Information and Communication Technology (ICT) Policy of the Government of Andhra Pradesh 2002-05

(Announced on 27/06/2002)

Significant growth of IT industry in Andhra Pradesh for last three years, has propelled the government to introduce new policy for the further development of this industry in the state. The policy reaffirms the continuing thrust given to IT industry and also to give a new direction to the growth and development the industry.

The policy takes into account: IT hardware & software, IT services, IT enabled services and IT infrastructure.

Telecommunications companies, telecommunication Infrastructure Company and ISPs licensed by the government.

INCENTIVES: Incentives have been provided to the industry in respect of rebates in power tariff, reimbursement of stamp duty, zoning regulations, cost of land, investment subsidy, quality certification and mega projects.

Power Tariff: 25% rebate in power tariff and in industrial category to IT companies registered on and after 25/05/1999 subject to upper limit of Rs 30 lakh for small IT unit and Rs 50 lakh in respect of large IT unit.

Companies registered before 25/05/1999 is eligible only for industrial power category.

Stamp Duty: 50% reimbursement of registration fees, stamp duty and transfer of property duty for IT company and IT Infrastructure company building IT parks.

Telecommunications companies will get concession for outright purchase of land.

Zoning regulations: IT Software Units are exempted from the Zoning Regulations and the payment of conversion charges for the location of IT Units if they fulfill certain terms and conditions.

Rebate on Cost of Land: IT Companies can avail rebate in the cost of land linked to employment but lands allotted by Government/APIIC for the purpose of establishing their own facilities subject to the conditions laid down in the policy.

Investment Subsidy: investment subsidy is available on fixed capital investment like plant, land & building, hardware and software to the IT Companies established after 25.09.1999 provided they are filed before depreciation and within one and half years from the date of commencement.

Special Provision for Mega Projects: Any IT project with an investment of or more than Rs 50 crore will be treated as Mega project and can avail special concessions for purchase of land in and around HiTec City.

The policy also broad lines the Andhra Pradesh government's agenda and vision for e- governance which will benefit both industry and the people of the state.