Telangana: Policy For Expansion Of ICT Units

To maximize the impact of each of the focus areas, the government intends to release a separate list of G.O.s that will enlist the incentives and benefits that the state provides to companies interested in contributing to a particular agenda point. In this view IT and Communication Department under Telangana Government has launched policy to provide incentives for expansion of IT units.

Objectives:

• Providing congenial industrial friendly climate for IT companies to locate, grow and sustain their operations most competitively in a hassle-free environment in the State.
• Creating new skill development initiatives and employment opportunities for the educated youth of all sections of the society across all regions.
• Achieving higher levels of export turnover resulting in enhanced productivity, and augmentation of Gross State Domestic Product (GSDP).
• Encouraging innovation and entrepreneurship within the state.
• Spreading IT to Tier 2 locations in the state
• Leveraging Information Technology as a tool for the socio-economic development of the region.

Eligibility:

1. IT/ITES Companies

• The IT/ITES company shall have been in operation at least for the last five financial years
• Shall have existing employee strength of minimum 1000 in IT or 1500 in ITES/BPO activities on its rolls & sustained for the last two years.
• Shall have a minimum annual turnover of Rs.50 Crores, from IT/ITES activities from their existing operations continuously for the last two financial years

2. IT Product/R&D Companies

• Existing employee strength of minimum 250 on its rolls sustained for the last two years.
• Five years of operations, with a minimum annual turnover of Rs.25 Crores.
• Obtained approval for a minimum 1 patent/copy right

Incentives:

• Cost reimbursement of up to 10% of retrofitting cost or INR 10 Lakhs, whichever is less, would be given to IT companies to conduct retrofitting study and implement the energy efficiency equipment.
• 100% reimbursement of stamp duty, transfer duty and Registration fee paid by IT Industry & Communication technology industry companies on sale/lease deeds on the first transaction.
• 50% reimbursement of stamp duty, transfer duty and Registration fee paid by IT Industry & Communication technology industry companies on sale/lease deeds on the 2nd transaction.
• 20% reimbursement of expenditure incurred for obtaining quality certifications for CMM Level 4 upwards. Reimbursement will be limited to a maximum of Rs. 4 Lakhs.
• 10% capital subsidy or INR 20 Lakhs, whichever is lower, on installation of solar power generation unit.
• Recruitment Assistance at the rate of Rs 10,000 per employee for a minimum annual recruitment of 100 new IT/ITES professionals from the colleges located in Telangana.
• R&D grants to IT companies in tune of 10% of overall R&D expenses of the company’s Telangana operations or 2% of annual turnover of company’s Telangana operations or Rs. 500,000, whichever is lesser.
• 50% (100% in case of SC/ST Women Entrepreneurs) Exhibition stall rental cost or Rs. 50,000, whichever is lower, will be reimbursed for participating in the notified national/international exhibitions limited to 9 sq.mts. of space.
• 25% Subsidy on Lease Rentals up to Rs. 500,000 per annum for a period of 3 years.
• 20% (25% in case of SC/ST Women Entrepreneurs) investment subsidy on fixed capital Investment, with a maximum limit per unit of Rs. 20 Lakhs.
• 5% (8.5% in case of SC/ST Women Entrepreneurs) Interest subsidy on Prime Lending Rate (PLR) on the term loan and working capital, maximum of Rs. 5 Lakhs per year for a period of 5 years

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