Southern States - Pondicherry   

Pondy sops for IT industry

By Our Staff Reporter

Pondicherry July 4 . The Department of Industrial Development (Industries and Commerce) of Pondicherry has announced a multi-departmental package of incentives and concessions to accelerate the growth of IT industries in the Union Territory.

The notification published in the State Gazette pointed out that the Administration had identified IT industry as one of the thrust areas for industrial growth and the IT policy announced by the government had also emphasised the need for further development of industries. Suitable infrastructure such as a software technology park, an earth station and electronic industrial estate are being set up to enable the growth of IT industry.

The Department's schedule of incentives is as follows: fixed investment subsidy on plant and machinery at the rate of 20 per cent subject to a maximum of Rs 20 lakhs; subsidy on captive power generation sets to the extent of 50 per cent of the cost subject to a maximum of Rs 5 lakhs for new IT units located in authorised industrial areas but are not able to get reliable power supply. The department also extends subsidy on leased line rental payable to the extent of 50 per cent for the first three years, 20 per cent for the fourth year and 10 per cent for the fifth.

PIPDIC participation

IT software and service companies are exempted from routine inspection. The government-owned PIPDIC (Pondicherry Industrial Promotion Development and Investment Corporation Limited) will participate in the equity of the company to the extent of 15 per cent of the total equity from the existing 10 per cent or the amount of promoter's contribution, whichever is less.

The Corporation also announced reduced margin money so that the IT industries could avail loans, following modification of the existing policy relating to debt equity ratio. For the loans extended by the PIPDIC to IT industries there would be a reduction in interest by 0.5 per cent per annum from the normal rate applicable. The Corporation would also formulate and implement a venture capital or seed capital assistance scheme.

The Commercial Taxes Department gives ST exemption for 10 years on sale of goods manufactured by all the IT industries.The notification also pointed out that as far as the Town and Country Planning Department was concerned, it exempts the IT and related industrial units engaged in software services and training from locational restrictions.

Relaxation of floor area ratio to the extent of 50 per cent would be given to units set up outside urban areas.

Under the Department of Science Technology and Environment, the notification said that software industries are exempted from obtaining `No Objection Certificate` from the pollution angle as per the orders issued by the Administration. The Labour Department permits the industries to run three shift operations subject to the provision of other facilities as one day off and facilities for women workers.

Knolwledge-based industries have been exempted from the relevant provisions of the Shops and Establishments Act and Rules, 1964.

Commercial buildings fully dedicated to IT industries would be exempted from land and building tax for five years by the Local Administration Department.

The Revenue Department exempts from stamp duty the sale or lease of property in the STP leased by PIPDIC and the agreement made for availing term loans sanctioned by the Corporation for units located in the STP.

IT corridor

The stretch of East Coast Road from Sithananda Swami temple in Karuvadikuppam junction to Ariankuppam would be declared as an IT corridor.

Departments concerned would take steps to provide necessary infrastructure facilities such as road, power, water supply and telecommunications in this corridor.

Power supply and priority in sanctioning and connecting power for IT industries would be extended by the Electricity Department in the IT corridor and other selected areas identified from time to time for locating the IT industries.

The notification also pointed out that the incentives or concessions would be available to new IT industries and to the existing units going in for substantial expansion.

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