‘Karnataka Is Paying You To Move Out Of Bengaluru’: Investment Banker ‘Decodes’ State’s New IT Policy

If THIS Gurugram investment banker is to be believed, the Karnataka Government is allegedly paying people to move out of Bangalore! The Karnataka Government has recently introduced an IT Policy for 2025–2030.

As per the policy, the state government wants startups to start setting up their businesses in Tier 2 cities in Karnataka, instead of only crowding the Silicon Valley. As per TOI, the policy is also offering ‘one-time relocation incentive of up to Rs 50,000’ to the company for every employee that will be hired by the organisation. The cities that are supposed to receive this ‘IT shift’ are Mysuru, Mangaluru, Hubballi-Dharwad, Kalaburagi, and Shivamogga.Coming back to the investment banker, he highlighted the same on a Linkedin post that he shared on social media. “The Govt is paying you to move out of Bangalore. The Karnataka govt wants you to set up your tech startup in a tier 2 city like Mysore or Mangalore... and this is all part of the new IT policy,” the LinkedIn post read.The man further explained the major steps that the government is planning to take under the policy.“50% reimbursement of your rent, up to Rs 2 Crores.30% reimbursement on Property Tax for 3 years.100% waiver on electricity duty for 5 years.25% waiver on telephone and internet bills up to Rs 12 lakhs.40% reimbursement of R&D expenses up to Rs 50 crores, and capital incentive for R&D spends on developing AI, quantum computing, blockchain, AI/ML.40% reimbursement of R&D expenses up to Rs 50 crores, and capital incentive for R&D spends on developing AI, quantum computing, blockchain, AI/ML,” the post read.“The government has set aside close to Rs 960 crores for this spend over the next 5 years. Companies should expect to begin filing applications by early to mid-December 2025, once guidelines are published and the system is configured. Location: Operations must be established or expanded in Tier II or Tier III cities outside Bengaluru (Mysuru, Mangaluru, Hubballi-Dharwad, Belagavi, Kalaburagi, Shivamogga, Davanagere, or Tumakuru). Application Cap: Each incentive category has a cap of 100 applicants, so applications will be processed on a first-come, first-served basis,” the post read.The post soon went viral, with netizens reacting in all kinds of ways.Times Now could not confirm the details of the post.ALSO READ:‘Heartbreaking’: Indians Online Express Grief As IAF Pilot Loses Life In Tejas Jet CrashCheck out the viral post: The post was shared on Reddit, by the handle ‘Soumo202091’. The post was shared a day ago and pulled more than 1K views from people.

Internet’s reactions:ALSO READ: Tejas Jet Crashes at Dubai Air Show, Bursts Into Fireball, Chilling Video Surfaces “Great initiative, but would love to know ground reality when getting reimbursement. They are very corrupted,” a user said. “Great and much needed on time initiative,” added another person.