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Order no: CI /138 SPC, 90

Criteria for offering the package of incentives and concessions.

  • the date of first release of financial assistance from institutions/banks to be taken into consideration for applicability of revised package of incentives and concessions.

  • In case of self-financial projects, in case less than 25% of the project is invested prior to 1-10-1990 then such cases could be considered under the new package of incentives and concessions.

Sl.No.7 No.CI/79/SPC/91
Dt. 4-7-1991

Clarification of special incentives and concessions of 5% on investment subject to a ceiling of Rs. 5 Lakhs:

  • As per G.O. No CI /138/SPC/90 Dt.27/9/1990 Special incentives have been for all industrial units both new and existing which install pollution control equipment and are equipped for utilization for non conventional energy sources.

  • Since the industrial units have to incur substantial expenditure for installation of non conventional energy sources , it is clarified that encouragement for the same should be shown in the form of special provisions in the incentives package.

SL.No.9 Circular No. SSI/CSI/133/90/91

Reliefs /Concessions for rehabilitation of Sick SSI Units.

  • The following reliefs/concessions shall be extended to the sick industries in the tiny small scale and co-operative sector

    • To defer and reschedule the pre payment of development loan for a period of 3 more years subject to payment of normal rate of interest on the defaulted/ deferred installments.

    • To reduce power-cuts for sick industries which is being rehabilitated to the bare minimum say 50% of the cut applicable to the normal units.

    • To devise a suitable mechanism for ensuring that the sale of surplus land is effected and proceeds utilised as envisaged in the rehabilitation package and permission for sale is granted by the State Government promptly.

    • Not to insist on the guarantees on banks/ institutions for payment of dues by the sick units to Government Departments or Government owned Corporations.

    • To assist the sick units in reaching equitable agreement with Labour Union through its Labour/ Law Department.

G.O.No.CI 140 SPC 93

New Industrial Policy 1993-1998 Industrial Policy Resolution

  • reclassification of developed and developing areas and other allied matters.

  • suggested scale of investment subsidy for tiny and small scale industries (25% of value of fixed assets with a ceiling of 25lakhs in developing areas and 30% in growth centers with a ceiling of Rs.30 lakhs).

  • enhanced scale of subsidy for thrust sector industries.

  • additional subsidy to special categories of entrepreneurs (SC/ST, Minority communities, women physically handicapped, ex-servicemen

  • subsidy towards development of industrial infrastructure.

  • incentives for installation of equipment for utilization of renewable sources of energy.

  • industries encouraged to be located in developed areas(High-tech and non-polluting industries)

  • special incentives package for mega projects (in excess of Rs.100 crores) thrust sector industries list of high tech and non polluting industries ,list of industries not eligible for incentives and concessions are given in appendices

Annexure C to G.O No.CI 140

Sanction of incentives and concessions as per this G.O is subject to the following terms and conditions:

  • All new industrial investments shall create maximum possible additional employment opportunities and provide minimum 80% of employment to the local people and this will be monitored during disbursement of incentives and concessions.

  • That incentives and concessions as per this G.O shall be applicable only to all new and additional investments made on or after issue of this G.O.

Modifications to G.O No.CI 140 SPC 93
Dt.12-7-93 Package of incentives and concessions.

Reclassification of developed and developing areas

  • Investment subsidy (to tiny and SSI including ancillary and export oriented units with an investment of Rs.75lakhs each in P&M. Developing areas (25% of value of fixed assets -ceiling Rs.25lakhs)-growth centers(30% of value of fixed assets ceiling of Rs.30lakhs)

  • Incentives for installation of equipment for utilization of renewable sources of energy captive generation.

  • Industries encouraged to be located in developing areas (Hi-tech and Non-polluting industries)

  • Sales tax concession for new units

  • Exemption from payment of central sales tax and Karnataka sales tax for all KVI units

  • Special incentives for mega projects (fixed assets over Rs.100 crores)

  • Special incentives for automobile manufacturing industry.

  • Incentives for industrial infrastructural projects

  • Special concession for export

  • Exemption from stamp duty and concessional registration changes

  • Waiver of conversion fee for converting agricultural lands to industrial use.

  • Exemption from power cut(for a period of 5 years)

G.O No.CI/49 SPI 93

  • Single Window Agency

  • The Powers and authorities of the SWA to accord sanctions/clearances to new industries in the medium and large scale sector shall be indicated in Annexure-I to this Government order.

  • the time frame for the implementation of decisions in respect of the Government Departments and Agencies shall be as indicated in Annexure-2 to this Government Order.

  • In supercession of the earlier orders referred to above, the District level SWA is reconstituted and shall function as Empowered Committee.

  • Matters which cannot be resolved at the District Level SWA or any other disputes shall be brought before the State level SWA for final decision.

G.O. No. CI 30 SPC 96

New industrial policy 1996 and package of incentives and concessions 1996-2001 With effect from 1-4-96 Valid upto 31-3-2001
Package of incentives

Section 1: Preamble

Section II: Objectives of the New Industrial Policy

  • Active participation of industry in development of infrastructure.

  • Development of potential growth centers.

  • Growth thrust in export of value added groups.

  • Conservation/optimum utilization of scarce resources.

  • Human resources and entrepreneurship development .

  • Encouragement for improvement in productivity R&D and quality upgradation.

  • Maintenance of environment and ecology.

  • Proposals for improvement in performance of public sector undertakings

  • Simplification of rules & regulations and transparent administration

  • Marketing assistance

Annexure to G.O. No.CI 30 SPC 96
Dt.15-3-96 and 31-5-96

Definitions and terms and conditions for sanction of incentives and concessions

Section 4 Definitions

  • Tiny (less than Rs. 5 lakhs investment in P&M irrespective of location)

  • SSI (less than Rs.60 lakh) (Appendices)

Section 5

  • Procedural guidelines

Section 6

  • Manual-cum-job chart for Taluka Industries Centers(TIC)

Section 7

  • Manual-cum-job chart for small industries assistance center

Section 8

  • Certificates and forms (annexures).

G.O No.CI/12 PUM 93

Package of Reliefs and Concessions for Rehabilitation of sick units.

G.O No.CI 228 KIS 90,

Implementation of Dr. Sarojini Mahishi Report:

Recommendations which shall come into effect forthwith

  • Action will be taken to provide employment for atleast one person in each family which has lost lands for establishment of industrial units.

  • To include all industrial units which employ 50 or more than 50 workers under the jurisdiction of this committee.

  • All industrial units employing 50 or more than 50 workers shall furnish without fail a report to the Jt.Dir(AEP) Industries and Commerce Dept and also the concerned G/M DIC regarding the recruitment details.

S.L No. 9 No. IDF/E2/138/M/95/96

Recognizing hatchery as an SSI activity under registration scheme.

  • It is decided to recognize "HATCHERY" as an SSI activity and extend incentives and concessions to this activity as per the 1993-98 package(vide G.O No. CI/140/SPC/93 Dt.12-7-1993.

SL No.10 No. IDF/A2/CIR/96/97

Delay in processing of subsidy applications

  • It is decided that application for subsidy claims should be disposed of within fifteen days and all claims which are more than 15 working days old should be informed every month to the commissioner for ID & Director for I&S, such delays will be periodically in the State Level SINGLE WINDOW Agency.

SL No.11 No.CID:PS:CIR:3:96/97
Dt. 11-10-1996.

Delay in release of subsidy

  • Several complaints are being received from various quarters in release of subsidy even though funds have been released in time.

  • The following items are crucial to the Dept of I&D

  • Land allotment

  • Subsidy release

  • Issue of Certificate foe incentives and concessions under industrial policy.

  • Issuing of Stamp Duty Exemption Certificate.

  • A time limit for all the items indicated above is prescribed as under

  • Allotment of land within 30 days of the application made by the entrepreneurs

  • Subsidy releases within 10 days of release order issued by the Head Office

  • Stamp Duty Exemption Certificate within 10 days of the receipt of the request.

Sl No.12 No.CID:PS:CIR:2:96-97
Dt. 25-10-1996

Sanction of subsidy by Single Window Agency and Karnataka State Financial Corporation:

  • Information needs to be compiled on the new units which have been set up within the state with regard to the details like investment. Item of production, nature and type of entrepreneurs, category of industry, employment generation, type of power, distance from the nearest town.

  • It is therefore decided to obtain this information on a monthly basis as from 1-11-1996 in the format indicated in the annexure to this Circular.

SL.No.13 No. IDF: Circular: 55th SLC:96-97

Release of State Investment subsidy on Top Priority to special Category Entrepreneurs

  • It has been decided to release State Investment Subsidy on top priority to tiny and SSI sector managed by special category entrepreneurs/SC/ST, Women entrepreneurs & cases of subsidy sanctions less than 50,000.

SL.No.15 No.IDF:Circular:55th SLC:96-97 Dt:2-11-1996

Inclusion of Leased Assets in the definition of Fixed
Assets for the purpose of computing incentives and concessions

  • It was felt that the leased assets contribute to production and exclusion of such assets would effect the project.

  • It was resolved to include assets coming under leased finance as Fixed Assets subject to the following conditions

  1. The lease finance should be availed for form KSIIDC/KSFC and Scheduled Commercial Banks, and duly certified by them.

  2. No subsidy should be considered on other fixed assets acquired under the lease finance scheme.

  3. Sales tax Concessions(Exemption/Deferral) can be made available on plant and machinery acquired under lease finance scheme.

The Definition of plant and machinery eligible for incentive manual may be followed

SL No/10 G.O No.CI PUM 93
Dt. 26-12-1996

Package of reliefs and concessions for Rehabilitation of Sick SSI units in Karnataka

  • The State Government have made a policy announcement that a comprehensive scheme for rehabilitation of sick SSI would be implemented.

  • The SSI unit may be classified as sick when

  1. Any of its borrowings accounts has become a "doubtful" advance .

  2. There is erosion in the net worth due to accumulated cash loses to the extent of fifty per cent or more of peak net worth during the preceding two accounting years.

  • The following package of reliefs and concessions has been sanctioned:

  1. Margin money assistance

  2. Sales tax concessions

  3. Reliefs from KEB

  4. Rephasement of KIADB,KSSIDC, KEONICS dues.

  5. Rephasement of development loan.

  6. Assistance to sick industrial units through labour department.

  • The benefits as recommended above would be available to the unit only after the banks and financial institutions have sanctioned their respective rehabilitation package and it is proved to the satisfaction of the bank/financial institutions that the unit under consideration could be rehabilitated viably.

G.O. No.CI 130 SPC 96
Dt.15-3-1996 And 31-5-1996

Industries Policy-Streamlining of Rules and Regulations and Transparent administration-constitution of District level Single Window Agencies(DLSWA)

SL.No.20. No. IDF/INC/CON /SLC/57th/CLR/97-98

Incentives and Concessions to Non Manufacturing units with reference to new Industrial Policy 1996-2001 -

  • The State Level Committee decided to reject certain categories of industries for inclusion in Appendix IV of the new Industrial Policy cited above. The committee noted that if any of the activities are coming under the manufacturing categories under the KST Act then such industries would be automatically made eligible for incentives and concessions.

  • The activities which are not considered for inclusion in appendix IV of the NIP 1996 are as follows

  1. Printing press

  2. Latex industries

  3. Cashewnut Shell Liquid Extraction

  4. Stone crushing Industry

  5. Rice mill

  6. Coffee Curing Industry

  7. Automobile servicing industry

  8. Arecanut processing Industry

  9. Flour Mill

  10. Engineering Assembly Units

  11. Aerated Water/ Soft Drinks

  12. Mineral Water units

  13. Servicing of Heavy Duty/ CNC Lathe Machine

  14. Traditional Country Made Bricks

  15. KVIC Service Activities

  16. Life Saving Diagnostic Equipment

  17. LPG Bottling Plant

  18. Vulcanizing

G.O. No. CI ISPI 98
Dt. 9-1-1998

Amendments with regard to

  • Application for Permanent Registration Certificate

  • Time limits for various clearances by DICs / SIACs/ DLSWA

  • Responsibility of Deputy Commissioner for adhering to time limits





Order no: CI /138 SPC, 90. Dt.10-1-1991

Sl.No.7 No.CI/79/SPC/91 Dt. 4-7-1991

SL.No.9 Circular No. SSI/CSI/133/90/91 Dt.2-1-1991

G.O.No.CI 140 SPC 93 Dt.12-7-1993

Annexure C to G.O No.CI 140

Modifications to G.O No.CI 140 SPC 93 Dt.12-7-93
Package of incentives and concessions.

G.O No.CI/49 SPI 93 Dt.30-11-1993/15-12-1993

G.O.No.CI 30 SPC 96 Dt.15-3-1996

Annexure to G.O. No.CI 30 SPC 96 Dt.15-3-96 and 31-5-96 Definitions and terms and conditions for sanction of incentives and concessions

G.O No.CI/12 PUM 93 Dt.26-12-1996

G.O No.CI 228 KIS 90, Dt.4-1-1996.

S.L No. 9 No. IDF/E2/138/M/95\96 Dt.23-3-1996

SL No.10 No. IDF/A2/CIR/96/97 Dt.8-4-1996.

SL No.11 No.CID:PS:CIR:3:96/97 Dt. 11-10-1996.

Sl No.12 No.CID:PS:CIR:2:96-97 Dt. 25-10-1996

SL.No.13 No. IDF: Circular:55th SLC:96-97 Dt.2-11-1996.

SL.No.15 No.IDF:Circular:55th SLC:96-97 Dt:2-11-1996

SL No/10 G.O No.CI PUM 93 Dt. 26-12-1996

G.O. No.CI 130 SPC 96 Dt.15-3-1996 And 31-5-1996

SL.No.20. No. IDF/INC/CON /SLC/57th/CLR/97-98 Dt.18-8-1997

G.O. No. CI ISPI 98 Dt .9-1-1998