A Complete View of Assam’s IT Policy

As Information Technology (IT) is one of the fastest growing sectors in world and has become pervasive, the Assam government has formulated its IT Policy keeping in mind its priority and to exploit the opportunities exist in the field with the desire to become leading destination for investment  in Information and Communication Technology (ICT) in the country.

Objectives:

• To increase the usage of information technology in governance to have a transparent, efficient and accountable productivity.
• To make Government services easily accessible for the common people.
• To generate employment especially of the educated unemployed in the said sector.
• To increase IT usage in the private sector to make the state investor friendly for major IT players across the globe.
• To promote women entrepreneurship as well as their participation in IT sector.
• To promote initiatives in the field of Tele-Medicine and related areas, E-Commerce, E-Tourism, E-Education etc.

Duration of the Policy: The policy continues to be effective from 2009.

Eligibility Criteria:

For IT Industry and IT Software Industry are as follows:

• The unit should have office in the State and provide employment to local persons.
• The unit must be a Turnover based entity located in the State.
• To claim incentives, the Value Addition has to be carried out in the State
• The unit should be located in a designated area as notified by the Government.

Incentives: 

Power Subsidy: Power subsidy is available for a period of 5 years from the start date commercial production of a unit. The amount of subsidy comes around 50% amounting to a ceiling of ₹ 5 lakhs per year.

Subsidy on Generating Sets: 50% subsidy is provided of the cost of the generating set on captive generating set including non-conventional energy generation set subject to a maximum of ₹ 10 lakhs per industrial unit.

Interest Rate Subsidy on Working Capital: 30% subsidy of the amount of Interest on Working Capital Loan is provided for a period of 5 years, with a maximum of ₹ 5 lakhs per unit or 20% of the turn over which is less.

Subsidy on Bandwidth: 30% subsidy on Bandwidth for connectivity paid to ISP is available for a period of 3 years from the date of commercial production/ operation.

Special Incentives: To encourage women entrepreneurship and generating more employment for differently abled people, the state provides special incentives.

 Manpower Development subsidy: Subsidy on Manpower development is provided in respect of Training / Technical up gradation / Skill up gradation of local persons in a registered training organization / institution subject to following ceiling:-

Investment in fixed capital	Maximum Limit	Period
Up to ₹ 20 lakh	₹ 1.5 lakh	5 years
₹ 20 lakh to ₹ 25 lakh	₹ 2 lakh
₹ 25 lakh to ₹ 50 lakh	₹ 3 lakh
₹ 50 lakh to ₹ 100 lakh	₹ 5 lakh
Above ₹ 100 lakh	₹ 10 lakh

Early Bird Incentives: Additional 10% increase in all applicable fiscal incentives is provided as Early Bird incentives for units setting up in the State during the first 2 years. However, this incentive is provided to a maximum 5 units.

Special Incentives for IT Enabled Industries and Electronic/ IT hardware manufacturing industries:

1. 100% Stamp Duty exemption
2. 100% exemption from payment of Electricity Duty
3. Exemption from payment of Entry Taxes
4. Double FSI (FAR) for units built in IT parks/ HW parks

Also, such industries are eligible to have working permission of 24×7, of unlimited power supply, as well as these units would be treated as ‘Continuous Process’ units

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