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Hyderabad: The State of Andhra Pradesh is pioneer in offering the best incentives and facilitations for the growth of the ICT sector, with business friendly policies and proactive approach of the Government.
The Government has announced first Information Technology (IT) Policy for promoting the IT Industry and IT Enabled Services in the State on 25-05-1999. The IT Policy was modified & revised as Information and Communication Technology (ICT) Policy subsequently w.e.f. 27-06-2002.
The present ICT Policy 2005-2010 came into force w.e.f. 21-03-2005 and valid upto 5 years. Due to the Policy initiatives IT sector in the State of Andhra Pradesh has grown by leaps and bounds during the last decade The employment created by IT sector in 1999 was 12,000 and this increased to 2,51,786, that is an increase of 20 times by 2009. The export turnover in 1999 was Rs.284 crores, which has reached to Rs.32,509 crores in 2009, recording an increase of 110 times. As of now, the share of IT exports from the State of Andhra Pradesh occupies 15% of national IT exports. IT sector contributes to more than 49% of total exports from all sectors in the State.
AP State is ranked 4th in IT performance in the Country. In order to bring out a pragmatic ICT Policy 2010-2015, the State Government has constituted Focus Groups with major stakeholders, i.e., heads of companies of various verticals of ICT Sector � IT, ITES, Animation, Gaming & Digital Entertainment, Communications, SMEs, IT-HR, IT-Infrastructure providers, Industry Associations, such as, ITsAP (Hysea), Vizag IT Association (VITA), National Association of Software and Service Companies (NASSCOM), CII, AMCHAM, TiE, and Indian School of Business (ISB), STPI, etc., and extensively deliberated on the design of the ICT Policy 2010-2015, with these focus groups. The evolution of ICT Policy 2010-2015 is largely founded on this interaction. Objectives of ICT Policy 2010-2015: ICT PROMOTION The objective of the ICT Policy 2010-2015 is to make Andhra Pradesh one of the fore runners in IT sector in the Country through (i) provision of congenial, industrial friendly and proactive climate for IT companies to locate, grow and sustain their operations most competitively in a hassle-free environment in the State.(ii)creation of employment opportunities to the educated youth of all sections of the Society across all regions, (iii)achieving higher levels of export turnover resulting in enhanced productivity, and augmentation of Gross State Domestic Product (GSDP) (iv)To spread IT to nook & corner of the State and (v) leverage Information Technology as a tool for the socio-economic development of the State .
Based on the national projections on growth rate of ICT sector made by NASSCOM, Andhra Pradesh aspires conservatively to achieve the following by 2015.
Parameter Target to reach by 2015 Growth of IT Exports Rs.70,000 crores (US$15 billion ) Projected Annual Growth Rate 17% Generation of new direct IT employment 1.25 lakhs+ (125,000) Generation of new indirect IT employment * 5 lakhs+ (500,000) *NASSCOM estimates that every direct job in IT creates four indirect jobs in other sectors of the society. Special Focus Areas: Sectors/areas which are identified for active promotion in the present Policy 2010-2015 apart from the general IT & ITES Industry are: 1. Start up companies 2. SMEs 3. IT Product/R&D Companies 4. SC/ST Entrepreneurs 5. Women Entrepreneurs 6. Animation, Gaming & Digital Entertainment 7. Engineering services 8. Tier II locations 9. Tier III locations 10. Promotion of IT Incubation Facilities at Engineering Colleges 11. Corporate Social Responsibility 12. Promotion of Women's participation in ICT Sector 13. Electronic Hardware (non-hazardous) 14. eGovernance � Local language promotion, CSCs, State Wide Area New Work, State Date Centre Strategies to achieve The Targets enunciated in the ICT Policy 2010-2015: In order to promote Andhra Pradesh as an ideal investment destination, the following strategies are planned: � Creation of State-of-the-Art and affordable ICT infrastructure that provides an enabling "Walk to Work" environment for IT/ITES units to thrive and grow. The Government will strive to create such an infrastructure and also leverage the Public-Private Partnerships Model as a vehicle for development. � Provide industry-grade skill up-gradation and training to the students to suit to the requirement of industry and for obtaining gainful employment. � Support Research & Development, Innovation and Entrepreneurship in the area of ICT.
� Strive to make Andhra Pradesh as a location of preference for all types of ICT Companies, showcase inherent strengths, such as cost effective ICT destination with marginal operating cost, low cost of living and safe and secure social life. � Widen the scope of ICT base by encouraging new verticals such as Animation, Gaming & Digital Entertainment, IT Products & Services in Engineering , Retail, Health Management, power & telecom sectors, etc
� Encourage Start ups, Small & Medium Enterprises (SMEs), Women and socially challenged communities, viz., Scheduled Caste and Scheduled Tribes, etc. of the society, through unique incentives and facilitation � Promote other prominent cities/towns in the State as emerging Tier-II and Tier III IT Hubs. Initiatives in the ICT Policy 2010-2015: The following are the specific incentives, available to IT Industry (subject to fulfillment of eligibility criteria and terms & conditions, as stipulated) on application : a) Relaxed eligibility criteria for allotment of land, subject to availability and fulfillment of eligibility criteria. b) Reimbursement of certain portion of lease rentals c) 100% reimbursement of stamp duty, transfer duty and Registration fee paid by on sale/lease deeds on the first transaction. This incentive is not available in case Government land is allotted. d) 50% reimbursement of stamp duty, transfer duty and Registration fee paid on sale/lease deeds on the 2nd transaction. This incentive is not available in case Government land is allotted e) Admissibility of Industrial Power category tariff f) 25% power subsidy on power bills for a period of 3 years or Rs.30 lakhs which ever is earlier, from the date of commencement of commercial operations g) Anchor company subsidy of Rs.10 lakhs in Tier II/Tier III locations h) Rs.15 Lakhs recruitment assistance i) Reimbursement of patent filing cost � Rs. 2 lakhs j) Reimbursement of Quality certification expenditure � Rs.4 lakhs k) Reimbursement of 50% Exhibition stall rental cost for participating in the notified national/international exhibitions l) Incentives for Start up companies m) Incentives for Small & Medium Enterprises n) Incentives for Product/R&D companies o) Incentives for SC/ST and Women Entrepreneurs. p) Incentives for Tier-II/Tier-III locations q) Incentives for Animation, Gaming & Digital Entertainment companies r) Incentives for Engineering Services Companies s) Incentives for Electronic Hardware (non-hazardous) t) Incentives for Promotion of IT Incubation Facilities at Engineering Colleges u) Incentives for Promotion of e-Governance v) Support to Industry Assocaitions such ITsAP, NASSCOM, ELIAP for obtaining market reports Mega Projects: A special and up front negotiated package of incentives, will be offered for mega projects set up by ICT Multinational Corporations (MNCs) and IT majors. Mega Projects are defined as such ICT projects, with present employment of more than 1000 in the case of IT and 1500 in the case of ITES and an annual turnover of more than Rs.100 crores for the last 3 years General Incentives automatically applicable to all the ICT Industry: General incentives available to the ICT industry, automatically are:
i) IT/ITES units are exempt from the purview of the AP Pollution Control Act, except in respect of power generation sets. ii) IT/ITES units/ companies are exempt from the purview of statutory power cuts. iii) IT Industry is exempt from inspections under certain sections of Statutory Acts, such as
The Factories Act, AP Shops & Establishments Act, etc., and the Rules framed there under, barring inspections arising out of specific complaints. The IT units are permitted to file self-certificates, in the prescribed formats. iv) General permission for three shift operations with women working in the night for IT/ITES units/ companies. v) IT/ITES units/companies and non-hazardous hardware manufacturing industry are declared as essential service under AP Essential Services Maintenance Act. IT HR PROMOTION (a)Jawahar Knowledge Centre(JKC)- At present, there are 748 JKCs in 414 engineering and 334 degree colleges spread across all regions of the State. So far, under JKC programme more than 100,000 final year students have been trained and about 25000 of them, including students from economically and socially deprived sections of the society and from rural/remote areas of the State have been provided gainful employment with IT majors.
In addition, another 25,000 students have obtained placements elsewhere. JKCs will be further strengthened, and expanded, to all engineering and degree colleges in every nook & corner of the State. (b) A special training programme for the SC/ST/BC/Minority/Economically backward/physically handicapped and women candidates, especially from rural areas, to obtain gainful employment will also be undertaken. (c) Facilitate faculty development Program in association with ICT Industry to facilitate imparting of latest industry trends and emerging technologies to the faculty. (d) Facilitate the stakeholders in offering guest lectures, training the faculty and setting the appropriate curriculum in the Universities to suite the requirement of the growing IT/ITES activity. e-GOVERNANCE The Government of Andhra Pradesh is front-runner in providing eGovernance services The e-Governance projects of State Government, such as eSeva, eProcurement, Computer Aided Registration of Documents, Citizen Friendly Services of Transport are widely known across the globe and are well acknowledged. However, Government is not complacent on what it has achieved in the area of eGovernance in the State.
As such, the following action plan in further extending e-Governance services: 1) APSWAN: AP State Wide Area Net Work (AP SWAN) is under implementation connecting State Head Quarters (SHQ) with 23 District Head Quarters (DHQs)and DHQs to respective 1088 Mandal (Revenue Unit) Head Quarters (MHQs) is backbone for all Government applications of voice, data and video services. 5690 Government offices spread across AP State are connected to APSWAN. (b) Connect all village Panchayats through PPP model, (c) To enable broad band penetration to rural areas of the State by using Universal Service Obligation (USO) funding (DOT). 2) Common Service Centres: Government of India has formulated a National e-Governance Plan with the vision of providing all Government Services in an integrated manner at the doorstep of the citizen, at an affordable cost. One of the models for delivery of "Web-enabled Anytime, Anywhere access" to information and services in rural India under the project Common Services Centers (CSCs). 4,687 ICT enabled centers in the rural areas covering all the Districts will be created. The target fixed for the year 2015 is 10,000 CSCs 3) AP State Date Centre: (i)A communication network based initiative useful for all Government departments to have secure data storage through a state-of-the-art Data centre .Provides 50 TB storage space expandable to 500 TB where all Govt. departments' data , application servers, web servers, and mail servers can be resided. 4) Encourage developing software in Telugu so that citizen services can be offered in Telugu. Incentives for implementation of eGovernance Initiatives: The following are specific Incentives for implementation of eGovernance Initiatives 1. Seed money for Pilot project implementation: Maximum of Rs.1.00 crore (for software development only) up to 5 departments in a year. 2. Assistance in preparation of IT road Map Detailed Project Report (DPR): Rs. 10 lakhs, up to 10 Departments in a year. 3. Providing the third party Audit for security & functionality for 10 user departments to ensure the security with budget not exceeding 1.00 crore per annum for all Departments.
FACILITATION MECHANISMS: