Policy aims to achieve growth rate of 17 p.c., register software exports worth Rs.70,000 cr.

HYDERABAD: A comprehensive Information & Communication Technology (ICT) policy, focusing for the first time on start-up units, Small and Medium Enterprises (SMEs) and promoting more units in Tier II and III cities for inclusive and equitable growth was approved by the Cabinet here on Thursday.

Announcing the details, Minister for IT Komatireddy Venkat Reddy said that the policy not only offered incentives and special concessions for start up companies, SMEs, SC/ST, women entrepreneurs but also offered incentives for engineering services, animation and gaming, product development, R&D, promotion of IT incubation facilities at engineering colleges and promotion of e-governance. Thrust would be given for training and improving the employability of students turning out of engineering colleges.

The concessions in IT policy include reimbursement of lease rentals, stamp duty, registration fee by 50 per cent to 100 per cent, tariff on par with industrial power, Rs.15 lakh recruitment assistance, reimbursement of patent filing cost and anchor company subsidy of Rs.10 lakhs in Tier II & III locations.

Mr. Venkat Reddy said this was the fourth IT policy announced by the Government since 1999. Exports touched Rs.32,509 crore in 2009 from Rs.284 crore in 1999 and employment generation increased from 12,000 in 1999 to 2.52 lakhs.

The new policy was formulated in consultation with all the major stakeholders in IT and allied sectors with a target to achieve a growth rate of 17 per cent, register software exports worth Rs.70,000 crore, create new direct IT employment of 1.25 lakh and indirect employment of five lakhs by 2015.

A notable feature was providing space in every IT SEZ to SMEs by constructing SME towers in Hyderabad.

Principal Secretary, IT, Ratna Prabha, said under promotion of e-governance, AP State Wide Area Net Work (AP SWAN) would connect Hyderabad with 23 district head quarters and to respective mandal headquarters by October this year for all government applications. Ultimately, all the village panchayats would be connected through common service centres set up in PPP mode.