Startup schemes: Comparison of incentives provided by different states
As previously explored in the preceding article regarding the incentives extended by the government of Karnataka in the semiconductor sector, let us now proceed with a comparative assessment of these incentives in comparison to those offered by other states.
Table illustrating the incentives offered by various states
Comparison of incentives provided by different states
Patent Registration Incentive
Sl. No | State | Incentive |
---|---|---|
1 | Karnataka |
|
2 | Odisha |
Reimbursement of patent filing costs
|
3 | Madhya Pradesh |
Reimbursement for patent acquisition costs:
|
4 | Telangana | To reimburse 100% cost towards incentives for filing patents limited to INR 5 Lakhs. |
5 | Uttar Pradesh |
|
Marketing Incentive
Sl. No | State | Incentive |
---|---|---|
1 | Karnataka | Up to 5,00,000 2 times per year |
2 | Madhya Pradesh |
|
Reimbursement of Quality Certification costs
Sl. No | State | Incentive |
---|---|---|
1 | Karnataka | 50% or max up to 10 lakhs |
2 | Madhya Pradesh |
|
R&D Grant
Sl. No | State | Incentive |
---|---|---|
1 | Karnataka | For companies < 7 years old Reimbursement up to 2 crores Twice during policy period |
2 | Odisha |
R&D incentives for 5 years include:
|
3 | Telangana |
|
Capital Subsidy
Sl. No | State | Incentive |
---|---|---|
1 | Karnataka | Applicable to the first two anchor units in each Greenfield cluster 10% up to 10 crores |
2 | Odisha | 50% of Capex Assistant by GOI |
3 | Madhya Pradesh | CAPEX Assistance: 40% on GFCI, plus 2% for women entrepreneurs. Disbursed annually: Up to 10 crores in 4 years, 10-50 crores in 5 years, above 50 crores in 7 years. Max reimbursement: 150 Crores per unit. |
4 | Gujarat |
|
5 | Telangana | 20% capital subsidy, max INR 10 Crores per company (including subsidiaries and ancillary units). |
6 | Uttar Pradesh | CAPEX Assistance: 40% on GFCI, with 2% more for women entrepreneurs. Disbursed annually over 4-7 years based on investment size. Maximum reimbursement: 150 Crores per unit. |
Interest subsidy
Sl. No | State | Incentive |
---|---|---|
1 | Karnataka | 6% up to 50 lakhs for five years |
2 | Odisha | Interest Subsidy: 5% per annum, capped at INR 25 crores annually. Applies to term loans from Public Financial Institutions/Banks, valid for 7 years from production start. |
3 | Madhya Pradesh | Interest Assistance: 6% on term loans for eligible GFCI components, up to INR 10 Crores over 5 years. Assistance begins after the first loan installment post-commercial operations. Term loan excludes working capital and CC/OD limits for fixed asset creation. |
4 | Uttar Pradesh |
|
Land related Incentives
Sl. No | State | Incentive |
---|---|---|
1 | Karnataka |
Exemption from Payment of Stamp Duty and Concessional Registration Charges for the first 5 years. |
2 | Odisha |
Provider: IDCO Land Lease: 99 years Payment Terms: Ground Rent: 1%, Cess: ~0.75%; Subsidies: 25% off for first five > INR 5000 Cr, 10% on first 200 acres for mega projects, 5% on first 50 acres for non-mega |
3 | Madhya Pradesh |
|
4 | Gujarat |
|
5 | Telangana |
|
6 | Uttar Pradesh |
|
Electricity Duty Exemption/ Power tariff
Sl. No | State | Incentive |
---|---|---|
1 | Karnataka |
KESDM companies in Karnataka get industrial tariff. Associated industries also eligible. Replaces commercial tariff. Must follow KERC regulations. |
2 | Odisha |
Reimbursement of INR 2 per Unit of Industrial Electricity rates for 10 years from COD (Commercial Operations Date) of the Semiconductor Project. 100% exemption from Electricity Duty and Electrical Inspection fees for 10 years. |
3 | Gujarat |
|
4 | Telangana |
Electronics industry classified as industrial units for industrial power tariff. Certificate granted for IT industry's power connections. Incentive applies from Certificate issue. Electronics firms allowed renewable energy from state under open access (up to one third of total power needs). |
5 | Uttar Pradesh |
|
Disclaimer:
“The information contained herein is only for informational purpose and should not be considered for any particular instance or individual or entity. We have obtained information from publicly available sources, there can be no guarantee that such information is accurate as of the date it is received, or it will continue to be accurate in future. No one should act on such information without obtaining professional advice after thorough examination of particular situation.”
Prepared On:
17/10/23
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