Itir Policy

To increase the investments and infrastructure for

Information Technology (IT), Information Enabled Services (ITES) and Electronic Hardware Manufacturing (EHM) units, Government of Andhra Pradesh proposed Information Technology Investment Region (ITIR). As per Notification No. 118, the Government of Andhra Pradesh introduced a friendly policy to attract investors. The policy shall increase the benefits for the investors, improve employment, infrastructure, support services and GDP. The policy also attracts investors to boost IT, ITES and EHM units in two phases. The policy, developmental phases and the infrastructure logistics shall be monitored by the Government of Andhra Pradesh, Ministry of Communications and Information Technology and Department of Electronics and Information and Technology.

Concept of ITIR

ITIR shall be established with a minimum area of 40 sq.km for IT, ITES and EHM with support services and infrastructure
ITIR shall have a combination of production units, logistic, environment protection mechanisms, public utilities, residential areas and administrative services.
The facilities for IT, ITES and EHM units shall be associated with logistics and non-processing areas including residential, commercial and other social infrastructure facilities. The policy also notifies that the total designated area shall be 40% for ITIR.
To increase the benefits for the investors, ITIR shall include Special Economic Zones (SEZ), Free Trade Zones, Warehousing Zones, Import and Export Oriented Zones or Growth Centres and Industrial Parks. All the zones shall be made available as per the policy for the complete operation of ITIR.
ITIR shall be integrated with new and existing settlements, industries and services. It shall also be enabled with Information Technology Enabled Services and Electronic Manufacturing Units that will be provided by the Government of India (GoI).

Approved Areas by Government of India

The ITIR set up in Hyderabad shall be executed in an area of 202 sp.km in three clusters. The following are the clusters or agglomerations allotted as per the policy:

Cyberabad Development Area
Hyderabad Airport Development area and Maheshwaram for South of Hyderabad
Uppal and Pocharam areas in Eastern Hyderabad

Duration of the Phases

The GoI has allotted three phases, they are:

Phase I - From 2013 - 2018
Phase II - From 2018 - 2038

49% of the allotted area shall be utilised for the processing area, and 51% of the cover area shall be utilised for the non-processing area.

Terms and conditions for ITIRinformation technology investment region

As per the National Rehabilitation and Resettlement Policy (NRRP), 2007, the R&R benefits and procedural safeguards are applicable.
ITIR should reserve 355 for the Economically Weaker Section (EWS) at the proposed clusters, agglomerations, residential quarters.
ITIR must provide provisions for street vending zones, registering street vendors and infrastructure facilities for street vendors as per national policy on Street Vendors 2019.
In case the land allotted for ITIR has been alotted for slums, the State Government shall propose housing projects as per the guidelines of Rajiv Awas Yojana (RAY) and Jawaharlal Nehru National Urban Renewal Mission ( JNNURM).
As per Phase II guidelines, ITIR should mandate Rental Housing Stock creation
The workers should be protected as os per the labour laws
All the Special Economic Zones, Free Trade Zones, Warehousing Zones, Import and Export Oriented Zones or Growth Centres and Industrial Parks developed for ITIR shall be executed as per the existing guidelines by Department of Commerce, GoI.
The metro facility shall be provided as per the economic developments and by appropriate available projects
As India is subscribed to ILO Convention, the Government can conduct Labour inspection as mentioned in Para 5.1. 2(I)(C)
To attain environmental clearance as per the Environmental Impact Assessment (EIA) notification, 2006, the company shall provide appropriate documents as mentioned in the Forest (Conversation) Act, 1980 and Wildlife (Protection) Act.

Role of Central Government

The GoI shall verify all the applications provided by the investors and State government for the ITIR projects and approve as per the stipulated guidelines.
The GoI shall assist with all external infrastructure such as Airports, Telecom and Rail and Roads. The external infrastructure shall be upgraded or developed by Public-Private Partnerships.
The GoI shall provide funds to fill the gap for existing schemes to boost infrastructure and economy.
GoI provides an option to the State government to create mass transport infrastructure as such as Airport Infrastructure either as a government-funded model or Public-Private Partnerships.
Central Governments shall provide support to establish educational institutions. However, State governments should initiate the process. The State governments can establish Indian Institute of Infirmation Technology (IIIT), which can be government-funded or as Public-Private Partnership. However, the institutions should be framed as the policy drafted by the Ministry of Human Resource Development (MHRD).

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Rules for Developer and Co-Developer

The Developer and the co-developer should be a legal entity.
The developer can be a government, private or a public-private partnership that develops, designs, organises, promotes, finances and operates facilities ITIR.
The developer shall be selected by the pre-qualification and shortlisting as per the guidelines and Model Request For Qualification (RFQ). The guidelines shall be drafted by the Ministry of Finance (MoF).
The developer should provide a Detailed Project Report (DPR) for the project proposal as stipulated by the norms of State Government
Developers and co-developers propose that construction and building projects should get environmental clearances, as mentioned in the Environmental Impact Assessment (EIA) and Social Impact Assessment (SIA).
All foreign nationals propose to operate in ITIR should register with Foreigner Regional Registration Offices (FRRO).
All developers are applicable for the benefits of the tax holidays under Section 80(I)(A) of the Income Tax Act.

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Frequently Asked Questions

Common questions about ITIR Policy.

ITIR (Information Technology Investment Region) is a policy initiative by the Government of Andhra Pradesh to establish regions specifically dedicated to IT, ITES (Information Technology Enabled Services), and EHM (Electronic Hardware Manufacturing) units, along with supporting infrastructure and services. The policy aims to attract investments, generate employment opportunities, and boost the state's GDP.

According to the ITIR policy, an ITIR must be established with a minimum area of 40 sq.km, which will include production units, logistics, environmental protection mechanisms, public utilities, residential areas, and administrative services.

The ITIR policy allows for the inclusion of Special Economic Zones (SEZ), Free Trade Zones, Warehousing Zones, Import and Export Oriented Zones, Growth Centres, and Industrial Parks within the designated ITIR area to provide various benefits and facilities to investors.

As per the policy, 49% of the allotted ITIR area should be utilized for processing areas (production units, etc.), while the remaining 51% should be used for non-processing areas, such as residential, commercial, and other social infrastructure facilities.

The Government of India has allocated three phases for the implementation of ITIR: Phase I from 2013 to 2018, Phase II from 2018 to 2038.

The ITIR policy mandates that 35% of the residential areas within the proposed clusters and agglomerations should be reserved for the Economically Weaker Section (EWS). Additionally, provisions for street vending zones, registration of street vendors, and infrastructure facilities for street vendors should be made as per the National Policy on Street Vendors 2019.

To attain environmental clearance, the companies or developers involved in the ITIR project must provide appropriate documents as per the Environmental Impact Assessment (EIA) notification, 2006, the Forest (Conservation) Act, 1980, and the Wildlife (Protection) Act.

The Central Government (Government of India) is responsible for verifying and approving applications for ITIR projects from investors and state governments, assisting with external infrastructure development (airports, telecom, rail, and roads), providing funds to bridge gaps in existing schemes, and supporting the establishment of educational institutions within the ITIR.

Developers and co-developers of ITIR projects must be legal entities and can be government, private, or public-private partnerships. They must be selected through a pre-qualification and shortlisting process based on guidelines and Model Request for Qualification (RFQ) drafted by the Ministry of Finance. Additionally, they must provide a Detailed Project Report (DPR) as per state government norms and obtain environmental and social impact clearances.

According to the ITIR policy, all developers are eligible for tax holidays under Section 80(I)(A) of the Income Tax Act.