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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Post by Peter
Peter is a Senior Content Writer and Copy Editor in Finance specializing in GST and Import & Export. He has also written articles on Medical, Philosophy, and Literature and published research papers in international journals.