Additional incentives for IT firms setting up units outside Western Hyderabad | Information Technology, Electronics & Communications Department, Government of Telangana, India
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Sri K Chandrashekar Rao
Hon'ble Chief Minister
KTR Photo
Sri K T Rama Rao
Hon'ble Minister for IT, Industries, MA & UD
Additional incentives for IT firms setting up units outside Western Hyderabad
Giving a new fillip for development of the IT industry in Hyderabad, the State Cabinet approved a Grid policy (Growth in Dispersion) to ensure that the companies are spread across the city. As per the new policy, the IT firms setting up their units in areas other than the Western side of Hyderabad will receive additional incentives.

The IT exports from Hyderabad registered 18 percent growth and stood at Rs 1.18 lakh crore in 2019-20, which is double the average growth rate of the county which was eight percent. However, about 90 percent of the IT companies based in Hyderabad is located in Madhapur, Gachibowli, Kondapur and surrounding areas. Hence, the Cabinet proposed to encourage the establishment of IT companies in areas outside the West zone under the new Grid policy.

Considering adequate infrastructure spread across the city, the Cabinet felt that IT industries can be established all along the Outer Ring Road especially in areas like Kompally (North zone), Uppal and Pocharam (East), Shamshabad and Adibatla (South), Kollur and Osman Sagar (northwest) and other such areas. The Grid policy is proposed to benefit all the stakeholders including the company, the employees, the city and its denizens. As a result, the companies can reduce their operational costs like lease and transportation, while the employees too can avoid unnecessary traffic and make better use of their time. While the city will have less burden on its existing infrastructure, people in other zones also will benefit due to IT company development in their area.

As part of the incentives, the State government will allow conversion of industrial parks to IT parks where the developers can allocate 50 percent for developing space for IT companies and use the remaining 50 percent land for non-IT purposes like residential and commercial purposes. The developers have to pay 30 percent of the initial registration value to the Industrial Development Authority for the conversion of the land. The government estimated to earn Rs 150 crore through land conversion from the developers.

Further, the IT and ITeS companies setting up their units in these areas can avail power at Rs 2 per unit subsidy not exceeding Rs 5 lakh per annum. They will also get a 30 percent subsidy against the lease not exceeding Rs 10 lakh per annum. A special incentive package will be given to companies providing more than 500 jobs. The State government has estimated to release Rs 66.75 crore over the next 10 years towards incentives under the Grid policy.

The Cabinet had estimated that at least 100 acres in industrial parks will be converted to IT Parks over the next five years, creating 10 million square feet of built-up space and one lakh new IT/ITeS jobs outside the Western IT Corridor. The Grid policy will be in force for five years since the guidelines are issued and companies who setting up their units during these five years can avail the incentives for a five-year period.

Source: https://telanganatoday.com/additional-incentives-for-it-firms-setting-up-units-outside-western-hyderabad