• News
  • Columns
  • Interviews
  • BW Communities
  • Events
  • BW TV
  • Subscribe to Print
  • Editorial Calendar 19-20
BW Businessworld

IT, Related Sectors Get Bonanza Under New Policy

Photo Credit :

Information Technology and related sectors are in line for a bonanza in Karnataka as the state government on 22 October unveiled a new policy which offers concessional power tariff, employment-linked incentivisation of land allotment (E-LILA) and treatment of essential service.

E-LILA outside Bangalore Urban and Rural districts limits, however, is subject to several conditions, according to the policy, unveiled by the Chief Minister Siddaramaiah at the opening of IT and electronics event, Bangalore 2013, in the presence of Union Science and Technology Minister S. Jaipal Reddy.

"The Department of IT-BT will operate a single window system to identify, target and attract new investments and make Bangalore and Karnataka a preferred IT and innovation destination for the world", Siddaramaiah said.

The policy said the state government would exempt IT/ITeS /Start-ups/knowledge based industries from the applicability of Karnataka Industrial Employment (Standing Orders) Rules, 1946, for a period of five years with effect from November one this

year, with appropriate clause for protection of women employees and prevention of sexual harassment in work place.

The Karnataka I4 policy: IT, ITeS, Innovation, Incentives policy, treates IT/ITeS/BPO/KPO/Knowledge industries on par with public utilities to exempt them from disruptive effects of general strikes and bandhs.

Industrial power tariff (instead of commercial power tariff) would be applicable to all IT/ITeS, BPO, telecom, start-ups and knowledge-based industries in the state, after due consultation and approval of Karnataka Electricity Regulatory Commission and Government of Karnataka.

IT/ITeS/Start-ups/knowledge based industries would be entitled to stamp duty exemption of 75 per cent in Mysore and Mangalore, in addition to other locations as per the industrial policy.

Start-up companies would be eligible for plug and play space with internet at concessional rates of Rs 5-15 per sq ft, depending on the location.

Brand Bangalore 3.0 society and a "Bangalore First" fund would be set up to promote Bangalore along the lines of India Brand Equity Fund set up by the Government of India, in association with CII.