HYDERABAD: The Telangana government would set up a world-class animation and gaming city here to provide "the ideal environment" for businesses in animation, visual effects, gaming and comics industry.The government would set up the Telangana Animation and Gaming (IMAGE) City in Ranga Reddy district here, according to the state's 'Image Policy-2016'.The policy aims at making Hyderabad the "most favoured" destination for investment in animation, visual effects and allied sectors. It seeks to attract global majors and R and D companies in the sectors into the state.It also aims at facilitating a legal framework for 'IP' (Intellectual Property) creation and protection and hopes to promote growth of indigenous 'digital content' education and entertainment for the masses.As part of its strategy to emerge as a major destination in animation and other sectors, the government, in association with stakeholders, plans to set up a "world-class and first-of-its-kind in the country" academy to impart requisite communication and other skills and domain knowledge to students.The state government would make efforts to ensure that "industry ready" talent pool is available.To boost the start-up ecosystem in the state, the government, in association with Software Technology Parks of India (STPI), has created an Incubation Centre dedicated for animation, visual effects, comics and gaming industry (AVCGI) start-ups, according to the policy unveiled on Monday.The state government will create a suitable Venture Capital Funding mechanism in association with stakeholders to extend appropriate seed capital assistance to first generation entrepreneurs, startups and SMEs engaged in AVCGI sector.The policy offers fiscal incentives, including 25 per cent Capital investment subsidy of Rs 25 lakh for fresh investments and reimbursement of production cost of animation films (up to 20 per cent) if 80 per cent of the production costs were incurred in Telangana.Full fledged animation VFX theatre film produced and released in Telangana will be entitled for entertainment tax exemption, among other incentives on offer.