Karnataka Production Linked Incentive (Industrial Policy 2025-30)
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Quick Answer
Under Karnataka's Industrial Policy 2025-30, medium, large, mega and ultra-mega manufacturers can take 1% to 2.5% of net sales turnover for 7 years instead of the capital subsidy.
- Funding amount
- Varies
- Funding type
- Subsidy
- Provider
- Government of Karnataka
- Application deadline
- Rolling
- Location
- Karnataka
About this subsidy
Karnataka's Industrial Policy 2025-30 lets a manufacturing enterprise choose its base subsidy: a capital subsidy, or a Production Linked Incentive (PLI) paid on net sales turnover. The policy pitches the PLI option at high revenue-generating industries.
The incentive (by zone)
- Zone 1: 2.5% of net sales turnover for 7 years from commercial production, capped at 60% of the value of fixed assets (VFA).
- Zone 2: 2.0% of net sales turnover for 7 years from commercial production, capped at 60% of VFA.
- Zone 3: 1.0% of net sales turnover for 7 years from commercial production, capped at 30% of VFA, only for Bengaluru Rural district.
Who can take it Medium, large, mega and ultra-mega manufacturing enterprises in Karnataka that opt for PLI instead of the capital subsidy as their base subsidy. Your zone depends on the district where you invest, as classified in the policy. Boosters in the policy (for example for women's participation in the workforce) can raise the PLI rate.
How to apply Apply through Karnataka's single window for investment approvals (Invest Karnataka). The PLI is an alternative to the capital subsidy, so choose your base subsidy when you apply.
Eligibility
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Full eligibility criteria — entity type, stage, sector, founder profile and registration requirements — plus your fit for this program. Sign up to view.
Subsidy providers
The Government of Karnataka supports entrepreneurs through the Centre for Entrepreneurship Development of Karnataka (CEDOK) and through the state's industrial policy. CEDOK is an autonomous body, registered in 1992 and promoted by the state government, that works under the…
Learn moreTimelines & Process
Applications
Rolling basis
How to apply
Four steps from draft to disbursement — one action each.
- 1
Submit on the official portal
Use the official application link and verify all details before final submission.
- 2
Follow up
Reach out 5–7 days after submitting to confirm receipt and ask about the review timeline.
Sources
Data on this page is compiled from official program and provider references.
