Nagpur : With information technology (IT) diversifying rapidly, the state government has decided to come up with an IT policy to bring the state in line with the requirements of the sector. A source in the chief minister ’s office (CMO) said that it was also decided to fill in the gaps in the previous IT policies.

“The draft policy will be kept before the cabinet in February and the final policy will be announced in March. The policy will give incentives to the sector, provided the unit does not come up in Mumbai-Pune belt,” the source said.

“Other than software, the policy will promote hardware, AVGC (animation, visual effects, gaming and comics), ITES (IT-enabled services) and IT financial services. Another focus area is to incentivize IT companies to set shop in tier-II cities of the state. We will promote Nagpur, Aurangabad, Nashik etc. In fact, every district headquarter will be promoted,” he said.

The incentives include additional floor to space index (FSI) on payment of premium and integrated IT townships with residences and necessary amenities for the workforce. The developers of these townships will be given incentives for constructing high quality roads connecting to the highway and the money spent will be adjusted against property tax.

The IT and ITES companies setting up new units will be given a slew of fiscal incentives. They will be given some exemption in stamp duty, electricity duty in the initial years, subsidy in power tariff in backward districts and waiver in LBT. The property tax will be at par with residential category. Work contract tax and VAT will also be charged at minimum rate. The IT units, except hardware units, can be set up in any zone. The units will be allowed to work round the clock throughout the year.

AVGC sector will be given more incentives as it will hire arts students. Government will launch a ‘train the trainer’ program to create a talent pool and establish centres of AVGC excellence in Mumbai and Pune. Setting up of private AVGC parks will be encouraged. Digital art centres will be set up in fine arts colleges on PPP model.

A venture capital fund will also be set up for the sector and capital subsidy will be given on production of animation films. There will not be any entertainment duty on animation films. The government will also partly refund the charges paid by AVGC units abroad. It will also facilitate joint ventures between Indian and foreign companies.

Another initiative is setting up BPOs in rural and semi-urban areas. The promoters will be given capital and training subsidy, exemption on earnest money deposit and arrangement of public transport for BPO workers.

BITS AND BYTES

Focus on hardware, animation and ITES other than core IT

No incentives for setting up units in Mumbai-Pune belt

District headquarters, Nagpur, Aurangabad, Nasik to be promoted

New IT parks to have space for incubation centres for small units

Recruitment assistance for employing local students

Part reimbursement of exhibition participation fee

Part reimbursement of cost of filing patents for small units

RRZ policy will not be applicable to IT units

Relaxation under Shops and Establishment Act with regard to working hours, work shifts and employment of women

Exemption from maintaining physical records for attendance and salary

Option for self-certification and filing of consolidated annual returns to labour department

IT/ITES units not discharging effluent and employing less than 100 employees exempt from obtaining MPCB consent

Relaxations under Contract Labour Act given to SEZ units for IT-ITES units too

Development control regulations for IT establishments will be in synchronization with IT policy

