§1Who it is for

  • MSMEs investing in ETP/CETP, ZLD, air pollution control, energy efficiency, electrification/BESS, EV conversion, recycling

Useful if

Polluting-category units

§2Eligibility

  1. Capex under these heads is not counted in VFA for base subsidy
  2. Rain water harvesting mandatory for small and above; water body restoration for medium and above

§3Benefits

  • 50% of equipment cost (cap stated as Rs.50 lakh in ICAI summary; operative guidelines table shows up to Rs.1 Cr - verify), overall capped at 10% of VFA
  • EV conversion of vehicles used in industrial areas: 10% of cost up to Rs.10 lakh
  • Recycling (plastic, e-waste, biomedical) and waste-to-energy: one-time 50% of facility cost, ceiling Rs.5 crore

§4Norms — pattern of assistance

  1. Capped at 10% of VFA

§5Documents

Tick each one as you get it ready.

§6How to apply

  1. 1

    Apply to DIC; DLC sanctions for MSMEs

§7Pros and cons

Merits

  • Pays for ETP/ZLD which are otherwise dead cost

Demerits

  • Cap figure differs between operative guidelines and ICAI summary

→Related schemes

Need help with KA green incentives?

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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
  2. ICAI MSME & Startup Committee - Karnataka State MSME Policy 2026 (secondary)

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