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Business News/ Politics / Policy/  Andhra Pradesh to develop Visakahapatnam into mega IT hub
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Andhra Pradesh to develop Visakahapatnam into mega IT hub

State to exempt IT industry from labour laws and Shops and Establishment Act to enable it to function round the clock

The government of N. Chandrababu Naidu, who is largely credited with attracting IT companies to Hyderabad during his earlier tenure as chief minister of the combined state, has announced a slew of incentives to attract the IT industry. Photo: Hindustan TimesPremium
The government of N. Chandrababu Naidu, who is largely credited with attracting IT companies to Hyderabad during his earlier tenure as chief minister of the combined state, has announced a slew of incentives to attract the IT industry. Photo: Hindustan Times

Hyderabad: The new Andhra Pradesh government that is coming to terms with the loss of the erstwhile state’s information technology (IT) hub Hyderabad said on Friday that it would transform Visakahapatnam on the country’s eastern coast into a mega IT hub and build a metro rail in the city to attract software firms.

The government of N. Chandrababu Naidu, who is largely credited with attracting IT companies to Hyderabad during his earlier tenure as chief minister of the combined state, has announced a slew of incentives to attract the IT industry.

In a significant step, the state government said it will exempt IT industry from labour laws and Shops and Establishment Act to enable it to function on a 24x7 basis, 365 days a year.

It also said it would make provisions in the legislation, facilitating time-bound approvals, where an application will be deemed sanctioned if required approvals are not granted within four weeks of receipt of an application.

In an attempt to generate more jobs and spur the local economy, the government will provide rebate on land cost (up to 80% of total land cost) at 60,000 per employee in mega IT projects and 40,000 per employee for other IT projects, state information technology and electronics minister P. Raghunatha Reddy said.

Wipro chairman Azim Premji who met Naidu on Sunday, said the company intends to generate an additional 6,400 jobs over the next five years at an existing facility in Visakhapatnam.

The government would develop information technology investment region (ITIR) at Visakhapatnam and Tirupati. As per the policy, IT parks, IT zones and IT towers at all locations, including smaller IT hubs proposed at places such as Vijayawada, Kakinada, Tirupati and Anantapur, will be built on public-private-partnership (PPP) model.

The cash strapped government also promised to reimburse the costs towards patent filing and quality certifications.

Small and medium IT units would get 50% subsidy on lease rentals for a three-year period in addition to recruitment/training assistance of 20,000 for every IT professional employed within two years. IT also reserved 15% of built up space for Scheduled Castes, Scheduled Tribes and women entrepreneurs.

The Andhra Pradesh cabinet approved the AP Information Technology Policy 2014-2020, drafted in consultation with industry stakeholders, on Friday.

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Published: 02 Aug 2014, 01:16 AM IST
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