Karnataka has recently revealed more details about their new IT policy on Thursday which will provide large amount of incentives to technology firms so that they can open up new shops away from Bengaluru. The policy will put more importance for a strong digital infrastructure in tier-II and tier-III cities with remote and distributed labour by taking a signal from the response of technology firms to Covid-19 pandemic and lockdowns in various countries.
Bengaluru is the fourth biggest technology hub in the world and a large number of global IT companies pull out their operations and have R&D centres based out at Karnataka. Deputy Chief Minister CN Ashwath Narayan has stated that they have plans to add around 60 lakh direct and indirect jobs through investments in technology at tier II and tier III cities. The IT policy is also aiming to promote a new era of innovation in these places. The policy will give Rs.2 crores to the developers of co-working spaces having a minimum built-up area of 15,000 square feet.
The ones who are planning to set up new tech companies at plug and play facilities will get Rs.10 per square foot or around Rs.3 lakh per year as lease or rental reimbursement. Narayan, who is holding the IT/BT portfolio has informed about the goal with the centre to create around $1 trillion digital economy out of India and a target of $300 billion digital economy in the next five years at Karnataka. Karnataka added 173,000 new jobs as a result of the Rs.6728 crore they received as investments in the previous five-year policy of 2014.
The Cabinet has decided to introduce a new cyber security policy for adopting important data protection safeguards. The IT policy investments would get stamp duty exemption between 75% to 100% which would depend on the place where the project would be made and investors would pay the concessional power tariffs. The government will provide around Rs.1 crore for research and development projects and reimburse the price for quality certification and patents.
The Cabinet has also introduced a scheme for electronics system design and manufacturing sector. Investments that will be done outside the districts of Bengaluru will get 25% as capital investment subsidy on land and 20% on plant and machinery. They will get 100% cashback at land conversion fee, registration charges and stamp duty. Investors would get annual turnover of around 1% for five years as production-linked incentive which will also include investments for expanding existing units.