Destination Karnataka and Relaxations


Introduction Objectives Qualified Manpower
Telecom General Infrastructure Human Resources Development and Training
Bites BPO Potential in Non-metro Cities IT Corridor
DATA Security Marketing Destination Karnataka
Relaxations BPO Infrastructure Companies Technology Upgradation
Anchor Companies Special Economic Zone [SEZ] Glossary
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Destination Karnataka

  • The Government of Karnataka has demonstrated a b commitment to catalyse the growth of the IT industry in the State. Several attractive incentives and concessions offered resulted in Bangalore being ranked as the 4th Best Technological Hub in the World as per the UNDP.
  • In its continuing endeavour to use technology to benefit its people and to promote the BPO industry in the State, this Policy offers several incentives and concessions for companies engaged in BPO activities and related infrastructure.
  • A BPO Company under this Policy could be a Company that provides services in business processes and services performed or provided from a location different to that of their users or beneficiaries and are delivered over Telecom Networks and/or the Internet. The ‘BPO Services’ typically include the following:
    • Customer interaction services like Call Centers, Contact Centers, e-mail Help Desks, Information Dispensing, Telemarketing, etc.
    • Medical Transcription
    • Back-Office Processing, Revenue Accounting, other Ancillary Operations
    • Insurance Claims Processing
    • Legal Databases
    • Digital Content Development/Animation
    • Data Processing
    • Engineering & Design
    • Remote Maintenance
    • Support Centers
    • Payroll/HR Services
    • Website Development & Maintenance
    • Data Digitization/GIS
    • Distance Online Education
    • Financial & Accounting Services
    • Network Consulting & Management
    • e-commerce
    • Research (Market Research & Scientific Research)
    • Bioinformatics Services

    Concession in Stamp Duty & Registration Charges

  • The BPO companies are exempted from the payment of 50% Stamp Duty & Registration Charges on execution of Lease, Lease-cum-Sale or Sale Deeds for the establishment of their venture. This rebate on Stamp Duty/Registration Charges is also applicable to existing BPO companies expanding or modernizing their activities with additional investment and employment generation.
  • The Tiny & Small Scale Industries that establish outside the city limits of Bangalore or those taking up expansion, modernization & diversification with additional employment generation for BPO activities will be eligible for 100% exemption from payment of Stamp Duty & Registration Charges on all types of deeds executed in connection with the venture.
  • The Mega Projects in the BPO Sector which invest more than Rs. 50 crores or provide continuous employment for two years to over 5,000 persons in Bangalore or over 1,000 persons in cities like Mysore, Udupi, Mangalore & Hubli-Dharwad or over 500 persons in other parts of the State shall be eligible for 100% exemption from payment of Stamp Duty & Registration charges on execution of Lease, Lease-cumsale or Sale Deeds on first sale of land with or without building as well as lease of built-up space in IT and BPO Parks. The existing Mega Projects undertaking expansion/modernization involving fresh investment and additional employment generation will be eligible for 50% exemption from payment of Stamp Duty & Registration charges on execution of Lease, Lease-cum-sale or Sale Deeds.
  • Fiscal Incentives

    The BPO industry will be exempted from payment of Entry Tax on all capital goods required for implementation of the projects fro a period of 3 years from the date of commencement of implementation.

  • Rebates

    The Mega Industries which establish their operation outside the limits of Bangalore Metropolitan Region development authority [BMRDA] will be encouraged by providing a one-time investment subsidy linked with their employment generation. An investment subsidy of 20% upto a ceiling limit of Rs. 1.00 crore will be provided to such industries for a period of 1 year from the date of issue of this Policy. This rebate will be applicable to those industries which sustain the prescribed employment for a minimum period of 2 years.

  • Waiver of Conversion Fee

    The BPO units employing 100 persons and above outside the BMRDA limits are exempted from payment of Conversion Fee in respect of converting agricultural land for non-agricultural purposes upto a limit of 0.30 acre for every 100 personnel employed. The Tiny/SSI in the BPO sector established outside the areas of ‘A Zone’ as classified in the New Industrial Policy 2001-06 are exempted from payment of land Conversion Fee upto 2 acres.

  • Transportation

    The Government will facilitate large BPO companies to enter into a contract with the State owned Road Transport Corporations and BMTC to provide suitable dedicated transport services for commuting their employees.


  • The State’s millennium IT Policy has demonstrated its progressive stance & commitment to the industry. The State has business friendly regulations and has recently adopted the Karnataka Industries [facilitation] Bill 2002. This Bill simplifies the regulatory framework by reducing the procedural requirements and rationlising documents like combined application forms, self certification by entrepreneurs, deemed approvals, rationalization of inspections, etc., with the objective of providing an efficient, responsive and transparent administrative framework to the industry.
  • Labour Laws – simplified

    The State is committed to simplify all the relevant enactments for the BPO sector. The barriers including employment of women at night, flexi-working hours and mandatory weekly off have all been removed by necessary amendments to the relevant Acts to create an optimal environment for the growth of the BPO sector in the state. It is proposed to exempt the BPO companies from furnishing returns and maintaining certain registers. Submission of returns through electronic media will be encouraged. Necessary notifications to this effect will be issued by the Labour Department.

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