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Telangana: Policy For Rural Technology Center

The Government of Telangana aims to develop the rural areas of the state into emerging Technology Centres, which in turn aid wealth and job creation. However, since the penetration of Information Technology in rural areas is still in a nascent stage in the country, setting up and operating a business comes with its own risks. The Government of Telangana has come up with a comprehensive set of incentives that mitigate the risks associated with this business.


  • Develop one Rural Technology Centre in each of the 10 districts of the state
  • Provide employment to at least 2,500 people through Rural Technology Centers
  • Train 10,000 rural youth through TASK with the skills required by Rural Technology Center


  • The centre should be setup either in a Mandal or Village Panchayat level
  • The population of the Mandal or Village that the centre is in must have a population less than 50,000
  • The location of the IT centre should be at a distance of at least 50km from the nearest city

Fiscal Incentives:

  • Reimbursement of panchayat taxes for first three years of operation for first 5 IT Companies in each town.
  • For promotion of IT events (by trade association) in rural locations, the Government would provide reimbursement/sponsorship for the event up to a maximum of Rs. 5 Lakhs or 50% of the event cost, whichever is lower.
  • 50% 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.
  • IT companies setting up operations in rural locations will be permitted to avail renewable energy under open access system from within the state after paying cost component to DISCOMs as fixed by ERC
  • 50% investment subsidy on fixed capital Investment, with a maximum limit per unit of Rs. 40 Lakhs limited to the first 3 companies. Thereafter, investment subsidy shall be fixed at 10%, with a maximum limit per unit of Rs. 8 Lakhs.
  • Rental subsidy of 25% per square feet for three years for the first 3 companies. Thereafter, rental subsidy shall be fixed at 10% per square feet for three years.
  • 25% reimbursement on Internet and Telephone charges for the first 3 years of operations.
  • 100% exemption from payment of SD/EMD and cost of tender document.
  • The Government of Telangana will create skill development centers and Faculty Development programs for colleges and training institutions in rural areas
  • Training subsidy of Rs. 2,500/month/person for 6 months.
  • Recruitment Assistance at the rate of Rs. 20,000 per employee for a minimum annual recruitment of 50 new IT professionals from the colleges located in Telangana.
  • 10 Lakhs subsidy to bridge the viability gap for first year for first 3 anchor units across all locations.

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