The Karnataka Textile Policy 2019-2024 stands as a testament to the state government's commitment towards fostering growth, innovation, and sustainability within the textile sector. With a rich legacy in textiles dating back centuries, Karnataka boasts a diverse textile ecosystem encompassing spinning, weaving, garmenting, and allied industries. Recognizing the sector's immense potential as a driver of economic development, employment generation, and export earnings, the state government has formulated this policy to leverage existing strengths and tap into emerging opportunities.
In line with the national agenda for promoting 'Make in India' and 'Skill India,' the Karnataka Textile Policy underscores the importance of value addition, technological modernization, and skill development across the textile value chain.
This policy is valid from 4th November 2019 to 4th November 2024
| Sr. No. | Segment | MSME | Large |
|---|---|---|---|
| 1 | Thrust Sectors | ||
| Zone 1 | 30% of Fixed Assets | 25% of Fixed Assets | |
| Zone 2 | 25% of Fixed Assets | 20% of Fixed Assets | |
| Zone 3 | 20% of Fixed Assets | 15% of Fixed Assets | |
| Zone 4 | NA | NA | |
| 2 | Other Sectors | ||
| Zone 1 | 25% of Fixed Assets | 20% of Fixed Assets | |
| Zone 2 | 20% of Fixed Assets | 15% of Fixed Assets | |
| Zone 3 | 15% of Fixed Assets | 10% of Fixed Assets | |
| Zone 4 | NA | NA | |
| 3 | Additional Subsidy | Additional 5% capital subsidy on the value of Fixed Assets for SC/ST persons/ Persons with disabilities/ Minority/ Ex- servicemen/Women | Additional 5% capital subsidy on the value of Fixed Assets for SC/ST persons / Persons with disabilities/ Minority |
| Sr. No. | Segment | MSME | Large |
|---|---|---|---|
| 1 | All Sectors | ||
| Zone 1, 2, 3 | NA | 5% per annum Interest Subsidy on Term Loans for the first 5 years | |
| Zone 4 | NA | NA |
| Sr. No. | Segment | MSME | Large |
|---|---|---|---|
| 1 | Spinning | ||
| Zone 1, 2, 3 | Reimbursement of cost of power paid at INR 2.0 per unit for a period of 5 years | Reimbursement of cost of power paid at INR 2.0 per unit for a period of 5 years | |
| Zone 4 | NA | NA | |
| 2 | Weaving (Unconventional Looms) | ||
| Zone 1, 2, 3 | Reimbursement of cost of power paid at INR 2.0 per unit for a period of 5 years | Reimbursement of cost of power paid at INR 2.0 per unit for a period of 5 years | |
| Zone 4 | NA | NA | |
| 3 | Integrated Units | ||
| Zone 1, 2, 3 | Reimbursement of cost of power paid at INR 1.0 per unit for a period of 5 years | Reimbursement of cost of power paid at INR 2.0 per unit for a period of 5 years | |
| Zone 4 | NA | NA | |
| 4 | Processing Units | ||
| Zone 1, 2, 3 | Reimbursement of cost of power paid at INR 1.0 per unit for a period of 5 years | Reimbursement of cost of power paid at INR 2.0 per unit for a period of 5 years | |
| Zone 4 | NA | NA | |
| 5 | Technical Textile Units | ||
| Zone 1, 2, 3 | Reimbursement of cost of power paid at INR 1.0 per unit for a period of 5 years | Reimbursement of cost of power paid at INR 1.0 per unit for a period of 5 years | |
| Zone 4 | NA | NA | |
| 6 | Others Units | ||
| Zone 1, 2, 3 | Reimbursement of cost of power paid at INR 1.0 per unit for a period of 5 years | Reimbursement of cost of power paid at INR 1.0 per unit for a period of 5 years | |
| Zone 4 | NA | NA |
| Sr. No. | Segment | MSME | Large |
|---|---|---|---|
| 1 | All Sectors | ||
| Zone 1, 2, 3 | Stamp Duty Exemption and concessional registration charges rate of INR 1.00 per INR 1000 | NA | |
| Zone 4 | NA | NA |
| Sl. No. | Segment | MSME | Large |
|---|---|---|---|
| 1 | All Sectors | ||
| Zone 1, 2, 3 | 75% reimbursement of employer’s contribution of wage rate per employee per month for all the new units for a period of 5 years as EPF and ESI subsidy | NA | |
| Zone 4 | NA | NA |
| Sr. No. | Segment | MSME | Large |
|---|---|---|---|
| 1 | All Sectors | 50% capital subsidy or INR 5 crore whichever is less for establishment of Effluent Treatment Plants (ETPs) | |
| 2 | Integrated Units & Processing Units (All zones) |
| Sr. No. | Segment | All Units |
|---|---|---|
| 1 | Individuals (All Zones) | One time grant support for development of common infrastructure for Greenfield Parks up to 25% of the project cost or INR 25 crores per Park project, whichever is less |
| 2 | SPV (All Zones) | One time grant support for the development of common infrastructure for Greenfield Parks of up to 40% of the project cost or INR 40.00 crores per Park project, whichever is less |
| Sr. No. | Segment | All Units |
|---|---|---|
| 1 | SPV (All Zones) | One time grant support for the development of common infrastructure for Greenfield Parks of up to 40% of the project cost or INR 12.00 crores per Park project, whichever is less |
| Sr. No. | Segment | MSME | Large |
|---|---|---|---|
| 1 | Zone 1 | 25% of Fixed Assets | 20% of Fixed Assets |
| 2 | Zone 2 | 20% of Fixed Assets | 15% of Fixed Assets |
| 3 | Zone 3 | 15% of Fixed Assets | 10% of Fixed Assets |
| 4 | Zone 4 | NA | NA |
| 5 | Additional Subsidy | Additional 5% capital subsidy on the value of Fixed Assets for SC/ST persons/ Persons with disabilities/ Minority/ Ex- servicemen/Women | Additional 5% capital subsidy on the value of Fixed Assets for SC/ST persons / Persons with disabilities/ Minority |
| Sr. No. | Segment | MSME | Large |
|---|---|---|---|
| 1 | Zone 1,2,3 | NA | 5% per annum Interest Subsidy on Term Loans for the first 5 years |
| 2 | Zone 4 | NA | NA |
| Sr. No. | Segment | Micro & Small | Large |
|---|---|---|---|
| 1 | Zone 1,2,3 | Reimbursement of cost of power paid at INR 1.0 per unit for a period of 5 years | NA |
| 2 | Zone 4 | NA | NA |
| Sr. No. | Segment | MSME | Large |
|---|---|---|---|
| 1 | Zone 1,2,3 | NA | Stamp Duty Exemption and concessional registration charges rate of INR 1.00 per INR 1000 |
| 2 | Zone 4 | NA | NA |
| Sr. No. | Segment | MSME | Large |
|---|---|---|---|
| 1 | Zone 1,2,3 | 75% reimbursement of employer’s contribution of wage rate per employee per month for all the new units for a period of 5 years as EPF and ESI subsidy | NA |
| 2 | Zone 4 | NA | NA |
| Sr. No. | Segment | Medium | Large |
|---|---|---|---|
| 1 | Zone 1 | INR 1500 per employee per month. Applicable for a period 5 years where minimum employment is 200 or above | INR 1500 per employee per month. Applicable for a period 5 years where minimum employment is 500 or above |
| 2 | Zone 2,3 | INR 1000 per employee per month. Applicable for a period 5 years where minimum employment is 200 or above | INR 1000 per employee per month. Applicable for a period 5 years where minimum employment is 500 or above |
| 3 | Zone 4 | - | - |