Power tax sops, subsidy mark IT policy
TN, in its document for 2018 to lure investments, assures a host of facilities to tech & communication firms.
By : migrator
Update: 2018-09-10 22:29 GMT
Chennai
Chief Minister Edappadi K Palaniswami on Monday released the Information and Communication Technology (ICT) Policy, 2018, which provides investors huge incentives in the form of capital subsidy and electricity tax exemption if power is purchased from Tangedco.
“I believe that this policy will address the aspiration of investors, especially those in the IT and ITES sector, MSMEs, start-ups by way of providing standard administrative incentives, fiscal incentives, capital subsidies, tax exemption, special incentives. Further, it also has provisions for incubating start-ups and creation of research parks,” said Palaniswami, after releasing the policy at the Secretariat.
The government is set to award various incentives for IT companies investing in the State. Irrespective of the location of the project, new or expansion units will be given a back-ended capital subsidy and electricity tax exemption on power purchased from the State-owned utility.
The electricity tax exemption varies between two and five years based on the investment. The capital subsidy also varies from Rs 30 lakh to Rs 1.5 crore based on the investment of the project.
For the first time, the State has been divided into three zones for the provision of incentives and employment criteria. Chennai, Tiruvallur and Kancheepuram districts have been grouped under category A, nine southern districts from Dindigul to Kanniyakumari were grouped under category C, while the remaining 20 districts have been grouped under category B.
The investment range, number of employees and the time-line for achieving the target for all the three categories have also been mentioned.
However, the IT companies operating in Chennai and its neighbouring districts, coming under category A, have been given higher incentives when compared to those in the other regions.
IT/ITES units located in ELCOT in category A districts will be provided an additional capital subsidy of 50 percentage above the eligible limit, while the IT/ITES units located in category B and C districts will only receive 10 and 25 percentage additional capital subsidy above the eligible limit.
However, firms coming up in category B and C districts will get special incentives for setting up sewerage treatment and reverse osmosis plants.
Boost for the IT & ITES sector
- 2.6 lakh students graduate out of 573 engineering colleges in the State every year, of them 37 percentage specialise in IT
- There are 38 operational SEZs in TN, out of which 18 are IT specific
- 246 IT parks are in the pipeline in TN with the built-up space of 146 million square feet
- TN aims to widen the scope of IT base by encouraging animation, gaming and digital entertainment
- The IT companies were asked to ensure proper security for women employees working in the night shifts and to setup Internal Complaints Committee as per the Sexual Harassment of Women at Work Place Act of 2013
- Special awards will be given to IT companies giving employment to differently-abled persons
- Govt will also institute awards for excellence for companies achieving maximum export
- Tamil Virtual Academy will develop Tamil software for government applications in the areas of education, commerce and technology
- Government will also facilitate single window clearance for facilitating faster roll out of connectivity in the State
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