To foster an inclusive and sustainable industrial ecosystem that ushers in Industry 4.0 and promotes investment and innovation, an incentive structure has been designed to cater to the needs of the industrial enterprises in the 22 Priority Sectors.
The following incentives are identified under this policy, which is applicable to eligible enterprises in the aforementioned 22 Priority Sectors.
|Sl. No.||Incentive Category||Project Category||Description|
|1||Low-interest loans||MSME||Loan @ 4% interest subject to a maximum of Rs. 10 Lakh (via interest subvention upto 6%)|
|2||Capital subsidy incentive for MSMEs||MSME|| — Micro – upto 45%, subject to a maximum of Rs. 40 Lakh
— Small – upto 45%, subject to a maximum of Rs. 100 Lakh
— Medium – upto 45%, subject to a maximum of Rs. 200 Lakh
|3||Electricity Duty Exemption||MSME||100% exemption for 5 years|
|4||Access to finance through IPO route||MSME||Reimbursement of 50% expenses subject to a maximum of Rs. 1 Cr., incurred on floating Public issues through the SME platform of NSE & BSE, provided the funds thus raised are utilized for setting up/ expanding enterprise in the State.|
|5||Investment subsidy||Large, Mega||Investment subsidy of 10% on fixed capital investment, subject to a maximum of Rs. 10 Cr., in phases.|
|6||SGST Reimbursement||Large, Mega||100% reimbursement on capital investment for 5 years.|
|7||Employment Enhancer Incentive||Large, Mega||
— When 50% of permanent jobs are filled from local population, an amount equivalent to 25% of the monthly wages of each additional employment thus created, subject to a maximum of Rs.5000/- per month per person, shall be reimbursed to the employer, for one year.
— When more than 50% of permanent employees are women, an amount equivalent to 25% of the monthly wages of each additional employment thus created, subject to a maximum of Rs.5000/- per month per woman employee, shall be reimbursed to the employer, for one year.
— When permanent employment is provided to transgenders of the State, reimbursement will be provided to the employer for one year, at the rate of Rs.7500/- per month per transgender employee.
|8||Waiver of Stamp Duty & Registration charges for manufacturing units||All Category||
— Up to 100% on lease deed/ purchase of land/ building for setting up manufacturing unit in Government Industrial Parks and notified Private Industrial Parks.
— For Women, SC/ST, PH & Transgender entrepreneurs – Up to 100% on lease deed/ purchase of land/ building for setting up manufacturing unit anywhere in the State.
|9||Private Industrial Estates||All Category||Funding support upto Rs.3 Cr. for infrastructure development.|
|10||Incentive for participation in trade fairs||All Category||Reimbursement up to 100% of the stall charges incurred, subject to a maximum of Rs. 5 Lakh for participating in one domestic and one international fair/ exhibition per annum|
|11||Intellectual Property creation||All Category||Reimbursement of 50% of the expenditure incurred, subject to a maximum of Rs. 30 Lakh, for a patent, copyright, trademarks, GI registration, etc.|
|12||Quality certification incentive||All Category||Refund of expenses incurred for compulsory marking like CE, FDA, ISO, BIS, etc., to the extent of 50% of expenses, subject to a maximum of Rs. 25 Lakh per unit per annum.|
|13||Incentives for sustainability and responsible industrialization||All Category||Reimbursement of 25% of expenses incurred for the purchase of Plant & Machinery/equipment for setting up ETP, installations for substitution of power from the grid, rainwater harvesting, Zero Discharge technologies, recycling of e-waste and recycling of wastewater, conducting audits for energy and water conservation & purchase of material for such conservation, excluding the expenditure incurred for civil works, subject to a maximum of Rs.25 Lakh during the policy period.|
|14||IR 4.0 initiatives in manufacturing||All Category||20% reimbursement of the cost of software (big data analytic tools), machinery, etc., subject to a maximum of Rs. 25 Lakh/unit during the policy period.|
|15||R&D Incentive||All Category||Funding of 20% of R&D cost for units engaged in R&D with Universities in the State, subject to a maximum of Rs. 1 Cr. per unit.|
|16||Scale up incentive for Startups||All Category||KSIDC shall provide scale-up loans up to Rs. 1 Cr. to Startups in the State.|
|17||Made in Kerala (Branding & Marketing)||All Category||Reimbursement of 50% of the cost incurred in obtaining ‘Made in Kerala’ certification.|
|18||Special Package to attract PLI Investors||All category units in the Manufacturing Sector||A one-time top-up incentive of 20% of the fixed capital investment, subject to a maximum of Rs 1 Crore, shall be provided for industrial units set up in the State by investors shortlisted under the PLI schemes of the Central Government. Such a top-up incentive is in addition to other subsidies admissible to the said enterprises.|