In a major push to address regional disparity and encourage private investment in economically backward areas, the Government of Karnataka has announced the rollout of the “Udyoga Nidhi” scheme.
The initiative aims to stimulate industrial growth and generate sustainable local employment across 11 designated underdeveloped districts.
Based on the recommendations of the High-Power Committee headed by Prof. M. Govinda Rao, the state cabinet approved the proposal submitted by the Department of Industries and Commerce (MSME Division).
Financial Incentive for Employers
Under the Udyoga Nidhi scheme, qualifying entrepreneurs and industrial units that create new jobs in these districts will receive a monthly employment incentive of Rs. 2,500 for each newly recruited eligible worker.
This financial assistance will be extended for a maximum duration of 24 months per employee, aimed at reducing operational overheads for businesses while incentivizing hiring.
Target Districts
The scheme covers 11 districts identified as lagging in industrial development:
- Yadgir
- Bidar
- Raichur
- Kalaburagi
- Koppal
- Vijayanagara
- Belagavi
- Gadag
- Haveri
- Vijayapura
- Bagalkote
By tying direct wage-linked subsidies to job creation, the state government intends to accelerate balanced regional development, curb rural-to-urban youth migration, and foster competitive manufacturing and enterprise ecosystems in northern and central Karnataka.
