§1Who it is for

  • New/expanding MSMEs

Useful if

Power-using units outside Bengaluru

Do not spend time on it if

Zone 3 general category

§2Eligibility

  1. As per zone and entrepreneur category

§3Benefits

  • Electricity tax exemption: Zone 1 100% for 7 years (special 8 years); Zone 2 100% for 6 years (special 7 years); Zone 3 nil (special 100% for 4 years)
  • Power subsidy (micro & small only): Rs.1.00 per unit for 3 years in Zones 1 and 2; nil in Zone 3

§4Norms — pattern of assistance

  1. Power subsidy reimbursement Rs.1/unit, 3 years

§5Documents

Tick each one as you get it ready.

§6How to apply

  1. 1

    Power subsidy claims twice a year (June and December); sanction in July and January by DLC

§7Pros and cons

Merits

  • Long electricity tax holiday (up to 8 years)

Demerits

  • Electricity tax exemption pending Energy Dept notification

→Related schemes

Need help with KA power incentives?

Eligibility check, DPR and application file — ask us on WhatsApp.

WhatsApp usServices

Our interestHelp is our paid service. You can also apply for the scheme yourself.

Sources

  1. Karnataka Operative Guidelines, Package of Incentives and Concessions under Industrial Policy 2025-30 (CI 123 SPI 2024, 10.04.2026), Invest Karnataka

Checked on 18 October 2026. For information only — confirm with the department or bank. Spotted a mistake? Report it.