Bengaluru, Aug 20 (TIWN) Aimed at attracting investments and boosting competitiveness in the Electronic System Design and Manufacturing (ESDM) sector in Karnataka, the state government has announced a slew of incentives, including 25 per cent capital investment subsidy on land, a minister said on Wednesday.

Likewise, the government will also offer 1 per cent production linked incentive for new investments and expansions on annual turnover for a period of five years from start of operations.

"Products and activities eligible for incentives under special incentives scheme for the ESDM Sector have been identified and this comprises manufacturing and design of electronics products, semiconductor manufacturing and design, electronic manufacturing services and solar cell manufacturing," he said.

Similarly, LED and any other electronics verticals products covered by the national policy on electronics (NPE) and national manufacturing policy (NPM) and related notifications as issued by the Government of India from time to time are also eligible.

The state government will also provide acknowledgement certificates to companies after obtaining approvals from relevant clearance committees which will be deemed as approval for downstream approvals by various other departments for an initial period of three years.

Recently, the government constituted a dedicated MNC engagement cell to act as a single point of engagement for all technology MNCs in the state to engage with the government.

"The objectives of this are to develop an engagement platform for overall innovation ecosystem development, to understand the needs of the MNCs and GCCs to provide handholding support for resolution of issues with all state government entities such as BBMP, Health Department, Industries Department, Urban Development Department and KSPCB," said Narayan.