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.
- 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.
- 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
- 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
- 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 companyΓÇÕs Telangana operations or 2% of annual turnover of companyΓÇÕs 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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