TAMIL NADU IT POLICY 2002

(Announced 17 September 2002)

As the vision statement of IT policy of Tamil Nadu puts it, the Tamil Nadu government intends to transform state into knowledge based state and create wealth and opportunities.

The IT policy has incorporated various sectors of IT industry which includes IT Hardware & Software, IT enabled services, IT training & education, IT services and Private Communications Providers, in the policy, which can accrue benefit from IT policy.

OBJECTIVES

•  To develop Tamil Nadu as premier IT destination for investment.

•  To develop Research and Development initiative.

•  Improve quality of life through e-governance initiative and application of IT in governance.

•  Bridge the digital divide and empower people.

•  Encourage use of Tamil language in information technology.

The policy measures comprise of fiscal incentives, promotional initiatives and Human resource development initiatives.

Fiscal Incentives:

• Subsidy: Any investment of Rs 50 crore and above but below Rs100 crore will get capital subsidy of Rs 25   lakhs.

• Investment between Rs 100 crore and Rs 200 crore will get capital subsidy of Rs 50 lakhs.

•  Investment above Rs 200 crore will get capital subsidy of Rs 100 lakhs.

• Capital subsidy at 20% of fixed assets with ceiling of Rs 20 lakhs will be made available to all of IT industry.

• IT units with more than 40% women employee will be eligible for further 5% capital subsidy subject to maximum limit of Rs 10 lakhs.

• 50% exemption on stamp duty and registration charges on purchase of land to the companies setting up offices or IT parks, companies can avail this benefit only within 12months from day of transaction.

• IT Parks will be treated as industry and will be eligible for backward area capital subsidy.

• IT Hardware, Maintenance & Servicing units will be treated as industrial units and power tariffs applicable to industrial units will be applicable to them.

• Companies employing physically challenged people will also get special incentives from the government.

Administrative Incentives:

• All Software units will be exempted from purview of Tamil Nadu Pollution Control Act except Hardware units, which  will require clearance from Pollution Board,

• IT companies will benefit from exemptions under sections 12 to 16 of Tamil Nadu Shops and Establishment Act.

• Government will permit self certification and maintenance of register of records, required under laws relating to labour and labour welfare & compensation, by IT companies.

Physical Incentive

• Amendments in Motor Vehicle Act have been made to facilitate hiring of private transport modes by companies to its ferry employees.

• Single window clearance facility will be provided to all IT units intending to establish their operations in government established IT Parks.