New ICT policy offers subsidy sops for IT parks

To encourage the investors to set up IT parks in Odisha, the proposed ICT (Information Communication Technology) policy in the state promises entry tax waiver on machines, equipment, capital goods and construction material procured for implementation of infrastructure projects.

 

The exemption from payment of entry tax will be for a period of three years of procurement of material or the date of completion of the project whichever earlier.

 

Exemption of sales tax and value added tax (VAT) is also likely to be extended to capital purchases for IT Parks.

 

In the policy, the state government will encourage establishment of private IT Parks as per Central IT Park or STPI (software technology parks of India) Policy of government of India and would make recommendations for establishments of such hubs.

 

The ICT policy mandates that 60 per cent of the built up area will be used for IT/ITes (information technology enabled services) / Electronic System Design and Manufacturing (ESDM) purposes and the balance to be used for non-processing area like recreation facilities, shops and retail, banks, crèches, serviced apartments and other support services.

 

Similarly, the certified private IT parks, under the policy, have to earmark at least 10% of the total built up area as furnished space for allocation to incubation units.  The rent control will be decided by the state government if a park is set up with the government concessions or subsidies on land.

 

The new micro and small enterprises will be exempted from payment of entry tax on acquisition of plant and machinery for setting up of industrial units. Such units will also be eligible for waiver of entry tax on purchase of raw materials for a period of five years from the date of starting commercial production subject to a ceiling of 100% of fixed capital investment.

 

The policy has been sent to different departments for objections and suggestions.

 

By 2020, the draft policy aims to achieve a gross ICT turnover (including exports of software and IT services, ESDM, domestic consumption and training) of $4 billion and attract 10 leading IT/ITES companies and five leading ESDM companies to the state.

 

To boost investment promotion and IT export, , Odisha plans to set up liaison offices or work with local organizations at selected foreign locations such as Silicon Valley (USA), Europe and Taipei (Taiwan).  

 

The new policy, among others, aims to create an infrastructure of 60 lakh sq ft (square feet) and develop 2000 acres of land bank. The policy has set target to achieve direct employment of 60,000 professionals in 800 IT/ITes and ESDM units by 2020.

 

The Odisha Computer Applications Centre (OCAC), the directorate of the IT department, would be the nodal agency for implementation of the ICT Policy.