Draft policy aims to make Maharashtra animation, gaming hub

The draft policy places animation, visual effects, gaming and comics at part with IT and ITES, offers same incentives

The Bharatiya Janata Party-Shiv Sena government, in a bid to promote the sunrise sector, Animation, Visual Effects, Gaming and Comics (AVGC) and make Maharashtra an AVGC hub has proposed 100 per cent exemption in stamp duty, waiver in electricity duty, property tax at par with residential rates, exemption in entry tax, Works Contract Tax at the minimum rate and VAT at floor rate.

All these sops, which will be applicable for IT and ITES units will be applicable to AVGC units as per the draft IT & ITES policy which will come into effect from April 2015. The state government has sought suggestions from stake holders.

This apart, all AVGC units will get refund of expenses incurred for compulsory marking like Conformity European (CE), China Compulsory Certificate (CCC)  to the extent of 50 per cent expenses subject to maximum of Rs 2 lakh per unit, investment promotion subsidy, anchor unit subsidy equal to 25 per cent of the fixed capital investment with a minimum investment of Rs 50 crores & creating a minimum employment for 100 people.

AVGC unit will also be exempted from the payment of entertainment tax in for the animation films produced and released in the cinema halls/multiplexes in the state. The animation films produced in the State will be given a capital subsidy equal to 50 per cent of the cost of production of the film subject to a ceiling of Rs 30 lakhs for creative art films, educational, scientific, mythological and children’s films.

State industries minister Subhash Desai told Business Standard, “The policy will address the gap in qualified trainers through a train-the-trainer programme based on industry’s needs. Besides, it will focus on bridging the demand-supply gap for people in this sector, attracting global companies  and capturing a larger share of outsourced international AVGC work. It will envisage an environment that promotes growth of indigenous digital content, education and entertainment for masses, and the setting up of a center of excellence with state-of-the-art facilities.” Desai said according to the existing trend, India’s AVGC market share is estimated to grow to $ 1.5 billion.  Maharashtra has every potential to become AVGC hub due to a rich and diverse heritage of art and culture and strong presence of information technology and entertainment industry.

As per the draft IT and ITES policy, private AVGC parks will be promoted and they will be entitled for all incentives given to IT and ITES units. Further, the government will facilitate the establishment of common facilities through the promotion of AVGC centres which would be an integrated facility including production facilities, AVGC studios and space for performing arts, exhibition galleries and workplace requirement for the artist.

''A Committee under the chairmanship of the Development Commissioner (Industries) for this will work out the infrastructural requirements, revenue and operating model (such as PPP), location, facilities for the AVGC Centre in consultation with the industry. The state undertakings Maharashtra Industrial Development Corporation (MIDC)  and City and Industrial Development Corporation (CIDCO) will take initiative in this aspect,'' said a senior government official.

Moreover, the government will encourage establishment of Fine Art School,  College including  Digital Art Centre (DAC). As per the draft policy, fine art schools across the state will be identified as digital art centre (DAC) to implement digital art & animation curriculum in collaboration with universities. DACs will be run on PPP model with 25%government funding and private (promoter's) funding of 75% of total cost subject to a cap of Rs 10 crore from the State Government.

A pool of AVGC industry professionals will be developed through collaboration among universities, the industry and agencies such as Maharashtra Knowledge Corporation Limited (MKCL) and Maharashtra State Board of Technical Education (MSBTE).