Executive Summary
- Under 2025-30: most Dharwad district taluks are Zone 1 — 30% capital subsidy for Micro (max ₹30L), 25% for Small (max ₹200L)
- Hubballi urban taluk is Zone 2 — 25% Micro (max ₹25L), 20% Small (max ₹150L)
- Under 2025-30, most taluks in the district attract Zone 1 rates — 30% Micro, 25% Small — higher than what any previous Karnataka policy offered this district
- KIADB industrial estates at Tarihal and Gokul Road are the primary industrial clusters
- Strong NH48 connectivity positions it well for North Karnataka supply chain and market access
- Engineering fabrication, food processing, and textiles are the dominant MSME sectors
Zone 1 and Zone 2 Incentive Profile Under 2025-30
Under Karnataka Industrial Policy 2025-30, the Hubballi urban taluk is Zone 2, while most other taluks in Dharwad district fall in Zone 1. Zone 1 rates are: 30% of VFA for Micro enterprises (max ₹30 Lakh) and 25% of VFA for Small enterprises (max ₹200 Lakh) in the general category. Zone 2 rates are: 25% Micro (max ₹25 Lakh) and 20% Small (max ₹150 Lakh). Special category (SC/ST, women, minorities) rates are higher — 35% Micro and 30% Small in Zone 1. Stamp duty exemption (100% in both Zone 1 and Zone 2), electricity tax exemption (7 years Zone 1, 6 years Zone 2), and power subsidy of ₹1 per unit for 3 years (Zone 1 and 2) also apply. These follow the same DIC application process as all Karnataka capital subsidy claims. For specific taluk classification, refer to Annexure 6 of GO No. CI 123 SPI 2024(e) dated 08.02.2025.
KIADB Industrial Infrastructure
Tarihal Industrial Area and the Gokul Road industrial cluster offer KIADB-developed infrastructure-ready plots. These provide developed road access, power connections, and water supply — reducing time-to-commencement for new units compared to greenfield private land development. Plot availability should be confirmed directly with the KIADB Hubli divisional office.
Sector Fit and Market Linkages
Engineering fabrication, agro-processing, cotton textiles, and construction materials are the established MSME sectors in Hubli-Dharwad. New units in these sectors can build specific supply chain and market proximity into their DPR market analysis, strengthening the bankability case with a locally grounded demand narrative.