Karnataka Cabinet approves new Aerospace Policy and worker housing scheme

The Karnataka Cabinet, led by Chief Minister D. K. Shivakumar, has approved several key initiatives aimed at boosting the state's industrial sector and supporting rural development. A central component is the ‘Karnataka Aerospace Policy 2026-31’, designed to promote aerospace and defense technology industries. This policy includes special subsidies for companies in sectors such as aerospace, defense, automobiles, electric vehicles, electronics, and semiconductors.

To support the workforce, the government introduced the ‘Shramika Nivasa’ scheme, which proposes the construction of 10,000 housing units near factories in its first phase. These residences will be built by relevant companies with government subsidies.

Additionally, the cabinet approved incentives for industries investing in backward taluks, offering 10% to 20% financial assistance based on the level of regional underdevelopment. To encourage local employment, the government will provide an EPF subsidy of 2,500 rupees per employee for two years. The state also plans to digitize diagnostic data, including X-rays and ECGs, at taluk hospitals to improve rural healthcare.