Uttarakhand Government issues the Information Technology Policy 2016-2025 offering various incentives to ICT & E Industries for Economic Development in the State
The Department of Information & Technology, State of Uttarakhand (“Department”) has recently issued an Information Technology Policy (“IT Policy”) for the years 2016-2025 with a vision to provide a policy framework for effective infusion and management of Information and Communication Technology & Electronic (“ICT&E”) for achieving genuine progress of the state in all aspects.
The mission of this policy is to achieve the following:
- To position State of Uttarakhand as an attractive ICT&E investment destination in India
- To leverage ICT&E as an engine of growth for Uttarakhand
- To transform physical communities into connected communities that can help to realize sustainable economic growth and enhance the quality of life
The policy aims to promote ICT&E companies along with electronic products manufacturing entities and entrepreneurs from all over India which seek to invest in Uttarakhand.
The Policy provides for incentives for the investors, such as:
- Financial incentives under M-SIPS- Incentives of 20% of capex for SEZ based units of Electronic Product Manufacturing Units and 25% of capex plus re imbursement of excise/CVD on capital equipment for non SEZ based units.
- Financial Assistance for Greenfield and Brown Field Electronic Manufacturing Clusters (“EMC”) –
- Greenfield- provide up to 50% of project cost, limit INR 50 crores for every 100 acres of land
- Brownfield- provide up to 75% of project cost limited to INR 50 crores
- Development of EMCs by MSMEs.
- Preferential Market Access – Special preference to be provided to Uttarakhand based manufacturers.
- Reimbursement of expenses for testing and certification required for export for MSMEs.
- Reimbursement of expenses relating to compliance with “Indian Standards for MSMEs”.
- Skill development in the electronics sector providing reimbursement of training fees.
- Promoting R&D and Announcement of National Awards- Motivating entrepreneurs in electronic industry to make new investments by awarding them.
- Fiscal Incentives for “Existing industries”, “New industries” and “Expansion Industries”.
- A number of Non-Fiscal incentives are proposed through this policy such as-
- Continued/ Uninterrupted power supply to Information communication & technology (“ICT”) and Electro static discharge (“ESD”) industries.
- Lending in ICT and ESDM will be considered a priority sector by state Loaning Financial Institutions.
- Providing an enabling administration system for obtaining easy clearances and approvals from various Government departments.
- The Electronics System Design & Manufacturing (ESDM) units will be exempted from various inspections/ certifications from various Acts and Rules administered by the labour department of the State.