Karnataka, with an aim to attract ₹5,000 crore investments in electronics system design and manufacturing (ESDM), has come out with capital investment subsidy for companies on land and plant machinery, reimbursement of stamp duty on registration changes and reimbursement of land conversion fee.

State Law and Parliamentary Affairs Minister, J C Madhuswamy, briefing reporters after the Cabinet meet said “Scheme of Special Incentives for ESDM Sector will be applicable for new investments or investments in expansion of existing units for a period of five years from the date of announcement of the Scheme.”

C N Ashwath Narayana, Deputy Chief Minister, who holds Electronics, IT/BT and S&T ministry said The state government is expecting an investment of over ₹5,000 crore and a potential to generate 43,000 direct employment over next five years.

The 25 per cent Capital Investment Subsidy on land will be eligible to only those industries who are setting it up in areas other than Bengaluru Urban and Bengaluru Rural districts.

The 20 per cent Capital Investment Subsidy on Plant & Machinery will include expenditure on used / second hand / refurbished plant, machinery, and equipment (including for associated utilities and R&D), whether imported or procured domestically.

Production linked incentive is also offered based on annual sales turnover (includes sales within the state, inter-state and exports), as evidenced by annual audited accounts/audited balance sheets.

Incentives will be provided only to new investments or for capacity expansion.

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