|
INDIAN STATE : KARNATAKA
Investment Opportunities
Karnataka presents a plethora of investment avenues
spread across diverse industry verticals spanning both
products and services sectors.
With opportunities in virtually every facet of today's
economy, the State is a veritable treasure trove for
investors. Given the wide variety of options available,
Karnataka has so much to offer to every investor.
Focus Sectors for Investment
- Engineering
- Automobile and Auto Components
- Aerospace
- Aircraft Maintenance, Repair and Overhaul
- Information Technology
- Biotechnology
- Pharmaceuticals
- Apparels and Textiles
- Food Processing
- Steel and Metallurgical Industry
- Contract Research and R&D
- Oil Refining and Petrochemicals
- Tourism
- Express Highways
- Minor Seaports
- Minor Airports
- Water Supply Projects
- Waste Water Treatment Projects
- Industrial Parks / Townships
- Power Generation & Distribution
- Bridges, Flyovers & Urban Transport Systems
- Aerospace Technology & Aircraft maintenance
Investment Incentives
Investment Incentives as according
to New Industrial Policy (2006-11)
- Investment Subsidy
- Entry Tax Exemption
- Stamp Duty Exemption
- Concessional Registration Charges
- Special Concessions for Export
- Special Incentives to Mega Industries
- Waiver of Conversion Fee
- Relief Package for Revival/ Rehabilitation of Sick
Industries
Investment Incentives in the Information
Technology Sector
Karnataka is on the forefront of Information Technology
and is called the Silicon state of India. The state
capital, Bangalore, has shown tremendous growth in the
IT sector and is the IT capital of the country.
The Karnataka Government offers special assistance,
incentives and concessions for the Information Technology
industries, which have investments in fixed assets upto
US$ 21.6749 million
- Entry Tax Exemption: Information Technology industries
will be exempt from payment of Entry Tax on computer
hardware, computer peripherals and other capital goods
including captive power generation sets, during implementation
stage which can be extended upto 5 years from the
date of commencement of implementations
- Power Tariff Concessions
- Software industries will be treated as industrial
(and not commercial) consumers and electricity
tariff applicable to the industrial consumers
will be levied on such industries
- Software industries, which need electrical
power upto 5 KVA, will be permitted to be established
without any local restrictions and will be made
eligible for all incentives and concessions.
- As continuous uninterrupted and quality power
supply is one of the prime requirements of sustenance
and growth of Information Technology industries,
these industries will be given priority in the
sanctioning and servicing of power. The IT industries
will also be exempt from power-cuts without any
time limit.
- Quick Clearances from Pollution Control Board:
Karnataka State Pollution Control Board has simplified
the procedure for seeking clearances under the Air
Act and the Water Act for the software companies that
use captive DG Sets
- Concessions on Company Registration Charges IT companies
taking up expansion, diversification, and modernization
get concessions on registration charges
- In order to promote investment and create an investor
friendly environment for BPO sector in particular,
the government has announced an explicit BPO policy
Incentives in the Biotech Sector
The government of Karnataka formulated a biotech policy
with the aim of spreading awareness about the investment
opportunities in bio technology, genomics, bioinformatics,
biofuels, contract research, etc.
- Tax Concessions, similar to those given to the IT
industry.
- Fiscal Incentives: biotechnology industry will be
exempt from the payment of entry tax on all inputs
as well as capital goods, including captive generation
sets, during the implementation stage, which can be
up to 5 years or during the construction period whichever
is earlier.
- Mega projects will be offered a unique concession
package.
- Captive generation sets installed by the biotechnology
industry will be exempted from electricity tax for
a period of 5 years.
- Biotech companies will be treated as industrial,
not commercial consumers and the relevant electricity
tariff will be levied on such companies.
- Bioinformatics companies that use up to 5 KVA power
will be permitted to be established without any locational
restrictions.
- The government will encourage setting up of venture
capital funds for biotech industries with private
participation.
- Concessions will be provided for creating employment.
Prestigious Multinational Companies
Operating in Karnataka
The State's proactive stance and its investor friendly
policies have ensured that international investors have
Karnataka high on their list of preferred destinations.
Hence, it's but natural that several multinational companies
have made Karnataka their home. What's more, Karnataka
has the enviable status of the presence of these international
majors across diverse industry verticals. The following
is an indicative list of MNC 's who have Karnataka as
their preferred address.
- Information Technology:
IBM, Texas Instruments, Intel, Hewlett Packard, Novell,
Tandem, Digital, Motorola, Verifone, IMR, Siemens,
Bull, Citel, Philips, Elxsi, LG, British Aerospace,
Acer, Oracle, PHL, Sony, Hitachi, Lucent Technologies,
Sun Microsystems, Kindle Systems, Healthscribe, First
Ring, Compaq, SAP, Dell, Sanyo, Accenture, Honeywell.
- Electronics & Communications:
Sanyo, Lucent, 3M, AMP, TYCO, NEC, Samsung, Krone,
Rittal, GE, Yokogawa Blue Star, British Telecom, AT&T,
Airtel, Ericson.
- Machine Tools: Fanuc,
Widia, Fritz Werner, Makino, Alfred Herbert. Engineering:
SKF, Ingersoll Rand, Waltex, Durco, Wrigten, Goulds,
Moog Control, Yuken.
- Automobiles: Toyota,
Suzuki, Volvo, Hitachi, Komatsu. Auto Components:
Bosch, Rolls Royce, Rover, Delphi, Spicer, Denso,
Yuasa.
- Food Processing:
Unilever, Britannia, Nestle, Nissin, Pepsi, Coca-Cola,
Heinz, Wrigleys.
- Agriculture: Monsanto,
Advanta, Cargil.
- Pharmaceuticals:
Astra, Smithkline Beacham, Warner Lambert.
- Floriculture: Sayag,
Flodac, Noorcam, Stokmenrozen, Dalsemkassenvow.
- Apparel: Crocodile,
VanHeusen, Arrow, Allen Solly, Lee, Lacoste, Levi
Strauss, Tommy Hilfiger.
- Aerospace: GE,
Rolls Royce, BAE, Turbo Meca.
- Cement: Italicement
- R&D: GE, Exxon,
ABB, GM.
- Others: Kodak,
Yuken, Stumpp Schuele, Wilkinson Sword, Deneb Hitech,
Tractabel, Elf, Fosroc, Phoenix, Valtek.
Useful Web Links
|
