SubsidySchemes Get My Free Match →
CalculatorSchemesTrack RecordFinderFAQGet My Free Match →
Home/States/Karnataka
★ VERIFIED SCHEME REGISTER ★ SINCE 2026 ★
BENGALURU MYSURU HUBBALLI BELAGAVI TUMAKURU
State Register · Updated for 2026

Karnataka Government Subsidy Schemes

Every capital subsidy, PLI alternative and special-category incentive currently active in Karnataka — the Industrial Policy 2025-30's zone-based Capital Expenditure Subsidy and its stackable add-ons (special category, employment generation, women employment) — mapped clause by clause, with the zone classification that decides your actual rate.

0+
Schemes mapped in detail
10-40%
Zone-based capital subsidy
₹35L
Special category max subsidy
2030
Industrial Policy 2025-30 valid till
Capital Expenditure SubsidyProduction-Linked IncentiveSpecial Category SubsidyEmployment GenerationWomen Employment BonusStamp Duty ExemptionSustainability IncentiveEV Policy Karnataka
Try it yourself

Move the slider. Watch what your project could be worth.

Estimated Value Over Tenure
₹0.00 Cr
Capital SubsidyPLI Value (7 yrs)

Illustrative estimate from published rates — actual entitlement depends on fixed asset value, zone classification and capital-subsidy-vs-PLI choice.

Get my exact number
The Karnataka Register

Eight schemes, and which one actually fits your project.

Ordered by how often we use them in a filing — the zone-based Capital Expenditure Subsidy (or its PLI alternative) covers most manufacturing projects; the add-ons below (special category, employment, sustainability) are what most DPRs leave unclaimed.

01
Scheme 01
Capital Expenditure Subsidy
Dept. of Industries & Commerce · Industrial Policy 2025-30
State Flagship Valid till Feb 2030
Zone 1 (Backward)
25-40%
of fixed assets — most industrially backward taluks
Zone 2 (Developing)
20-30%
Mysuru, Shivamogga, Tumakuru, Belagavi, Dharwad
Zone 3 (Bengaluru)
10-25%
Bengaluru Urban & Rural districts
MSME-specific rate: a separate provision states MSME capital subsidy at a flat 30% of fixed assets, now capped up to ₹1 crore for small and medium enterprises — often more favourable than the general zone-based band for smaller projects.
Notified 8 Feb 2025, valid 5 years or until a new policy is announced. You choose either this Capital Expenditure Subsidy or the Production-Linked Incentive (Scheme 02) — not both. More backward talukas within a zone get an additional +5% on top of the base band.
Eligibility
  • MSME classification by investment in plant & machinery/equipment plus turnover, per the MSMED Act 2006
  • New units or expansion/diversification projects located in the applicable zone
Application & Documents
  • Applied for via KiADB single-window portal / eBiz system
  • Sanctioned by State Level Committee (SLC) for large projects; district-level committees handle MSME-scale claims
02
Scheme 02
Production-Linked Incentive (PLI)
Alternative to Capital Expenditure Subsidy
Manufacturing Valid till Feb 2030
Reimbursement
1.0-2.5%
of net sales turnover per year, zone-graded
Tenure
7 years
from commencement of commercial production
Choose this over the capital-linked subsidy if your project has strong projected turnover relative to fixed asset investment — a turnover-heavy business (e.g. contract manufacturing, assembly) often benefits more from PLI than from a one-time capital grant.
Eligibility
  • Same enterprise categories as the Capital Expenditure Subsidy — the choice is made once, at the time of application
Application & Documents
  • Annual net sales turnover data required for each year's claim, verified against GST filings

A turnover-heavy business often earns more from PLI than from the one-time capital grant.

— why we model both routes before recommending one
03
Scheme 03
Special Category Subsidy
SC/ST, Women, Minorities, PWD, Ex-servicemen entrepreneurs
Women / SC-ST Valid till Feb 2030
Additional Subsidy
up to ₹35L
on top of the base capital subsidy (raised from ₹30L)
30% of land in Karnataka's industrial areas is reserved for MSMEs, with 24.1% specifically reserved for SC/ST entrepreneurs — worth checking allotment availability alongside this subsidy when selecting a plot.
Eligibility
  • Enterprise majority-owned/managed by SC/ST, women, minority, PWD or ex-servicemen entrepreneurs
Application & Documents
  • Category certificate required alongside the main capital subsidy or PLI application
04
Scheme 04
Employment Generation Incentive
Bonus on capital subsidy/PLI for exceeding hiring minimums
General MSME Valid till Feb 2030
3-4x minimum employment
+7.5%
extra on eligible capital subsidy/PLI amount
4-5x minimum employment
+10%
extra on eligible amount
5x+ minimum employment
+15%
extra on eligible amount
Minimum employment thresholds are set per enterprise category and investment slab (e.g. Medium Enterprises: 20 jobs for the first ₹10 Cr invested, 7 more per additional ₹10 Cr) — check your specific threshold before projecting the bonus tier you'll land in.
Eligibility
  • Any enterprise already sanctioned Capital Expenditure Subsidy or PLI, exceeding the minimum direct employment threshold for its category
Application & Documents
  • Payroll and EPF records required to verify actual headcount against the minimum threshold
05
Scheme 05
Women Employment Incentive
Bonus for majority-women workforce
Women / SC-ST Valid till Feb 2030
50%+ women workforce
+7.5%
extra on eligible capital subsidy/PLI amount
60%+ women workforce
+10%
extra on eligible amount
Stacks with the Employment Generation Incentive (Scheme 04) — a unit hitting both high headcount and high women-workforce thresholds can combine both bonuses.
Eligibility
  • Enterprise with 50%+ or 60%+ women in its total workforce, verified against payroll
Application & Documents
  • Payroll records and gender breakdown required at the time of the annual employment verification
06
Scheme 06
Stamp Duty & Registration Exemption
Zone-linked duty concessions
General MSME Valid till Feb 2030
Zone 1 & 2
100%
stamp duty exemption on loan/lease/sale deeds
Zone 3
No exemption
Bengaluru Urban/Rural excluded from this benefit
Registration Charges
₹1 / ₹1,000
Zones 1 & 2 only
Covers loan agreements, mortgage and hypothecation deeds, lease-cum-sale and sub-lease deeds, and land purchase/final sale deed registration — an easily-missed saving that can run into lakhs on a larger land purchase.
Eligibility
  • Eligible industrial units in Zone 1 or Zone 2, executing qualifying deeds with government/banks/financial institutions
Application & Documents
  • Exemption applied at the time of deed registration — confirm eligibility with the sub-registrar's office before executing the deed
07
Scheme 07
Sustainability & Environment Incentive
Effluent treatment, renewable energy, water restoration
General MSME Valid till Feb 2030
Effluent Treatment Plant
50%
of equipment cost, cap ₹2.5 Cr — Large enterprises and above
Renewable Energy
Additional support
for industries adopting renewable/sustainable practices
Small-and-above investments must include rainwater harvesting; Medium-and-above must undertake water body restoration within the industrial area — factor these mandatory compliance costs into your DPR alongside the incentive itself.
Eligibility
  • Large enterprises and above installing an effluent treatment plant on-premises
  • All eligible-scale industries adopting renewable energy sources
Application & Documents
  • Equipment purchase and installation proof required for the ETP claim
08
Scheme 08
EV Policy Karnataka
Electric vehicle & ESDM supply chain — stacks with Industrial Policy
EV / ESDM Updated 2023, 2025
Capital Subsidy
25-30%
on plant/machinery, up to ₹100 Cr for greenfield units
Land Reimbursement
50%
cap ₹50 Cr, under Industrial Policy 2025-30
Best suited for MSMEs in the Bengaluru-Tumakuru EV Corridor or notified ESDM clusters making battery packs, power electronics, or charging modules — stacks with central PLI schemes for a combined subsidy stack, but most benefits are back-ended (released after project completion/production milestones), so plan working capital accordingly.
Eligibility
  • EV component manufacturers and ESDM units, particularly in notified corridors/clusters
Application & Documents
  • Register on the KiADB single-window portal; milestone documentation (completion, production, turnover) required to trigger back-ended disbursals
Sector-specific policies

More Karnataka policies worth checking.

Narrower, sector-specific incentives — relevant if your project sits in one of these categories. Ask us to run the numbers for your project.

Logistics & Warehouse Capital Subsidy
Specific capital subsidies for warehouses and logistics parks meeting minimum thresholds
Ongoing
Industrial Dormitory Subsidy
Support for worker housing tied to large-scale employment-driven investments
Ongoing
R&D Co-location Booster
+10% booster for co-locating R&D with large/mega/ultra-mega manufacturing units
Ongoing
Aerospace & Defence Focus Sector
Sector-specific incentives under the policy's key focus sector list
Ongoing
Recycling Facility Incentives
Support for industries setting up recycling and circular-economy facilities
Ongoing
Cold Storage Sector Incentives
Sector-specific capital and operational support for cold-chain infrastructure
Ongoing
Your zone can be worth 4x more subsidy than Bengaluru's
Zone 1 (most industrially backward taluks) gets up to 40% capital subsidy — Zone 3 (Bengaluru Urban/Rural) can be as low as 10%. Mysuru, Shivamogga, Tumakuru, Belagavi and Dharwad sit in Zone 2, the middle band. For an identical project, choosing a Zone 1 or Zone 2 taluk over Bengaluru can meaningfully change the entire economics — including stamp duty, which Zone 3 doesn't get exempted at all.
Our Karnataka Track Record

Subsidy value we've helped release, year by year.

Filed applications, approved claims and the subsidy mix across the schemes on this page.

Sample data — replace before publishing
Every number on this dashboard (KPIs, chart values) is placeholder data for layout purposes only. Swap in your actual filing records before this goes live — real visitors will read these as genuine track-record claims.
₹47.2 Cr
Total subsidy value facilitated
+18% vs last year
312
Applications filed in Karnataka
+42 this year
6.4 wks
Average time to sanction
1.1 wks faster
91%
Filed applications approved
+4 pts vs last year
Subsidy value released by year
₹ Crore · Karnataka filings only
FY 2021–26
Sample data. Replace with actual year-wise disbursal totals from your filing records.
Mix by benefit type
Share of total value
Sample data. Replace with your actual scheme-type breakdown.
Run your own numbers

Which of these six actually applies to you?

Pick your zone and project size — matched against the Karnataka register above.

Karnataka Scheme FinderRegister No. 0182-KA
Matched Entry
Scheme name
Karnataka-specific questions

What founders ask before filing in Karnataka.

It depends on your project's capital-to-turnover ratio. Capital-heavy projects (large plant & machinery investment relative to expected sales) usually do better with the upfront Capital Expenditure Subsidy. Turnover-heavy, asset-light businesses (assembly, contract manufacturing) often extract more value from the 7-year PLI, since it scales with sales rather than a one-time capex figure. This is a one-time choice at application — model both before deciding.
Published guidance describes a flat 30% of fixed assets MSME-specific capital subsidy rate alongside the zone-based 10-40% band — for a Zone 3 (Bengaluru) MSME, the flat 30% rate is likely more favourable than the zone rate; for a Zone 1 MSME, the zone-based 25-40% band may already exceed 30%. Compare both before assuming one automatically applies.
Based on the published structure, these are separate additive bonuses — one tied to overall headcount multiplier (up to +15%), one tied to the proportion of women in the workforce (up to +10%). A unit hitting both thresholds should be able to combine them on top of the base capital subsidy or PLI, though we'd confirm the exact combined cap with the Department of Industries & Commerce before finalising a filing.
Filing in Karnataka

Get your Karnataka scheme stack confirmed, then filed.

We file Capital Expenditure Subsidy and PLI applications for Karnataka clients every week — including the employment and sustainability bonuses most consultants miss.

Talk to a Karnataka consultant
A DPR & subsidy consultancy service by Legal Kamkaz Associates LLP