Subsidy for Setting Up of ETP - Karnataka
This incentive is administered by the Government of Karnataka through the Department of Industries & Commerce and associated nodal agencies under the Karnataka Industrial Policy and subsequent policy continuance. The purpose of the scheme is to encourage industrial enterprises including MSMEs to adopt proper effluent treatment by providing a capital subsidy for setting up ETPs. For your business, if you are setting up or upgrading an effluent treatment plant in Karnataka, you can benefit by receiving a subsidy that reduces your capital cost for environmental compliance.
Key Features
- One-time capital subsidy for setting up ETPs: The policy provides a one-time support to units for establishing Effluent Treatment Plants . This is not a recurring subsidy but a one-time grant linked to the cost of the ETP.
- Fixed subsidy percentage of cost with a ceiling amount: For example, the policy states up to 50 % of the cost of ETP may be subsidised, subject to a ceiling.
- Applies to all zones / eligible industrial units : The incentive is available regardless of the zone classification for ETP set-ups.
- Eligible even for units purely for environmental infrastructure (ETP/CETP) by private investors: The policy acknowledges that even new investments made on establishing ETPs will be eligible for subsidy.
- Separate package for Common Effluent Treatment Plant / Hazardous Waste disposal projects: For CETPs and hazardous waste disposal, there is a separate one-time subsidy up to a higher ceiling.
Financial Assistance
Eligibility Criteria
Who can apply:
- Industrial units in Karnataka that propose to set up an Effluent Treatment Plant as part of their facility.
- Private investors setting up Common Effluent Treatment Plant / industrial hazardous waste disposal projects are eligible for the separate subsidy package.
- The unit must meet policy conditions (for example being a “new investment” or following other policy deadlines).
Who cannot apply:
- Investments in units that do not follow policy guidelines or operate in excluded sectors may not be eligible.
- The subsidy is limited to cost of ETP/CETP; other non-eligible cost components may not be covered.
Documents Required
- Udyam / MSME registration certificate or industrial unit registration details.
- Project proposal / investment plan including fixed asset investment and ETP costing.
- Zone classification certificate under state policy.
- Cost estimates/invoices for ETP installation, and proof of payment.
- Commissioning certificate or operational certificate for ETP from KSPCB or authorised body.
- Environmental clearance or consent to operate from KSPCB .
- Special category certificate if claiming enhanced subsidy (SC/ST, women, minority, PWD).
Application Process for the Scheme
Option 1: Apply with Bullit
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Option 2: Through Department of Industries & Commerce / Single Window Portal
- Register your manufacturing unit or project on the Karnataka single-window clearance portal and obtain zone classification.
- Include in your project proposal the cost of the ETP installation and indicate intention to claim the subsidy under “Subsidy for Setting Up of ETP” as per industrial policy.
- After sanction of the project and commencement of ETP installation, submit detailed cost estimate for the ETP, invoices/quotations, and application form for subsidy.
- Once the ETP is installed and commissioned, submit proof . The nodal agency will verify and sanction subsidy payment.
Option 3: Via Bank / Financial Institution Assistance
- While arranging project financing, inform your bank or financial institution of your intent to avail the subsidy for ETP.
- The bank may assist in linking the subsidy benefit with your loan or project financing structure, improving viability.
- After project implementation, proceed to claim subsidy per Option 2; this can reduce your effective capital cost.