IT / ITES
Karnataka unveiled its new IT and IT-enabled Services (ITeS) policy, giving small technology product and services firms a slew of incentives to set up shop away from capital Bengaluru.
The policy focuses on strengthening digital infrastructure in tier-II and tier-III cities and enable remote and distributed labour, taking a cue from the way technology firms have responded to the Covid-19 pandemic and the resultant nationwide lockdowns.
The Government wants to add about 60 lakh direct and indirect jobs by encouraging technology investments in tier II and tier III cities, making IT/ITeS sector the best place to invest in.
TO SUPPORT THE CAUSE, THE STATE GOVERNMENT HAS ANNOUNCED SOME MAJOR POLICIES.
POLICIES FOR IT/ ITES:
A cash support of up to Rs 2 crore for developers of co-working spaces with a minimum built-up area of 15,000 square feet.
Those setting up tech companies at the plug and play facilities will get a lease and rental reimbursement of Rs 10 per square foot or up to Rs 3 lakh for a year.
Investments under the IT policy will get stamp duty exemption of between 75% and 100% depending on where the project is proposed.
Investors will get to pay concessional power tariffs.
The government will provide a support of up to Rs 1 crore for research and development initiatives and reimburse costs for quality certification and for patents.
POLICIES FOR ESDM (ELECTRONIC SYSTEM DESIGN AND MANUFACTURING)
Investments away from Bengaluru urban and rural districts will get a capital investment subsidy of 25% on land and 20% on plant and machinery.
A 100% cash-back on stamp duty and registration charges and land conversion fee.
A 100% cash-back on stamp duty and registration charges and land conversion fee.Investors will also get 1% of annual turnover as a production-linked incentive for five years, including for investments that will go into expanding existing units.