Special incentive scheme for ESDM Sector - Land conversion fee reimbursement
This scheme is administered by the Karnataka Innovation & Technology Society , under the Department of Electronics, IT, Biotechnology & Science & Technology, Government of Karnataka. It was launched via Government Order in 2020 for the policy period 2020-25 to promote investment in the Electronics System Design & Manufacturing sector in Karnataka. The purpose of this specific component - the land conversion fee reimbursement is to reduce the upfront cost burden of converting agricultural land into industrial/ manufacturing use for ESDM units. For your business, this means that when you set up an ESDM manufacturing/units in Karnataka and convert land for industrial use, you can receive reimbursement of the fee you pay for the land‐use conversion, improving your cost structure and facilitating faster set-up.
Key Features
- 100% reimbursement of land conversion fee: The scheme provides full (100 %) reimbursement of the fees paid for converting land from agricultural use to industrial use for approved ESDM units.
- Applies to ESDM sector units registered under the scheme: Only units that register under the Special Incentive Scheme for ESDM Sector 2020-25 and meet the eligibility of the ESDM sector qualify for this benefit.
- Available for land conversion from agriculture to industrial use: The land for which conversion fee is paid (from agriculture to non‐agricultural / industrial usage) is eligible for reimbursement. This is especially relevant since land‐use conversion is a major cost.
- No zone differential: The publicly available summary indicates that 100 % reimbursement applies without specifying zones for this component.
- Part of larger incentive package: This land conversion fee reimbursement is one among a suite of incentives under the ESDM scheme, which also includes stamp duty reimbursement, registration charges reimbursement, capital subsidies, power tariff subsidies etc.
Financial Assistance
Eligibility Criteria
Who can apply:
- Units registered under the Special Incentive Scheme for ESDM Sector.
- The unit must be in the ESDM sector (electronics manufacturing or design or manufacturing of electronics products, components).
- Land conversion fee must be paid for converting land in Karnataka from agriculture to industrial/industrial‐usage category.
Who cannot apply:
- Entities not in the ESDM sector or not registered under the scheme will not qualify for this benefit.
- The reimbursement may be contingent on other conditions of the scheme - you should check the detailed guidelines.
- If the conversion fee is paid but the unit does not actualise the manufacturing usage, reimbursement may be subject to verification.
Documents Required
- Registration certificate under the Special Incentive Scheme for ESDM Sector .
- Land conversion sanction/notification .
- Receipt/proof of payment of land conversion fee.
- Unit registration/incorporation document (company/LLP etc).
- Project approval/allotment letter of industrial land.
- Bank account details of enterprise.
Application Process for the Scheme
Option 1: Apply with Bullit
Click here to start with guided support. Our team verifies eligibility, compiles documents, and handles application & follow-ups on your behalf. You can monitor progress while focusing on operations.
Recommended for: Lean teams. Designed to save you time and effort. Access expert help from start to finish.
Option 2: Via KITS / Single Window Portal
- Register your investment project under the Special Incentives Scheme for ESDM Sector through KITS and obtain in-principle approval.
- Convert the land from agricultural to industrial use and pay the land conversion fee; retain payment receipts and conversion order.
- Submit the claim for reimbursement of land conversion fee via the designated application form under the scheme, along with supporting documentation.
- Upon verification of eligibility and documentation, KITS sanctions 100% reimbursement of the fee paid under the scheme terms.
Option 3: Via Industrial Park / Government Land Allotment Route
- If the land is allotted by a government agency or industrial development board , ensure the conversion process is completed and fee paid.
- Ensure the project obtains approval under the ESDM scheme.
- Apply for reimbursement as per Option 2 route, with additional help from the allotting agency to coordinate paperwork.