AP to offer investment subsidy to set up infotech projects

The Andhra Pradesh government announced its new information technology policy today, offering an investment subsidy of 10 per cent (of capital expenditure) for mega projects which employ 5,000 people or more.
Entrepreneurs who are women, scheduled castes or scheduled tribe setting up infotech units would get 25 per cent investment subsidy on fixed capital besides other incentives, it was announced today.
The Andhra Pradesh cabinet, which met today under the chairmanship of Chief Minister N Chandrababu Naidu, approved the AP Information Technology Policy 2014-2020 aimed at attracting investments worth Rs 12,000 crore in the sector by 2020 and creating five lakh jobs.

Briefing reporters after the cabinet meeting, AP Information Technology and Information Minister Palle Raghunatha Reddy said that Andhra Pradesh would become the first state in the country to offer investment subsidy to entrepreneurs setting up infotech units.
"It is the most progressive and investor-friendly IT policy attempted in consultation with industry associations and representatives. A highly-empowered single window clearance unit is being operationalised to grant approvals and clearances within four weeks of application," the minister said.
The Andhra Pradesh state government has declared the infotech industry as an essential service under the Essential Services Maintenance Act and it has been exempted from power cuts.

Palle said that an empowered mission to promote electronics and information technology would be established to give a fillip to develop the sector and take "faster and agile" decisions.