The government of Karnataka has invited Kitex Garments to set up its new projects in the state. The government is offering the company 25 per cent capital investment subsidy (without cap) on fixed assets like land, building, dormitory, ETP (effluent treatment plant), machinery. Investment subsidy for anchor industries up to Rs 7-10 crore, 5 per cent interest subsidy on term loan for 5 years, concessional registration charges, 100 per cent exemption of stamp duty, 40 per cent grant support for fixed capital investment in factory buildings ft common infrastructure, 50 per cent subsidy on fixed capital investment in CETP ft CSTP up to Rs 5 crore are the major incentives on the capital expenditure side.

Power tariff subsidy up to Rs 2 for 5 years, wage subsidy of up to Rs 1,500 per employee per month for 5 years, 75 per cent reimbursement of ESI & EPF for 5 years, 2.25 per cent of turnover as investment promotion subsidy for 6-10 years for 40-60 per cent Value of Fixed Assets are the incentives on the operational expenses side.

According to Gunjan Krishna, Commissioner for Industrial Development and Director of Industries and Commerce, Government of Karnataka, the positive aspects of setting up business in Karnataka include: Strong existing ecosystem for textiles and garment manufacturing in the state; Multiple financial incentives to create favorable economics for manufacturing activities announced as part of the Textile and Garment Policy 2019-24.