Andhra Pradesh raises incentives for IT companies

HYDERABAD: Andhra Pradesh government on Thursday amended its electronics policy (2014-2020), increasing the incentives offered to IT companies. It also issued directives making changes in the incentives for the IT sector.
According to the amendment, mega projects will get 30 percent of the investment as subsidy with an upper limit of Rs 250 crore and 25% subsidy in power bills for five years.The government will offer 20% power subsidy for all other categories of companies for a period of five years. In case of general projects, 25 per cent of the investment will be provided as subsidy. Similar benefits will be extended to micro, small and medium enterprises.
Entrepreneurs from SC, ST and BC communities and women will get about 30 percent of the investment as subsidy. Training companies are eligible for investment subsidy of 50% or Rs one crore whichever is less. The AP Industrial Infrastructure Corporation (APIIC) will take back the land in case of non-compliance of deadline.
IT units with 250 employees and annual turnover of Rs 250 crore in previous financial year are eligible for allotment of land. Companies, which can create employment for 5,000 or more people in five years, and own land, are considered as mega projects. The incentive for such projects is Rs 50,000 per employee or six months of cost to company, whichever is lower.
The general projects without land will be given Rs one lakh per employee or six months of cost to company. Fiscal incentive will be Rs 1.5 lakh per employee or six months cost to company, whichever is lower, in case of BC/SC/ST and women.