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Information Technology Policy (IT Policy)

Key Incentives

  • Power: it is classified under industrial units for the purpose of levying industrial power tariff.
  • Rebate on cost of land: IT/ITeS companies establishing their own facilities on clear government land are eligible for a rebate in cost of land calculated at the rate of US$ 487.80 per job created. This rebate in not available on acquired land.
  • Stamp duty: 100 per cent reimbursement of stamp duty, transfer duty and registration fee has to be paid by IT and telecommunication companies
  • Zoning regulations and special stipulations for IT parks on private land and IT campus: IT/ITeS units will be exempt from the zoning regulations and from the payment of conversion fee.
  • Urban land ceiling (ULC) exemption: Private land owners will be allowed exemption under ULC for development of IT parks with a minimum extent of 25 acres in the periphery of city limits and beyond. They will be allowed exemption under the same with a minimum of 5 acres within city limits subject to payment of prescribed fee.
  • Training incentive: an incentive of US$ 48.78 per candidate will be provided to training centres which successfully train candidates in communication/soft skills and provide employment in reputed IT/ITeS companies.
  • Reimbursement of patent filing and partial reimbursement of quality certification costs 

Special package for Small and Medium Enterprises (SMEs)

  • This package is for IT industry units with a turnover less than US$ 2.43 million and more than US$ 0.24 million per annum.
  • Power: 25 per cent rebate on power tariff in the first three years of operations and conversion to industrial power tariff.
  • Reimbursement of 50 per cent exhibition subsidy for participating in international exhibitions limited to 9 sq mts, of space, with respect to stall rent payable for participation in international events notified by the IT&C Department.
  • Allotment of land: Government will endeavour to reserve land for preferred allotment to SMEs in other locations. Criteria for allotment will be prepared separately.
  • IT exporters associations: Government will support associations such as HYSEA, NASSCOM, STPI, IEG or any such organisation (as decided by the committee) in creating libraries for making available materials on trends in technology, market intelligence, research reports and analysis, etc., by contributing US$ 0.024 million per annum for development of the SME sector by making such material available at these libraries.
  • US$ 0.024 million as recruitment assistance for employing minimum 100 employees in IT and 200 employees in ITeS within one year of commencement of commercial operations in Hyderabad and around, up to 50 km This incentive will not be available if the incentive Rebate on cost of land is availed.

 Tier-II locations:

  • US$ 0.036 million as recruitment assistance for employing minimum 100 employees in IT and 200 employees in ITeS within two years of commencement in the tier-II cities 

Mega projects:

  • A special package of incentives will be offered to mega projects. Such projects will be defined as projects creating employment for more than 1,000 persons in the case of IT and 1,500 persons in the case of ITeS. An investment above US$ 12.195 million will be considered as a mega project.

Source: ICT Policy 2005-2010, Incentives for IT and Industry, IT and Communications Department website, http://apit.ap.gov.in


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