Special incentive scheme for ESDM sector - Reimbursement of Stamp Duty and Registration Charges

This incentive is part of the Special Incentives Scheme for the ESDM Sector administered by the Karnataka Innovation & Technology Society under the Department of Electronics, IT, Biotechnology & Science & Technology, Government of Karnataka. The purpose of this component is to reduce the upfront cost burden of stamp duty and registration charges that an eligible ESDM manufacturing/assembly unit pays when acquiring land, executing leases/sale/lease-cum-sale deeds, or registering key transactional documents for the setup. For your business, this means if you are setting up an eligible ESDM unit in Karnataka, you can apply to get full reimbursement of these charges - improving your cost structure and easing the investment decision.

Key Features
Financial Assistance
Eligibility Criteria
Documents Required
Application Process for the Scheme

Key Features

100% reimbursement of stamp duty: If you pay stamp duty on deeds such as land/shed sale deeds, lease or lease-cum-sale for industrial plot, or credit or loan or mortgage or hypothecation deeds linked to your approved ESDM unit’s land/plant & machinery, this scheme allows full reimbursement of that stamp duty amount.
100% reimbursement of registration charges: Similarly, the registration fee that you pay when registering those deeds is fully reimbursed under this incentive.
Applies to eligible ESDM units approved under the scheme: Only units in the ESDM sector, which have been registered/approved under the scheme and fulfil eligibility criteria, can claim this benefit.
Applies for industrial land/plots/sheds and relevant deeds: The scheme covers industrial land/plot/shed acquisitions by ESDM units, and transactions such as lease, lease-cum-sale, absolute sale, and mortgage or hypothecation for loans.
Part of broader incentive package: This reimbursement is one of several incentives for ESDM units, including land conversion fee reimbursement, power tariff subsidies, capital investment subsidies etc.

Financial Assistance

Component	Assistance Provided	Detailed Explanation
Stamp Duty Reimbursement	100% of the stamp duty paid on eligible transactions	Example: If your ESDM unit purchases an industrial plot and pays ₹ 5 lakh as stamp duty, you may claim reimbursement of the full ₹ 5 lakh under this incentive.
Registration Charges Reimbursement	100% of the registration fees paid on eligible transactions	Example: When registering a lease or lease-cum-sale deed of the plot for your ESDM unit you pay registration fee of ₹ 2 lakh, you may claim full ₹ 2 lakh under this incentive.

Eligibility Criteria

Who can apply:

An entity setting up or expanding an industrial unit in the ESDM sector in Karnataka which is approved under the Special Incentives Scheme for ESDM Sector .
The transaction must be one of the specified types: acquisition of industrial land/plots/sheds, lease or lease-cum-sale/absolute sale deeds, or loan/mortgage/hypothecation deeds tied to the industrial unit approved under the scheme.
Payment of stamp duty and registration charges must have been made for such eligible transactions.
The unit must comply with the conditions of the scheme as applicable.

Who cannot apply:

Entities not in the ESDM sector or not approved under the scheme are not eligible for this benefit.
Transactions not covered would not qualify.
If the deed is for a transaction outside the policy period or outside Karnataka it may not be eligible.
The benefit may be subject to the scheme’s maximum incentives cap or other restrictions.

Documents Required

Approval certificate/letter under the ESDM scheme for your unit.
Copy of deed (sale or lease or lease-cum-sale or absolute sale or loan or mortgage or hypothecation) executed for the industrial plot/land/plant & machinery .
Receipt/invoice showing stamp duty paid .
Receipt/invoice showing registration fee paid.
Bank statement showing payment or transaction showing payment of the duty/fee.
Certificate of incorporation/registration of the enterprise.
Bank account details of the enterprise for reimbursement.

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.
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Option 2: Via Nodal Agency / Single Window

Register your ESDM project under the Special Incentives Scheme for ESDM Sector with KITS and obtain in-principle approval.
Execute the relevant document (for example, loan agreement/mortgage deed or industrial plot lease/sale) and pay the stamp duty/registration charges.
Submit the reimbursement application form along with proof of payment of stamp duty and registration charges, project approval letter, and relevant document copy.
The nodal agency verifies the claim and reimburses 100% of the stamp duty and registration charges paid by you as per the scheme terms.

Option 3: Via Industrial Estate/Allotting Authority Coordination

If your industrial plot/land is allotted by a government agency under the scheme, ensure your sale/lease deed is executed and payments made.
Coordinate with your allotting authority and the nodal agency to claim the reimbursement of stamp duty and registration charges as part of your project cost relief.