Overview

• Karnataka launches its third five-year AVGC-XR policy to boost Animation, VFX, Gaming, Comics & Extended Reality industries.
• Aims to position Karnataka as a global leader with 3% of global AVGC market share by FY30, projecting a $26 billion Indian AVGC market.

Key Highlights

Strategic Focus

• Build a future-ready, resilient AVGC-XR ecosystem.
• Six policy pillars:
  1. Skill Development
  2. Sustainable Infrastructure
  3. Startup/MSME Empowerment
  4. Global Market Access
  5. Financial Support & Incentives
  6. Mobile-first AVGC Product Focus

Industry Stats

• 300+ studios, 15,000+ professionals, and 21 AVGC-related institutes.
• India’s first AVGC Centre of Excellence and Digital Art Centers in 27 colleges.

Funding & Incentives

KITVEN Fund-4 (AVGC)

• ₹20 crore venture fund; investments of ₹50–200 lakhs in AVGC-XR startups.

 Eligibility

• Only KAVGC-registered companies are eligible.
• Registration fee: ₹10,000 (waived for registered IT-BT companies).

Incentives at a Glance

 Skill Development

• 50% reimbursement of training costs (max ₹7.5 lakhs).
• PF/ESI reimbursement of ₹3,000 per new employee/month (max ₹12 lakhs).

 Early-Stage Startups

• Marketing: 40% reimbursement, capped ₹1 lakh.
• Office Rent: 40% subsidy, capped ₹2 lakhs.
• Server Space: 50% reimbursement, capped ₹50,000.
• Compliance: 50% reimbursement, capped ₹2 lakhs.
• IT Hardware: 20% reimbursement, capped ₹20 lakhs.
• Rental Subsidy: 20%, capped ₹5 lakhs.

 IP Creation

• 50% reimbursement for IP filing:
  • ₹20 lakhs for international IPs.
  • ₹5 lakhs for domestic IPs.

 Production Grants

• Animation Films: 20% of costs, up to ₹50 lakhs.
• Animation Series: ₹5–30 lakhs (based on duration).
• VR/AR/VFX: 20% of costs, up to ₹50 lakhs.
• Gaming: Up to ₹5 lakhs.
• International Projects: Up to ₹1 crore.
• Quality Assurance (R&D): 30% of expenses, up to ₹5 lakhs/year.

International Market Access

• 40% reimbursement for trade expo participation, up to ₹5 lakhs/year.