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INFORMATION TECHNOLOGY, BIO TECHNOLOGY AND SCIENCE

AND TECHNOLOGY SECRETARIAT

Sub :-

Operational Guidelines for implementation of the Semiconductor Policy of Karnataka State-2010.

Read :-

1. G.O. No. ITD 10 PRM 2008, Dated 25-02-2010.

2. C¥ÀgÀ ªÀåªÀ¸ÁÜ¥ÀPÀ ¤zÉðÃ±ÀPÀgÀÄ, PÉ©mïì EªÀgÀ ¥ÀvÀæ ¸ÀASÉå : PÉ©mïì/PÉÊGC/¸ÉPÀ¥Á/2010-11

¢£ÁAPÀ 23-09-2010.

Preamble:

In the Government Order read at (1) above, Government have announced the Semiconductor Policy of Karnataka State-

2010, that sets out a series of measures and initiatives that should be taken by the Government to attract significant investments to

Karnataka in the Semiconductor space.

In the letter read at (2) above the Additional Managing Director, KBITS has forwarded the Operational Guidelines for

implementation of the Semiconductor Policy of Karnataka State-2010, comprising of various formats/applications for availing the

benefits, concessions & fiscal incentives by the Semiconductor units/companies and constitution of Committees etc.

It is considered necessary to issue the Operational Guidelines for implementation of the Semiconductor Policy of Karnataka

State-2010. Hence this Order.

Government Order No. ITD 10 PRM (P) 2008, Bangalore, dated : 12-11-2010

In the circumstances explained in the preamble, Government are pleased to issue the Operational Guidelines as annexed to

this Government Order for implementation of the Semiconductor Policy of Karnataka State-2010.

By Order and in the name of the Governor of Karnataka

M.V. Krishnamurthy,

Under Secretary to Government,

Information Technology,

Bio Technology and Science & Technology Department.

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1.0 INTRODUCTION

The Government of Karnataka has announced the Karnataka Semiconductor Policy 2010, vide Government Order

No. ITD 10 PRM 2008 dated 25.02.2010.

The salient features of the Karnataka Semiconductor Policy-2010 are as follows:

a. As a policy support to encourage Innovation and R & D in Chip Design, Product Development, Telecom etc.,

Government will set up a fund known as 'KARNATAKA FUND FOR SEMI CONDUCTOR EXCELLENCE' of Rs.10 crores.

This Fund will be available to the Private Companies covering upto 50% of their R & D expenses, subject to a limit of

Rs.10 lakhs per Unit. This financial assistance would be subject to repayment of 10% of the profit (after tax) annually for a

period of 10 years. Preference would be given to fresh engineering graduates by identifying talent through projects submitted in

the college and start-up companies.

A Committee comprising of representatives of VTU, ISA, Industry, Scientists and Financial Institutions would be set

upto monitor the activities and functioning of the Fund.

b. Government of Karnataka would provide additional amount of Rs.25 crores, towards 26% contribution to the KITVEN

IT Fund for raising funds from the market to assist start up semiconductor units engaged in design and embedded software.

c. To encourage setting up of ATMPs in the State, Government of Karnataka would provide incentives set up in the State

by lowering the threshold investment for ATMPs. / eco-system units with investment above Rs.400 crores and upto Rs.1000

Crores. Incentives would be provided on a case-to-case basis approach based on specific employment potential.

d. Government of Karnataka will provide assistance of 50% of the total cost towards purchase of proposed equipment,

for augmenting the Orchid Tech Space in STPI to a Characterisation Lab. The remaining funds would come from the industry or

mobilized through PPP business model. This Lab will be a one-stop solution for hi tech facilities and will spur the growth of R &

D in future technology without financial burden to budding entrepreneurs.

e. Government of Karnataka would provide financial assistance to firms for filling IP in accordance with the incentives

provided in the Industrial Policy 2009-2014.

f. To encourage setting up of semi conductor units in Tier-2 cities other than Mysore, Mangalore, Hubli an incentive of

Investment Promotion Subsidy would be provided in accordance with the Karnataka Industrial Policy 2009-14.

g. Government to set-up a focused school under IIIT at a cost of Rs. 10 crores and strengthen the Research Labs in the

institute at a cost of Rs. 5 crores, with a contribution of 25% from the industry.

h. ATMP units will be encouraged with special incentives in the proposed ITIR near BIAL, Bangalore (Special incentives

for the ITIR to be announced separately).

i. Karnataka Power Corporation and Karnataka Renewable Energy Development Limited would take steps to develop

Solar Farms on Joint Venture / PPP mode in Bijapur, Gulbarga, Raichur and Bellary districts.

j. Government of Karnataka would provide all encouragement and assistance to the Solar PV Manufacturing Units under

the Karnataka Renewable Energy Policy.

Definition of Semi conductor industry

“Semiconductor Industry” would mean and include an industry engaged in any or all of the following activities:

Chip design

Chip manufacturing

VLSI design

Hardware / Board Design

Embedded Software Development

Wafer Fabrication

Assembly, Testing, Marking & Packing (ATMP)

Manufacture of LCDs, OLEDs, Plasma display panels, Storage devices

Solar Cells, Photo Voltaic Cells etc. and any other related / emerging technology.

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2.0

DEFINITIONS OF VARIOUS TERMS USED IN THE POLICY

As per the MSMED Act, 2006, Manufacturing Enterprises have been defined based on the investment in plant and machinery

and classified into:

2.01

MICRO ENTERPRISES

- Investment upto Rs.25 lakhs

2.02

SMALL ENTERPRISES

- I n v e s t m e n t above Rs.25 lakhs and up to Rs. 500 lakhs.

2.03

Medium Enterprises

- I n v e s t m e n t above Rs.500 lakhs and up to Rs.1,000 lakhs.

As per the MSMED Act, 2006, Service Enterprises have been defined based on investment in equipment

and classified into:

2.04

MICRO ENTERPRISES

- Investment upto Rs.10 lakhs

2.05

SMALL ENTERPRISES

- Investment above Rs.10 lakhs and upto Rs.200 lakhs.

2.06

MEDIUM ENTERPRISES - I n v e s t m e n t above Rs.200 lakhs and upto Rs.500 lakhs.

2.07

PLANT AND MACHINERY

S.O. 1722(E) In exercise of the powers conferred by sub-section (1) of 2006) herein referred to as the said

Act, the Central Government specifies the following items, the cost of which shall be excluded while

calculating the investment in plant and machinery in the case of the enterprises mentioned in Section 7(1)(a)

of the said Act, namely:

(i)

equipment such as tools, jigs, dyes, moulds and spare parts for maintenance and the cost of consumables

stores;

(ii)

installation of plant and machinery;

(iii)

research and development equipment and pollution control equipment

(iv)

power generation set and extra transformer installed by the enterprise as per regulations of the

StateElectricity Board;

(v)

bank charges and service charges paid to the National Small Industries Corporation or the

State Small Industries Corporation;

(vi)

procurement or installation of cables, wiring, bus bars, electrical control panels (not mounted on individual

machines), oil circuit breakers or miniature circuit breakers which

(vii) gas producer plants;

(viii) transportation charges (excluding sales-tax or value added tax and excise duty) for indigenous machinery from

the place of the manufacture to the site of the enterprise;

(ix)

charges paid for technical know-how for erection of plant and machinery;

(x)

such storage tanks which store raw material and finished produces and are not linked with the manufacturing

process; and

(xi)

fire fighting equipment.

While calculating the investment in plant and machinery refer to above, the original price thereof,

irrespective of whether the plant and machinery are new or second handed, shall be taken into account

provided that in the case of imported machinery, the following shall be included in calculating the value,

namely;

(i)

Import duty (excluding miscellaneous expenses such as transportation from the port o the site of the

factory, demurrage paid at the port);

(ii)

Shipping charges;

(iii)

Customs clearance charges; a

(iv)

Sales tax or value added tax.

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2.08

LARGE SCALE INDUSTRY/ ENTERPRISE

An Industrial Enterprise which is not classified as Micro, Small and Medium Enterprise and with investments upto Rs.

250 crores shall be classified as large scale industry/ enterprise.

2.09

MEGA PROJECT

Projects with an investment on fixed assets exceeding Rs.250 crores.

2.10

100% EXPORT ORIENTED ENTERPRISE [EXPORT ORIENTED ENTERPRISE]

A 100% Export Oriented Enterprise is one, which undertakes to export its entire production of goods subject to

relaxation as permitted by Govt. of India from time to time. Such Enterprise may be set up any where in the State

including under EPIP [Export Promotion Industrial Park] Scheme or under the EHTP [Electronic Hardware

Technology Park] Software Technology Park Scheme, Special Economic Zone, etc.

2.11

VALUE OF FIXED ASSETS (VFA)

Value of Fixed Assets shall mean the total investment made on land, building, plant & machinery and such other

productive assets viz., tools, jigs, and fixtures, dies, utilities like boilers, compressors, diesel generating sets, cranes,

material handling equipments electrical items including electrical wiring, M/c transportation & erection charges and

such other equipments directly related to production purposes.

2.13

NEW INDUSTRIAL ENTERPRISE

Shall mean an enterprise which undertake to invest on fixed assets on or after 25-2-2010 with own/ Bank/ Financial

Institution finance

2.14

INVESTMENT UNDER EXPANSION / MODERNIZATION / DIVERSIFICATION PROGRAMME

Shall mean quantum of investment by an existing enterprise under expansion/diversification/ modernization

programmes of not less than 50% of the original investment of the existing enterprise.

2.15

DATE OF COMMENCEMENT OF COMMERCIAL PRODUCTION

The date on which the first sale invoice is issued by the enterprise, after trial production.

2.16

INVESTMENT / CAPITAL INVESTMENT

For the purpose of package of incentives and concessions, investment / capital investment shall mean investment

made in fixed assets of the Enterprise.

2.17

STATE LEVEL CO ORDINATION COMMITTEE (SLCC)

Shall mean the committee constituted for administration of package of incentives and concessions and interpretation

of Government Orders.

2.18

SC/ST, WOMEN, PHYSICALLY CHALLENGED, EX-SERVICEMEN ENTREPRENEUR / ENTERPRISE

Shall mean the proprietor of the proprietary concern or all partners of the partnership firm or all the Directors in

private/ public limited company.

2.19

LOGISTIC FACILITIES SUPPORTING TO INDUSTRIES ONLY MEANS

Shall mean an investment under Medium, Large Enterprises only and quantum of investment for claiming various

incentives will be decided by a State Level Committee headed by the Director of IT

& BT on case to case basis. Committee will be constituted Separately.

2.20

DATE OF COMMENCEMENT OF THE IMPLEMENTATION OF THE PROJECT

Shall mean the date on which the first purchase invoice is raised for the plant and machinery or other productive

equipment.

2.21

VAT (FOR THE PURPOSE OF INCENTIVES AND CONCESSIONS OF SEMICONDUCTOR POLICY 2010)

Shall mean output tax payable (Not the net tax payable).

2.22

ESI & EPF (FOR THE PURPOSE OF INCENTIVES AND CONCESSIONS OF SEMICONDUCTOR POLICY 2010)

Shall mean the contribution payable by the enterprise (it excludes the contribution of employees)

2.23

APPROVED PRIVATE INDUSTRIAL AREAS/ESTATES

Shall mean the industrial areas/ estates formed with the approval of the DLSWCC/ SLSWCC or SHLCC, Specifying

with minimum number of shed/plots and minimum basic amenities on lines with the KIADB/KSSIDC,

Indl.areas/estates.

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2.24

HEALTH CARE CENTRE

Shall mean hospital having minimum facilities to provide medical assistance to employees and to attend any casualty

taking place in the industrial areas. This shall be supported with certificate from Health Department.

2.26

SLSWCC

Shall mean State Level Single Window Clearance Committee for consideration of application from entrepreneurs

intending to establish industries with the investment of upto rupees (50) fifty crores each to be set up in the State. This

was constituted under the Karnataka Industries (Facilitation) Act,

2.27

SHLCC

Shall mean State High Level Clearance Committee for consideration of application from entrepreneurs

intending to establish industries with the investment of above rupees (50) fifty crores each to be set up in the State.

This was constituted under the Karnataka Industries (Facilitation) Act,

2002 and notified under Notification No.CI 162 SPI 2001, Bangalore Dated 21st August 2004 and corrigendum

Dated 23rd December, 2005. (Annexure-57)

2.28

MULTI NATIONAL COMPANY

A Multi National Company is an Enterprise, which manages production or delivers services in more than one Country.

3.0

GUIDELINES FOR SANCTION OF CAPITAL INVESTMENT SUBSIDY TO PIPELINE STATUS OF INDUSTRIES

UNDER SEMICONDUCTOR POLICY- 2010

REF: 1. OFFICE CIRCULAR NO. ...................................................

2. Govt. Order No.-ITD 10 PRM 2008 Dated 25-2-2010

****

3.1.

PIPELINE STATUS OF UNITS FINANCED BY FINANCIAL INSTITUTION UNDER SEMICONDUCTOR

POLICY-2010

All the eligible units where loan is sanctioned by Bank/Financial Institutions on or after 25-8-2009 will be considered

under Semiconductor Policy-2010 for sanction of capital investment subsidy subject to the units fulfilling of all the

following conditions:

The unit should have obtained valid Registration on or after 25-8-2009 from the Department

of IT & BT...

ii.

First release of loan amount should have been released on or after 25-8-2009 and final installment of the

loan should have been released on or before 25-2-2010

iii.

Orders should have been placed for purchase of all the plant and machinery on or after 25-8-2009

copies of quotations and invoices / purchase orders, receipts of advance payments made

towards supply of plant and machinery etc. submitted to Bank/financial institution for availing loan

shall be submitted to the DIT.

iv.

50% of the building should have been constructed on or after 25-8-2009 and such enterprises

shall have commenced commercial production on or before 25-2-201 Approved building plan and

building construction license from the concerned authority should have been taken and

Power connection should have been serviced on or after 25-8-2009 if it is a power-based unit.

3.2.

SELF FINANCED PIPELINE STATUS OF UNITS UNDER SEMICONDUCTOR POLICY-2010

In case of self-financed enterprises the following conditions shall be satisfied as on 25-2-2010 to become eligible

under Semiconductor Policy-2010 for availing incentives and concessions.

The unit should have been obtained valid Regn with DIT/IEM acknowledgement on or after 25-8 2009

ii)

Land should have been acquired / land should have been converted in case of agricultural land or should have

entered into lease agreement in respect of leased land/building on or after 25-8-2009.

iii)

50% of the building should have been constructed in respect of own / lease land on or before 25 8-2009.

Approved building plan and building licence from the concerned authority should have been obtained.

iv)

Orders should have been placed for purchase of all the plant and machinery on or after 25-8-2009 and the

enterprises should have commenced the commercial production on or before 25-2-2010 In accordance with the

project report, copies of Quotations, invoices, purchase orders, receipts of advance payments of plant and machinery

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should be submitted to the DIT. Power connection should have been serviced on or after 25-8-2009 - if it is a power-

based unit

3.2.1.

All Eligible units as per Sl No. 3.1 and 3.2 have to submit subsidy application with all relevant documents to

the DIT before 1-1-2011 for sanction of capital investment subsidy. After which no applications shall be

entertained under Semiconductor Policy-2010.

3.2.2.

The Director, DIT have to submit the proposals of all the units in 3.1 & 3.2 in the prescribed format as in Annexure, to the

Secretariat IT & BT and obtain prior approval before sanctioning the Capital investment subsidy to eligible units.

3.3.

FOR BANK FINANCED/FINANCIAL INSTITUTION CASES UNDER SEMICONDUCTOR POLICY-2010

First release of loan should be on or after 25-2-2010

ii. Orders should have been placed for plant and machinery on or after 25-2-2010

iii. Such enterprises shall commence commercial production before 25-2-2011

The units fulfilling above conditions shall file an option application for exercising capital investment subsidy under

Semiconductor Policy-2010 with the Director IT & BT with necessary documentary evidence viz., PRC/ PMT/IEM Part I/II,

loan sanction letter, 1^stloan release document and copies of the purchase order placed for plant and machinery.

Options once exercised cannot be withdrawn and shall be binding.

NOTE :

The Director, IT & BT Dept shall issue certificates in respect of stamp duty, NA conversion, entry tax exemption after

the concerned departments issues concurrent notifications under Semiconductor Policy-2010 and also for

investments under expansion/ modernization/diversification programme Semiconductor Policy-2010.

4.0

INVESTMENT PROMOTION SUBSIDY UNDER SEMICONDUCTOR POLICY 2010:

Investment promotion subsidy shall be available to Manufacturing Micro, Small and Medium Enterprises

including SEZ units and Selected Service Enterprises listed at Annexure that have made new investments on fixed

assets on or after 25-2-2010- as new enterprise or an existing industries/ enterprises under expansion or

modernization or diversification programme.

This investment promotion subsidy is a performance linked. 25% of the subsidy sanctioned amount will be released

every year on refund basis towards the payments made by the enterprise in respect of gross VAT, ESI and PF and

power tariff.

In cases of enterprises which do not use power and not covered under VAT, EPF, ESI, the investment promotion

subsidy will be released against the loan dues.

The details of investment promotion subsidy available to MSMEs in different zones are as mentioned in the following

table.

Micro manufacturing Enterprises

Zone 1: 25% VFA (max. Rs.10 lakhs)

Zone 2: 20% VFA (max. Rs.7.5 lakhs)

Zone 3: 15% VFA (max. Rs.5.00 lakhs)

Small Scale manufacturing Enterprises.

Zone 1: 20% VFA (max. Rs.20 lakhs)

Zone 2: 15% VFA (max. Rs.15 lakhs)

Zone - 3 : 10% VFA (max.Rs.10 lakhs)

Zone 4 : Nil

Medium manufacturing Enterprises

(those who employ minimum

25 workers).

Zone 1 : Rs.30 lakhs

Zone 2 : Rs.20 lakhs

Zone 3 : Nil

Zone 4 : Nil

The investment promotion subsidy is available only to Enterprises that availed term loan from KSFC

/KSIIDC / Banks / other Recognized Financial Institutions from RBI.

Investment made on leased land/building with a minimum of 20 years lease period may also be

considered for promotional subsidy excluding the cost of the lease land/building.

The quantum of investment promotion subsidy shall be computed on the value of fixed assets (VFA) as

approved by the financial institutions/ commercial banks or actual investment in fixed assets at site, which ever is

less.

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Total quantum of investment promotion subsidy for any industrial enterprise shall not exceed the

prescribed upper limit, including for expansion, modernization, diversification, which is inclusive of investment

subsidy availed under earlier package of incentives on fixed assets.

Wherever MSMEs avail any kind of subsidy or grant under any other schemes/ policies of

Government of Karnataka/ Government of India, only differential amount of subsidy, if any would be sanctioned.

All eligible Enterprises under Semiconductor Policy-2010 shall submit application for sanction of

subsidy before the concerned DIT within a period from 6 months from the date of commencement of commercial

production. Enterprises that fail to comply this deadline will not be eligible for investment promotion subsidy.

Other terms and conditions not specifically mentioned herein above but indicated in the Government Order

No. ITD 10 PRM 2008 Date 25-2-2010 and subsequent amendments, clarifications issued by the State Level

Coordination Committee thereon shall apply mutatis-mutandis.

4.1

Procedure for claiming Investment Promotion Subsidy:

Eligible industrial enterprises shall apply with the following documents to the KBITS

Duly filled in Application in the prescribed format as in Annexure.

Original Statement of Fixed Assets in prescribed format, duly certified by the concerned financial institution as in

Annexure.

Original Investment certificate issued by the KSFC/KSIIDC/Bank/Other financial institutions in prescribed

format as in Annexure.

Original Certificate from Chartered Engineer/ Architect in prescribed format in respect of investment

made in building as in Annexure.

Form of declaration regarding employment of local persons in the prescribed format as in

Annexure.

A copy of the Project report duly signed by the Promoter. g)

Copy of Land documents/ records.

Copy of term loan sanction orders from KSFC/ KSIIDC/ Bank/ Other financial institutions.

Copy of First sale invoice

Copy of IEM acknowledgement Part - II.

Copy of registered partnership deed / Memorandum and Articles of Association/ byelaws.

Copy of Caste certificates in respect of SC/ST and appropriate certificate/ documents in respect of physically

challenged/ Ex-servicemen entrepreneurs.

Copy of power sanction/service, letter, VAT Registration Certificate. n)

ESI/EPF Registration copy.

Copy of approved building plan along with construction license. p)

Copy of license obtained from local authority.

4.2

Scrutiny of Investment Promotion Subsidy claim for sanction:

The KBITS shall scruting the claims for Sanction of Investment Promotion Subsidy on receipt of

application shall personally verify the genuineness of the claim with reference to the documents furnished by

the enterprise and On satisfying with the documents furnished by the enterprise, shall take up physical verification

of the enterprise and shall arrange to place the proposal before the SLCC for sanction of investment promotion subsidy

to the applicant enterprise.

The scrutiny of Investment Promotion Subsidy application has to be done in the following manner.

(i)

Land actually required for putting up the factory building with provision for immediate expansion shall be

considered.

(ii) Investment made on the factory building required for housing plant and machinery and storage of raw materials,

finished goods, drying yards, soaking pits and such other structures directly related to the production

purposes shall only be considered.

(iii) Reasonable area constructed for office use within the factory premises shall be considered.

(iv) Investment made on Guest/ Rest house, Decorative arch entrances, high-rise compound walls, goods carriers,

and such other non-essential structures should be excluded.

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(v) Value of building has to be accepted as certified by the KSFC/ KSIIDC/ Bank/ other financial institutions

and it should be cross checked with reference to the Chartered Engineer’s certificate.

(vi) The plant and machineries installed in the enterprise have to be verified with reference to the statement of

fixed assets duly certified by the KSFC/ KSIIDC/ Bank/ other financial institutions and value indicated in the

investment certificate has to be accepted if the plant and machinery matches with the investment certificate.

(vii) Miscellaneous items like computers, printers, fax machine and office furniture's used only for the concerned

enterprise purpose have to be considered.

(viii) The cost of old /second hand machinery and equipment shall be excluded for computing the investment in

the plant and machinery. However imported second hand machinery brought into the country for the first time

by the enterprise shall be considered, subject to such machineries shall have residual life span of minimum five

years.

(ix) Actual transportation cost, electrification of the plant and machinery and erection cost shall be considered.

(x) Any other investments directly made by the enterprise on eligible items, has to be certified by the KSFC/ KSIIDC/

Bank/ other financial institutions and it must be considered by obtaining the bills and receipts. This is subject to

the physical verification of such assets and the payments of more than Rs.20,000 should be by cheque/D.D.

(xi) Member Secretary, SLCC is responsible for attestation of documents and verification of local employment

details. He has to submit the investigation report as per Annexure-and prepare agenda notes for the SLCC

Committee as per the Annexure with the approval of Director IT&BT.

(xii) On obtaining approval from SLCC, the Director, DIT shall issue the Sanction order as per Annexure The

enterprise, on receipt of the Sanction order, shall furnish the undertaking as per Annexure.

4.3

STATE LEVEL COORDINATIVE COMMITTEE FOR SANCTION OF INVESTMENT PROMOTION SUBSIDY.

Director IT&BT

Chairman

CEO, KITVEN

Member

Joint Director(ID), I&CDept

Member

Addl Managing Director, KBITS

Member Secretary

4.4

RELEASE OF INVESTMENT PROMOTION SUBSIDY.

(i)

Enterprises who have been sanctioned Investment Promotional Subsidy shall submit their claim every year

i.e., on or before -31st March; indicating the value of VAT, ESI, EPF and Total Power tariff paid in the

prescribed format, along with the certified copies of the amount paid from the concerned agencies. In case

the enterprise is working with out power and not covered by VAT, ESI & EPF, shall claim for refund of loan

amount (both principal and interest) paid to concerned financial institutions/ banks in the format as in

Annexure. For this purpose, year means from 1st April to 31st March.

(ii)

Actual VAT, ESI, EPF and Total Power tariff paid and actual loan due paid should only be considered

for reimbursement and no penalties/ fines/ monthly minimum charges for closure period shall be considered

for computation.

(iii) After verifying the documents the Director, IT & BT shall submit the consolidated claim of all the enterprises in

Annexure to Govt for release of funds, on or before 30th May and on receiving the budget allocation from the

DIT, the AMD, KBITS will reimburse max of 25% of the sanctioned promotion subsidy to the Enterprise. The

release order shall be in the Annexure.

(iv) The Enterprise has to avail the sanctioned Investment Promotion Subsidy within the period of five years from the

date of sanction of the subsidy amount. Unutilized portion of sanctioned subsidy amount if any after 5 years

from the date of subsidy sanctioned will automatically get lapsed. The last years claim shall be made on or

before the date of 5 years from the date of sanction of Investment Promotion Subsidy.

(v) The eligible amount shall be disbursed on payees receipt, duly countersigned by the Director, IT & BT The

Investment Promotion Subsidy amount may also be released to the financial institution or bank, if there is any

power of attorney to that effect or otherwise directly to the enterprise. Separate registers should be

maintained by the KBITS/ DIT to watch the total period and amount of Investment Promotion Subsidy granted

and availed by each enterprise.

NOTE:

The sanctioned Investment Promotion Subsidy amount will be released subject to the availability of grants from

the Government. The enterprise concerned can't claim it as a right as the said amount is being released as

Grant-in-aid.

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5.0

EXEMPTION FROM STAMP DUTY

MSME, Large and Mega Projects:

Stamp duty to be paid in respect of (i) loan agreements, credit deeds, mortgage and hypothecation deeds

executed for availing term loans from State Govt. and / or State Financial Corporation, Industrial Investment

Development 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 for the initial period of five years only and (ii) for lease deeds, lease-cum-sale and absolute sale

deeds executed by industrial Enterprises in respect of industrial plots, sheds, industrial

tenements, by KIADB,KSSIDC,KEONICS, KSIIDC, Industrial Co-operatives and approved private industrial estates

shall be exempted as below :

Zone 1

100%

Zone 2

100%

Zone 3

75%

Zone 4

Nil

5.1

CONCESSIONAL REGISTRATION CHARGES

MSME, Large and Mega Projects:

For all loan documents and sale deeds as specified in2 above, the registration charges shall be at a

concessional rate of Re.1 per Rs. 1000.

Note : (i). The exemption of stamp duty and concessional registration charges are also applicable to lands

purchased under Section 109 of the KLR Act nd also for direct purchase of industrially converted

lands for the projects approved by SHLCC / SLSWCC /DLSWCC. This incentive will also be applicable

for the land transferred by KIADB to land owners as compensation for the acquired land.

(ii)

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 in the Industrial Policy which was in vogue at the time of execution of lease-cum-sale

deed.

6.0

REFUND OF LAND CONVERSION FINE UNDER SEMICONDUCTOR POLICY-2010

The payment of conversion fee for converting the land from agriculture use to industrial use including for development

of industrial areas by private investors will be waived as detailed below:

Zone-1

100%

Zone-2

100%

Zone-3

75%

Zone-4

Nil

Waiver of Conversion fine is available only to Manufacturing MSMEs and Selected Service

Enterprises listed at Annexure, Large & Mega Industries (i.e. new and Expansion/ Modernization/

Diversification programme only) and approved private Industrial Areas/ Estates.

The waiver of conversion fine will be reimbursed to the eligible enterprises after implementation of

projects i.e. after commencement of the commercial production by the individual enterprises and after completion of

the implementation of the private industrial areas/ estates in all manners (i.e., Area/ Estate shall have all the

infrastructure facilities)

NOTE :

The enterprises obtain land conversion letter from Revenue Department and implements

the projects within the operational period of the policy shall only be considered.

The above reimbursement benefit is available for both own and financed enterprises also.

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6.1

PROCEDURE FOR CLAIMING REFUND OF LAND CONVERSION FINE

The eligible Micro, Small, Medium, Large enterprises, Mega projects and also promoters of private industrial

areas/ estates shall apply to the DIT/ KBITS along with the following documents for claiming reimbursement of

conversion fine;

(xii) On obtaining approval from SLCC The Director DIT, shall issue the Sanction order as per

Annexure-. The enterprise, on receipt of the Sanction order, shall.

Application in plain paper / letterhead.

Copy of the IEM acknowledgement part II or industrial license.

iii

Copy of approved building plan and building construction license. iv

Copy of Land documents/ records.

Copy of land conversion order issued by Revenue Department and Copy of payment receipt made for land

of conversion.

Copy of Project Report, duly signed by the promoter.

vii

Copy of Single Window Clearance Committee approvals.

viii Copy of ESCOMs power sanction and service letter.

Copy of First Sale Invoice in respect of individual enterprises.

Copy of Layout map showing the land utilization in respect of individual enterprises and approved layout in

respect of private industrial areas.

Copy of Partnerhip deed/ memorandum and Articles of Association/ Bye-laws.

6.2

SCRUTINY OF THE CLAIMS RECEIVED FOR REFUND OF LAND CONVERSION FINE REIMBURSEMENT.

6.2.1.

MICRO, SMALL AND MEDIUM ENTERPRISES

The DIT/ KBITS after verification of the eligibility of the MSME's has to seek the required funds from

the Secretariat IT&BT for reimbursement of Conversion fine, on quarterly basis in the prescribed format

as in Annexure On receipt of the funds the amount will be released to the concerned enterprise vide

sanction order as in Annexure.

6.2.2

LARGE AND MEGA INDUSTRIES

The DIT/ KBITS after verification of the claim has to recommend the proposal to the Secretariat

IT&BT for reimbursement of Conversion fine and DIT after verification of the eligibility of the large and

Mega Industrial enterprises, shall reimburse the conversion fine for Large and Mega industries in the

prescribed format as in Annexure of commercial production.

7.0

EXEMPTION FROM PAYMENT OF ENTRY TAX UNDER SEMICONDUCTOR POLICY-2010

Entry Tax Exemption shall be available to Semiconductor Industries listed in the Annexure ( i.e. new and Expansion/

Modernization/ Diversification only including own/financed enterprises)

Zone

During implementation

During operational phase

1, 2&3

100% exemption from payment of ET on 'Plant &

Machinery and Capital Goods' for an initial period

of 3 years from the date of commencement of project

implementation. For this purpose, the term 'Plant & Machinery

and Capital Goods' also includes Plant & Machinery, equipment

etc. including machineries for captive generation of Electricity.

On raw materials, inputs, component

parts & consumables (excluding

petroleum products) [wherever

applicable] for a period of 5 years

from the date of commencement

of commercial production.

NIL

7.1

PROCEDURE FOR AVAILING ENTRY TAX EXEMPTION:

The eligible Micro, Small, Medium Enterprises, Large and Mega enterprises shall apply to the Director

DIT/ KBITS along with the required documents.

7.1.1

The documents to be furnished by the enterprises for availing entry tax exemption during project

implementation are given below.

Application in plain paper/ letter head

Copy of the IEM Acknowledgement Part I / II or industrial licence

Copy of 1st purchase order placed for machinery.

Copy of the Project Report, duly signed by promoter.

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Copy of Single Window Clearance Committee approval letter if any.

Land documents/ records.

Term loan sanction order, if any.

VAT registration copy.

Copy of partnership deed/ Memorandum and Articles of Association/ Bye-laws.

List of plant and machineries and other equipments with their value required for implementation of the project

7.1.2

The to be furnished by the enterprises for availing entry tax and special entry tax exemption during

operational phase are given below.

Application in plain paper/ letter head.

Copy of the IEM acknowledgement Part I / II or industrial license.

Copy of First sale invoice

Copy of the Project Report, duly signed by promoter.

Copy of Single Window Clearance Committee approval letter if any.

Land documents/ records.

Term loan sanction order and investment certificate by Banks, if any.

CA certificate in case of self financed enterprise as per Annexure.

Form of declaration regarding employment of local persons in Annexure.

VAT Registration Certificate.

k. Copy of partnership deed/ Memorandum and Articles of Association/ Bye-laws.

Statement of details of annual requirement of raw materials/ inputs/ components and consumables

for which entry tax exemption to be claimed.

The Director IT & BT/ KBITS after verification of the claim of the enterprise has to issue the entry tax exemption

certificate to the enterprise in the prescribed proforma as in Annexure.

8.0

I N C E N T I V E S F O R E X P O R T O R I E N T E D E N T E R P R I S E S U N D E R SEMICONDUCTOR POLICY 2010.

Exemption from payment of Entry Tax

100% exemption from payment of Entry Tax on Plant and Machinery and Capital Goods for an initial period of 3 years

from the date of commencement of project implementation is available to all 100% EOUs Manufacturing Micro,

Small and Medium Enterprises and Large and Mega industries both for establishment of new enterprises or for

Expansion, Diversification, and Modernization of existing industries, irrespective of zone (i.e. for both own/ financed

enterprises)

For other manufacturing MSMEs, Large and Mega (both own/ financed) new or Expansion/ Modernization/

Diversification EOUs, (minimum export obligation of 25% of their total turn over) 100% exemption is available from

payment of Entry Tax on raw materials, inputs, components, parts and consumables (excluding petroleum

products) for an initial period of 3 years from the date of commencement of commercial production in Zone -1,

2 and 3 and 50% in Zone-4.

8.1

Procedure for availing incentives for EOUs :

The eligible Micro, Small, Medium Enterprises, Large and Mega enterprises shall apply to the Director, IT & BT/ KBITS

along with the required documents.

The documents to be furnished by the 100% EOU enterprises for Entry tax exemption Certificate during project

implementation are given below.

Application in letter head/ plain paper.

Copy of the IEM acknowledgement Part I / II or industrial license.

Copy of 1st purchase order placed for machinery.

Copy of 100% EOU Certificate from Government of India.

Copy of the Project Report, duly signed by promoter.

List of plant and machineries and other equipments with their value, required for

implementation of the project.

Copy of the partnership deed/ Memorandum and Articles of Association / Bye -Laws.

Copy of Single Window Clearance Committee approval letter if any.

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Land documents/ records.

Term loan sanction order, if any.

VAT registration copy

Note: The date of commencement of project means the 1st purchase order placed for purchase of machinery and

equipment by the enterprise.

The documents to be furnished by the EOU enterprises for Entry tax exemption Certificate during project

implementation are given below.

Application in letter head/ plain paper.

Copy of the IEM acknowledgement Part I / II or industrial license.

Copy of first sale invoice.

Copy of the Project Report, duly signed by promoter.

Copy of Single Window Clearance Committee approval letter if any.

Land documents/ records.

Term loan sanction order and Export Performance Certificate by the financial institutions / RBI.

Export Performance Certificate from CA.

Form of declaration regarding employment to local per.

VAT registration copy.

Copy of the partnership deed/ Memorandum and Articles of Association / Bye Laws

Statement of details of annual requirement of all inputs for which entry tax exemption to be claimed.

The Director, IT & BT/ KBITS after verification of the claim of the enterprise has to issue entry tax exemption

certificates to 100% EOUs and other EOU enterprises in the prescribed proforma, as in Annexure.

9.0

REFUND OF CERTIFICATION CHARGES

Refund of expenses incurred for compulsory marking certificates viz Conformity Europeenne (CE), & China

Compulsory Certificate (CCC) is available to the extent of 50% of expenses subject to a maximum of Rs. 2

lakhs per enterprise both for 100% and other EOUs in all zones (i.e., for both own / financed new enterprises only

including expansion/ modernisation/ diversification projects)

The benefit for any other certificate will be approved separately by the SLCC.

The eligible Micro, Small, Medium Enterprises, Large and Mega enterprises shall apply to the Director, IT & BT along with

the required documents.

The documents to be furnished by the enterprise for claiming Refund of Certification Charges are given below:

Application in letter head/ Plain paper

Copy of the IEM acknowledgement Part II or industrial license

Copy of First Export sale invoice

Copy of the Project Report, duly signed by promoter.

Copy of Single Window Clearance Committee approval letter if any.

Copy of certificate of origin.

Copy of 100% EOU/ EOU Performance certificate.

Copy of compulsory marking certificate.

Copy of bills and receipts for the expenses incurred for getting the certificate.

Orders monitoring the requirement of the compulsory marking.

9.1

PROCEDURE FOR REFUND OF CERTIFICATION CHARGES.

Micro, Small and Medium Enterprises

The Director, IT & BT after verification of the eligibility of the MSME's for refund of certification charges, has

to seek the funds from Govt. on quarterly basis in the prescribed format as in Annexure.

On receipt of the funds the Director, IT & BT shall Issue appropriate office order for reimbursement

certification charges in the prescribed format as in Annexure.

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Large and Mega Industries

The Director, IT & BT/ KBITS after verification of the eligibility of the Large and Mega Industries for refund of

certification charges, has to recommend the proposal to Govt for refund.

The Director, IT & BT/ KBITS has to verify the eligibility of the enterprise for refund with budget allocation and

Issue appropriate office order for reimbursement In the prescribed format as in Annexure.

Note:

This is onetime refund provision for MSME, large and Mega industries and it will be for only one certification per

enterprise.

10.

INVESTMENT SUBSIDY FOR SETTING UP OF ETPS UNDER SEMICONDUCTOR POLICY 2010

One time capital subsidy up to 50% of the cost of Effluent Treatment Plants (ETPs) is available to Manufacturing

Micro, Small and Medium Enterprises and Service Enterprises as in Annexure Manufacturing SEZ

Enterprises, Large and Mega industries both for establishment of new enterprises or for expansion, diversification, and

modernization of existing industries, subject to a ceiling of Rs. 100 lakhs per manufacturing enterprises in zone-1, 2

and 3 and a ceiling of Rs. 50 lakhs in zone-4 (i.e., for both own /financed enterprises).

10.1

GUIDELINES FOR SANCTION OF INVESTMENT SUBSIDY TO EFFLUENT TREATMENT PLANTS

(a) For Micro, Small and Medium Enterprises, which have taken Capital Investment Subsidy under the

Semiconductor Policy 2010 or any other Policy on fixed assets including ETP, the subsidy on ETP investment

should be deducted from the Capital subsidy of 50% of the cost of ETP. However, this condition does not

applicable to industries in zone 4.

One time Capital Subsidy is available only to ETP and not for Sewage Treatment Plant (STP). For the purpose

of calculation of investment on ETPs, ETP means both air pollution control equipments and water

pollution control equipments and its fixed assets. The value of fixed assets investment of main unit shall be equal

or more than the value of fixed capital investment of ETP.

(b) PROCEDURE FOR CLAIMING SUBSIDY FOR ETPs

Eligible Micro, small, medium enterprises and large and mega industries shall file an application in

duplicate in the prescribed format along with the following enclosures to the Director, IT & BT / KBITS.

Documents to be furnished as below :

Application in the prescribed format

Detailed Project report and Plan of ETP approved by KSPCB.

Copy of the term loan sanctioned letter from financial institution d.

IEM / PMT / IL

Partnership Deed / Memorandum and Articles of Association.

Investment made on ETP certified by financial institution with all details for financial institution

cases and C A. certificate for all self financed cases.

CFE & CFO issued by KSPCB

Environment Clearance Certificate (ECC) issued by DFEE / MOEF, wherever applicable.

Form of declaration regarding employment of local persons in prescribed format.

Environment Management Plan (EMP).

Invoices, bills, voucher and receipts of the ETP.

Compliance certificate to the consent condition from KSPCB and certification for investment

on ETP.

Chartered Engineers / Architects certificate.

Stateent of fixed assets.

(c ) COMMITTEE FOR SANCTION OF SUBSIDY FOR ETPs:

Director, IT & BT

Chairman

Member Secretary, KSPCB

Member

Director, Technical Cell, Department of

Ecology and Environment Department

Member

Joint Director(ID)I&C Dept

Member

Addl Managing Director, KBITS

Member Secretary

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(d) SCRUTINY OF ETP SUBSIDY CLAIM:

The application for capital subsidy of ETP filed by the eligible industrial enterprises in the DIT/ KBITS,

the Committee comprising of representative from KSPCB, Director, IT & BT shall take up physical

verification of the company / ETP on receipt of application and shall arrange to place the case before

the committee with detailed report for sanction of subsidy to ETPs.

After obtaining the approval from the Committee, the Director, IT & BT shall issue sanction order as in

Annexure subject to the company files the application with all relevant documents.

(e) RELEASE OF INVESTMENT SUBSIDY TO ETPS:

After the enterprise obtaining the sanction order shall execute an agreement as in

Annexure- The KBITS, on obtaining funds from the Government, shall release the money to the

enterprise's Bank Account.

ANCHOR UNIT SUBSIDY UNDER SEMICONDUCTOR POLICY-2010

Anchor Investment Subsidy of Rs.100.00 lakhs shall be available for the first two new manufacturing

enterprises with minimum employment of 100 members and minimum investment of Rs.50.00 crores in each of

the taluks coming up in Zone-1, 2 and 3. This subsidy will be applicable only in taluks where no manufacturing

industrial enterprises with investment of Rs.50.00 crores and above exist at present.

11.1

PROCEDURE TO CLAIM ANCHOR UNIT SUBSIDY

The eligible unit for sanction of Anchor Unit Subsidy shall file an application along with the required

documents in duplicate in the same form followed for sanction of investment subsidy to the concerned Director,

IT & BT/ KBITS who shall verify the claims and after physical verification recommend the eligible proposal to the

Director, IT & BT for sanction of Anchor Unit Subsidy. The ED, KBITS while recommending the proposal shall

certify that the unit has invested more than Rs.50 Crores with minimum employment of 100 members and there

are no such units in the taluk at present.

The Director, IT & BT on receipt of the proposal from the AMD, KBITS shall scrutinize and after random

checkup, will place the subject before the Committee (constituted for sanction of investment subsidy

for ETPs) for sanction of subsidy. After obtaining the approval from the Committee, the Director, IT & BT

shall issue the sanction order to the unit as in Annexure.

11.2

RELEASE OF SANCTIONED SUBSIDY AMOUNT:

After the unit obtaining sanction orders, shall execute an agreement as in Annexure-The Director, IT & BT on obtaining

funds from the Government, shall release the money to the unit's Bank account.

12.0

SPECIAL INCENTIVES FOR ENTERPRISES COMING UP IN LOW HDI DISTRICTS UNDER SEMICONDUCTOR

POLICY 2010

New manufacturing large and mega enterprises setting up facilities in six districts having bottom most Human

Development Index (HDI) and employing at least 75% local persons as defined in the Dr. Sarojini Mahishi

recommendations will be offered 75% reimbursement of expenditure on account of contribution towards Employees

State Insurance (ESI) and Employees Provident Fund (EPF) scheme for a period of initial five years from the date of

commencement of commercial production.

However, these benefits over a period of five years will be limited to 25% of value of fixed capital investment.

The amount of reimbursement will be paid annually based on minimum statutory limit subject to the condition that

the enterprise has paid its contribution towards ESI & EPF promptly on the due dates. Following are the six districts

having bottom most Human Development Index:

Sl.No.

District

HDI* (2001)

Bagalkot

0.591

Bijapur

0.589

Koppal

0.582

Chamarajanagar

0.576

Gulbarga

0.564

Raichur

0.547

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12.1

DOCUMENTS TO BE FURNISHED FOR CLAIMING SPECIAL INCENTIVES

Eligible industrial enterprises shall apply with following documents to KBITS.

Application in letterhead.

Project report

Details of ESI/EPF contribution paid

SLWCC / SHLCC approval.

Statement of Fixed Assets in prescribed format, duly certified by the concerned financial institution or

C.A.

Copy of First sale invoice

Copy of EM certificate.

Form of declaration regarding employment of local persons in prescribed format

Copies of registered partnership deed and Memorandum of Articles of Association in case of private/public

limited companies, byelaws in respect of co-operative institution.

Copies of the ESI & EPF payments with receipt.

List of all the employees indicating their date of joining into service, their basic pay, designation, caste as to

whether they are local or outsider.

12.2

SCRUTINY OF CLAIM

The Director, IT & BT/ KBITS on receipt of application shall inspect the enterprise and verify the working

condition of the enterprise and also the genuineness of the employment provided to local people with reference to

their documents and then forward the proposal to Govt. The Director, IT & BT will issue the release orders to the

eligible enterprises. The eligible amount shall be disbursed on payees receipt, duly countersigned by the Director,

IT & BT. Separate registers should be maintained by both the DIT and KBITS office to watch the total period and

amount of reimbursement to each enterprise.

13.0

INTEREST SUBSIDY TO MICRO ENTERPRISES UNDER SEMICONDUCTOR POLICY 2010

Interest subsidy at 5% on term loans shall be available only to micro manufacturing enterprises who avail term

loan from bank/financial institutions subject to prompt repayment of the loan installments. The interest

subsidy is payable only on the interest actually paid to financial institutions and not defaulted in payment of principle or

interest installments. The amount of interest subsidy will be effective rate of interest (after deducting interest subsidy

receivable by any institutions/ under any Government of India scheme) or 5% per annum which ever is less.

The period of interest subsidy is 5 years, 4 years and 3 years in Zone-1, Zone-2 and Zone-3 respectively.

Interest subsidy shall be available from the date of 1^st loan release, however the enterprises has to claim the

benefit only after commencement of commercial production.

13.1

DOCUMENTS TO BE FURNISHED FOR CLAIMING INTEREST SUBSIDY:

Application on letterhead/plain pper.

EM Part II

Bank/financial institution term loan sanction letter.

Investment Certificate in the prescribed form from bank/ financial institution

Copy of First Sale Invoice.

Certification from the bank for claiming interest subsidy in the prescribed proforma-

Fixed assets investments details.

13.2

SCRUTINY OF CLAIM

The Director, IT & BT & AMD, KBITS on receipt of completed application should inspect the enterprise and verify the

working condition of the enterprise and then place it before the SLC for sanction of investment subsidy on term

loan once in a year. The Director, IT & BT shall seek funds from Govt on yearly basis, furnishing the details of the

enterprises to which the interest subsidy is sanctioned. On obtaining the funds from Govt, the eligible amount

shall be disbursed on payees receipt, duly countersigned by the Director, IT & BT. The interest subsidy

amount may also be released to the financial institution or bank, if there is any power of attorney to that effect or

otherwise directly to the enterprise. Separate registers should be maintained by both the Head Office and the KBITS

office to watch the total period and amount of subsidy granted and availed by each enterprise.

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EXEMPTION FROM ELECTRICITY DUTY

Micro & Small Mfg. Enterprises 100% exemption of electricity duty / tax for the initial period of five years,

four years and three years in Zone-1, Zone-2 and Zone-3 respectively.

15.

INCENTIVES FOR TECHNOLOGY UPGRADATION, QUALITY CERTIFICATION AND PATENT REGISTRATION

UNDER SEMICONDUCTOR POLICY 2010

15 A

INTEREST SUBSIDY ON TU LOAN:

The New or the existing Micro and Small Manufacturing Enterprises which undertakes Expansion/ Modernization/

Diversification programme, which have availed loan from KSFC/KSIIDC/Scheduled Commercial Banks, which are

not covered under CLCSS of GOI, are eligible to Claim an interest subsidy of 5% on Technology Upgradation

loans. The interest subsidy is payable only on the interest actually paid to the financial institutions and not defaulted in

payment of principal or interest.

The period of Interest subsidy is 5 years, 4 years and 3 years in Zone-1, Zone-2 and Zone-3 respectively.

Interest subsidy shall be available from the date of 1st loan release; however the enterprises have to claim the

benefit only after commencement of commercial production.

Documents to be furnished for claiming interest Subsidy on TU Loan:

Application on letterhead/plain paper.

ii.

EM Part - II.

iii.

Bank/financial institution term loan sanction letter.

iv.

Investment Certificate in the prescribed form from bank/financial institution.

Copy of First Sale Invoice.

vi.

Certification from the bank for claiming interest subsidy in the prescribed Performa.

vii. Fixed assets investments details.

The Eligible Micro and Small Enterprises shall file the application along with the documents mentioned above to the

Director, IT & BT or KBITS.

ROLE OF THE AMD, KBITS:

The AMD, KBITS on receipt of the complete application shall inspect the enterprise and verify the working

condition of the enterprise. After confirming the existence of the enterprise, the AMD, KBITS shall recommend the

applications to Director, IT & BT for sanction of interest subsidy.

THE COMMITTEE FOR SANCTION OF SUBSIDY:

Sl.No.

Designation

Role

Director, IT&BT

Chairman

MD, KCTU

Member

CEO, KITVEN

Member

Addl Managing Director,

KBITS

Member Secretary

15 B

INCENTIVES TO MICRO AND SMALL ENTERPRISES FOR OBTAINING ISO CERTIFICATION:

The New or the existing Micro and Small Manufacturing Enterprises which undertakes Expansion/ Modernisation/

Diversification programme (Both own and financed enterprises) have emerged as dynamic and vibrant sector of

Indian Economy and it has been making significant contribution to industrial production, export and employment

generation. The process of economic liberalization and market reforms has opened up the Indian Micro and Small

Enterprises to the global competition.

In order to enhance the competitive strength of the Micro and Small Enterprises, the Government introduced an

incentive scheme for their quality improvement and environment management. The scheme provides incentive to

those micro and small enterprises that have acquired ISO 9000/ISO 14001/HACCP Hazzard analysis and critical

control point, ISO 22000/(GHP) Good Hygenic Practices/ (GMP) Good Manufacturing Practices/(NABL) National

Accredition Board of Testing & Calliberation Laboratory/(STQC)

Standardisation

Testing

Quality

Certification/FPO (Fruit Production Order Certifications. The scheme for reimbursement of ISO series Certification

Charges in operation since 1998 has now been enlarged so as to include reimbursement of expenses for acquiring

ISO 14001 certification also.

THE SALIENT FEATURES OF THE SCHEME

The Scheme envisages reimbursement of charges of acquiring ISO Series Certifications to the extent of 75% of the

expenditure incurred by the MSEs towards the payment of Accreditation fee, Consultation fee, Training and

Calibration charges (till the unit get the certificate) subject to a maximum of Rs. 75,000/- in each case.

The incentive is extended to Micro and Small Manufacturing Enterprises in all the zones in the state.

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The Scheme shall provide one time reimbursement only. The amount of incentive/subsidy/ grant already availed for

acquiring ISO Series Certification under any Central Govt. (including DC, MSME Incentive Scheme)/State Govt.

/Financial Institution shall be adjusted against the entitlement of reimbursement. It means that the total

entitlement of reimbursement of acquiring one or more than one certification shall be up to the maximum limit of

Rs. 75,000/- only. In case a unit has received reimbursement/subsidy/grant from Central Govt./State

Govt./Financial Institution against any one of the certifications for an amount less than maximum limit of Rs.

75,000/-, the unit shall be eligible to receive the balance amount only.

Eligible Micro and Small Enterprises shall file the application in the prescribed format along with the

documents mentioned in the format to the Director, IT & BT OR KBITS.

ROLE OF THE AMD, KBITS:

The AMD, KBITS on receipt of the complete application shall inspect the enterprise and verify the working

condition of the enterprise. After confirming the existence of the enterprise, the AMD, KBITS shall recommend the

applications to Director, IT & BT for sanction of incentive for reimbursement of charges towards acquiring ISO

Certification.

THE COMMITTEE FOR SANCTION OF INCENTIVE:

Sl.No.

Designation

Role

Director, IT & BT

Chairman

MD, KCTU

Member

CEO, KITVEN

Member

Addl Managing

Director, KBITS

Member Secretary

15 C

INCENTIVES TO MICRO AND SMALL ENTERPRISES OBTAIN BIS PRODUCT CERTIFICATION:

Based on Karnataka Semiconductor Policy 2010, KBITS is providing incentive to MSEs obtains BIS Product

Certification. The monitory benefit will be as under.

Schemes envisages reimbursement of 50% of fees payable to BIS up to a maximum of Rs. 20,000/- and 25% of the

cost (for purchase of testing equipments as approved by BIS, consultancy, Training and calibration charges) subject to

a maximum of Rs. 50,000/- per unit and The incentive is extended to The New or the existing Micro and Small

Manufacturing Enterprises which undertakes Expansion/ Modernisation/ Diversification programme (Both own and

financed enterprises) in all the zones in the state.

The Eligible Micro and Small Enterprises shall file the application in the prescribed format along with the

documents mentioned in the format to the KBITS, Bangalore.

ROLE OF THE AMD, KBITS:

The AMD, KBITS on receipt of the complete application shall inspect the enterprise and verify the working

condition of the enterprise. After confirming the existence of the enterprise, the AMD, KBITS shall recommend the

applications to Director, IT & BT for sanction of incentive for reimbursement of charges towards acquiring ISO

Certification.

THE COMMITTEE FOR SANCTION OF INCENTIVE:

Sl.No.

Designation

Role

Director, IT & BT

Chairman

MD, KCTU

Member

CEO, KITVEN

Member

Addl Managing

Director, KBITS

Member Secretary

15 D

INCENTIVE FOR PATENT REGISTRATION:

An individual or an Organization can make an invention. The invention means a new product or process

involving an inventive step and capable of industrial application. A new invention means any invention or technology

which has not been anticipate by publication in any document or used in the country or elsewhere in the world

before the date of filing of Patent Application with complete specification. Patent Registration is meant for the

protection of the rights of the inventor over his invention.

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The patent registration involves a long process of 4-6 years. The process involves various stages viz., Provisional

Specification Filing, Priority Art Search, Complete Specification Filing, Request for Examination, Pre-Grant

Opposition and Registration.

Government of Karnataka has decided to encourage the Patents Registration as avowed in the Karnataka

Semiconductor Policy 2010. The Policy stated that an incentive of 75% of fees payable to Patent Office in India and

WTO member countries up to a maximum of Rs.1.25 lakhs and 50% of the Cost (expenditure towards attorney fees,

patent search etc.) up to a maximum of Rs. 75,000/-

The incentive is extended to The New or the existing Micro and Small Manufacturing Enterprises which undertakes

Expansion/ Modernisation/ Diversification programme (Both own and financed enterprises) in all the zones

in the state.

The Eligible Micro and Small Enterprises shall file the application in the prescribed format along with the

documents mentioned in the format to the Director, IT & BT OR KBITS.

ROLE OF THE AMD, KBITS:

The AMD, KBITS on receipt of the complete application shall inspect and verify the working condition of the enterprise.

After confirming the existence of the enterprise, the AMD, KBITS shall recommend the applications to Director, IT & BT

for sanction of incentive for reimbursement of charges towards Patent Registration.

THE COMMITTEE FOR SANCTION OF INCENTIVE:

Sl.No.

Designation

Role

Director, IT & BT

Chairman

MD, KCTU

Member

CEO, KITVEN

Member

Addl Managing

Director, KBITS

Member Secretary

15 E

INCENTIVE FOR TECHNOLOGY TRANSFER:

The objective of technology Upgradation will be to facilitate an enterprise aimed at meeting the technology needs

on a demand driven basis.

Technology transfer & promotion services look into the entire gamut of activities of matching the technology

needs with the available indigenous technologies and scout for foreign sources if required.

The silent features of the scheme are:

An incentive of 25% of the cost up to a maximum of Rs 50,000/- for adopting technology from National

Laboratories & technology certificate by National Laborataries also.

ii)

The incentive is extended to The New or the existing Micro and Small Manufacturing Enterprises

which undertakes Expansion/ Modernisation/ Diversification programme (Both own and financed

enterprises) in all the zones in the state.

The Eligible Micro and Small Enterprises shall file the application in the prescribed format along

with the documents mentioned in the format to the respective Director IT & BT OR KBITS.

ROLE OF THE AMD, KBITS:

The AMD, KBITS on receipt of the complete application shall inspect and verify the working condition of the

enterprise. After confirming the existence of the enterprise, the ED, KBITS shall recommend the applications to

Director, IT & BT for sanction of incentive for reimbursement of charges towards Patent Registration.

THE COMMITTEE FOR SANCTION OF INCENTIVE:

Sl.No.

Designation

Role

Director, IT & BT

Chairman

MD, KCTU

Member

CEO,KITVEN

Member

Addl Managing

Director, KBITS

Member Secretary

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Sl.No.

Designation

Role

Director, IT & BT

Chairman

MD, KCTU

Member

CEO,KITVEN

Member

Addl Managing

Director, KBITS

Member Secretary

15 F

ASSISTANCE FOR ESTABLISHMENT OF TECHNOLOGY BUSINESS INCUBATOR:

In order to strengthen the manufacturing sector, particularly small and medium enterprises and to enable them

compete better under the pressure caused by liberalization and moderation, a new scheme is envisaged in the

Karnataka Semiconductor Policy 2010 to increase their competitiveness.

Promoting Technology Business Incubators/Accelerators with the active involvement of private sector in identified

potential locations in the State. This Technology Business Incubator will aim to build on the strengths of small

decentralised Technology Development Groups and are expected to spawn high value MSEs. Government

assistance will be in the form of providing financial assistance for creation of basic infrastructure facilities of 25% of the

Project Cost subject to a ceiling of Rs.50 lakhs per incubator.

The main objective of the scheme is to promote emerging technological and knowledge-based innovative

ventures that seek the nurturing of ideas from professionals beyond the traditional activities of Micro, Small & Medium

Enterprises (MSMEs). Such entrepreneurial ideas have to be fostered and developed in a supportive environment

before they become attractive for venture capital. Hence the need arises for incubation centres:

to promote

and support untapped creativity of individual innovators and to assist them to become technology based

entrepreneurs. It also seeks to promote networking and forging of linkages with other constituents of the

innovation chain for commercialization of their developments.

15 F (1)

IMPLEMENTING AGENCIES:

The Scheme will be implemented by Host Institutions, like:

Indian Institutes of Technology (IITs)

National Institutes of Technology ( NITs)

iii

Engineering Colleges

Technology Development Centres, Tool Rooms, etc

Other recognised R&D&/or Technical Institutes/Centres etc.

Recognized Industrial Associations and NGO's

15 F (2)

MEANS OF FINANCE:

The Government of Karnataka will provide 25% of the Project Cost subject to a maximum of Rs.50.00 lakhs. To

ensure the participation of the implementing agencies in a PPP mode. The remaining cost may be mobililsed from

the Government of India / Financial Institutions etc.

15 F (3)

ROLE OF KBITS:

The Complete application received by the KBITS will be sent to Director, IT & BT for the Appraisal Report of the

Project. The Applications, which have been recommended by the AMD, KBITS, will be placed for the approval of the

Government.

The SLCC will sanction projects and the funds are released through KBITS. The

composition of the State level Committee is as under

15 F (4)

MODE OF FINANCE RELEASES

Subject to availability of funds and based on the progress made by the agency, the KBITS with the approval of

Director, IT & BT will released in installments.

15 F (5)

MONITORING & EVALUATION:

KBITS, Bangalore is a monitoring agency on behalf of Government of Karnataka. The funds are released

through KBITS based on utilization. The project would be monitored and guided by the KBITS. Emphasis needs

to be given to ensure continuation of the scheme through documentation in monitoring the implementation.

16.

INCENTIVES FOR WATER HARVESTING / CONSERVATION MEASURES UNDER SEMICON POLICY 2010

Basically, these are methods from which any combination can be selected based on the site conditions

such as the extent of building, sub-soil conditions, water availability and rainfall pattern.

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Rainwater harvesting is a method of augmenting rainwater, storing and using. Rainwater harvesting assures a more

continuous and reliable access to water. This method is also environmental friendly.

Broadly Rainwater can be harvested in two ways. 1. Rooftop Rainwater Harvesting and 2. Open surface run-off

harvesting.

Water conservation will result in recapturing the base line for current water usage and reduction in wastage of

ground water or supply from water sources. Industry should adopt strategies to use sewage discharge, industrial

discharge, storm water recycling to efficiently and adopt systems for environmental, health and pollution

risks and also reduce stress on water pollution.

The Zero Discharge Process means no discharge through any media out of the factory premises.

To achieve pollution prevention & Waste minimization at manufacturing enterprises, the incentive is extended to

New or the existing Micro and Small Manufacturing Enterprises which undertakes Expansion/ Modernisation/

Diversification programme (Both own and financed enterprises) in all Zones.

The Industrial areas in the State are facing problems of acute shortage of water supply. This has hampered the

Industrial production. Therefore, Karnataka Semiconductor Policy 2010 has incorporated an incentive to

small and medium manufacturing enterprises for adopting water harvesting/Conservation measures within their

premises.

The Components of the Scheme are as follows:

Incentive of 50% of the cost of Rainwater Harvesting subject to a maximum of Rs.1.00 lakh.

Incentive of 50% of the cost of Waste Water Recycling subject to a maximum of Rs. 5.00 lakhs.

Incentive of 50% of cost of Zero Discharge Process subject to a maximum of Rs.5.00 lakhs.

The Eligible Small and Medium Enterprises shall file the application in the prescribed format along with the

documents mentioned in the format to the respective Director, IT & BT OR KBITS, Bangalore.

16.1

ROLE OF THE AMD, KBITS :

The AMD, KBITS on receipt of the complete application shall inspect and verify the working condition of the enterprise.

After confirming the existence of the enterprise, the ED, KBITS shall recommend the applications to Director, IT & BT

for sanction of incentive for reimbursement of charges towards Patent Registration

16.2

THE COMMITTEE FOR SANCTION OF INCENTIVES:

Sl.No.

Designation

Role

Director, IT & BT

Chairman

MD, KCTU

Member

CEO,KITVEN

Member

Addl Managing

Director, KBITS

Member Secretary

17.

INCENTIVE FOR ENERGY CONSERVATION UNDER SEMICONDUCTOR POLICY 2010:

Energy is an essential input for Industrial development. As the recourse for production of energy is limited

conservation of energy, use of non-conventional, new and renewable sources of energy such as solar, wind and bio-

energy, etc., are getting sustained attention.

The non-conventional energy sources cover the entire gamut of technologies, including biogas plants, biomass

gasifies, solar thermal and solar photovoltaic systems, wind mills, co-generation, small hydro plants, energy recovery

from industrial wastes, geothermal energy, ocean thermal energy, wave energy, tidal energy, hydrogen energy,

electric vehicles.

The Energy conservation measures include the energy audit, adoption of new energy saving equipments,

technology, cooling towers etc.

Government of Karnataka in its Karnataka Semiconductor Policy 2010 has encourage by way of offering

incentives and concessions practicing Energy Conservation Methods and using non- conventional energy

sources.

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The salient features:

Incentive of 10 percent of the Capital Cost up to a maximum of Rs.5.00 lakhs will be provided for practicing

energy conservation measures resulting in reduction of energy consumption of at least 10% of earlier

consumption.

Incentive of 10 percent of the Capital Cost up to a maximum of Rs.5.00 lakhs will be provided for using non-

conventional energy sources for its requirements.

The Incentives is extended to small and medium manufacturing enterprises in all the Zones.

The Eligible New or the existing Micro and Small Manufacturing Enterprises which undertakes Expansion/

Modernisation/ Diversification programme (Both own and financed enterprises)shall file the application in the

prescribed format along with the documents mentioned in the format to the Director, IT & BT OR KBITS,

Bangalore.

17.1

ROLE OF THE AMD, KBITS :

The AMD, KBITS on receipt of the complete application shall inspect and verify the working condition of the enterprise.

After confirming the existence of the enterprise, the ED, KBITS shall recommend the applications to Director, IT & BT

for sanction of incentive for reimbursement of charges towards Patent Registration.

17.2

THE COMMITTEE FOR SANCTION OF INCENTIVE:

Sl.No.

Designation

Role

Director, IT & BT

Chairman

MD, KCTU

Member

CEO,KITVEN

Member

Addl Managing

Director, KBITS

Member Secretary

18.

ADDITIONAL

INCENTIVES

THE

MEDIUM,

LARGE

AND

MEGA ENTERPRISES

FOLLOWING

RESERVATION POLICY OF THE STATE UNDER SEMICONDUCTOR POLICY- 2010

50% reimbursement of expenditure incurred for employees coming under reserved category towards contribution to

ESI and EPF Scheme shall be available to new medium, large and mega manufacturing enterprises in all

zones employing more than 100 persons for a initial period of 5 years from the date of commencement of production.

18.1

DOCUMENTS TO BE FURNISHED FOR CLAIMING ADDITIONAL INCENTIVES FOR FOLLOWING RESERVATION

POLICY :

Eligible industrial enterprises shall apply with following documents to the Director, IT & BT OR KBITS.

Application in letterhead.

Project report

Details of ESI/EPF contribution paid

SLWCC / SHLCC approval.

Statement of Fixed Assets in prescribed format, duly certified by the concerned financial institution or

C.A.

Copy of First sale invoice g. Copy of EM certificate.

Form of declaration regarding employment of local persons in prescribed

Copies of registered partnership deed / Memorandum and Articles of Association/ byelaws.

Copies of the caste certificates issued by the concerned authority for employees coming under reserved

category as per the reservation policy of the State.

Copies of the ESI & EPF payments with receipt.

18.2

SCRUTINY OF CLAIM

The AMD, KBITS on receipt of completed application should inspect the enterprise and verify the working

condition of the enterprise and also the genuineness of the employment provided to local people and particularly

to SC/ST people with reference to their documents and then forward the proposal to the Director, IT & BT for

allotment of funds for the admissible EPF & ESI once in a year. The Director, IT & BT shall verify the claim and with the

availability of the funds from the Government and with the approval of the Government, The Director IT & BT will

issue the release orders to the eligible enterprises. The eligible amount shall be disbursed on payees receipt,

duly countersigned by the Director, IT & BT Separate registers should be maintained by both the DIT and KBITS

office to watch the total period and amount of reimbursement to each enterprise.

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19.

REFUND OF COST INCURRED FOR PREPARATION OF PROJECT REPORTS UNDER SEMICONDUCTOR

POLICY 2010 :

The cost incurred for preparation of project reports by TECSOK /CEDOK/ KSFC or any other recognized

institutions for availing term loans shall be reimbursed to new micro and small manufacturing enterprises

to the maximum of Rs. 10,000 enterprise subject to financing of the enterprise. The eligible enterprises can

claim for reimbursement only after the commencement of commercial production.

19.1

DOCUMENTS TO BE FURNISHED FOR CLAIMING REIMBURSEMENT:

Eligible industrial enterprises shall apply with following documents to the KBITS.

Application in letterhead.

Copy of Project report prepared by TECSOK/CEDOK/KSFC or any other recognized institutions.

Statement of Fixed Assets in prescribed format.

Copy of term loan sanction orders from KSFC/KSIIDC/Bank/Other financial institution.

Copy of First sale invoice

Copy of EM certificate.

Form of declaration regarding employment of local persons in prescribed format.

Copy of the bill and receipt for having paid fees /charges to the consulting agency.

19.2

SCRUTINY

The AMD, KBITS on receipt of completed application should inspect the enterprise and verify the proper working

of the enterprise and then forward the proposal in the prescribed format to the Director, IT & BT for allotment of

funds. The Director IT & BT on receipt of the funds from Governement, shall issue release orders. The eligible

amount shall be disbursed on payees receipt, duly countersigned by the Director, IT & BT. Separate

registers should be maintained by both the DIT and KBITS office to watch the amount of reimbursement.

ANNEXURE - 1

Classification of Taluks in Karnataka into Zones for the purpose of administering Incentives & Concessions

under Semiconductor Policy 2010 (Incentives to units located in Zone-4 would be as applicable to Zone-3)

Sl.

No.

Districts

Total

No.of

Taluks

Zone -1 (Most

Backward Taluks)

Zone - 2 (More

Backward

Taluks)

Zone - 3

(Backward

Taluk)

Zone-4

Industrially Developed

Taluks)

SOUTH KARNATAKA REGION

B'lore (U)

Anekal

B'lore

(North)

B'lore

(South)

B'lore(East)

B'lore (R)

Devanahalli D B

Pur Hoskote

Nelamangala

Ramanagara

Kanakapura

Magadi

Ramanagara

Channapatna

Chitradurga

Hosadurga

Hiriyur

Molakalmur

Hololkere

Challakere

Chitradurga

Davanagere

Channagiri

Honnali

Harapanahalli

Davanagere

Jagalur

Harihar

Chikkaballapura

Bagepalli

Gudibande

Gowribidanur

Chikka ballapura

Siddlaghatta

Chintamani

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Kolar

Mulbagal

Kolar

Bangarpet

Srinivasapura

Malur

Shimoga

Soraba

Shimoga

Bhadravathi

Sagar

Shikaripura

Hosanagara

Thirthahalli

Tumkur

Kunigal

Madugiri

Gubbi Sira

Pavagada

Turuvekere

Koratagere

Chikkanaya

kaanahalli

Tumkur

Tiptur

Chamarajanagar

Chamaraja-

nagar

Gundlupet

Kollegal

Yelandur

Chikkamagalore

Kadur

Chikkamagalore

Tarikere

Shringeri

Mudigere

Koppa

NR Pura

D Kannada

Bantwal

Mangalore

(excl. Corpn

limits)

Mangalore

(only

Corporation

limits)

Puttur Sulya

Belthangadi

Hassan

Arakalgud

Hassan

Arasikere C

R Patna H

N Pura

Belur, Alur

Sakleshpura

Kodagu

Madikeri

Somwarpet

Virajpet

Mandya

Malavalli

Nagamangala

K R Pet

Mandya

Maddur

Srirangapatna

Pandavapura

Mysore

H D Kote

Hunsur

T N Pura

Nanjangudu

Periapatna

Mysore (excl.

Corpn. limits)

K R Nagara

Mysore (only

Corporation

limits)

Udupi

Kundapura

Karkala

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NORTH KARNATAKA REGION

Bellary

Sandur

Kudligi

Siraguppa H B

Halli Hadagalli

Bellary

Hospet

Bidar

Bhalki

Humnabad B

Kalyana Aurad

Bidar

Gulbarga

Sedam

Shourapur

Yadgir Chitapur

Afzalpur

Shahapur

Aland Chincholi

Jewargi

Gulbarga

Koppal

Kushtagi

Yelburga

Koppal

Gangavathi

Raichur

Sindhanur

Manvi

Lingasugur

Devadurga

Raichur

Bagalkote

Bilagi

Hunagund

Badami

Bagalkote

Mudhol

Jamkhandi

Belgaum

Athani

Gokak

Soundatti

Belgaum

Khanapur

Hukkeri

Ramdurga

Bailhongal

Bijapur

Muddebihal

B Bagewadi

Indi

Sindagi

Bijapur

Dharwad

Kalaghatagi

Dharawad

Hubli

Kundagol

Navalgund

Gadag

Mundargi

Gadag

Naragund

Ron

Shirahatti

Haveri

Savanur

Shiggaon

Hirekerur

Haveri

Ranebennur

Byadagi

Hanagal

U Kannada

Supa

Bhatkal

Karwar

Haliyal

Sirsi

Mundagod

Yellapura

Honnavar

TOTAL

176

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ANNEXURE - 2

Application For Sanction of Investment Promotion Subsidy under Semiconductor Policy 2010

Name and address of the enterprise.

Zone as per Semiconductor Policy 2010

1 / 2 / 3 / 4

Location of the enterprise.

4 (a)

Registration No and date(As mentioned in EM/IEM/IL)

4 (b)

ESI / EPF Registration No. and date

4 (c)

VAT Registration No. and date

4 (d)

Electric Power Connection RR No. (power, line).

4 (e)

Electric Power Connection RR No. (Lighting).

Micro / Small / Medium Enterprises.

Products manufactured

ii)

iii)

iv)

Constitution of the industry(Proprietary / Partnership / Private/

Public Limited Company)

Whether the enterprise belongs to special category entrepreneur

(Women, SCs/STs, PH, Ex-Servicemen/ enterprises falling in most

backward talukas of Hyderabad Karnataka region).

Is it new industry or existing industry undertaken

Expansion/ Diversification / Modernization.

Date of commencement of commercial production

11.

Project Cost

Land :

Building :

Plant and Machinery :

Others:

Working Capital Margin:

TOTAL

12.

Name of the term loan lending financial institution.

Date of loan sanctioned

Amount of loan sanctioned

Amount of loan release.

Date of first loan release.

13.

Actual Investment details :

Land :

Building

Plant and Machinery

Transportation :

Installation charges :

Others :

TOTAL

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14.

Means of finance

Own /share capital

Term loans

Others (please specify)

TOTAL

15.

Employment provided in the new enterprises.

Executive/Top level

Managerial

Supervisory/ Skilled

Un Skilled/Semi skilled

TOTAL

16.

Additional employment in case of expansion/

modernization/ diversification.

Existing

Additional

Executive/Top level

Managerial

Supervisory/ Skilled

Un Skilled/Semi skilled

TOTAL

NOTE : Furnish the following documents

Statement of fixed assets in the prescribed format certified by the Enterprise.

ii.

Investment Certificate in the prescribed form issued by the financial institution/bank as per Annexure.

iii.

Chartered Engineers / Architects certificates in the prescribed format as per Annexure regarding investment on

Building

iv.

Local employment details in the prescribed format as per Annexure v. All relevant documents to the information

provided above.

17.

Declaration by the Enterprise :

I/We hereby certify that the particulars given above for the purpose of securing Investment Promotion Subsidy from the

Government of Karnataka are to the best of my / our knowledge and belief, are true and correct.

Place :

Date :

Signature(s)

Name and Designation.

18.

Certificate by the Addl Managing Director KBITS

I hereby certify that the particulars given by the applicant were verified by me with reference to documents furnished by the

applicant and found to be true and correct.

I further certify that the total investment in fixed assets in new enterprises / in expansion, diversification, modernization

of the existing enterprise could be considered for promotion subsidy is Rs………………….., and

eligible for 10% / 15% / 20% /25% investment Promotion Subsidy of Rs………………….. and also eligible for

additional 5% Investment Promotion Subsidy i.e., Rs.………………., as the entrepreneur belongs to SC/ST,/

Women/ Physically challenged / Ex Servicemen Entrepreneurs /Enterprises coming up in most backward taluks of

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Hyderabad-Karnataka Region, as .A sum of Rs…………………. being the investment made on items on which subsidy,

is not admissible as per details shown in the Annexure statements are disallowed.

The declaration in Annexure regarding employment of local persons has been verified and certified that the enterprise

has provided minimum 80% employment to the local people on overall basis (including

100% employment to local people in Group C and D categories).

Place :

Date :

Signature of AMD, KBITS

ANNEXURE - 3

STATEMENT OF FIXED ASSETS CREATED BY THE ENTERPRISE UNDER SEMICONDUCTOR POLICY 2010

PART – A : INVESTMENT ON LAND.

Location of

the land

Sy.No/

Plotl No.

Purchased

/ acquired by

whom.

Date of

purchase/

sale deed/

allotment

Payment to the land owner.

Date

Amount

Payment

by cash/

cheque/

Cheque/

DD No.

Value

ed by

DIC.

PART – B: INVESTMENT ON BUILDING

Sl. No.

Details

Built up area/

volume in sft/Cu.ft

Enterprise rate as

per sq.ft or Cu.ft

Total value claimed by

the enterprise

Value accepted

by DIC

Remarks.

Production building.

Godown

Office building

D.G.set Room

Water tank

Bore well

Compound wall

Drying yard.

Others (specify).

PART – C: INVESTMENT ON PLANT AND MACHINERY, TRANSPORTATION ERECTION AND ELECTRIFICATION, ETC.

Sl.

Particulars on P&M,

Transportation,

Electrification, Errection.

From whom

purchased

Date

of place

ment of

order.

Date of

bill/.

invoice

Amount

of bill /

Invoice

Mode of pay-

ment cheque/

DD/ cash

Cheque/

DD No

and date.

Receipt

No.

Date

Plant and

Machinery and

other productive assets

ii.

Transportation

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iii.

Erection

iv.

Electrification.

Other assets.

Signature of the Proprietor / Managing

Partner/ Managing Director of the Industrial

Enterprises with seal.

PART D

Certified that verification has been done by me with reference to above fixed assets statements and found correct. No items for

which subsidy is inadmissible is included in the statement.

Following items which are included in statement are disallowed as they are not eligible for Investment

Promotion Subsidy for the reasons stated against each item.

Sl.No.

Name of the item.

Amount disallowed

Reasons for rejection.

Signature of the Member / AMD KIBTS

Secretary of SLCC

ANNEXURE - 4

FIXED INVESTMENT CERTIFICATE FROM THE BANK / FINANCI INSTITUTIONS

REQUIRED UNDER Semiconductor Policy 2010

M/s. ……………………………………………………………….of (location of the...........................................................................

enterprise)…………………………...............………….. have been disbursed as on this date amounts under the loan amounting to

Rs…………………..sanctioned under letter No……………Dated:…………….as shown below.

Sl.No.

Particulars

Date

Amount.

Term loan sanctioned.

Loan amount disbursed on

Total amount disbursed as on ……………

Value of investment in fixed assets.

As per project

appraisal.

Actual investment

including promoter's

investment, if any.

i) Land (excluding lease hold).

ii) Building (excluding

residential quarters/guest houses).

iii) Plant and machinery (excluding technical

knowhow, engineering fees, feasibility

study, etc)

iv) Other assets, tools, jigs dies, DG

sets, boilers, etc (please specify the

items).

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Certified that the sanction of financial assistance to M/s. ………………… …………………………………………. for the enterprises

at....................................................... has been considered on the basis of the company's assessed requirement of factory buildings

and the cost is estimated at Rs. ……………………. as per the project report.

We certify

that this investment certificate is issued after verifying the bills and vouchers made available by the enterprise for

purposes of release of Term loan Installments (including promoter's investments and based on the physical verification of the

inspecting Officers. Items for which subsidy is not admissible are not included in the investment certified above. And also certified

that the investment made on second hand plant and machinery is not included.

The enterprises is covered / not covered under KVIC/KVIB/PMEGP margin money scheme.

We are in possession of relevant bills and vouchers on which this investment certificate is issued and we agree to make available

the same as and when required for any verification purpose, before the loan liability is discharged.

Place :

Signature of the

Branch Manager / Manager /

Date : // SEAL //

(Name of the Institution.)

ANNEXURE - 5

CHARTERED ENGINEER'S / ARCHITECT'S CERTIFICATE

REQUIRED UNDER Semiconductor Policy 2010

I, hereby certify that as against the estimated cost of Rs. .....................................................................

............................................................................................of the building and civil works for

M/s.................................................for their proposed project at.................................................the enterprise as on has completed

the civil works as under:

Sl.

No.

Partic

ulars

Amount

Value of completed civil works as per estimates.

Amount certified for payment to the building (civil and structural) contractors.

Retention money (from civil contractor).

Value of materials utilized for the completed portion of building.

The value of completed building certified above do not involve the area built for guest houses, and residential building in the

factory site.

It is further certified that built area of the building is absolutely essential for the manufacturing / processing activity of the industry. A

detailed estimate sheet is appended to this Certificate.

Place :

Signature and full address.

Date :

// SEAL //

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ANNEXURE - 6

FORM OF DECLARATION REGARDING EMPLOYMENT OF

'LOCAL PERSONS' REQUIRED UNDER SEMICONDUCTOR POLICY 2010

Name of the Industrial enterprises.

M/s.

Address: Village/town/taluk/

district.

OFFICE

FACTORY

Product

Year of establishment.

Proprietor/partner ship / Pvt.ltd/ Ltd

Name of the Administrative Officer in

charge of recruitment. (Kannadiga or

non- Kannadiga).

Registered as MSME, large/mega projects.

No. and date.

Employment details (excluding Casual workers and 'Badli' workers)

ITEM

Group C&D

Group B

Group A

Total

Total no. employees.

No. of local persons therein

Percentage of local persons to total.

I / We understand that the percentage of local people in Group C & D categories i.e., supervisory/ skilled/ semi skilled/ un skilled

categories has to be 100% and the overall local employment in the enterprise not less than 80% (inclusive of all categories).

I / We hereby undertake to make up the deficiency before the disbursement of subsidy.

10.

I / We further understand that eligibility of my/our industrial enterprises, under taking for incentives and concessions

from the Government of Karnataka is contingent upon my fulfilling minimum local employment as per the Dr. Sarojini Mahishi

Report to the satisfaction of the State Government.

Place :

Signature of authorized person.

Date :

Verified by me Member Secretary & AMD KBITS

LOCAL PERSON is defined as one who has at least fifteen years domicile in the State of Karnataka.

This declaration should be signed by a person duly authorized to do so by the Industrial undertaking.

Group A Executive / Top

level. Group B Managerial

Group C Supervisory/Skilled

Group D Unskilled / Semi skilled.

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ANNEXURE - 7

CHARTERED ACCOUNTANT CERTIFICATE REQUIRED UNDER SEMICONDUCTOR POLICY 2010

Name

the

Chartered

Accountant........................................................................................We

hereby

certify

that

M/s...............................................................................(name of the indl.unit)...............................Have acquired the following fixed

assets up to.............................for the unit at ..............................................................(address) for manufacture of (name of products).

Item of fixed assets.

Period during which investment is

made(date of payment)

Value Rs.

Land

For entire unit excluding ETP

ii)

For ETP only

Factory building (please specify period.

For entire unit excluding ETP

Amount paid to the

Building contractors

From

Rs.

Amount paid for building

materials

From

Rs.

Amount paid for wages and

Salaries etc, for the

Building constructions.

From

Rs.

(excluding architect's fees and wages paid for supervision staff etc)

ii)

For ETP only :

Amount paid to the

Building contractors

From

Rs.

Amount paid for building

materials

From

Rs.

Amount paid for wages and Salaries

etc, for the Building constructions.

From

Rs.

(excluding architect's fees and wages paid for supervision staff etc)

Electrical installations (excluding ESCOM deposits)

Rs.

For entire unit excluding ETP

ii)

For ETP only

Plant and Machinery

Rs.

For entire unit excluding ETP

ii)

For ETP only

Loading, unloading, transportation, erection expenses etc i)

For

entire unit excluding ETP

ii)

For ETP only

Rs.

Misc. fixed assets(Please specify items)

For entire unit excluding ETP

ii)

For ETP only

Rs.

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We have checked the books of account of the unit, bills, invoices and payment vouchers, etc, and certify that the aforesaid

information is verified and certified to be true. We also certify that all the aforesaid items have been duly paid for and no credit is

raised against them in the books of the unit.

Certified that the investments certified above do not include items for which subsidy is not allowed. Expenditure incurred on

following items are not included.

A. LAND

Value of the open land not utilized for construction, leaving the area proposed for immediate expansion.

ii)

Expenditure incurred for land scalping for beautification and expenditure on unsuccessful open wells/bore wells.

B. BUILDING

Expenditure on unproductive construction like guest house, workers/staff quarters, canteens, cycle/scooter stands,

garages, etc.

ii)

Expenditure incurred on beautification of buildings, arches, decorative lights including street lights, furniture and air

conditioners, water coolers, refrigerators such of the gadgets not directly connected with production.

iii) Expenditure incurred on the purchase of old buildings. C.

PLANT AND MACHINERY

All consumable materials like tool bits, files, oils, etc.

ii)

Investments on tools jigs/fixtures, moulds etc, which are required repeatedly, should not be allowed for the second time

and onwards. While considering the investments made on first purchases, only the required quantify of such items are to

be allowed. Extra quantities taken as spares are not to be allowed.

iii) Second hand machines purchased shall not be included.

Place :

CHARTED ACCOUNTANT

Date :

// SEAL //

ANNEXURE - 8

INVESTIGATION REPORT OF ADDL MANAGING DIRECTOR, KBITS.

UNDER SEMICONDUCTOR POLICY 2010

DATE OF INSPECTION :

Name of the address of the enterprise

M/s.

Zone

1/2/3/4

Constitution

(With names of Director/Partners)

Whether new enterprise /

Undertaken / Expansion / Modernization /

Diversification Programme

Size of the enterprise. Regn

No. and date

Micro / Small/Medium

In case of new industrial enterprise the date of

commencement of production

In case of expansion, actual date of commencement of

production of existing industrial enterprise and date of

completion of expansion / modernization/diversification

of project.

Items manufactured/ processing by the

Enterprise.

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Project Cost (RS)

(Please indicate item-wise details)

Land

Building

Plant and machinery

Others

Working Capital Margin

TOTAL

10.

Name of the lending Institution

11.

Date and Amount of loan sanction

12.

Date of 1^strelease

Means of finance

As per project

appraisal.

Actual

Investment

KSFC/Bank /Term Loan

Own finance

Others (please specify)

TOTAL

Details of fixed capital investment.

investment made

Details of Capital

accepted by the DIC.

Investment

a) Land

b) Building

c) Plant & Machinery

d) Others Miscellaneous fixed assets

(Please Specify)

Period during which the investment : Shown in Col 14

above is made (please specify the investment made in

different periods)

Employment provided.

Original

(in case of new

enterprises)

Additional (in case

of expansion)

Total

Local

Top / Executive level

Managerial

Supervisor / Skilled

Semi Skilled / Un skilled

TOTAL

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Percentage of local employment in the enterprise.

Amount of subsidy recommended

Amount

Eligible Fixed assets

Rs.

Eligible general Investment Promotion subsidy -10/15/20/25%.

Rs.

Eligible additional subsidy, if any 5%

Rs.

Total eligible Investment Promotion Subsidy

Rs.

19.

General remarks/recommendation

(A brief report on working of the enterprise).

Name and signature of

the officer, with designation.

Place :

Date

ANNEXURE - 9

AGENDA NOTES FOR SANCTION OF INVESTMENT PROMOTION SUBSIDY IN THE SLCC MEETING HELD ON …………….

(UNDER SEMICONDUCTOR POLICY 2010)

Name of the address of the enterprise

M/s.

Zone

1/2/3/4

Constitution

(With names of Director/Partners)

Whether new enterprise / Undertaken

Expansion/ Modernization / Diversification

Programme

Size of the enterprises. Regn

No. and date

Micro / Small/Medium

In case of new industrial enterprise the date of

commencement of production

In case of expansion, actual date of commencement of

production of existing industrial enterprise and date of

completion of expansion/

modernization/diversification of project

Date of application filed with DIC for sanction of subsidy

with all the required documents.

Items manufactured/

processing by the Enterprises

Project Cost (RS)

(Please indicate item-wise details)

Land

Building

Plant and machinery

Others

Working Capital Margin

TOTAL

Name of the lending Institution

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Date and Amount of loan sanction

Date of 1^strelease

Means of finance

As per

project

appraisal.

Actual

investment

KSFC/Bank /Term Loan

Own finance

Others (please specify)

TOTAL

Details of fixed capital

Investment

made by the

enterprise

Investment

accepted by

the

Investment accepted

by accepted

Investment

Land

Building

Plant & Machinery

Others Miscellaneous fixed

assets

(Please Specify)

TOTAL

Period during which the investment : Shown in Col 14

above is made (please specify the investment made

in different periods)

Employment provided

Original

(in case of new enterprises)

Additional (in case of

expansion enterprise)

Total

Local

Total

Local

a) Top / Executive level

b) Managerial

c) Supervisor / Skilled

d) Semi Skilled / Un skilled

TOTAL.

Percentage of local employment in the enterprise.

19. Recommendation :

As per the details, the enterprises is located at ………………………. i.e., in Zone-1/2/3, availed term loan of Rs……………. from

………………institution for the manufacture of …………………..The enterprises is eligible for Investment Promotion Subsidy for eligible

fixed assets of Rs. …………..under Semi Conductor Policy-2010 as under :

Eligible general subsidy -10/15/20/25%

- Rs………………

Eligible additional subsidy, if any- 5%

- Rs………………

Total eligible subsidy

- Rs………………

The subject is placed before the SLCC for consideration.

Place :

Date :

Member Secretary SLCC

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ANNEXURE - 10

FORMAT FOR ISSUE OF SANCTION ORDER FOR INVESTMENT PROMOTION SUBSIDY UNDER

SEMICONDUCTOR POLICY 2010

GOVERNMENT OF KARNATAKA DEPARTMENT OF IT & BT

No……………

Office of the..................................

Date :

SANCTION ORDER

SUB : Sanction of 10/15/20/25% Investment Promotion Subsidy and additional 5% special category subsidy under

Semiconductor

Policy

2010

M/s.

………………………………………….………..

for

manufacture/

process

…………………….…… located at …………………………………..….

REF :

1. G. O.No. ITD10 PRM 2008 Dt 25-2-2010-

2. Your application for Investment Promotion Subsidy received on dated: ——————-

We are pleased to inform you that the State Level clearance Committee for sanction of Investment Promotion Subsidy

for MSMEs, in its ............ Meeting held on............................has sanctioned a total Investment Promotion Subsidy of

Rs....................(Rupees...............................................................................................only)

the

basis

investment made on fixed assets of your enterprise located at.............................................i.e., Zone-1/2/3 as per

Semiconductor policy 2010 for manufacture/ process of……………..The Committee has accepted the investment as detailed

below :

Sl.No.

Particulars

Amount Rs.

Land

Building

Plant & Machinery

Erection / Electrification / transportation, etc.,

Other fixed assets (Please specify)

TOTAL :

Accordingly, the amount of Investment Promotion Subsidy to which you are eligible is determined at

Rs.......................(Rupees.........................................................................................................................only) at 10/15/20/25%

and additional 5% special category subsidy of Rs. ......……….. i.e., total eligible subsidy determined at Rs. ..................... on

the above investment under Semiconductor Policy 2010.

You shall have to execute an agreement, in the draft format enclosed to this sanction order. The original agreement

should be on Stamp paper of Rs.100/-. The agreement should be executed by the proprietor in case of proprietary concern, by one

or more directors duly authorized by the board of directors of the company. The execution of the agreement should be under

the common seal of the company, by all the partners incase of partnership concern. However, if any one of the partners holds a

general power of attorney, he may execute the agreement on behalf of the remaining partners and furnish a certified true copy of the

power of attorney. When the agreement is executed by a holder of general power of attorney a certificate signed by all the partners on

behalf of the firm to the effect that the general power of attorney is in force and not revoked as on the date of execution of the

agreement, should be furnished. The Erasures, if any, should be properly attested No blank should be left in the agreement form.

The above agreement should be executed in the presence of AMD, KBITS ………….

The sanction of this Investment Promotion Subsidy is subject to following conditions:

In the event of the Investment Promotion Subsidy being sanctioned, while at a later date found to be not actually due, the

grantee shall refund to Government such portion or whole amount as determined by the Directorate of IT & BT. In the event

of the grantee failing of refund such amount, the same shall be recovered as arrears of land revenue.

The Investment Promotion Subsidy sanctioned will be released @ 25% per annum only and which will be against the value

payment of VAT, ESI, EPF, and power tariff or the loan dues if the enterprise is not covered by VAT, ESI, EPF and power tariff.

The enterprise shall submit their claim every year i.e. on or before 30th April, indicating the value of VAT, ESI, EPF and power

tariff or the loan dues paid in along with the certified copies of the amount paid from the concerned agencies to the ED,

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KBITS for taking further action in the matter. The enterprise shall utilize the sanctioned amount within a period of five years

from the date of sanction of the subsidy amount.

The AMD, KBITS shall also monitor the employment provided to local people in accordance with Dr. Sarojini Mahishi Report

for a period of five years. In case enterprise fail to comply the employment to local people, shall be bound to return the

subsidy amount to Government.

The Investment Promotion Subsidy sanctioned herein is in the nature of “Grant in-aid” and shall not be construed as a

“contract” with Government of Karnataka. The grantee shall not exercise his right of privities of contract in the matter of

release of subsidy by Government of Karnataka, who shall release the subsidy amount as and when the grantee is

eligible for the same, in such proportions and installments as the Government may regulate.

AMD, KBITS

ANNEXURE - 11

FORMAT FOR UNDERTAKING TO BE EXECUTED FOR INVESTMENT PROMOTION SUBSIDY UNDER SEMICONDUCTOR

POLICY 2010

UNDERTAKING

The undertaking executed this day —————— 200 ———— by ———— carrying on the Business of ———

————— under the name and style of M/s.———————————— herein after called the 'Grantee' of the one part in favor of

the Governor of Karnataka, represented by the Director of Industries and Commerce herein after called the Government of other

part WITNESSETH. Where as SLCC ———————— vide Order No. ————— dated: ——— ——— has sanctioned an

Investment Promotion Subsidy of Rs. —————— (Rs.———————————only) under the Government of Karnataka scheme

of Package of Incentives and Concessions (2010 Semiconductor Policy) new Industrial investment made in the State of Karnataka to

the grantee for the purpose of his enterprises.

In consideration of the grant of Rs.———————(Rs. ——————— only) as per

the

Order

No.————————

dated: ——————— of the ED, KBITS ———— the receipt whereof the grantee hereby acknowledges, the grantee agree and

covenants as follows:

If the State Government/Financial Institution concerned is satisfied that the investment subsidy has been obtained by

misrepresentation of essential fact, furnishing false information after the reimbursement of full subsidy, the State

Government/Financial Institution concerned shall have the right to claim refund of the grant/subsidy of Rs…………..

(Rs……………. Only) paid to the grantee together with such interest as the State Govt /Financial Institution concerned may

charge.

In the event of the subsidy being sanctioned, which at later date is found to be not actually due, the grantee shall refund to

Government such portion or the whole amount as determined by the AMD, KBITS/Director of IT & BT. On failure to do so, such

amount shall be recovered by the Government as arrears of land revenue.

iii

That this grant shall not be construed as a contract and shall be in the nature of Grant-in-Aid only and the provisions of the

Indian Contract Act or that of Specific Relief Act or any other relative statutory Acts/Provisions shall not apply in the instant case.

That the grantee shall not exercise his right of claiming release/reimbursement of subsidy amount out-of-turn either directly or

through his attorney and that the decision of the Government in the matter of periodic release based on the availability of

funds shall be final and binding on the grantee.

The Grantee shall undertake to provide employment to local people in accordance with Dr. Sarojini Mahishi Report and

maintain the same atleast for a period of five years from the date of release of the subsidy amount. In case the enterprise fail to do

shall bound to return the investment subsidy amount to the Government.

SCHEDULE :

Sl.No.

Particulars

Investment details (in rupees)

Land

Rs.

Building

Rs.

Plant and Machinery

Rs.

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Erection / Electrification / transportation, etc.,

Rs.

Other fixed assets (Please specify)

Rs.

TOTAL :

In witness whereof the Grantee has set his hand the ————————— day of ————————————

two thousand ———————————— first above mentioned.

Witness :

Signature of the Grantee

//Common Seal of the

Company// Shall be affixed here.

“Attested”

AMD, KBITS

ANNEXURE - 12

Format for claiming the release of sanctioned Investment

Promotion Subsidy under Semiconductor Policy 2010

(A) Format for enterprises covered under VAT, ESI, EPF and with or without power.

Name And

address of

the

enterprise

Product

Date of

production

VAT

paid

with

dates in

a year

ESI

contribution

amount of

enterprise

paid with

dates in a year

EPF

contribution

of the

enterprise

paid with

dates in a year

Power Tariff

amount paid

with dates in

a year

Total

Amount of

VAT, EPF,

ESI & power

tariff paid

in a year.

Total amount admissible for reimbursement (not

exceeding 25% of the sanctioned subsidy amount )

Enterprise is working/closed

Remarks

It is certified that the above particulars are correct and true.

Name and signature

of the Grantee with seal

(B) Format for enterprises not covered under VAT, ESI, EPF and Power

Name and address of the

enterprise amount.

Product

Name of the

bank.

Date of

sanction of

loan and

Amount of

loan released

with dates

Date of

production

Loan amount paid to the

bank with date & amount

Total amount admissible for

reimbursement (not exceeding 25% of the

sanctioned subsidy amount)

Enterprise is

working/closed

Remarks

Principal

Interest

It is certified that the above particulars are correct and true.

Name and signature of the

Bank Manager

Grantee with seal

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ANNEXURE - 13

FORMAT FOR CLAIMING GRANT FROM GOVT FOR DISBURSEMENT OF INVESTMENT

PROMOTION SUBSIDY FOR THE YEAR ……………..

Name of

the

Industry

address.

Zone

Product

Dt.of

comm.

Ercial

produ

ction

Dt.of

SLCC

Total

Fixed

invest

ment.

Amt.of

subsidy

sancti

oned.

Spl.

Cate

gory

details if

any

Spl. Sub

sidy amt.

sanct

ioned.

Total

subsidy

sanct

ioned.

Subsidy

amt.alre

ady rele

ased.

Subsidy amount now claimed for enterprises

covered under VAT, ESI, EPF and power.

Subsidy now

claimed for

enterprise not

covered under VAT,

ESI, EPF

& power.

Total

Remarks

VAT

ESI

EPF

Power

Total

Principal due

Interest

due

Certified that the above amount is not claimed earlier.

Certified that the above enterprises have given all the required documents and are kept in the concerned file.

iii

Certified that the above enterprise do not have any pending audit para

Certified that the enterprises have provided employment as per Dr. Sarojini Mahishi report.

Member Secretary,

SLCC

ANNEXURE - 14

FORMAT FOR RELEASE OF INVESTMENT PROMOTION SUBSIDY TO THE CONCERNED ENTERPRISE UNDER

SEMI CONDUCTOR POLICY 2010

RELEASE ORDER

Sub: Release of installment sanctioned investment subsidy to

M/s. ..............................................................................................................................

Ref:

(i)

Sanction Order No.

(ii)

Earlier release order no.

(iii)

Directorate's letter no.

(iv)

Enterprise's letter

M/s.....................................................................................................................................................has been sanctioned with

investment subsidy of Rs.............vide sanction order cited under ref (i). The enterprise has already been released

with.......................................installments of sanctioned investment subsidy amount vide letter cited under ref (ii).

The Directorate of IT & BT has released Rs.......................vide their order cited under ref (iii) as grant under head of account

No...............................being the amount to be further released to eligible industries as investment promotion subsidy. From out of

the Grants, M/s.......................................................is herewith released with Rs...........................as the...........................installment

of the sanctioned subsidy amount. M/s. .......................................................................................shall draw this amount on payees

receipt duly countersigned by Director, IT & BT.

Director,

IT & BT

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Format for issue of Stamp Duty Exemption Certificate

ANNEXURE - 15

CERTIFICATE FOR CLAIMING EXEMPTION OF STAMP DUTY FOR SETTING UP OF SEMICONDUCTOR INDUSTRY.

Certified

that

M/s.................................................................................................

represented by the Managing Director

Mr.......................................................................is

recognized

Semiconductor

Industry

established

at..................................................................and is eligible for 50% exemption from payment of Stamp Duty charges in terms of

Notification No. RD Munomou.......................dated.......................read with.......................................

Director

Directorate of Information Technology

and Biotechnology

Format for issue of Concession of Registration Fee

ANNEXURE - 16

CERTIFICATE FOR CLAIMING CONCESSIONAL REGISTRATION CHARGES FOR SETTING UP OF SEMICONDUCTOR

INDUSTRY

Certified that M/s............................................................................................represented by the

Managing

Director

Mr..................................................................................

recognized as an Semiconductor Industry established

.....................................................................and is eligible for concessional registration charges at Rupee 1/- per Rs.1,000/-

in terms of Notification No. RD Munomou........................dated ...................read with.................................

Director

Directorate of Information Technology

and Biotechnology

ANNEXURE - 17

FORMAT FOR ISSUE OF RELEASE ORDER FOR REIMBURSEMENT OF LAND CONVERSION FINE UNDER

SEMICONDUCTOR POLICY 2010

GOVERNMENT OF KARNATAKA

DEPARTMENT OF IT & BT

No.............

Office of the .......................

Date: .......................

OFFICE ORDER

Ref :

1. G.O. No. ITD 10 PRM 2008 Dt 25-2-2010

2. Revenue Department Land Conversion Order No.

3. Application of M/s. ………………. Dtd:…………

M/s. ………………………………….. have made an application for grant of reimbursement of Land Conversion Fine

paid for conversion of ………… acres of land which was under in the name of Sri/Smt …………….. situated in

Survey No..............….. No……….............. of...........................…………..

Village,

................................... Taluk,

...............................

District for

having

established

industry

for

manufacture

……………..a

IEM

acknowledgement/ Industrial license has also been obtained by the applicant enterprise vide No. ………. Dtd:………

for this purpose.

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The enterprise has paid the Land Conversion Fine of Rs. ………….… in accordance with the Land Conversion Order cited

at ref(2).

It is certified that the enterprise's requirement of land has been examined in detail and found that ………. Acres of

land was essential for setting up the said industry. It is eligible for exemption from payment of conversion fine for

conversion of the above land from agricultural to non-agricultural industrial purpose, in terms of .G.O.No. ITD 10 PRM 2008

Dt 25-2-2010

Accordingly

the

enterprise

entitled

for

the

reimbursement

the

extent

100%/75% i.e., Rs.

............................ Accordingly the enterprise has to draw this amount on payee's receipt duly countersigned by the

Director, IT & BT,...................................................

The expenditure in this behalf is debited to Head of Account ........................

DIRECTOR

IT & BT

ANNEXURE - 18

PROFORMA FOR ENTRY TAX EXEMPTION CERTIFICATE DURING IMPLEMENTATION PHASE

UNDER SEMICONDUCTOR POLICY 2010

GOVERNMENT OF KARNATAKA

DEPARTMENT OF IT & BT

No.............

Office of the .......................

Date: ..................................

CERTIFICATE

Sub: Exemption of Entry Tax to M/s.........................................................................................

Ref:

G.O.No. ITD 10 PRM 2008 Dt 25-2-2010

F.D. Notification No.......................................................

Application dated : ............... of M/s. .............................

This is to certify that

M/s. .............................................................. is a Micro/Small / Medium Enterprises / Large / Mega industry located

at..............................................................taluk,................................ District.

The enterprise is registered vide No. ................... Dated ......................... for manufacture of ................................ with DIT.

The enterprise is located at zone 1/2/3 as classified in the Govt.Order cited at ref (1) above.

It is a new enterprise/enterprise proposed to undertake expansion / diversification / modernization

and cleared in DLSWCC /SLWCC/SHLCC for establishment of .............................., with a total investment of Rs. ............

The value of fixed assets as proposed in the project report is as below :

Sl.No

Description

Investment (Rupees)

Land and site development

Buildings and other civil structures

Plant and Machinery including co- generation power plant.

Other fixed assets

Miscellaneous

Total.

The enterprise is eligible for Entry Tax Exemption on the entry of plant and machinery and capital goods directly involved in

the production or other processing of goods and including those equipments brought for the purpose of establishing

captive power generation plant for a maximum period of 3 years from..............................i.e., the date of implementation

of the project as envisaged by the purchase order No....................dated...........................or till the

completion of the project implementation, whichever is earlier.

This Certificate is issued as per the Govt. Orders cited at reference (1) & (2) above.

The enterprise has to fulfill the conditions as prescribed in the Govt. Order cited at ref (1) above.

DIRECTOR

IT & BT

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ANNEXURE - 19

PROFORMA FOR ENTRY TAX CERTIFICATE TO DURING OPERATIONAL PHASE (UNDER SEMICONDUCTOR POLICY 2010)

GOVERNMENT OF KARNATAKA

DEPARTMENT OF IT & BT

No.............

Office of the .......................

Date: ..................................

CERTIFICATE

Sub: Exemption of Entry Tax to M/s.........................................................................................

Ref : 1. .G.O.No. ITD 10 PRM 2008 Dt 25-2-2010

2. F.D. Notification No. (i) ...............................................

3. Application dated: ............... of M/s. ..........................

This is to certify that

M/s. .............................................................. is a Micro/Small / Medium Enterprises/ Large / Mega industry located at

............................................... taluk, ................................ District.

The enterprise is registered vide No. .............................. Dated :........................ for manufacture of

.................................. with DIT.

The enterprise is located at zone 1 / 2/3 as classified in the Govt.Order cited at ref (1) above.

It is a new enterprise/enterprise proposed to undertake expansion/diversification/ modernization and cleared

in DLSWCC / SLWCC / SHLCC for establishment of ............................................. , with a total investment of

Rs. ....................................................

The value of fixed assets invested is as below :

Sl.No

Description

Investment (Rupees)

Land and site development

Buildings and other civil structures

Plant and Machinery including co- generation power plant.

Other fixed assets

Miscellaneous

Total.

The enterprise is eligible for Entry Tax Exemption on the entry of any goods for use as raw materials, inputs, component

parts and consumables (excluding petroleum products like crude oil, petrol, diesel, super light diesel oil, bitumen (asphalt)

tar, furnace oil, break fuel or clutch fluid, transformer oil, coolants, white oil, hexane, lubricating oil, petroleum jelly,

naphtha and LSHS used as consumables or for captive power generation enterprises) for a period of 5 years

from................................i.e., the date of commencement of commercial production, as envisaged by the Invoice/Bill

No.............................dated................................

Certified that no part of Fixed Assets other than Land & Building claimed above is old/used/second hand with the

exception of those imported from outside the country.

This Certificate is issued as per the Govt. Orders cited at reference (1) & (2) above.

The enterprise has fulfilled the conditions of local employment as prescribed in the Govt. Order cited at ref(1) above

DIRECTOR

IT & BT

ANNEXURE - 20

PROFORMA FOR ENTRY TAX EXEMPTION CERTIFICATE TO 100% EOUS

(UNDER SEMICONDUCTOR POLICY 2010)

GOVERNMENT OF KARNATAKA

DEPARTMENT OF IT & BT

No.............

Office of the .......................

Date: ..................................

CERTIFICATE

Sub: Exemption of Entry Tax to 100% EOU enterprise viz., M/s. ...............................

Ref : 1. G.O.No. ITD 10 PRM 2008 Dt 25-2-2010

2. F.D. Notification No..(ii) ..............................................

3. Application dated: ............... of M/s. ..........................

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This is to certify that

(i)

M/s. .............................................................. is a Micro/Small / Medium Enterprises/ Large / Mega industry located at

............................................... taluk, ................................ District.

(ii)

The enterprise is registered vide No. .................................... Dated: .................................... for manufacture of

.................................. with DIT

(iii)

The

enterprise

registered

100%

EOU

vide

No.

…………………….

dtd:

with

Development

Commissioner,..............................................., Government of India.

(iv) The enterprise is located at zone 1 / 2/3 /4 as classified in the Govt.Order cited at ref (1) above. (v) It is a new

enterprise/enterprise proposed to undertake expansion/diversification/modernization and cleared in SLWCC /

SHLCC for establishment of ................................., with a total investment of Rs. .......................................

(vi) The value of fixed assets invested as proposed in the project report is as below :

Sl.No

Description

Investment (Rupees)

Land and site development

Buildings and other civil structures

Plant and Machinery including co- generation power plant.

Other fixed assets

Miscellaneous

Total.

(vii) The enterprise is eligible for 100% Entry Tax Exemption on Plant and Machinery and on Capital goods for a period

of 3 years from...................................i.e., the date of commencement of project implementation as

envisaged by the purchase order No.........................dated..........................

(viii) This Certificate is issued as per the Govt. Orders cited at reference (1) & (2) above.

(ix) The enterprise has fulfilled the conditions of local employment as prescribed in the Govt. Order cited at ref(1) above.

DIRECTOR

IT & BT

ANNEXURE - 21

PROFORMA FOR ENTRY TAX EXEMPTION CERTIFICATE TO EOU'S

(UNDER SEMICONDUCTOR POLICY 2010)

GOVERNMENT OF KARNATAKA

DEPARTMENT OF IT & BT

No.............

Office of the .......................

Date: ..................................

CERTIFICATE

Sub: Exemption of Entry Tax to EOU enterprise viz., M/s. ................................

Ref: 1. G.O.No. ITD 10 PRM 2008 Dt 25-2-2010

2. F.D. Notification No..(iii) ..............................................

3. Application dated: ............... of M/s. ..........................

This is to certify that

(i)

M/s. .............................................................. is a Micro/Small / Medium Enterprises/ Large / Mega industry located at

............................................... taluk, ................................ District.

(ii)

The enterprise is registered vide No. ..................... Dated: ...................... for manufacture of .............................. with DIT.

(iii)

The enterprise is located at zone 1 / 2/3 /4 as classified in the Govt.Order cited at ref (1) above.

(iv)

It is a new enterprise/enterprise proposed to undertake expansion/diversification/modernization and cleared in SLWCC /

SHLCC for establishment of............................................. , with a total investment of Rs. ......................

(v)

The value of fixed assets invested is as below :

Sl.No

Description

Investment (Rupees)

Land and site development

Buildings and other civil structures

Plant and Machinery including co- generation power plant.

Other fixed assets

Miscellaneous

Total.

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The enterprises turnover during last........................years is as follows :

Period

Total turnover

Local sales

Export turnover

Percentage of export.

(vi)

The enterprise is eligible for 50% entry tax exemption on the entry of any goods for use as raw materials, inputs, component

parts and consumables (excluding petroleum products like crude oil, petrol, diesel, super light diesel oil, bitumen

(asphalt) tar, furnace oil, break fuel or clutch fluid, transformer oil, coolants, white oil, hexane, lubricating oil,

petroleum jelly, naphtha and LSHS used as consumables or for captive power generation enterprises) for a period

of 3 years from.........................i.e., the date of commencement of commercial production, as envisaged by the Invoice/Bill

No.........................dated.....................................

(vii)

This Certificate is issued as per the Govt. Orders cited at reference (1) & (2) above.

(viii) The enterprise has fulfilled the conditions of local employment as prescribed in the Govt. Order cited at ref(1) above.

DIRECTOR

IT & BT

ANNEXURE - 22

FORMAT FOR REFUND OF CERTIFICATION CHARGES TO 100%

EOUS AND OTHER EOUS (UNDER SEMICONDUCTOR POLICY 2010)

GOVERNMENT OF KARNATAKA

DEPARTMENT OF IT & BT

No.............

Office of the .......................

Date: ..................................

OFFICE ORDER

Sub: Refund of certification charges to M/s. ................................

Ref : 1. G.O.No. ITD 10 PRM 2008 Dt 25-2-2010

2. Application dated :............... of M/s. ..........................

This is to certify that

M/s. .............................................................. is a Micro/Small / Medium Enterprises/ Large / Mega industry located at

............................................... taluk, ................................ District.

The enterprise is registered vide No. ............................. Dated: ........................ for manufacture of ..................................

with DIT.

The enterprise is registered as 100% EOU vide No. ……………. dtd: with Development Commissioner, Government

of India or the unit is certified as other EOU having fulfilled 25% export obligation.

The enterprise is located at zone 1 / 2/3 /4 as classified in the Govt. Order cited at ref(1) above.

It is a new enterprise/undertaken expansion/diversification/ modernization and cleared in SLWCC / SHLCC for

establishment of ............................................. , with a total investment of Rs. ......................

The value of fixed assets created is as below:

Sl.No

Description

Investment (Rupees)

Land and site development

Buildings and other civil structures

Plant and Machinery including co- generation power plant.

Other fixed assets

Miscellaneous

Total.

M/s ..................................................................... has incurred a total expenditure of Rs.....................................

towards........................................... As per the Semiconductor Policy - 2010 cited under ref (1), the enterprise is eligible

for reimbursement to the extent of 50% of the expenses subject to a maximum of Rs.2 lakhs, accordingly the enterprise is entitled

for refund of Rs. ...............................................only.

M/s......................................................... has to claim this amount on payee's receipt duly countersigned by the Director, IT & BT

The expenditure in this behalf is debitable to Head of Account...................................................

DIRECTOR

IT & BT

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ANNEXURE - 23

APPLICATION FORM FOR SANCTION OF INVESTMENT SUBSIDY FOR SETTING UP OF EFFLUENT TREATMENT PLANT

(ETPs). UNDER Semiconductor Policy 2010

(A) FORMAT FOR ENTERPRISES COVERED UNDER VAT, ESI, EPF AND WITH OR WITHOUT POWER.

Name and address of the enterprise

Zone-As per Semiconductor Policy 2010

Location of the Enterprise

Registration No. and date

(as mentioned in EM/IEM/IL)

Products manufactured/processes.

Constitution of the industry

(Proprietary/Partnership/Pvt/Ltd/Com)

Whether the enterprise belongs to Special Category

entrepreneur. Please specify. (Women/SC/ST/PH/Ex-

Servicemen and others)

Project cost details.

Main enterprise

ETP

Land

Building

Plant and Machinery

Others

Working Capital

Total

Date of Commercial Production

CFE & CFO Issued by KSPCB

Environment Clearance Certificate (ECC)

issued by DFEE / MOEF (Wherever applicable)

Environment Management Plan (EMP)

Compliance Certificate to the consent condition

from KSPCB and certification for investment on ETP

Actual Investment details

Main enterprise

ETP

1. Land

2. Building

3. Plant & Machinery

4. Other fixed assets (please specify)

Total

Name of the Term Loan lending Financial

Institution/Bank.

1. Date of loan sanction

2. Amount of loan sanction

3. Amount of loan release.

4. Date of first loan release.

Along with the above information, the following documents have to be enclosed:

Investment certificate in the prescribed form issued by the financial institution/Bank

II.

Investment certificate in the prescribed format issued by the Chartered Accountant

III

Statement of fixed assets in the prescribed format certified by the enterprise

IV.

Engineers/Architects Certificate in the prescribed format regarding investment on building

Employment details

Declaration by the applicant :

I / We hereby certify that the particulars given above are to the best of my /our knowledge and belief and true are correct.

Place :

Date :

Signature(s)

Name & Designation

(with seal of the company)

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ANNEXURE - 24

STATEMENT OF FIXED ASSETS CREATED BY THE ENTERPRISE FOR CLAIMING INVESTMENT SUBSIDY FOR

ETPS. UNDER SEMICONDUCTOR POLICY 2010

(A) Detailed Statement of Fixed Assets Created By the Enterprise excluding ETP:

Sl.

No.

Particulars on

the fixed assets

From

whom

purchased

Date of

placement

of order

Date of

invoice/

Bills

Amount

Bills/Invoice

Date of

payments

Mode of

Payments

Voucher / Bills

Receipts

No. Date

Remarks

Land & Land

Developments

Building

P&M and other

Productive assets

Transportation &

Transit Insurance

Erection

Electrification

Other fixed assets

TOTAL

(B) Detailed Statement of Fixed Assets Created By the Enterprise for ETP:

Sl.

Particulars on

the fixed assets

From

whom

purchased

Date of

placemen

t of order

Date of

invoice/

Bills

Amount

Bills/Invoice

Date of

payments

Mode of

Payments

Voucher / Bills

Receipts

No. Date

Remarks

Land & Land

Developments

Building

P&M and other

Productive assets

Transportation &

Transit Insurance

Erection

Electrification

Other fixed assets

TOTAL

Signature of the Proprietor / Partner/

Managing Director of the Enterprises.

PART- B

Certified that verification has been done by me in respect of Vouchers / Bills at Sl. No………………………..with reference to

originals produced by the Enterprises and found correct.

No items for which subsidy is in admissible is included in the statement.

Following items which are included in statements are disallowed as they are not eligible for subsidy for the reasons stated against each

items.

DIRECTOR

IT & BT/ AMD, KBITS

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ANNEXURE - 25

FORMAT FOR CLAIMING GRANTS FROM HEAD OFFICE TOWARDS REIMBURSEMENT OF LAND CONVERSION FINE ON

QUARTERLY BISIS

(i.e., quarter ending as on ……………) under Semiconductor Policy 2010

Sl.

No.

Name and

address of

the

enterprise

Whether

micro/

Small/

Medium/

Large/

Mega/

Location

(i.e, zone)

Product

Date of

production

Extent of

Land

Conversion

Amount of

Conversion

Fine paid.

%age of

Conversion

Fine

Exemption

entitlement.

refund.

New or

expansion

Date of Land

conversion

Eligible

amount for

Category of

enterprise

(i.e., SC/

ST / Women / PH /

Ex-Servicemen)

Remarks

Certified that the above enterprises are covered under Semiconductor Policy 2010 only.

Certified that the above enterprises have furnished all the required documents and eligible for the reimbursement

of Land Conversion Fine.

DIRECTOR

IT & BT

ANNEXURE - 26

FORMAT FOR FILING QUARTERLY RETURNS TO GOVERNMENT IN RESPECT OF ENTRY TAX EXEMPTION CERTIFICATES

ISSUED TO MSMEs (i.e., quarter ending as on…..)

(UNDER SEMICONDUCTOR POLICY 2010)

No.

Name and

address of the unit

Location

(Zone /Policy)

Product

Date of

production

Type of unit i.e., Micro/

Small/ Medium

Category of the

unit

(SC/ST/PH/

Women/

Ex-Service Men)

Entry Tax Exemption for

project implementation or

operational period.

Value of Plant and

Machinery

or project cost.

New unit or

expansion

Remarks

DIRECTOR

IT & BT

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ANNEXURE – 27

FORMAT FOR FILING QUARTERLY RETURNS TO GOVT IN RESPECT OF ENTRY

TAX EXEMPTION CERTIAFICATES ISSUED TO 100% EOUs and other EOUs under MSMEs

(i.e., QUARTER ENDING AS ON ………..) (UNDER SEMICONDUCTOR POLICY 2010)

No.

Name and

address of

the unit

Location

(Zone/

Policy)

Product

Date of

production

Type of unit i.e.,

Micro/ Small/

Medium

Whether 100%

EOU or other

than EOUs

Category of the unit

(SC/ST/PH/ Women/ Ex-

Service Men)

Value of Plant and

Machinery or project cost

New unit or

expansion

Remarks

DIRECTOR

IT & BT

ANNEXURE - 28

FORMAT FOR CLAIMING GRANTS FROM GOVT TOWARDS REIMBURSEMENT OF

CERTIFICATION CHARGES TO 100% EOUs AND OTHER EOUs ON QUARTERLY BASIS

(i.e., quarter ending as on ……………….. ) (UNDER SEMICONDUCTOR POLICY 2010)

Sl.

No.

Name & address of

the enterprise

Product

Date of

production

Type of

Certification

obtained

Certification

amount paid

Whether micro/

Small/ medium

Location

(i.e., zone)

New or

expansion