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Karnataka industrial policy offers investors choice between capital subsidy and PLI

Economic Times · 1m

Karnataka's new industrial policy offers investors a choice between capital expenditure subsidy and production-linked incentive (PLI) based on their business models. For capital-intensive units, capital subsidies are preferred, while high revenue sectors can choose PLI. Incentives vary by zone, with industrially backward areas receiving more support. The policy aims to encourage investment and job creation, with larger industries needing to create more employment. Incentives are capped at 60% of fixed assets, with additional support in backward taluks.