years.

l Should be profit making organization for the last three years

Developer will be selected by following transparent method.


i) The eligible developer/enterprise shall apply to the Joint Director, DICs / Managing Director, VTPC along with the checklist of documents as below:

a. Application in prescribed format —Annexure - 40

b. Copy of Selection letter under PPP mode.

c. Copy of Agreement / Concession Agreement between the parties (public body- VTPC, KSIIDC, KIADB, etc & selected private body)

d. Proof of possession of land (Copy of allotment letter / Possession Certificate by KIADB / ownership title in case of private property)

e. Project report

f. Approval of the project by SLSWCC / DLSWCC / SLEPC

g. Approval for CFS by the competent authorities in the Ministry of Commerce / Customs as applicable.

h. Undertaking that assets created from viability gap funding would not be disposed off without the permission of the competent authority.

i. Undertaking that terms and conditions agreed would not be violated.

j. Undertaking to provide local employment as per Industrial Policy

k. Audited Balance sheet of last 3 years

ii) Joint Directors, DICs / Joint Director, VTPC after having received the applications, would scrutinise the proposal as per the checklist above regarding eligibility of the incentives to unit.

iii) After verification of claim of the developer/enterprise, Commissioner for Industrial

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Development and Director of Industries and Commerce & Export Commissioner shall issue orders for sanction of eligible viability gap funding amount on case to case basis.

Yearly statements to head office

Yearly statement indicating details of cases issued with orders for viability gap funding for establishment of CFSs and other export infrastructure shall be furnished to Directorate of Industries & Commerce.

7. Support for creation of Export facilitation facilities, R&D and testing service:

One time support to Trade bodies/Associations for creation of Export facilitation, incubation facilities, R&D and Testing Services etc. would be extended up to Rs.50.00 lakh or 50 percent of cost whichever is less. The assistance will not be provided for land cost.


i) The eligible Trade bodies/Associations shall apply to the Joint Director, DICs / Managing Director, VTPC along with the checklist of documents as below:

a. Application in prescribed format – Annexure - 40

b. Copy of the project report with full justification of the projects.

c. Copy of Board approval of prescribed user fee proposed

d. Proof of possession of land / building

e. Approval of the project by SLEPC/competent authority


iii) After verification of claim of the association/trade body, the Commissioner for Industrial Development and Director of Industries and Commerce & Export Commissioner

shall issue the sanction order for eligible amount with approval of government in format—Annexure – 46.

Yearly statement to head office

Yearly statement indicating details of cases issued with orders for support for creation of Export facilitation facilities, R&D and testing service shall be furnished to Directorate of Industries & Commerce

8. Market Development Assistance :

Financial assistance would be extended under the scheme as follows:

South American Countries

Assistance up to Rs.1.75 lakh with the following component–wise cap:

i) 75% of the economy Air Fare subject to a maximum limit of Rs. 1.00 lakh

ii) 50% of stall rentals subject to a maximum of Rs. 50,000/- (for Women & SC/ST entrepreneurs 100% of stall rentals shall be reimbursed subject to maximum Rs. 50,000/-), 50% of freight charges subject to a maximum of Rs. 10,000/-

iii) DA of $100 per day for three working days.

Other Countries

Assistance up to Rs.1.50 lakh with the following component – wise cap:

i) 75% of the economy Air Fare subject to a maximum limit of Rs.75,000/-

ii) 50% of stall rentals subject to a maximum of Rs.50,000/- (for women & SC/ST entrepreneurs 100% of stall rentals shall be reimbursed subject to maximum Rs.50,000/-)

iii) DA of $100 per day for three working days.

Reverse MDA for visit of overseas delegation to State as per GO No.CI:63:SPI:2013, dated.15.03.2013 :

Under reverse MDA scheme, financial assistance shall be extended towards economy air fare, stall rentals and TA / DA for 3 days @ $100 per day to Foreign Nationals / NRIs, individuals and /

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or delegations who visits Karnataka for their participation in Exhibition / Trade Fairs, Business Meets and Market Research etc. subject to a maximum of Rs. 75000/- per delegate.

MDA for participation in International Exhibitions and Trade Fairs held within the country as per GO No.CI:63:SPI:2013, dated.15.03.2013 :

To extend MDA scheme to delegates/members for their participation in international exhibitions, trade fairs and B2B meets held within India at the rate of 75% of economy air fare and TA / DA of Rs. 3000/- for 3 days subject to a maximum of Rs. 10,000/- per delegate. MSME participating in international trade fairs held in India by taking a stall may also be extended 50% of stall rentals with a maximum cap of Rs. 25000/- per unit.

Conditions for eligibility:

MDA :

l If the member is part of a delegation supported by State Govt. / VTPC and the expenditure towards local conveyance and B2B meetings are being arranged, then the members are eligible only for economy air fare and stall rentals as applicable.

l Each delegation shall not exceed 25 Nos from MSME sectors for overseas visit.

l The weightage would be given for selecting delegates from backward districts in HK1 / HK2 / Zone 1/2/3/4 etc.

l Journey days are not considered for extending TA / DA.

l A company / unit / individuals are eligible under MDA scheme for a maximum of 4 times in their lifetime for overseas visits.

l The company can avail the financial assistance under the scheme for visiting only one event in a particular country, only once in their lifetime.

Reverse MDA :

l The company should have been registered in their respective countries as an enterprises / business entity

l The delegate should be an executive / employee of the company

l Recommendation letter/Invitation letter from Embassies, Trade associations, Export promotion councils, commodity boards or any other trade agencies, if any, in requesting to participate in exhibition/trade fairs, Business meets and Market Research held in Karnataka.

Procedure for availing Market Development Assistance :

i) The eligible Micro, Small, Medium Enterprises shall apply to the Joint Director, DICs/ Managing Director, VTPC along with the checklist of documents as below:


b. Undertaking that the unit / company has not availed MDA for the country proposed in the past.

c. The company / unit has to produce proof of stay at the location along with air travel (boarding pass) and visa stamped.

d. A report of all business development activities undertaken by the company during the visit to the trade fair by the unit shall be submitted after completion of the visit.



refund of eligible amount in format—Annexure – 47, 47A & 47B.

Procedure for availing Reverse Market Development Assistance :

a. The company/unit has to produce proof of stay for the location for which visa is stamped

b. Copies of the Passport, company profile, company registration certificate, air ticket (economy class) and boarding pass should be produced.

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c. Recommendation letter / Invitation letter from Embassies, Trade associations, Export promotion councils, commodity boards or any other trade agencies if any in requesting to participate in exhibition/trade fairs, Business meets and Market Research held in Karnataka to be produced.

d. Proof for attending Trade Fair / delegation / Business exploration along with visit notes.

e. Duly filled Proforma as Annexure—40A.

f. Each delegation shall not exceed 25 representatives of MSME sectors

Proposal to be submitted by foreign trade bodies/trade association/Export promotion councils / commodity boards or any other trade agencies along with above mentioned documents for availing financial assistance under Reverse MDA


Quarterly statements indicating details of delegations & no. of cases provided Market Development Assistance shall be furnished to Directorate of Industries & Commerce.

9. Reimbursement of premium paid towards Export Credit Guarantee Insurance:

Financial Assistance shall be provided to the exporters whose annual turnover is less than Rs. 5.00 crore towards premium paid for Export Credit Guarantee Insurance for exporting their products to risk prone countries like Africa, Latin America and CIS. The assistance would be reimbursed to exporters to an extent of 10% premium paid subject to maximum of Rs. 50,000/- per annum.


i) The eligible Micro, Small, Medium Enterprises shall apply to the Joint Director, DICs / Managing Director, VTPC along with the checklist of documents as below:

a. Application in prescribed format – Annexure - 40

b. Copy of Certificate of ECGC premium paid on exports to the risk prone countries during the year …………..

c. CA certificate for total exports undertaken during the year…………

d. Audited Balance sheet of previous 3 years

ii) Joint Directors, DICs / Joint Director, VTPC after having received the applications would scrutinise the proposal as per the checklist above regarding eligibility of incentives to the unit

iii) After verification of claim of the company / firm Managing Director, VTPC shall issue

sanction orders for the eligible amount in format —Annexure – 48.

iv) ECGC to provide yearly/half yearly statements of all exporters of Karnataka who have availed benefits under ECGC insurance schemes to VTPC for obtaining the proposal from the exporters and also to forecast annual budgetary requirements under the scheme.


Quarterly statements indicating details of Reimbursement of premium paid towards Export Credit Guarantee Insurance shall be furnished to Directorate of Industries & Commerce.

10. Financial Assistance for MSME, SC/ST, Artisans and Women Entrepreneurs:

Financial Assistance to MSME, SC/ST, Artisans and Women Entrepreneurs would be extended for their participation in exhibitions (including Dilli Haat and other Urban Haats) within the State and outside the State, as follows:

i) Reimbursement of stall rentals up to Rs. 5,000/- within the State and Rs.10,000/- outside the State

ii) DA of Rs. 100/- (within the State) or Rs. 150/- (outside the State) for two persons per stall for an exhibition period of maximum 15 days

iii) Second class Railway Ticket for two persons per stall

Selection of eligible candidates for financial assistance shall be made on first come, first serve basis and appropriate weightage for the respective categories by a committee.

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i) The eligible Micro, Small, Medium Enterprises shall apply to the Joint Director, DICs / Managing Director, VTPC along with the checklist of documents as below:

a. Application in prescribed format–Annexure-40

b. Selection letter issued by VTPC

c. Commodity / goods displayed in stall and details of sales

d. Proof of participation

e. Report on participation and outcome of participation with photos.



refund of eligible amount in format —Annexure-49.


Quarterly statements indicating details of cases issued with orders for Financial Assistance for MSME, SC/ST, Artisans and Women Entrepreneurs shall be furnished to Directorate of Industries & Commerce

11. Support for development of exports in Gherkins, Rose Onions and Floriculture:

It is proposed to provide 10% of the financial assistance for procurement of imported seeds by exporters and towards training expenses for the farmers for the adoption of scientific methods in the growth of quality Gherkins, Rose Onion and Floriculture for exports subject to maximum of Rs. 5.00 lakhs.

A. Procedure for availing Support for development of exports in Gherkins, Rose Onions and Floriculture :

i) This scheme may be availed by Associations, Trade bodies & Corporates/Enterprises engaged in contract farming and export of Gherkins, Rose Onions and Floriculture with buy back arrangements with farmers/growers.

ii) The financial assistance towards training is available for each farmer one time only.

iii) The eligible Associations / Trade bodies / Corporates / Enterprises shall apply to the Joint Director, DICs / Managing Director, VTPC along with the checklist of documents as below:

a. Application in prescribed format – Annexure-40

b. Copy of invoices and cost incurred towards import of seeds

c. Total cost incurred on import of seeds duly certified by CA

d. Cost incurred towards training of farmers with details duly attested by CA

e. Copies of contract farming agreements with farmers

f. Proof of training given to the farmers

g. Attendance sheets of training given to farmers

h. Proof of exports undertaken by Associations/Trade bodies/Corporates/Enterprises with the value addition for the seeds imported.

iv) Joint Directors, DICs/Joint Director, VTPC after having received the applications, would scrutinise the proposal as per the checklist above regarding eligibility of the incentives to unit.

v) After verification of claim of the associations/trade bodies/Corporates/Enterprises , the Managing Director, VTPC shall issue orders for financial assistance of eligible amount in

format —Annexure – 50.


Quarterly statements indicating details of cases issued with orders for Support for development of exports in Gherkins, Rose Onions and Floriculture shall be furnished to Directorate of Industries & Commerce.

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Annexure – 40

Application for Export Related Incentives & Concessions under Industrial Policy 2014-19

1. Name of the incentive & concessions applied for

2. Name of the Firm/Organisation

3. Constitution of the Firm

(Please tick)

Ltd./ Pvt. Ltd./ Partnership/Proprietorship/ Organisation registered under societies act /Others

4. Name of contact person Mobile No.

5. Address (For Communication)

6. Address (Registered Office)

7. Address (Works / Factory)

8. Location of the unit Zone 1/2/3/4/HK1/HK2

9. Whether SC/ST/ General/Women Entrepreneurs/Artisan category

10. Telephone No: Office

Works

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11. Fax : ..............................................................

12. Website : ..............................................................

13. E mail ID : ..............................................................

14. Year of Establishment : ..............................................................

15. Nature of business: (please tick) : ..................................................................

a) Manufacturer

b) Trader

c) Service Provider

d) Association/Trade bodies

Micro/Small/Medium & Large Enterprises/EOUs/Others

16.

17.

Products Manufactured

Commodities Exported

18. Countries to where exports are made

19. Financial Information:

a) Paid up capital :

b) Authorised Capital :

c) Annual Turnover (Previous financial year) :


a) :

b) :

c) :

21. Exports, if any – during last three years

a) :

b) :

c) :

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20. Composition of Sales

a) Domestic : Rs..................................%.................

b) Exports :

c) Others :

d) Total :

21. No. Of Employees

Rs..................................%.................

Rs..................................%.................

Rs..................................%.................

a) Managerial :

b) Workers :

22. Please provide the following details as applicable (Enclose Photo copy of the Document)

a) IEC Code : ...........................................................

b) VAT/TIN No. : ...........................................................

c) CST : ...........................................................

d) PAN No : ...........................................................

e) Service Tax No. : ...........................................................

f) IEM Copy/SIA Approvals : ...........................................................

g) Trade License No. : ...........................................................

h) VTPC Membership No. : ...........................................................

i) Other Professional Membership details : ...........................................................

j) Name of the Bankers : ...........................................................

k) Any other detail : ...........................................................

23. Brief information on Export activities/Business :

Documents to be attached to the application

a) Copy of the IEC Certificate

b) Copy of the TIN No./VAT Registration Certificate

c) Copy of the PAN

d) Copy of the Service Tax Registration Certificate

e) Copy of the IEM Copy/SIA Approvals

f) Copy of the Trade License No.

g) Copy of the EOU Certificate issued by Cochin SEZ

h) Copies of last 3 years balance sheet

i) Bank realisation certificate for proof of exports j) Copies of caste certificate for SC/ST Entrepreneurs

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DECLARATION

I, (full name) ………………………………S/o …………………………Managing Director /

Director/Proprietor/Partner of M/s ……………………………………………………………..

(complete address), do hereby solemnly affirm and declare that the particulars stated above

in the application are true and correct to the best of my knowledge, information and belief.

In case any of the statement/information furnished in the application or documents are

found to be wrong or incorrect or misleading, I do hereby bind myself and my / our unit to

pay to the Government on demand the full amount received as exemption / reimbursement in

espect of the above mentioned activity, within 7 (seven) days of demand being made to me in

writing.

Place........................

Date......................… Signature andSeal (Proprietor/Mg. Partner/Chief Executive)

Note: Your application for Incentive will be processed only after you have completed all the requirements.

For Office Use

Application No :

Remarks :

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1 Name of the Firm with Full Address

2 Approval Letter No. and date from VTPC

3 Whether Medium / Small / Micro / small merchant exporters.

(Please attach self-certified copy of MSME Registration, where applicable and self-certified IEC copy)

4 Date of VAT Registration

5 Date of Obtaining PAN Number

6 Date of Service TAX Registration

7 FOB value of exports during last three years, year wise (if any)

Year (Rs. in lakh)

8 Particulars of fair/exhibition/buyer – seller meets

Name:

Place:

Duration of event

From To

(Pls. attach photocopy of Passport duly highlighting date of departure) (Vice - Versa for Reverse MDA)

11

Date of actual Arrival to India after completing the event (Pls. attach photocopy of Passport duly highlighting date of Arrival ) (Vice - Versa for Reverse MDA)

Date

12 Name & Designation of Person who attended the fair / exhibition along with passport particulars/No.

13 No. of claims taken under MDA from State Government and Date of releases.

14 Are you a Member of VTPC If yes please mention VTPC Membership Number.

Yes / No

15 IEC Code

16 Products exported and to which countries products are exported

17 Annual Turnover of the previous year

Annexure-40A

Application for MDA and Reverse MDA

Ref. No. Date

9 Details of the organisers of the event like ITPO/EPCs / other recognised agencies

I 10 I Date of actual departure from India

Date

147

18 Whether the organisation has been charged/ prosecuted/debarred/blacklisted under investigation under Export & Import Policy of India or any other law framed by Govt. of India relating to export and import business?

19 Whether assistance availed from other Govt. Bodies / EPCs/Commodity Boards/Authorities etc. for the activity under reference.(if yes, please give full details)

Yes / No

20 Expenditure incurred

a. Actual return air fare by economy class

b. Actual expenditure incurred on space rent, if any (please enclose the original air ticket / boarding pass along with self certified photocopies of receipt, bank advice etc. for payment towards space rent.

c. TA / DA

Rs.

Rs.

Total (a + b + C)

21 Amount claimed Rs.

DECLARATION

I solemnly declare that the particulars given in the above statement are correct, I also

undertake that any financial assistance granted to us on the basis of this declaration shall be

liable to be refunded to VTPC, if at any time, any information furnished in this application/

declaration is found to be wrong or incorrect or misleading.

Place........................

Date......................… Signature & Seal (Name and Designation)

Check List:

1. Copy of Air ticket 2. Copy of VISA, Passport, Boarding Passes 3. Copy of Firm Registration 4. Copy of Invitation letter informing to participate in the International Trade fairs/

B2B meetings 5. Detailed report on participation highlighting impact on exports / business prospects.

148



ANNEXURE-41

Entry Tax Exemption Certificate to 100% EOUs & other EOUs with minimum export

obligation of 50% of their total turnover for procurement of plant and machinery and

capital goods as per 2014-19 policy

No............. Date: ............

CERTIFICATE

Sub: Exemption of Entry Tax to 100% EOU enterprise/other EOUs

with minimum export obligation of 50% of their total turnover

to M/s. ...............................

Ref: 1. G.O. No. CI. 58.SPI.2013 Dated: 01.10.2014.

2. F.D. Notification No. FD:01:CET:2015 dated. 23.04.2015

3. Letter from Joint Director, DIC/Joint Director, VTPC ...........

4. Application of the unit M/s. .......................... dated: ...............


1) M/s. .............................................................. is a Micro/Small/Medium/Large Enterprises

located at ............................................... taluk, ................................District.

2) The enterprise is registered vide No. ............................. Dated: ........................ for

manufacture of .................................. with GOI/GOK.

3) The enterprise is located at zone 1/2/3 /4/HK1/HK2 as classified in the Govt.Order cited at

ref(1) above.

4) The enterprise is registered as 100% EOU vide No. …………. dtd: with Development

Commissioner......................, Government of India.

5) The enterprise is eligible for 100% Entry Tax Exemption on Plant and Machinery and on

Capital goods for a period of 3 years from..................... i.e. the date of commencement of

project implementation as envisaged by the purchase order No. .......................... dated:

................................

6) This Certificate is issued as per the Govt. Orders cited at reference (1) & (2) above.

7) This sanction is subject to fulfilling –

a. Local employment criteria as per Industrial Policy 2014-19

b. Export obligation of minimum 50% of its total turnover

JD, DICs/Commissioner for Industrial

Development and Director of Industries

and Commerce & Export Commissioner


ANNEXURE-41A

Entry Tax Exemption Certificate to 100% EOUs & other EOUs with minimum export

obligation of 50% of their total turnover on purchase of raw materials, inputs,

components and consumables (excluding petroleum products) as per 2014-19 policy

No............. Date: ............

CERTIFICATE

Sub: Exemption of Entry Tax to 100% EOU enterprise/other EOUs with minimum export obligation of 50% of their total turnover to M/s...........................


2. F.D. Notification No. FD:01:CET:2015 dated.23.04.2015

3. Letter from Joint Director, DIC/Joint Director, VTPC .......

4. Application of the unit M/s. .......................... dated: ..........


1) M/s. .............................................................. is a Micro/Small/Medium/Large Enterprises located at ............................................... taluk, ................................District.

2) The enterprise is registered vide No. ............................. Dated: ........................ for manufacture of .................................. with GOI/GOK.

3) The enterprise is located at zone 1/2/3 /4/HK1/HK2 as classified in the Govt.Order cited at

ref(1) above.

4) The enterprise is registered as 100% EOU vide No. …………. dtd: with Development Commissioner .........................., Government of India.

5) The enterprise is eligible for 100% entry tax exemption on the entry of any goods for use as raw materials, inputs, component parts and consumables (excluding petroleum products

like crude oil, petrol, diesel, super light diesel oil, bitumen tar, furnace oil, break fuel or clutch fluid, transformer oil, coolants, white oil, hexane, lubricating oil, petroleum jelly, naphtha and LSHS used as consumables or for captive power generation enterprises) for a period of 5 years from..................i.e. the date of commencement of commercial production, as envisaged by the first sale Invoice/Bill No...................................... dated: ............................

6) This Certificate is issued as per the Govt. Orders cited at reference (1) & (2) above.

7) This sanction is subject to fulfilling –

a. Local employment criteria as per Industrial Policy 2014-19

b. Export obligation of minimum 50% of its total turnover

JD, DICs/ Commissioner for Industrial Development and Director of Industries

and Commerce & Export Commissioner

149


ANNEXURE-42

Refund of Certification Charges as per 2014-19 Industrial Policy

No............. Date: ............ OFFICE ORDER

Sub: Refund of Certification Charges to Micro, Small, Medium &

Large Enterprises Ref: 1. G.O. No. CI. 58.SPI.2013 Dated: 01.10.2014.

2. Letter from Joint Director, DIC/ Joint Director, VTPC ........... 3. Application of the unit M/s. .......................... dated: ...............


1) M/s. ...............................................is a Micro/Small/Medium/Large Enterprises located at

..........................................taluk, ................................ District.



3) The enterprise is located at zone 1 / 2/3 /4 HK1/HK2 as classified in the Govt. Order cited at

ref(1) above.

4) M/s ............................... has incurred a total expenditure of Rs. ........................ for

obtaining statutory certifications like Conformity Europeenne (CE), China Compulsory

Certificate (CCC), GMP, Phytosanitary, Radiation etc. as per the Industrial Policy cited

under ref (1)

5) The unit is hereby accorded sanction for an amount of Rs. ..................being 50% of the

expenses subject to a maximum of Rs. 1 lakh towards obtaining statutory certificates

viz.................

6) This sanction is subject to fulfilling of local employment criteria as per Industrial Policy

2014-19.

Managing Director, VTPC

150



ANNEXURE-43

Refund of cost incurred for Export Consultancy/Market Intelligence studies

as per 2014-19 Industrial Policy

No............. Date: ............

OFFICE ORDER

Sub: Refund of costs incurred for Export consultancy/Market

intelligence studies to M/s.................................

Ref: 1. G.O. No. CI. 58.SPI.2013 Dated: 01.10.2014

2. Letter from Joint Director, DIC/ Joint Director, VTPC ...........



1) M/s. .............................................................. is a Micro/Small/Medium Enterprises located

at ............................................... taluk, ................................ District.


manufacture of .................................. with GOI/GOK

3) The enterprise is located at zone 1/2/3/4/HK1/HK2 as classified in the Govt. Order cited at

ref(1) above.

4) M/s .................................................has incurred a total expenditure of Rs..........................

towards cost for Export consultancy/market intelligence studies


expenses towards export consultancy by the unit towards market intelligence, market

studies/surveys and documentation through recognised consultancy organisations subject

to a maximum of Rs. 2 lakh

6) This sanction is subject to fulfilling of local employment criteria as per Industrial Policy

2014-19.


151



ANNEXURE-44

Financial Assistance for Brand Promotion and Quality Assurance


No............. Date: ............

OFFICE ORDER

Sub: Financial Assistance for Brand Promotion and Quality Assurance to M/s. ................................

Ref: 1. G.O. No. CI. 58.SPI.2013 Dated: 01.10.2014




1) M/s. ......................................................is a Micro/Small/Medium Enterprises located at ........................................... taluk, ................................ District.

2) The enterprise is registered vide No. ............................. Dated: ........................ for manufacture of .................................. with GOI/GOK

3) The enterprise is located at zone 1/2/3/4/HK1/HK2 as classified in the Govt. Order cited at ref(1) above.

4) M/s...............................................has incurred a total expenditure of Rs...................... towards Financial Assistance for Brand Promotion and Quality Assurance


expenses towards setting up of showrooms, warehouse, displays in international department stores, publicity campaign, testing charges, registration charges, brand promotion and assistance for contesting anti-dumping litigations, subject to a maximum of Rs. 5.00 lakh.

6) This sanction is subject to fulfilling of local employment criteria as per Industrial Policy 2014-19.


152


ANNEXURE-45

Refund of fees incurred by Potential/individual Entrepreneurs for certification courses on Export-Import management as per 2014-19 Industrial Policy

No............. Date: ............ OFFICE ORDER

Sub: Refund of fees for Certification Courses on Export-Import management to M/s. ................................

Ref: 1. G.O. No. CI. 58.SPI.2013 Dated: 01.10.2014. 2. Letter from Joint Director, DIC/ Joint Director, VTPC ....... 3. Application of the unit M/s. .......................... dated: .........


1) M/s. .......................................... is a Micro/Small/Medium Enterprises located at

...................................... taluk, ................................ District.



3) The enterprise is located at Zone 1/2/3 /4/HK1/HK2 as classified in the Govt. Order cited at

ref(1) above.

4) M/s.........................................has incurred a total expenditure of Rs............................

towards cost incurred for certification course on Export-Import management


expenses towards reimbursement of 50% of the course fees, subject to a ceiling of Rs.

25,000 per candidate per course


153



ANNEXURE-46

Support for creation of Export Facilitation Facilities, R&D and Testing Service


No............. Date: ............

OFFICE ORDER

Sub: Support for creation of Export Facilitation Facilities, R&D and Testing Service to ................................



3. Application of the unit M/s. .......................... dated: .............


1) M/s....................................................... is a Trade body/Association located at .................................... taluk, ................................ District.

2) The organisation is located at Zone 1/2/3 /4/HK1/HK2 as classified in the Govt. Order cited at ref(1) above.

3) The organisation has ........................... no. of exporters as its members

4) M/s.....................................has incurred a total expenditure of Rs.................. towards support for creation of Export Facilitation Facilities, R&D and Testing Service

5) The unit is hereby accorded sanction for an amount of Rs. ..................being 50% of the cost subject to a maximum of Rs. 50.00 Lakhs towards the creation of the facility.

Commissioner for Industrial Development and Director of Industries and Commerce &

Export Commissioner

154


ANNEXURE-47

Assistance under Market Development Assistance for South American countries as per 2014-19 Industrial Policy

No............. Date: ............

OFFICE ORDER

Sub: MDA for M/s. ................................


2. Letter from Joint Director, DIC/ Joint Director, VTPC ....... 3. Application of the unit M/s. .......................... dated: ...............


1) M/s. ............................................... is a Micro/Small/Medium Enterprises located at ....................................... taluk, ................................ District.

2) The enterprise is registered vide No. ............................. Dated: ........................ for manufacture of .................................. with GOI GOK.

3) The enterprise is located at Zone 1/ 2/3 /4/HK1/HK2 as classified in the Govt. Order cited at ref(1) above.

4) The unit is promoted by General Entrepreneurs/SC/ST/Women.

5) M/s........................... has incurred a total expenditure of Rs. ................. towards :

i. Economy air fare Rs............ to ............... country (South American countries)

ii. Stall rentals Rs................

iii. Freight charges towards prototypes / samples Rs.................

iv. DA/Halting expenditure of Rs....................

The above have been verified from the expenditure statement certified by the chartered accountant.

6) The unit is eligible for assistance of Rs.................. under MDA subject to maximum of Rs. 1.75 lakh as follows:

i. 75% of economy air fare limited to Rs. 1 lakh

ii. 50% of stall rental limited to Rs. 50000 (For SC/ST and Women Entrepreneurs, stall rental 100% limited to Rs. 50000)

iii. 50% freight charges limited to Rs. 10000

iv. DA at $100 per day limited to 3 working days.

7) The unit is hereby accorded sanction for an amount of Rs. .................. as per parameters at sl.no. 6.



155



ANNEXURE-47A

Assistance under Market Development Assistance for all countries except South America as per 2014-19 Industrial Policy

No............. Date: ............

OFFICE ORDER

Sub: MDA for M/s. ................................


2. Letter from Joint Director, DIC/ Joint Director, VTPC .............



1) M/s. ............................................ is a Micro/Small/Medium Enterprises located at ............................... taluk, ................................ District.

2) The enterprise is registered vide No. ............................. Dated: ........................ for manufacture of .................................. with GOI / GOK.

3) The enterprise is located at Zone 1/2/3 /4/HK1/HK2 as classified in the Govt. Order cited at ref(1) above.

4) The unit is promoted by General Entrepreneurs/SC/ST/Women.

5) M/s........................ has incurred a total expenditure of Rs................... towards :

i. Economy air fare Rs.............. to ................... country. (other than South American countries)

ii. Stall rentals Rs...................

iii. Freight charges towards prototypes/samples Rs.........................

iv. DA/ Halting expenditure of Rs......................


6) The unit is eligible for assistance of Rs.......................under MDA subject to maximum of Rs. 1.5 lakh as follows:

i. 75% of economy airfare limited to Rs. 75000

ii. 50% of stall rental limited to Rs. 50000 (For SC/ST and Women Entrepreneurs, stall rental 100% limited to Rs.50000)

iii. 50% freight charges limited to Rs. 10000

iv. DA at $100 per day limited to 3 working days.




156


ANNEXURE-47B

Assistance under Reverse Market Development Assistance for all countries as per 2014-19 Industrial Policy

No............. Date: ............

OFFICE ORDER

Sub: Reverse MDA for M/s. ................................


2. Letter from Joint Director, DIC/ Joint Director, VTPC ....... 3. Application of the unit M/s. .......................... dated: .........


1) M/s. .............................................................. is a Micro/Small/Medium Enterprises located at ...............................................

2) The enterprise is registered vide No. ............................. Dated: ........................ for manufacture of .................................. with Government of ....................

3) M/s............................ has incurred a total expenditure of Rs..................... towards :

i. Economy airfare Rs................... from...................country.

ii. Stall rentals Rs.....................

iii. Freight charges on moving goods Rs.......................

iv. Halting expenditure of Rs....................


4) The unit is eligible for assistance of Rs....................under Reverse MDA for economy air fare, stall rentals and TA / DA for 3 days at $100 per day to Foreign Nationals / NRIs, individuals and / or delegations who visits Karnataka for their participation in Exhibition / Trade Fairs, Business Meets and Market Research etc., subject to a maximum of Rs. 75000/- per delegate.



157


ANNEXURE-48

Reimbursement of Export Credit Guarantee Insurance Premium under 2014-19 policy

No............. Date: ............

OFFICE ORDER

Sub: Reimbursement of Export Credit Guarantee Insurance Premium to M/s. ................................. for the year..............



3. Application of the unit M/s. .......................... dated: .........


1) M/s. ............................................... is a Micro/Small/Medium Enterprises located at ..................................... taluk, ................................ District.


3) The enterprise is located at Zone 1/2/3 /4/ HK1/HK2 as classified in the Govt. Order cited at ref(1) above.

4) The unit has an export turnover of less than Rs. 5 crores.

5) M/s............................................... has incurred a total expenditure of Rs....................... as premium paid towards Export Credit Guarantee insurance for export of goods to risk-prone countries as per the copy of certificate issued by ECGC Regional office vide no................... dated................

6) The unit is hereby accorded sanction for an amount of Rs. ................. being 10% of Export Credit Guarantee Insurance premium paid, subject to a limit of Rs. 50000 per annum.


158


ANNEXURE-49

Financial Assistance for MSME/SC/ST/Artisans and Women Entrepreneurs for participation in exhibitions within and outside the State


No............. Date: ............

OFFICE ORDER

Sub: Financial assistance for M/s. ................................for participation in exhibitions within and outside the State





1) M/s. .............................................................. is a Micro/Small/Medium Enterprise located at ............................................... taluk, ................................ District. The enterprise is in the category of MSME/SC/ST/Artisan/Women.



4) M/s .................................... has incurred a total expenditure of Rs. ..................... towards participation in ........... exhibition in Karnataka/outside Karnataka as follows :

i. Stall rentals Rs.................

ii. Halting expenditure of Rs........................

iii. Travel expenditure of Rs.......................

The above have been verified from the expenditure statement certified by the chartered accountant. The unit is promoted by General Entrepreneurs/SC/ST/Women.

5) The unit is eligible for assistance of Rs....................under the policy as follows:

i. Stall rental of Rs...........limited to Rs. 5000 within state/Rs.10000 outside state

ii. Halting expenses of Rs.......... limited to Rs. 100 per person per day within state and Rs. 150 per person per day outside state, 2 persons and for a maximum of 15 days.

iii. Travel expenses of Rs........... limited to second-class railway tickets for 2 persons per stall.



159


ANNEXURE-50

Financial assistance for Procurement of Imported Seeds and Training of Farmers in development of exports of Gherkins, Rose Onions And Floriculture as per

2014-19 Industrial Policy

No.............

OFFICE ORDER

Date: ............

Sub: Financial Assistance for procurement of imported seeds and training of farmers for developing exports of Gherkins, Rose Onions and Floriculture to Associations/Trade bodies/ Corporates/Enterprises to M/s. ................................





1) M/s................................................ is an Association/Trade body, Micro/Small/Medium Enterprises located at ............................ taluk, ........................District.

2) The enterprise is registered vide No. ............................. Dated: ........................ for production and export of Gherkins/Rose Onions/Floriculture with GOI/GOK.


4) M/s .........................has incurred a total expenditure of Rs.....................towards :

i. Procurement of ................. kg. of imported seeds from .................country.

ii. Training of ................ number of farmers in adopting scientific methods at .............. (location in Karnataka).

5) The unit is hereby accorded sanction for an amount of Rs.............. amounting to 10% of the total expenditure incurred subject to a maximum of Rs. 5.00 lakhs .


160

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