Archive · 11 Sep 2026
Karnataka Cabinet Approves Udyoga Nidhi To Create Jobs
The Karnataka government has approved a new program called Udyoga Nidhi.
It will encourage companies to create jobs in 11 districts that have received less industrial investment.
The government hopes the program will create one lakh new jobs.
Eligible businesses can receive Rs 2,500 each month for every new worker they hire.
This support can continue for up to 24 months.
Businesses must show that they hired people and paid their salaries before receiving the money.
The government will set aside Rs 305 crore each year for the program.
The plan is meant to help young people find work closer to home instead of moving to Bengaluru or other major cities.
It will work alongside the Yuva Nidhi scheme, which supports young people seeking jobs and skills.
The Karnataka Cabinet approved the Udyoga Nidhi scheme to boost investment and employment in 11 backward districts.
The scheme aims to create one lakh new jobs and reduce regional inequality across Karnataka.
Eligible MSMEs and industrial establishments will receive Rs 2,500 per additional employee monthly for up to 24 months.
The government will provide an annual grant of Rs 305 crore, with payments verified against recruitment and salary records.
The scheme will complement Yuva Nidhi and seek to reduce youth migration to major cities such as Bengaluru.
- Who
- The Karnataka Cabinet, with details announced by Minister Priyank Kharge, and eligible MSMEs and industrial establishments.
- What
- Approval of the Udyoga Nidhi employment incentive scheme, which aims to create one lakh jobs.
- When
- The announcement was made on Thursday; the incentive can be provided for up to 24 months per additional employee.
- Where
- Eleven backward districts of Karnataka, including Kalaburagi, Bidar, Raichur, Yadgir and Bagalkot.
- Why
- To attract investment and industries to backward regions, reduce regional inequality, and limit youth migration to major cities.
- Scheme
- Udyoga Nidhi
- Job target
- One lakh new jobs
- Coverage
- 11 backward districts in Karnataka
- Employer incentive
- Rs 2,500 per additional employee per month
- Maximum duration
- 24 months
- Annual government grant
- Rs 305 crore
- Verification
- New recruitment and salary payments must be verified before incentives are released