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INVEST KARNATAKA MONTHLY DECEMBER 2020 Leadership Message 2 Investment Snapshot 3 Industrial Land Opportunities 4 Industrial Policy 2020 -2025 5 Industries Facilitation Law 2020 8 KARNATAKA Sector Focus: Auto and Auto Components 9 Company Focus : Mr Kamal Bali, MD Volvo 11 Industry Body Focus: Automotive Component Manufacturers Association 14 Women Leadership Hub: Dr Latha Damle, Founder-Atrimed Biotech 16 Key Highlights 20 Media Room 21 Digital Communication 22 CONTENTS Contact Invest Karnatka 23 Karnataka has strived to foster an investor-friendly, transparent industrial ecosystem that has made the state the No 1 investment destination in the country. I LEADERSHIP am proud of the launch of Invest Karnataka Monthly which will not only aim to facilitate investors but also Message communicate all of the state’s efforts to people across Shri Gaurav Gupta Principal Secretary, the globe. I am proud of our team and wish them all the Dept of Industries and very best”. Commerce, GOK Over the years, Karnataka has been at the forefront of Karnataka has introduced multiple initiatives to promote industrial growth in the country. I am proud to introduce industrial growth in the state. The newsletter is an ‘Invest Karnataka Monthly’, a monthly newsletter to aid initiative through which we aim to reach out to our all existing and potential investors. The launch of Invest domestic and international investors. We aim to Karnataka Monthly reflects the commitment of the the communicate the state’s extensive policies, programs, state towards facilitating investments. I commend the and outreach initiatives that will help investors make Shri B.S. Yediyurappa Smt Gunjan Krishna Hon’ble Chief Minister efforts of the team and wish them all the best”. Commissioner, Dept of informed decisions. We hope our investors find the of Karnataka Industries and Commerce, newsletter helpful and continue to collaborate with us GOK actively”. I am delighted for the launch of “Invest Karnataka At Karnataka Udyog Mitra, we strive to hand hold all our Monthly” a monthly newsletter to support investment investors to the best of our abilities. I hope the Invest outreach in the state. The Government of Karnataka has Karnataka Monthly newsletter helps all investors across introduced multiple outreach initiatives and the monthly sectors. This newsletter aims to facilitate industry newsletter is a feather in our cap. I hope the monthly Shri H.M. Revanna Gowda partnerships and build a dynamic industrial environment newsletter will be a useful resource for all our investors Shri Jagadish Shettar Managing Director, in the state”. Karnataka Udyog Mitra Minister of Large and and wish the team good luck”. Medium Industries, GOK 02 INVESTMENT Snapshot 2020 - 21 Karnataka Biotech, Food & nd Miscellaneous Chemicals Automobile Pharmaceuticals Machine Tools Textiles Agribusiness ranks 2 at & Medical Devices attracting highest 16 09 07 04 04 04 04 FDI Equity Inflows 2019-20 (Oct – Mar) 30,746 (4,289) 2020-21 (Apr- Jun) 10,255 (1,350) Cumulative Inflows 03 03 02 02 01 01 01 (Oct, 19 - Jun, 20) 41,001 (5,638) Number of MOU 54 signed Number of MOU Plastic Renewable Aerospace Electrical FMCG IT/ICT Real Estate & Rubber Energy 16 implemented Projects signed in the year 2020-21 03 Industrial LAND OPPORTUNITIES State public land available in acres Bengaluru Rural Bidar Dharwad Tumakuru Aerospace SEZ 33 Kolhar 2nd Phase 100 Mummigatti IA 200 Tumkuru Machine 401.36 Haralur 650 Kotur-Bellur 423 Tool Park Adinarayana 25 Chikkaballapura Japanese Industrial Park 37.91 Hosahalli Sira 1st Phase 431.42 Mastenahalli 250 Hassan Belagavi Hassan Textile Zone 270 Vijayapura Chamarajanagara Kanagala 468 Mulawad 307 Badanakuppe 734.22 Haveri -Kellamballi Ballari Magod 55 Yadgir Kudithini I Phase 401.36 Dakshina Kannada Mysuru Kadechuru 100 Women 37.91 Canara 290 Entrepreneurs Park Immavu 313.71 Steel Ancillary 431.42 Zone-Kuduthini Davanagere Ramanagara Sarathy Kurubarahalli 203 Harohalli 4th Phase 169 04 INDUSTRIAL POLICY 2020 – 2025 Every five years, Government of Karnataka districts along with Tier-2 & Tier-3 cities to implements a set of industrial policies to ensure inclusive development of investment The main objectives of the ensure sustainable and inclusive industrial through the State. In order to provide suitable Industrial Policy 2020-2025 are: development through the State. Since the 2014 incentives, the districts have been grouped into policy, major developments have taken place 3 zones - industrially backward districts are Attract investments worth INR 5 and opportunities have emerged. We have seen classified in zone1 and 2 and Bengaluru Urban Lakh crore in the next 5 year a massive leap especially in the areas of and Rural districts are classified in Zone-3. manufacturing and manufacturing-related Create employment opportunities service industries including smart Through the policy, the state aims to emerge as for 20 Lakh people manufacturing, customization, and collaborative a global leader in Advanced Manufacturing, production. Research & Development, and Innovation and to Reach 3rd position in the country in create an ecosystem for an inclusive, balanced terms of merchandise exports in the The vision of the new industrial policy is to and sustainable development of the State. next five years exploit Karnataka’s industrial prowess, create a Based on competitive strengths and potential business enabling environment, develop for growth, the Policy has identified certain Maintain an industrial growth rate of sustainable infrastructure and provide Focus sectors: Automobiles & Auto 10 p er cent per annum equitable opportunities for the people of the components, Pharmaceutical & Medical Devices, State. The policy aims to look beyond Bangalore Engineering and Machine Tools, knowledge Provide an enabling ecosystem for and particularly focus on industrially backward based industries, Logistics, Renewable Energy, technology adoption and innovation Aerospace & Defence and Electric Vehicles. 05 To emerge as a globally competitive state, Keeping in view the new opportunities post Industry 4.0, Research & Development, COVID 19 & to attract large investments across Intellectual Property Rights (IPR), Technology the sectors, the Policy has addressed many Adoption & Innovation, Cluster Development reforms especially in procurement of land, Initiatives and Sustainable Industrialization compliance of labour laws and offer attractive have been recognized as the thrust areas. incentives and concessions. In order to promote MSMEs, SARTHAK - a For the first time in 70 years, the policy has Centre of Excellence and an online technology introduced land reforms to aid acquisition and platform is being established. The platform to allotment of land across the state. To further provide easy access to raw material suppliers, help land acquisition and allotment, Karnataka quality control & certifications, and enhance Land Reforms Act, 1961 has been amended access to credit. MSMEs will be provided modifying provisions of Sec. 109. Encouraging infrastructure support – KIADB will earmark establishment of private industrial parks like minimum 30% of allotted land in their industrial Integrated Industrial Parks, Sector Specific areas for MSMEs. Parks, Logistics Parks and Flatted Factories by Private Developers, the policy is also leveraging The platform aims to help MSMEs by providing development of Industrial Nodes under Technology Up-gradation and Technical Support, Chennai-Bengaluru Industrial Corridor and Vendor Development and Facilitation, Marketing Bengaluru-Mumbai Economic Corridor. Support in Public Procurement, Skill Industrial Area Development Authority of Development & EDP, MSME Manufacturing Karnataka will be constituted under the KIAD Excellence Awards, Equity Funding and Act 1966 to perform statutory powers / Incentives & Concessions. functions of local body. 06 INCENTIVES & SUBSIDIES: Industrial Policy 2020-25 For the first time in the country, Karnataka Exemption from Stamp Duty and Concessional Registration Charges State has adopted a turnover based incentive Reimbursement of Land Conversion Fee system instead of tax based incentives to Exemption from Tax on Electricity Tariff for MSMEs encourage production based performance for Power Subsidy for Micro & Small Enterprises all industries. For Micro and Small Interest Subsidy on MSME Technology Up-gradation loans Enterprises, 10% on turnover in each year for Incentives for Rain Water Harvesting and Waste Water Recycling a period of 5 years and limited to 20-30% of Incentives for establishment of ETP / CETP VFA is provided. Industrially backward Additional incentives to special category entrepreneurs viz., SC/ST, Women, districts will get more incentives to attract Minority, Physically Challenged and Ex-Servicemen Enterprises investments so as to ensure balanced Incentives for Export Oriented Units industrial development of the State. Investment Subsidy for Anchor Industries (minimum investment Rs 100 crores) in taluks lacking any major industries Investment Promotion subsidy based on turnover in the form of grant for Medium, Large and Mega Enterprises ranging from 1.75% -2.50% on turnover in each year for a For period of 5-10 years and limited to 35- 60% of VFA. CLICK HERE Industrial Policy 2020-25 Incentives & Concessions for development of Private Industrial Parks Support to Research & Development and Industry 4.0 07 INDUSTRIES FACILITATION Law 2020 In June 2020, Karnataka became one of the first country that have amended the Act for only Due to the ongoing pandemic,
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