PROCEEDINGS OF THE GOVERNMENT OF KARNATAKA Sub: Karnataka Electric Vehicle & Energy Storage Policy 2017. Ref: Hon'ble Chief Minister's Budget Speech 2017-18. PREAMBLE: The twentieth century has been an era of Internal Combustion Engines (ICE) primarily on account of accessibility - ease of use and affordability-low-cost of fossil fuels. The shift to electric mobility has become necessary due to the fast depletion of fossil fuels, increase in energy costs, impact of transportation on the environment and concerns over climate change. Electric Vehicles (EVs) are becoming increasingly popular because of important advantages they offer: eco-friendliness from a systemic standpoint; cheaper fuel cost; lower maintenance expenses etc. Government of India (GoL) has been supporting electric mobility efforts in the Country. It has been funding research, design, development, demonstration projects and also spearheading the electric mobility initiative in the Country. Karnataka has a ready eco system for a vibrant automotive sector with large pool of technical manpower, robust R&D capabilities and manufacturing expertise. Hon'ble Chief Minister during his Budget Speech 2017-18 had announced that Government of Karnataka wishes to make Bengaluru-the Electrical Vehicle Capital of India,It is estimated that from 2006 to 2030, the global energy consumption is likely to rise by 54% and about three quarter of the projected increase in oil demand will come from transportation sector. These concerns are driving Governments and Industry alike to invest towards developing vehicles based on alternate propulsion systems including electric mobility. Government of India has plans to introduce electric vehicles in a very big way and to produce only electric vehicles by 2030. With the Government of India endorsing and supporting the electric vehicle boom, there is a real possibility that electric vehicles will become widely available and cheaper too. Karnataka, being the home to many advanced engineering and high tech firms and research institutions, is best place to take the first mover advantage. However, there is a need for a comprehensive and well-designed policy push that enables the electric vehicle sector to bloom in the State. In the light of the above, a decision has been taken by the Government to formulate and adopt a Karnataka Electric Vehicle & Energy Storage Policy -2017. Karnataka Electric Vehicle & Energy Storage Policy 2017 is expected to give the necessary impetus to the electric mobility sector in the State and also attract investments. Hence the following order: GOVERNMENT ORDER No: CI 117 SPI 2017, BENGALURU. DATED 25.09.2017 In the circumstances explained in the preamble, Government is pleased to announce the Karnataka Electric Vehicle & Energy Storage Policy 2017 as detailed in Annexure to this Government Order.The Karnataka Electric Vehicle & Energy Storage Policy 2017 and package of incentives & concessions shall come into effect from the date of issue of Government Order and will be valid for a period of five years or till a new policy is announced. This order issues with the concurrence of Finance Department vide Note No. FD 342 Exp-1/17, dated 07.09.2017, Transport Department Vide File No, CI 117 SPI 2017 (P-4), dated 12.9.2017, Revenue Department Vide Note No. goa 60 smdecm 2017, dated 12.09.2017, Skill Development, Entrepreneurship and Livelihood Department vide Note No. Pete 7 Free 2017, dated 12.09.2017, Forest Ecology & Environment Department vide File No. CI 117 SPI 2017 (P-5), dated 10.8.2017, Energy Department vide File No, CI 117 SPI 2017 (P-3), dated 18.8.2017, Urban Development Department vide File No. CI 117 SPI 2017 (P-2), dated 11.8.2017, Planning Department vide File No. CI 117 SPI 2017 (P-8), dated 18.8.2017, IT/BT Department vide Letter No. ITD O7 PRM 2017, dated 21.08.2017 and Cabinet approval dated 13.09.2017. By Order and in the name of the Governor of Karnataka, & Vek Additional Chief Secretary to Govt., Commerce & Industries Department. To, 1) The Compiler, Karnataka Gazette, Bengaluru for publish in the special Gezette ond supply 1,000 copes to this office 2) The Principal Accountant Generel (G4SSA), Kernatake, New Building, “Audit Bhawan, Pest Box No. 5298, Bengeluru-O! 3) The Principal Accountant General (E&RSA), Kamnatake, New Building, “Audit Shaner’, Post Box No. 5398, Bengaluru-Ot 4) The Principal Accountant Generel (A&E), Karnataka, Perk House Read, Pest Box No. 5329, Bengoluru-Ot 5) The Chief Secretary 19 Government, Vishore Souche, Bengolurv-Ot6) 7) 8) 9) 10) 11) 12) 13) 14) 18) 16) 17) 18) 19) 20) at) 22) 23) 24) 25) 26) 27) 28) 29) 30) 31) 32) ‘The Additional Chief Secretary to Government, Vidhana Soudhe, Bengaluru-O1 ‘The Additional Chief Secretary to Government, and Development Commissioner, Vidhana'Soudha, Bengaluru-O1 All Additional Chief Secretaries/Principal Secreteries/ Secretaries to Government. ‘The Commissioner for Industrial Development and Director of Industries and Commerce, Kranije Bhavan Race Course Road, Bengoluru-Ol. “The Commissioner for Commercial Taxes, Vanijya Therige Karyelaya, Gandhi Negar, Bengeluru-09. ‘The Managing Director, KPTCL, Couvery Bhavan, KG. Road, Bengcluru-09. “The Managing Director, BESCOM, MESCOM, CHESCOM, HESCOM. The Chairman, Kernateka State Pollution Control Beard, #49, Church Street, Parisora Bhavan, Bengaluru-Ol. The Inspector General of Registration and Commissioner of Stamps ond Chief Controlling Revenue Authority, Kandeaya Bhavan, 8" floor, KG. Read, Bengaluru-09. ‘The Deputy Commissioners of all Districts of Kernotcka. ‘The Joint Directors of all District Industries Centers of Karnataka. The Chief Executive Officer & Executive Member, Karnataka Industrial Area Development Boord, Khanija Bhovon, Race Course Road, Bengaluru-Ol. ‘The Manoging Director, KSFC, 1/1, Thimmich Rood, Bengluru-B1 The Managing Director, Karnataka Udyog Mitra (KUM), Khanija Bhavan, Race Course Road, Bengaluru-0t. ‘The Deputy Secretary to Govt., (Cabinet Section), DPAR, Vidhana Soudhe, Bengaluru-O1. ‘The President, Federation of Karnataka Chambers of Commerce & Industry, P.O, Box 9996, KGRoad, Bengaluru-09. The President, Confederation of Indien Industry, 1086, HAL 2nd Stoge, 12" Mein, Indira Nager, Bergalura-38 Tne Chairman, FICE, VETC Building 1st Floor, Kasturba Read, Bengaluru-Ol. ‘The President, Bengaluru Chember of Commerce and Industry, No. 3/4, 3° Floor, ‘C Block, Unity Building, J.C. Road, Bengaluru-02, ‘The President, Karnatake Small Scale Industries Association, No, 2/106, 17°* Cross, Magadi Chord Road, Vijaya Nagar, Bengaluru-40, The President, North Kornataka Small Scole Industries Association, Industrial Estate, Gokul Road, Hubli-30, The President, AWAKE, No. 8-76, KSSTDC Industrial Estate, Rajaji Nagor, Bengaluru-10, General Secretary, Hebbal Industrial Association, Hebbal Industrial Estate, Mysurut6 The President, Peenya Industries Association, 1" Stage 1” Cross, Peenya Industrial. Estate, Bengcluru-58, ‘The President, Hyderabad-Karnataka Chamber of Commerce & Industry, Chambers Building Complex, Super Market, Kalaburagi The President, Laghu Udyog Bharothi, #15/47, 47°*'A’ Cress, 8” Block Joyanager, Near Gelli Apartment Bengaluru ~ 82 Guard File / Spare Copies.Annexure to GO No: CI 117 SPI 2017, Bengaluru, Dtd 25,09,2017 Karnataka Electric Vehicle & Energy Storage Policy 2017 Preamble: Globally, automotive industry is passing through a paradigm shift. The twentieth century has been an era of Internal Combustion Engines (ICE) primarily on account of accessibility - ease of use and affordability-low-cost of fossil fuels, The shift to electric mobility has become necessary due to the fast depletion of fossil fuels, increase in energy costs, impact of transportation on the environment and concerns over climate change. As per International Energy Agency (ZEA) report of 2009, globally the fossil fuel based transportation is the second largest source of CO2 emissions, From 2006 to 2030, the globa! energy consumption is estimated to increase by 53% and about three quarters of this projected increase will be due to the oil demand in ‘transportation. Against these changing landscape, Government and automotive industries are transitioning to invest heavily towards developing vehicles based on alternate propulsion systems, including electric mobility. Electric vehicles (EVs) of all types lie at the heart of future sustainable transport system due to the advantages they offer: ece-friendliness from a systemic standpoint; cheaper fuel cost; lower maintenance expenses. The deployment of EVs across all models is also in line with the 2030 UN Sustainability Agenda. Industry, Governments and early adopters have succeeded in demonstrating that electric vehicles can deliver the practicality, sustainability, safety and affordability characteristics expected from them. The global overview is mentioned below + Norway- EVs accounted for 23% of all new car sales in 2015. All EVs are exempt from non-recurring vehicle taxes, including road tax and VAT. They ore also exempt from paying any toll and parking fees. + Netherlands- EVs accounted for 9% of all new car sales in 2015, All EVs are exempt from registration fees and road taxes, Free charging is also provided in public parking spaces. + China- China is the world's single largest electric bus market, with 173,000 such buses plying on the roads. It also became the top selling electric passenger car market in the world in 2015, Direct subsidies are provided to consumers buying EVs where EVs are exempt from Beijing's road rationing scheme and are provided with distinctive number plates.For a repidly growing economy like India with an objective to achieve inclusive growth and balanced development the need to find sustainable and eco-friendly transportation / mobility solutions is imperative. However, the adoption of EV uptake in India has been comparatively low. Therefore, there is a strong need for transparent and incentive mechanism for manufactures and consumers to address the EV adoption and deployment gap. Given that in India, the transportation sector alone accounts for about one-third of the total crude oil consumption and road transportation accounts for more than 80% of this consumption, the Government will need to focus on the sector and initiate strategic industry collaborations to invest in sustainable mobility solutions and make electric mobility a reality in India. The first electric three wheeler Vikram SAFA was developed by Scooters India Ltd., Lucknow in 1996. Mahindra Ltd. Launched its 1" electric three wheeler in 1999. In 2001, REVA, Bengaluru entered the EV sector in the Car category built with a state of the art battery management system. Hero Cycles launched two wheelers in 2007: other Companies such as Electrotherm India, TVS Motor, Hero Electric etc. are also manufacturing and selling electric two wheelers. Government of India has been spearheading the electric mobility initiative in the country. The Faster Adoption and Manufacturing of Electric Vehicle (FAME) Scheme was introduced and according to the report, eight two wheeler manufacturers and three four wheeler manufacturers have registered and availed benefits under the scheme. The Government of India has also been supporting the transition to electric mebility in the country through funding research, design, development, demonstration projects A ropidly developing Karnataka is ct the cusp of making a transition to new mobility solutions. Karnataka has a ready eco system for a vibrant automotive sector with large pool of technical manpower, robust R&D capabilities and manufacturing expertise. The sector has deep backward linkages with metal industries, capital equipment, trucking, warehousing and logistics. In addition, it also has a strong forward linkage with dealership, retails, credit and financing, advertising, repair and maintenance, petroleum products, gas stations and service parts etc... Therefore, to explore the available opportunity and to allow EV sector to bloom in Karnataka, a comprehensive and well-designed policy is formulated based broadly on the principles of Karnataka Industrial Policy 2014-19 with a focus on creating enabling environment for investors in EV segment.Need for EV Policy of Karnataka: Every day, nearly 50,000 new motor vehicles (two, three and four wheelers) are registered in India, with a 10% increase in registration annually. As on May-2017, Bengaluru alone witnessed the registration of 69,31873 vehicles of different categories out of which the two wheeler segment had a major share of 48,00,298 followed by the private cars whose share stood at 13,40,424. Bengaluru is also known as a city which registers maximum number of two wheelers in the Country. According to the 2016 World Health Organization Study, India is home to 10 of the World's 20 most polluted Cities. In 2015, India imported more than 80% of its oil at a cost of Rs 4.2 lakh crore. The various initiatives taken nationally to promote electric mobility could not yield the much desired results mainly due to higher cost of EVs, challenges in battery technology, limited range of EVs, lack of charging infrastructure and consumer mindset. In addition, the past efforts also did not have the desired level of synergy, continued top level support & ownership both in the Government and Industry. As such, most of the efforts undertaken faded and fizzled out since they were isolated in nature, lacked collaborative approach and did not tackle all the issues holistically. Now, Government of India is endorsing and supporting the EV boom, with a real possibility that EVs could become widely available and cheaper. In line with this, Karnataka, being home to many advanced engineering and high tech firms and research institutions, is best placed to take the first mover advantage, Therefore, in order to achieve the potential, a well designed, systemic and collaborative approach is required with a clear long term roadmap to develop a robust, pro-growth landscape for the EV sector to bloom in the State. Today, the convergence of low cost technologies, smart design and integration, innovative business models with supportive policies will establish certain market segments as economically viable. Capturing these segments, electric vehicles can play en important role in cleaning the air, reducing congestion and strengthening the State's economy. Government of Karnataka intends to make Bengaluru-the Electrical Vehicle Capital of India, In this regard, a round table conference in associction with Carnegie India was held along with the Stakeholders from EV Industry, Academia, Center for Study of Science, Technology and Policy (CSTEP), Taxi aggregators to discuss and drive the growth of EV in Karnataka, taking into account global trends and existing challenges in the manufacturing sector etc. With the valuable recommendations, suggestions, interventions from the round table conference, Government of Karnataka desirous of formulating the Karnataka Electric Vehicle & Energy Storage Policy which would enable growth of the electric mobility sector in the State.1. Vision To make Karnataka, a preferred investment destination for manufacturing of Electric Vehicles (EVs) by leveraging advantages and opportunities available for sustained development of this promising segment”. 2. Mission >To make Karnataka, a preferred destination for development of Electric Mobility To promote a conducive manufacturing ecosystem in collaboration with the industry >To develop human capital to meet the need of the Industry 3. Objectives >To maintain the lead share of Karnataka as a preferred destination for attracting investments in manufacture of Electric Vehicles. »To attract investments of Rs 31,000 crore and create employment ‘opportunities to 55,000 persons both from supply & demand side. >To create a conducive environment for transition to Electric Vehicle environment from Internal Combustion (IC) engines. >To provide opportunities for developing R&D in Electric Mobility. 4. Strategies > Special Initiatives for EV manufacturing Support for charging infrastructure ¥ Support for Research Development and Skill Development » Incentives and Concessions5. Policy Measures 5.1 Special Initiatives for EV manufacturing 5.1.1 EV manufacturing Parks / Zones Quality infrastructure with comprehensive facilities is the pre-requisite for rapid development of any industry. Realizing this, following measures are proposed: a) Make industrial land available, preferably in clusters so that EV manufacturing zones can be created. b) Infrastructure in the form of readymade flatted factories with power, water, sewage and testing facilities on a ready built basis to enable ancillaries to be set up through PPP mode. ¢) Encourage establishment of a dedicated testing track and facility for electric vehicles and associated technologies, to make it easier for researchers and start-ups to test new technologies ina safe environment through PPP mode. 5.1.2 Migrating to EV environment 5.1.2.1 EV in non-transport and transport vehicles In order to promote adoptability of EVs, Government of Karnataka has exempted from payment of taxes on all electric non-transport and transport vehicles including e-rickshaws and e-cart under Karnataka Motor Vehicles Taxation Act 1957 with effect from 01/04/2016 vide Notification No, SARIE 76 SAEPA 2016 dtd 31/03/2016.5.1.2.2 EV in Private Transport In order to promote adoptability of EV in privdte transport the following measures will be taken in line with the announcements of Government of India. ) To support short distance shared mobility, electric two wheeler taxies will be encouraged. b) Existing auto rickshaws will be encouraged for retrofitting and move towards EV segment. ¢) The following segments of vehicles in Bengaluru will be encouraged to move towards EVs with an intention to achieve 100% electric mobility by 2030. Auto Rickshaws Cab Aggregators Corporate Fleets School Buses/ Vans vvy d) To encourage adoption of EV in short route public transport, a flexible stage carrier permit policy for electric buses allowing multiple/variable routes outside the BMTC Area will be examined. 5.1.2.3. EV in Public Transport In order to promote adoptability of EV in public transport the following measures will be taken in line with the announcements of Government of India.: a) BMTC, KSRTC, NWKSRTC and NEKRTC will introduce 1,000 EV buses during the policy period. b) Asa pilot project, BMTC will introduce "EV Vaayu Vajra” services in select routes to Kempegowda International Airport by the end of 2018. 105.1.2.4 EV in Goods Transport In order to promote adoptability of EV in goods transport the following measures will be taken in line with the announcements of Government of India, a) EV-Three wheelers / Four wheelers mini Goods vehicle in Bengaluru will be encouraged to move towards EVs in a phased manner with an intention to achieve 100% electric mobility by 2030. b) E-commerce and delivery companies in Bengaluru will be encouraged to replace their fleet of two wheelers/ three wheelers to EVs in a phased manner with an intention to achieve 100% electric mobility by 2030. 5.1.3 Facilitation to EV, Battery & Charging Equipment Manufacturing In order to promote investments in the EV, Battery & Charging Equipment Manufacturing, the following measures will be taken: 4) Karnataka Udyoga Mitra will facilitate, speed-track and enable a combined online application in order to get the clearances from environmental, labour and other line departments. b) Battery component contribute a substantial part of the total cost of EVs. Government of Karnataka will offer incentives to encourage manufacture of modular design lithium ion batteries with higher mileage per charge in the State, 5.2 Support for Charging Infrastructure Availability of charging infrastructure is a prerequisite for electric mobility. Government of Karnataka will develop charging infrastructure as a commercially viable business venture that attracts private investment. It is proposed to adopt BIS standards for charging equipment, mandating charging infrastructure in public buildings, amending building bylaws for provision of charging outlets, regular electricity supply etc. aa) Government of Karnataka in association with Industry & Academia will come out with standards for battery, charging infrastructure & swapping mechanism ete with a view to build interoperable network where different vehicles from different OEMs can participate: and recommend to Government of India b) Government of Karnataka will encourage private players to set up Automotive Research Association of India (ARAT)- compliant/BIS Standard, EV charging Systems/ infrastructure. €) Government of Karnataka will identify potential places and provide land belonging to Government / Government agencies, wherever available, on long lease basis for setting up of EV fast charging stations and battery swapping infrastructure by following a transparent bidding process. d) An Special Purpose Vehicle (SPV) involving BBMP,BMTC, BESCOM, KREDL, KIADB and other related agencies will be mooted for creation of Charging infrastructure in Bengaluru. e) Government of Karnataka will offer incentives by way of investment subsidy for setting up of the first lot of 100 fast charging stations. f) Government of Karnataka will facilitate providing required electricity supply from grid and examine special tariff at commercially viable rates for EV charging stations. 9) ESCOMs will examine bringing in amendments to their policies and allow re-sale of power to encourage setting up of charging stations. h) ESCOMs will examine permitting use of solar energy / renewable energy at low connection cost and offer zero wheeling charges by EV charging stations, 1) To facilitate EV mobility on highways between prominent cities with heavy density of vehicles such as the Bengaluru-Mysuru highway and others, fast charging station/ battery swapping infrastructure will be provided at every 50 kilometers. To support charging infrastructure the following measures will be taken: 2j) Amendments will be made to building bye-laws for providing charging infrastructure for EVs in all high rise buildings/ new SEZ / Technology Park / Apartments in the State. k) Existing apartment associations will be encouraged to provide special dedicated plug/ charging station facilitating adoption of EVs by their members. 1) BMRCL / BMTC / KSRTC / BBMP will provide charging stations for two wheelers at their parking stations to encourage EVs for last mile commute. m) Charging infrastructure for personal transport vehicles of Government employees would be made available at Vikasa Soudha Basement / Multistoried Building parking area and covered parking areas in all Government buildings across the State. n) Encourage lease / or pay-per-use business models with battery-swapping station network, integrated payment and tracking system in partnership with BMTC and other private players. 0) Government of Karnataka will facilitate deploying used EV batteries for solar application, create a secondary market and provide battery disposal infrastructure in PPP model. 5.3 Support for Research & Development Rapidly evolving technologies / convergence of low cost technologies, smart design and integration are the driving forces for encouraging penetration of electric vehicles. In order to encourage participation of industry, academia etc. the following initiatives are proposed. a) Government of Karnataka will constitute working groups for development of necessary technologies from concept to market in the areas of Drive technologies; Battery technologies; Charging infrastructure & network integration: standards and certification; materials and recycling: quality & training etc, b) Government of Karnataka will commission the ‘Kornataka Electric Mobility Research & Innovotion Centre’ and extend necessary support to make it a world class research hub, It will have a state of the art laboratory along with an incubation centre for budding EV engineers and entrepreneurs and will be commissioned on a PEP mode. B¢) Start up incubation centre will be set up to facilitate « developments in EV mobility d) Start ups will be encouraged to develop business models focused on electric vehicles. e) Research program in collaboration of EV industry with a focus on battery innovation will be introduced in Engineering College / Universities, f) A Venture Capital fund will be set up for research in EV mobility, 5.4 Support for Skill Development An EV skill development centre will be set up in collaboration with the industry for up-skilling the work force to augment the manpower required for the EV industry which will implement the following + Introduce curricula and courses suited to the EV industry in professional institutes, polytechnics as well as vecational education institutions, «A short term course on electric mobility. + To encourage in-plant training provided by the EV Manufacturers in the State by offering a stipend up to 50% of the cost of training subject toa limit of Rs.10,000/- per month per trainee. This incentive shall be available for maximum of 50 trainees per company. The benefit shall be available for 1,000 candidates per annum, 145.5 Incentives and concessions To attract investments in Electric Vehicle Manufacturing, EV Battery Manufacturing/Assembly and EV charging/Swapping Infrastructure Equipment Manufacturing Enterprises, attractive package of incentives and concessions will be offered by the Government. It is also proposed to offer subsidies to EV charging infrastructure providers like charging stations, lithium ion battery switching/swapping stations etc. to popularize use of EVs in the State. The details of incentives and concessions are at Appendix-1. 6. Special Package of Incentives & Concessions Special package of incentives/concessions will be considered for Ultra Mega and Super Mega EV Enterprises/ lithium ion Battery manufacturers catering exclusively for EVs & EV charging/Swapping Infrastructure Equipment Manufacturing Enterprises, by giving due weightage to investment, location of the project, direct and indirect employment to be generated and potential for attracting further investment through vendors and ancillaries etc. 7. Technical Committee to define/certify an EV enterprise A Technical Committee will be constituted under the Chairmanship of a Sector expert along with a maximum of 4 other members with Additional Director (ID), Department of Industries & Commerce as Member Secretary with a mandate to define/ certify EV components including EV lithium ion battery suppliers to EV manufacturing enterprises etc claiming incentives and concessions under the Karnataka Electric Vehicle & Energy Storage Policy. Electric Vehicle manufacturing units will be automatically eligible to avail incentives and concessions without coming before the Technical Committee for certification, 158. Review, monitoring & course correction mechanism A High Level Inter Departmental Review Committee will be constituted under the Chairmanship of Chief Secretary to regularly review implementation of all provisions of the policy and achieving the targets, suggest mid course corrections etc. Interpretation of provisions of the policy and decisions thereon of this committee shall be final, Separate operational guidelines for administration of the policy with the approval of the High Level inter departmental review committee will be issued for the guidance of the concerned agencies and of ficers. ‘A Working Sub-Committee under the Chairmanship of Commissioner for ID and Director of I&C will also be constituted in the Department of T&C to regularly monitor implementation of the Policy. This Committee will ensure that, necessary facilitation is extended to investors and provide feedback to the High Level Committee on the progress at regular intervals. 9. Validity of the Policy The Karnataka Electric Vehicle & Energy Storage Policy and package of incentives and concessions shall come into effect from the date of approval / issue of Government Order and will be valid for a period of five years or till a new policy is announced 16‘Appendix-1 Incentives & Concessions Electric Vehicle Sector in the State is still in nascent stage and requires support & encouragement. In order to give fillip to the sector in all parts of the State, the entire State has been classified as a single zone and incentives and concessions proposed will be applicable equally in all parts of the State. I. Incentives and Concessions to Electric Vehicle & its Components Manufacturing Enterprises All the EV manufacturing Enterprises will be eligible for the incentives and concessions. Manufacturing Enterprises of components required for Electric Vehicles such cs Motors, Power Trains, Power Electronics kits etc. will be eligible for incentives and concessions as per the policy subject to approval of the Technical Committee which would be constituted & mandated to define / certify EV component manufacturing enterprises. The following incentives & concessions shall be offered: 1. Micro, Small & Medium Enterprises A. Investment Promotion Subsidy 2) Micro Enterprises 25% ofthe Vole of Fixed Assets (VFA) (max. RS. 15.00 lakh) b) Small Enterprises 20% of the Voli of Fixed Asset (VFA) (max Re 40.00 oth) c) Medium Manufacturing Enterprises 255000 lakh Note: i. The Investment Promotion Subsidy will be available only to enterprises availing a minimum of 50% of term loans on eligible fixed assets from Financial Institution/Banks. Such eligible units shell claim Investment Promotion subsidy within cone year from the date of commencement of commercial production ii, There is no restriction on the quantum of loan to be availed from the financial institutions for availing other incentives and tax based incentives. Own financed units are also eligible for other incentives and tax based incentives. iii. This Investment Promotion Subsidy will be available over and above any other subsidy cs announced by the Government of India 7Note: B. Exemption from Stamp Duty 100 % Stamp duty to be paid in respect of (i) loan agreements, credit deeds, mortgage and hypothecation deeds executed for availing loans from State Government and/or State Financial Corporation, National Level Financial Institutions, Commercial Banks, RRBs, Co-operative Banks, KVIB/KVIC, Karnataka State SC/ST Development Corporation, Karnataka State Minority Development Corporation and other institutions which may be notified by the Government from time to time and (ii) for lease deeds, lease-cum-sale, sub-lease and absolute sale deeds executed in respect of industrial plots, sheds, industrial tenements by KIADB, KSSIDC, KEONICS, Industrial Co- operatives and approved private industrial estates/parks shall be exempted. C. Concessional Registration Charges For all loan documents, lease deeds and sale deeds as specified in B above, the registration charges shall be at a concessional rate of Rs.1 per Rs.1000, The exemption of stamp duty and concessional registration charges are also applicable to lands purchased under Section 109 of the KLR Act 1964 and also for direct purchase of industrially converted lands for the projects approved by SLSWCC / DLSWEC. The exemption of stamp duty and concessional registration charges are also available for registration of final sale deed in respect of lands, sheds, plots, industrial tenements after the expiry of lease period at the rate as specified which was in vogue at the time of execution of lease-cum-sale deed, D. Reimbursement of Land Conversion Fee 100% of the land conversion fee for converting the land from agriculture use to industrial use will be reimbursed. E. Subsidy for Setting up Effluent Treatment Plant (ETP) One time capital subsidy up to 50% of the cost of ETP, subject to a ceiling of Rs. 50 lakh. 18Note: F. Exemption from Tax on Electricity Tariff 100% exemption of duty / tax on electri period of Five years. ity tariff for the initial 2. Incentives and Concessions to Large, Mega, Ultra Mega and ‘Super Mega Enterprises A. Exemption from Stamp Duty 100 % Stamp duty to be paid in respect of (i) loan agreements, credit deeds, mortgage and hypothecation deeds executed for availing loans from State Government including VAT /SGST loan from Department and / or State Financial Corporation, Industrial Investment Development Corporation, National Level Financial Institutions, Commercial Banks, RRBs, Co-operative Banks, and other institutions which may be notified by the Government from time to time only and (ii) for lease deeds, lease-cum-sale, sub-lease and absolute sale deeds executed in respect of industrial plots, sheds, industrial tenements, by KIADB, KEONICS, KSIIDC, Industrial Co-operatives and approved private industrial estates/parks shall be exempted. B. Concessional Registration Charges For all loan documents, lease deeds and sale deeds as specified in A above, the registration charges shall be at a concessional rate of Rs.1.00 per Rs.1,000. The exemption of stamp duty and concessional registration charges are also applicable to lands purchased under Section 109 of the KLR Act 1964 and also for direct purchase of industrially converted lands for the projects approved by SHLCC / SLSWCC, i. The exemption of stamp duty and concessional registration charges are also available for registration of final sale deed in respect of lands, sheds, plots, industrial tenements after the expiry of lease period at the rate as specified which was in vogue at the time of execution of lease-cum-sale deed. C. Reimbursement of Land Conversion Fee 100% of the land conversion fee for converting the land from agriculture use to industrial use will be reimbursed. 19D. Subsidy for Setting up ETPs One time capital subsidy up to 50% of the cost of Effluent Treatment Plants (ETPs), subject to a ceiling of Rs. 200 lakh. E. Interest free loan on Net SGST to Large, Mega, Ultra Mega ‘and Super Mega Enterprises. All Large, Mega, Ultra Mega & Super Mega Enterprises established will be eligible for an interest free loan on Net SGST as below: Investment range on fixed assets (Rs.cr.) Interest free loan | Large Enterprises: | 100% of Net SGST will be sanctioned as interest free | loan from the date of commencement of commercial (ie. investment on| preduction es fellows Fixed assets above| | Rs.10 crore to Rs.250 Max, a Loan limit |erere | Period = ama VFA | | | | The loan shall be repaid as follows: | | | | The loan availed in the first year shall be repaid in the | | | 11th year ond the second year in the 12th year & so on. | | | This incentive is limited to either the period er loan | limits whichever is reached earlier and no carry | | forward is permitted. \ 20‘Mega Enterprises 100% of Net SGST will be sanctioned as interest free. Joan from the date of commencement of commercial (ie. investment on] production as follows fixed assets above Rs.250 crore up to Wax Rs.500 crore) | Period | Loan limit 10 | 70% of VFA | ‘The loan shall be repaid os follows: ‘The loan availed in the first year shall be repaid in the 11th year and the second year in the 12th year & so on. This incentive is limited to either the period or loan limits Whichever is reached earlier and ne carry forward is | permitted, | Ultra Mega | 100% of Net SGST will be sanctioned as interest free Enterprises: | loan from the date of commencement of commercial | production as follows \(ie. investment on fixed assets above [max. 7 7 Rs.500 crore up to| [eens nce RUC s.1,000 crore) [nT 80% of vFA | | ‘The loan shall be repaid as follows: ‘The loan availed in the finst year shall be repaid in the lth ! year and the second year in the 12th year & so on. | whichever is reached earlien end ne carry forward is| | permitted. | | Super Mega 100% of Net SGST will be sanctioned as interest free | Enterprises : loan from the date of commencement of commercial production as follows (le, investment on RS anetg j fixed assets above [ ‘Max. | | Rs.1,000 crore) | Period | bean limit | 13 permitted See Ee ee eo ct eee | | [aE ‘The loan shall be repaid as follows: ‘The loan availed in the fist year shell be repeid in the 11th | year ond the second year in the 12th year & so on, | This incentive i inited to either the pried or lon ints | whichever is reached earlier ond no carry forward is 2