Karnataka government releases final GCC policy, offers multiple sops

Mangalore Today News Network

Bengaluru, November 20, 2024: The Karnataka government kickstarted the annual Bengaluru Tech Summit on Tuesday with a slew of announcements, including India’s first dedicated policy for Global Capability Centres (GCC).

Taking the announcements forward, Chief Minister Siddaramaiah said at the event, “I am proud to announce that we will be establishing three dedicated global innovation districts in Bengaluru, Mysuru and Belagavi. These will be dedicated parks for GCCs to set up shop here in the state.”

The state government had already launched a draft of the GCC policy in September with an aim to establish 500 new GCCs, taking the total number to 1,000 GCCs by 2029. The policy envisages the creation of 3.5 lakh jobs, with an economic output of $50 billion.

With an increasing focus towards manufacturing, the government also announced the establishment of an electronics manufacturing cluster (EMC) in Mysuru. Moreover, a Bengaluru Global Innovation District will also be established under the Knowledge, Wellbeing, and Innovation City (KWIN City) umbrella.

Under the GCC Policy, reimbursements of up to 50% will also be provided to GCCs for internship stipends, with an aim to provide internships to overall one lakh students during the policy period. It has also offered exemption from electricity duty for five years, which will allow GCCs in Beyond Bengaluru areas to switch from commercial to industrial power tariffs, alongside a reimbursement on property tax.

Karnataka will also consider a customised package of incentives for mega projects, which will be a tailor-made package of incentives on a case-to-case basis.

Additionally, the state government has shown interest towards the establishment of nano GCCs, positioning them as centres with flexible operations and staffing ranging from 5 to 50 employees.

These nano GCCs, planned for other cities, will benefit from a range of incentives without being subject to minimum employment or investment thresholds.

At the BTC, Deputy Chief Minister D K Shivakumar also announced the commencement of the tunnel project and Bengaluru Business corridor (previously known as Peripheral Ring Road), in the next six months, aiming to solve traffic congestion in the city.

The event also marked the launch of INNOVERSE, an innovation campus focusing on housing, developing, and deep tech innovations as the government increases its focus on emerging technologies. It also focused on bringing startups and investors together for potential funding opportunities.

The state IT/BT department also announced a strategic collaboration with LetsVenture to enhance startup visibility and investor engagement. The collaboration will assist with fundraising and organising quarterly startup events in different hubs across state.

Karanataka’s IT/BT Minister Priyank Kharge also held one-on-one meetings with the delegations of six countries including Austria, France, Germany, UAE, Finland and Switzerland to foster collaborations in technology, innovation and entrepreneurship.