Information technology policy gives IT sector another five-year exemption from labour laws

The State’s new information technology policy being unveiled at the Bangalore event on Tuesday is expected to pack in bonanzas in the form of stamp duty and power tariff incentives for investors setting up shop beyond Bangalore and in smaller cities such as Hubli, Belgaum, Gulbarga, Mysore and Mangalore.

Indicating some far-reaching innovations in the policy that has been cleared by the State Cabinet, IT and Biotechnology Minister S.R. Patil said that the IT sector would get another five-year exemption from the State’s labour laws as stated in the Industrial Employment Act.

Mr. Patil told a press conference here on Monday that information technology would be aggressively taken to smaller towns beyond Bangalore. “We want prospective investors and entrepreneurs to look beyond Bangalore and replicate its success in IT in other cities and towns,” he said.

New companies setting up business in the State would have a single-window agency to enable speedy approvals, get stamp duty exemption and concession in power tariff. Investors in cities such as Belgaum, Gulbarga, Hubli, Mangalore and Mysore would expect full stamp duty exemption and a power tariff concession at the rate of Rs. 2 a unit.

The new package will aim to make Bangalore “the single largest IT cluster on the planet by 2020”, Secretary, IT and Biotechnology, Srivatsa Krishna said.

The new incentives being rolled out to the State’s dominant IT sector will over the next seven years see Bangalore, a national cyber hub, take up its tally of IT professionals to 20 lakh; increase indirect jobs to 60 lakh and exports to Rs. 4 lakh crore, Mr. Krishna said.

The IT industry in the city employ nine lakh direct and 27 lakh indirect professionals and turns out exports of Rs. 1.65 lakh crore.

Union Minister for Science & Technology and Earth Sciences S. Jaipal Reddy, Minister of State for Human Resource Development Shashi Tharoor, Planning Commission Deputy Chairman Montek Singh Ahluwalia, the former Union IT & Telecom Secretary R. Chandrashekhar and DRDO Chief Controller R&D K.D. Nayak are slated to attend the event.

In its 16{+t}{+h}edition this year, the event focuses on electronics design and manufacturing as a growth area and is renamed It will go on till October 24.

On the second day, a full-day’s session on electronic system design and manufacturing (ESDM) will be held, driven by the India Electronic and Semiconductor Association. Its highlight will be a session on aerospace and defence electronics.

At a special session, IT Secretaries of Maharashtra, Andhra Pradesh, Tamil Nadu, Bihar, Rajasthan and Karnataka will discuss the future of e-governance and mobile governance.

Apart from regular sessions such as Leadership Day and a CEO Conclave on Tuesday, will have Knowledge Day, Business Day, and a forum for start-ups called YESSS, among others.

The event is expected to draw over 1,000 delegates from the IT and electronics sectors, decision-makers from across the country, small and medium industries and new entrepreneurs. Over 150 exhibitors are participating and the organisers expect 5,000 visitors over the three days.

  • Investors in Belgaum, Gulbarga, Hubli, Mangalore and Mysore may get full stamp duty exemption

  • New package aims to make Bangalore ‘the single largest IT cluster in the world by 2020’