Got Questions?
11) What is Karnataka ESDM Company?
- Companies whose nature of business is:
- Manufacturing and or design of electronic products.
- Manufacturing of intermediates.
- Electronic Manufacturing Services.
- Design/IP/Software Services for Electronic Products.
- Company that is registered in Karnataka under the Karnataka Shops and Commercial Establishment Act, 1961.
- The company or entity employs at least 50 percent of its total workforce in Karnataka excluding contract employess.
- Company that achieves a minimum percentage of Value Addition as mentioned in the Operational Guidelines
22) Why should I register with the Karnataka ESDM cell?
To be recognized as a Karnataka ESDM Company and to avail incentives and Concessions under KESDM Policy 2017-22
3How can I register under KESDM Policy?
- Please go to the http://itbt.karnataka.gov.in/Pages/company-registration.aspx, select ESDM registration, enter user credentials and fill up the online form for registration.
- On successful completion of the online application form and uploading all relevant documents, the application will be processed and if found satisfactory the ESDM certificate would be issued within 30 days.
4Are only registered KESDM companies eligible for incentive?
Yes only registered KESDM companies can avail for the incentives along with the KESDM registration certificates
55) How to calculate Value Addition done within the state?
Please refer the Formulae given in the Operational Guidelines for KESDM policy 2017 -2022.
6Where can the forms be found for availing different incentives under KESDM Policy?
The forms are available on :
http://itbt.karnataka.gov.in/Pages/KESDM_policy_2017-2022.aspx under ESDM registration when the user logins with his credentials.
7When to apply for Incentives/concessions for each Financial Year?
Application for any incentives/concessions for each financial year should be submitted half yearly (only one time) within six months from the end of each half year. If the applications are submitted after this duration it would be rejected. This condition is relaxed for Patent Incentive.
8From when the company is eligible to apply for any incentives/concessions?
- All the incentives, except for patent registration incentive, will be applicable from the date of KESDM registration for the company. Only for patent registration incentive, patent applications filed during the policy period will be considered.
9Can a company be registered under different policies available under the Department?
- Yes, company can registered under different policies.
10Can a registered company claim the same incentives which are available in different policy?
- KESDM companies are also eligible to avail incentives and concessions as per the applicable norms of Karnataka Industrial Policy and Karnataka Start-up Policy, prevailing at that point of time, from respective Departments. However, those incentives which are common in these policies, can only be claimed from any one source. Any irregularity/misrepresentation in this regard will disqualify the company from availing any incentives in any of the policies of Govt. of Karnataka.
11What are the reimbursements under the Patent Incentives covered?
- Eligible expenses for a patent filing include filing fees paid to the patent office, attorney fees, search fees, and maintenance fees. Up to 75% of the eligible expense amount or 75% of the upper limit (INR 2 Lacs for domestic patent; INR 10 Lacs for international patent), will be reimbursed once the patent is filed.
- The balance 25% will be paid after the patent has been granted.
12How many Patents can be applied for reimbursements by a single company during the policy period?
- A single company will be eligible for a maximum of five reimbursements (inclusive of domestic or international patents) during the policy period.
- These patent filing incentives provided by the Govt. of Karnataka will be in addition to any existing scheme of the Government of India.
13What are the reimbursements under the International Marketing Incentive covered?
- Govt. of Karnataka will provide reimbursements of 50% of the actual cost incurred in :
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- Registration, travel, boarding and lodging expenses for international marketing, events, and conferences
- Trade show participation and exhibition stall rentals.
- A single KESDM company will be eligible to claim the reimbursement for up to a maximum 0f INR 5 Lacs per year.
14What are the reimbursements under R and D Grant covered?
- Annual Salaries of R&D staff working on ESDM products, Capitalized value of the Test equipment and Software tools purchased or purpose-built for ESDM product design, development or testing, Capitalized value of the Hardware and Software prototype costs for ESDM products, Compliance and Regulatory testing expenses incurred for ESDM products, Capitalized value of the Computers, Servers, Workstations and Networking Equipment used for ESDM R&D.
- This grant is subject to a maximum of INR 2 Crores per company per year and will be in addition to any similar benefits announced by the Government of India.
15How many times can a single company claim for R and D Grant during the policy period?
A single company will be able to claim this incentive only twice during the entire policy period
16Is R & D grant available for all the ESDM companies?
- The R&D grant will be available to only those companies that are less than 7 years old (from the date of incorporation).
- For design and services companies, only if the IP resides with the Karnataka based ESDM Company, will the company be considered eligible for the R&D grant.
17What are the reimbursements under the capital subsidy incentive?
The Govt. of Karnataka will provide up to 10% capital subsidy, up to a maximum of INR 10 Crores to registered KESDM companies, which will be applicable to the first two anchor units in each Greenfield cluster.
18Is Capital Subsidy applicable for all the ESDM companies?
This subsidy is only available for Large and Mega Enterprises ESDM registered companies and not applicable for Startups and MSME’s companies
19What are the reimbursements under the Quality Certification Costs?
Registered KESDM Startups and MSMEs will be eligible for reimbursement of up to 50% of testing/certification charges incurred for getting the products tested/certified subject to a maximum of INR 10 Lacs per year.
20What are the reimbursements under the Prototyping Costs?
- Registered KESDM Startups and MSMEs will be eligible for reimbursement of 50% of the cost incurred for developing a prototype of a product.
- This will be subject to an upper limit of INR 10 Lacs per year, with an allowance of a maximum of 2 sanctions per year per company.
21What are the reimbursements under the PF / ESI incentive covered?
Registered KESDM Startups & MSMEs will be reimbursed Provident Fund (PF) or Employee’s State Insurance (ESI) of INR 2,000 per employee per month for two years subject to total reimbursement of up to INR 12 Lacs.
22What are the eligibility criteria to claim PF/ESI Incentive?
- PF /ESI Incentive is only applicable for all new employment created during the policy period, provided the employment is for a continuous period of two years.
- This subsidy will only be applicable to a new company, registered within the last two years, as on the date of application.
23What do Interest Subsidy benefits covers?
- Interest subsidy of up to 6% per annum on term loans will be provided to registered KESDM Startups and MSMEs for a period of five years for loans of up to INR 50 Lacs.
24For which Term loan, is the Interest Subsidy available?
- The term loan must have been taken from a scheduled bank or a state-level financial institution such as KSFC.
25What do Exemption from Stamp Duty benefits covers?
- Registered KESDM companies will be exempted from stamp duty paid in respect of the term loan must have been taken from a scheduled bank or a state-level financial institution such as KSFC etc.
- Lease deeds, lease-cum-sale and absolute sale deeds.
26What are the reimbursements under the Land Conversion Fee?
The payment of land conversion fee for converting the land from agriculture use to industrial use will be reimbursed to registered KESDM companies.
27What do Exemption from Concessional Registration Charges benefits covers?
Registered KESDM companies will be eligible for a concessional rate of INR 1 per INR 1000 on registration charges for all loan documents, lease deeds and sale deeds.
28What do Power Tariff Concession benefits covers?
- Industrial power tariff (instead of commercial power tariff) will be applicable to registered KESDM companies to set up in Karnataka and other associated industry within the State. This will be subject to KERC regulations.
- For further details on Power Tariff Concessions please refer the Operational Guidelines for KESDM policy 2017-2022.
29What do Subsidy for setting-up ETP benefits covers?
Registered KESDM companies will be eligible for subsidy grant for setting up of effluent treatment plant (ETP). One time capital subsidy to the tune of up to 50% of the cost of ETP.