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| Particular | Scheme Details |
|---|---|
| Scheme / Policy | Karnataka New Textile & Garment Policy 2019–2024 |
| Implementing Department | Department of Handlooms & Textiles, Government of Karnataka |
| Objective | Promote investment, modernization, employment and development of the complete textile & apparel value chain in Karnataka. |
| Eligible Industries | Textile, garment/apparel, spinning, weaving, integrated textile units, processing, technical textiles and related activities. |
| Thrust Sectors | Spinning, Weaving, Integrated Units, Processing and Technical Textiles. |
| Eligible Units | New units and, subject to conditions, existing units undertaking expansion, diversification or modernization. |
| Geographical Coverage | Karnataka, with incentives varying according to Zone 1, Zone 2, Zone 3 and Zone 4. |
| Policy Period | 4 November 2019 to 2024 under the notified policy. |
The policy covers:
Textile enterprises
| Category | Investment / Employment criteria |
|---|---|
| Micro | As per applicable MSME classification |
| Small | As per applicable MSME classification |
| Medium | As per applicable MSME classification |
| Large | Non-MSME textile unit with investment up to ₹300 Cr, subject to employment criteria |
| Mega | Fixed-asset investment above ₹300 Cr; minimum employment requirements apply |
| Anchor | First-of-its-kind textile unit in a taluka, generally ₹100 Cr+ investment and minimum 200 direct employees |
For garment units, the policy provides separate thresholds; Mega garment projects are above ₹200 Cr with prescribed employment requirements, while Anchor garment units require ₹50 Cr+ investment and minimum 1,000 direct employees.
For MSME textile enterprises:
| Zone | Thrust Sector | Other Textile Activities |
|---|---|---|
| Zone 1 | 30% | 25% |
| Zone 2 | 25% | 20% |
| Zone 3 | 20% | 15% |
| Zone 4 | Not available | Not available |
For Large textile enterprises:
| Zone | Thrust Sector | Other Textile Activities |
|---|---|---|
| Zone 1 | 25% | 20% |
| Zone 2 | 20% | 15% |
| Zone 3 | 15% | 10% |
| Zone 4 | Not available | Not available |
An additional 5% capital subsidy was provided for eligible categories such as SC/ST, persons with disabilities, minorities, ex-servicemen and women, subject to the policy conditions.
| Zone | MSME Garment | Large Garment |
|---|---|---|
| Zone 1 | 25% | 20% |
| Zone 2 | 20% | 15% |
| Zone 3 | 15% | 10% |
| Zone 4 | Not available | Not available |
Additional 5% capital subsidy was prescribed for specified special categories.
For eligible Large textile/garment enterprises, the policy provides:
5% per annum interest subsidy on term loans for the first 5 years.
This is subject to the applicable policy conditions and zone/sector eligibility.
Power subsidy is available for eligible textile activities in Zones 1–3.
Indicative rates include:
The policy provides different rates according to enterprise type and activity.
For eligible new textile and garment MSME units:
75% reimbursement of employer's contribution towards ESI and EPF for 5 years was provided for eligible units in Zones 1–3, subject to conditions.
For eligible medium and large garmenting enterprises, wage subsidy was provided based on zone and employment conditions.
The policy provides, among other provisions:
The precise amount and eligibility depend on the enterprise category, zone and applicable operational guidelines.
For eligible textile and garment enterprises in Zones 1–3:
Zone 4 is excluded under this textile-policy incentive.
For existing and new eligible textile units:
50% capital subsidy OR ₹5 crore, whichever is lower, for establishment of Effluent Treatment Plants, particularly for integrated and processing units and cleaner/ZLD measures.
Greenfield Textile Parks
Eligible SPV/legal entity can receive:
40% of project cost OR ₹40 crore, whichever is lower
as one-time grant support for common infrastructure.
Brownfield Textile Parks
Eligible brownfield cluster/industrial estate:
40% of project cost OR ₹12 crore, whichever is lower.
Projects receiving Central Government assistance may receive supplementary State support subject to the policy provisions.
For eligible common facilities:
The policy provides:
Up to ₹10 crore grant
for establishing a Centre of Excellence for Textiles / Technical Textiles.
Support is available for:
The policy provides support of up to ₹1 crore for infrastructure upgradation of eligible textile training institutions, subject to selection and DPR requirements.
Eligible interventions can receive:
50% of eligible expenditure or ₹50 lakh, whichever is lower.
Support:
50% of eligible expenditure or ₹25 lakh, whichever is lower.
Support:
50% of eligible expenditure or ₹5 lakh, whichever is lower, for specified standards/compliance interventions in eligible textile zones.
For mega textile/garment projects, Karnataka provides for a case-to-case special package of incentives/concessions over and above the standard incentives, subject to Government approval and prescribed investment/employment criteria.
Mega Textile
Mega Garment
The policy specifies an overall incentive ceiling of 100% of Fixed Capital Investment (FCI) for eligible Large and MSME units in the applicable regions.
Additional incentive provisions include:
Important conditions include: