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Andhra Pradesh government has announced a rent guarantee scheme for the technology park developers as part of Designated Technology Park(DTP) Policy 2017-2020 to encourage creation of new IT office space in the state.
Under this policy, the state government will guarantee 50 percent of rent for the unoccupied portion of a designated technology park to an extent of 70 per cent of the built up space.
The rent guarantee period increases with the increase in the amount of space built, starting from 18 months to a maximum period of 36 months. However, if the office space achieves 70 percent occupancy before the lapse of a guarantee period the government will not extend the sop for the remaining duration.
The new incentive comes on top of rent subsidy announced last year for the IT companies. Last year the state ITE&C department had taken some commercial properties and leased them out to IT units at 50 percent subsidised rentals. The new policy intends to benefit developers of IT office space as well as IT company.
The government will give rent guarantee for a period of 18 months for a property with a built up office space of 1 lakh square feet to 1.99 lakh square feet, 24 months rent guarantee to the office space with a size of 2 lakh square feet to 2.99 lakh square feet, 30 months for 3 lakh square feet to 3.99 lakh square feet of built up space and 36 months for a property with office space of 4 lakh square feet and above.