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Core Manufacturing
Karnataka is a prominent cement, steel and metal producing state in the country. Its rich mineral resources extend beyond iron ore, deposits of manganese, silica, and limestone, which are crucial for various metal industries. Karnataka is one of the pillars of the national iron (estimated 2 billion MT) and steel industry (JSW Steel, Kalyani Steels, and Mukund Steels). The state’s comprehensive mineral policy supports the sustainable development of its metal sector. The state boasts around 17,253 million tons of limestone deposits and 22 cement units with a combined production capacity of around 16 MMTPA. Further, the state’s comprehensive mineral policy supports the sustainable development of its metal sector. Its strategic location, skilled workforce, and robust infrastructure make it a preferred destination for metal industry investments.
13.7%
production
18
steel production units having a combined capacity of around 22 MMTPA
7th
largest cement-producing state in india
6.5%
to the national cement output, more than 11 million tons
Sector Incentives and Policy
Industrial Policy Incentives
| Particulars | Incentives |
|---|---|
| Capital Investment Subsidy | 25% (without cap) on fixed assets like Land, Building, Dormitory, ETP, Machinery etc. |
| Interest Subsidy | 5% on term loan for 5 years |
| Stamp Duty | 100% reimbursement |
| Power Tariff subsidy | Up to INR 2 for 5 years |
| Wage Subsidy | Up to INR 3000 per employee per month for 5 years |
| ESI and EPF Subsidy | 75% reimbursement for 5 years |
| Industrial Infrastructure | 40% grant support for fixed capital investment in factory buildings & common infrastructure + 50% subsidy on fixed capital investment in CETP & CSTP up to INR 5 Cr |
- Not applicable for garment units
- Applicable only for direct employment of domiciles
Initiatives and Growth Drivers
Cement Clusters
Kalaburagi is one of India's key cement clusters, further solidifying Karnataka's position in the cement industry.
Iron Ore Resources
Karnataka is a major player in India's steel industry, with significant iron ore resources primarily located in Bellary, Chitradurga, Koppal, and Tumakuru districts.
Consumption Trends
India’s cement production is expected to reach 58.5 Bn Tonnes by 2030. Cement consumption in India is around 220-250 kg per capita against a global average of 500-550 kg per capita, showing signification growth potential.
Development Projects
100 % FDI through automatic route is allowed in construction-development projects including development of townships, construction of residential/commercial premises, roads or bridges, hotels, resorts, hospitals, educational institutions, etc
Sector Champions
Mr. Vinod Nowal
JSW
Amongst the leading conglomerates in India, JSW Group is a $12 billion company. Ranked among India’s top business houses, JSW’s innovative and sustainable ideas cater to the core sectors of Steel, Energy, Cement and Infrastructure. The Group continues to strive for excellence with its strength, differentiated product mix, state-of-the-art technology, excellence in execution and focus on sustainability.
Salil Gupte
President
Boeing India
[email protected]
Boeing has been a strong partner of India’s aerospace sector for almost eight decades, both as the mainstay of India’s commercial aviation sector as well as an important partner in the mission readiness and modernization of India’s defense forces. Headquartered in Delhi, Boeing’s India operations include field service offices in Mumbai, Hindan, Rajali and New Delhi, and a rapidly growing Boeing India Engineering & Technology Center (BIETC) in Bengaluru and Chennai. The upcoming Boeing engineering and technology campus in Bengaluru, Karnataka will conduct core engineering and research for Boeing’s iconic products as well as future platforms. The campus will be one of the largest for Boeing, outside of the US.
Sector Contact
Email: [email protected]
Phone: 9060940380
