Karnataka Industries (Facilitation) (Amendment) Act, 2026

The Government of Karnataka has enacted the Karnataka Industries (Facilitation) (Amendment) Act, 2026, to strengthen the State’s investment ecosystem through simplified approval processes, digital integration, and enhanced investor facilitation. The amendment establishes a comprehensive Single Window System for obtaining industrial approvals and clearances, introduces a centralised inspection mechanism, enables one-time submission of information across departments, and creates a more efficient framework for industrial project approvals. The reforms are aimed at reducing regulatory burden, improving transparency, accelerating project implementation timelines, and promoting ease of doing business in the State.

Key Features:

• Single Window System for end-to-end processing of approvals, clearances, licences, registrations, inspections, and compliance-related services.  

• Mandatory integration of all relevant government departments and authorities with the digital Single Window System to facilitate seamless approvals.

• One-time submission of information and documents, eliminating the need for businesses to repeatedly furnish the same records to multiple departments.

• Introduction of a Central Inspection System based on risk-based and technology-enabled inspections through a unified platform.

• Affidavit-Based Clearance Certificate for manufacturing industries, deemed as clearance for setting up industries for a specified period, subject to applicable conditions and subsequent compliances.

• Time-bound processing of applications, including deemed approval provisions where approvals are not granted within the prescribed timelines.

• Creation of a State Nodal Agency, Facilitation Desk, and Coordination Committee to support investors throughout the project lifecycle and resolve inter-departmental issues.

• Integration with the National Single Window System and adoption of digital, API-enabled governance mechanisms to improve efficiency and transparency.

Refer to the below notification for detailed provisions, applicability, and compliance requirements under the Karnataka Industries (Facilitation) (Amendment) Act, 2026. The Karnataka Industries (Facilitation) (Amendment) Act, 2026 (Karnataka Act No. 37 of 2026) received the Governor’s assent on 3 September 2026, was published in the Karnataka Gazette Extraordinary on 4 September 2026, and came into force with immediate effect on 4 September 2026.