Steel Industry
Karnataka is one of the pillars of the national iron and steel industry. The industry started with Mysore Iron Works (Visvesvaraya Iron and Steel Plant) at Bhadravati in 1923, and the state houses two of the thirteen major steel plants in India.
13.7%
Of the country’s steel production is undertaken by Karnataka
74%
Of the country’s magnetite resources are available in Karnataka
2
Of India’s major steel plants are located in the state
2Bn
Metric tonnes of iron ore and abundance of other minerals
13.7%
Of the country’s steel production is undertaken by Karnataka
74%
Of the country’s magnetite resources are available in Karnataka
2
Of India’s major steel plants are located in the state
2Bn
Metric tonnes of iron ore and abundance of other minerals
Table of contents
Incentives
Incentive on Stamp Duty
Stamp Duty Exemption –75% to 100%
Incentive on Land Conversion Fee
Reimbursement of Land Conversion Fee –50% to 75%
Subsidy for setting-up Effluent Treatment Plants ETPs
One time capital subsidy to the tune of up to 50% of the cost of ETP, ceiling up to INR 50 Lakhs to INR 1 crore
International Marketing Incentive
Reimbursement of 50% of the actual cost, ceiling up to INR 5 Lakhs per year per company
R&D Grant
Reimbursement of 10% to 25% for expenses on R&D for products, ceiling up to INR 2 crores per company per year
Incentive on Registration Charges
Concessional Registration charges -INR 1 per INR 1000
Power Tariff Subsidy
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
Patent Registration Incentive
Reimbursement of 75% of actual costs, ceiling up to INR 2 lakhs for domestic patent and INR 10 lakhs for an international patent, a maximum of 5 reimbursements per company
Incentives for Startups & MSMEs
Reimbursement of quality certification costs –50% of the cost, ceiling up to INR 10 laks per year
Reimbursement of prototyping cost –50 % of the cost, ceiling up to INR 10 lakhs per year,2 sanctions per year per company
PF/ ESI Incentive –Reimbursement of INR 2,000 per employee per month for 2 years, total ceiling up to INR 12 lakhs
Interest Subsidy -up to 6% per annum on term loans will be provided for a period of 5 years for loans of up to INR 50 lakhs
Incentives for Large & Mega Enterprises
Capital Subsidy –10%, ceiling up to INR 10 crores, applicable to first two anchor units in each greenfield cluster
Big projects and mega investments will be treated on priority under existing provisions, and tailor-made benefits and incentives over and above this policy will be extended to them on a case-to-case basis as discussed and decided by the State High Level Clearance Committee (SHLCC).
New initiatives & opportunities
Districts such as Ballari, Chitradurga, Tumakuru and Chickmagalur are the nerve centres of iron deposits in the State.
Major integrated steel projects are in various stages of implementation.
Sector Champion
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.
Growth drivers
Estimated 2 billion metric tonnes of iron ore.
The combined steel production capacity of 18 units in the State at present is around 22 MMTPA.
JSW Steel's plant at Vijayanagar, Ballari in Karnataka is the largest single location steel producing facility in the country with a capacity of 12 MTPA.
Sector Contact
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Steel Sector |
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