Read:

1. G.O.Ms.No. 15 IT Department Dated: 22.05.2003.

2. G.O.Ms. No.15 IT Department Dated: 21.07.2004.

3. G.O.(Ms) No.122 Commercial Taxes (J1) Department, dated 27.7.2004.

ORDER:

Tamil Nadu was amongst the first states to come out with an IT Policy. With the passage of time and the immense changes that have taken place in technology, it was felt that a new IT Policy is not only necessary but also essential to take Tamil Nadu to attain a prominent position in IT. Accordingly, the new IT Policy 2002 was framed to put the "smile of prosperity on the face of every citizen of Tamil Nadu by leveraging Information Technology to create value and wealth for a knowledge based state. "

The objectives of the policy are:

1. To establish Tamil Nadu as the Destination of Choice for IT investments

2. To upgrade the quality of life for the citizens through e-Governance and IT applications in Government

3. To empower people in the rural areas so as to bridge the Digital Divide

4. To develop Research and Development initiatives

5. To promote use of Tamil in Information Technology

2. Accordingly the IT Policy of Tamil Nadu 2002 with all the above provisions was released by the Hon'ble Chief Minister at the inaugural function of "Connect 2002" on 19.09.2002. The Government have announced a number of concessions in the IT Policy 2002. Subsequent to the announcement and release of the Policy by the Hon'ble Chief Minister, the G.O. on the IT Policy was issued by the IT Department in the G.O. first read above.

3. Certain clarification were sought with regard to implementation and effective date for the IT Policy. The matter was examined and the Government direct that the IT Policy of Tamil Nadu 2002 and all the concessions therein, except Stamp duty and Registration fee concession, be given from 19.9.2002, the date on which the IT Policy was released by the Hon'ble Chief Minister. Necessary G.O.s for extending these concessions will be issued by the individual departments for the purpose. The important concessions announced in the policy are annexed to the G.O.

4. The Government also direct that 50% exemption on Stamp Duty and Registration fee for purchase of a land / building for IT industries be given with effect from 19.9.2002 subject to satisfying the conditions stipulated in G.O. second read above.

5. The Government further direct that the concession extended in G.O.(Ms) No.20 IT Department dated 21.6.1999 giving 100% reimbursement of stamp duty to IT units located in private sector Information Technology parks will automatically stand withdrawn from 19.9.2002.

6. The Commercial Tax Department is requested to take immediate action to issue Gazette Notification for extending the concessions to IT companies / industries from 19.9.2002.

7. This order issues with the concurrence of Finance Department vide its U.O. No. 287/SS(LK)/04, dated 25.10.04 and the concurrence of Commercial Tax department vide its U.O. No.23271/J1/04-1, dated 4.11.2004

(BY ORDER OF THE GOVERNOR)

VIVEK HARINARAIN
SECRETARY TO GOVERNMENT.

To

All Departments of Secretariat, Chennai-9.

Commissioner of Municipal Administration

Commissioner of Commercial Taxes

Commissioner of Registration

Director of Information & Public Relations

Director of Employment and Training

Commissioner of Labour and Employment

The Managing Director, ELCOT, No.692, Anna Salai, Nandanam, Chennai- 600 035.

Copy to:

Deputy Director General, NIC, E 2A Rajaji Bhavan, Besant Nagar, Chennai-90

NIC, Secretariat, Chennai-9.

Chief Minister Office/ Secretary to C.M. I & II

P.A. to Secretary to Government, IT Department

Sf/Sc

/Forwarded / By order/

Section Officer

Annexure to G.O. Ms. No.18 Information Technology Department Dated: 05.11.04

ANNEXURE

Important concessions announced in IT Policy of Tamil Nadu 2002

6.1 Concessions extended to the IT industry:

Fiscal Incentives

• Unrestricted movement of capital equipment subject only to Sales Tax payments.

• Capital Subsidy depending on the amount of investment

• Relaxation of FSI (Floor Space Index) to the extent of 100% will be given in designated IT Parks.

• 50 % exemption of the Stamp Duty and the Registration Fee will be given at the time of purchase of a land/ building for IT industries subject to conditions.

• There will be no locational restrictions for setting up units exclusively engaged in software development / training.

• Private ITP developers will be given assistance in land acquisition and re-zoning, wherever required.

• Assistance of the Government in getting water, power connection, roads and necessary cable and satellite links for connectivity.

• Continuous power supply for Low Tension units as per LT Tariff III-C and for High Tension units as per HT Tariff I-A to IT industries.

• For the purpose of power tariff, IT maintenance and servicing units and hardware units will be treated as Industrial and not Commercial consumers.

Administrative Incentives

• All software industries will be exempted from the purview of Tamil Nadu Pollution Control Act.

• Exemption from the provisions of Chapter II & III of the Tamil Nadu Shops and Establishments Act will be granted for IT Companies.

• IT companies will be exempted from the provisions of Rule 6A and Rule 7 of the Tamil Nadu Industrial Establishments

• IT Companies will be permitted to self certify that they are maintaining the registers and forms as contemplated under certain Labour Acts.

Physical Incentives

• Maintenance of space Under the OSR Rules by the IT company itself.

• It will be ensured that sufficient bandwidth and power is made available to an IT Company at alternative locations throughout Tamil Nadu.

• Single Window agency for all statutory clearances required for the IT Parks will be provided.

• Annual awards for excellence will be instituted by the Government for IT industries.

Infrastructural Incentives

• Separate task forces on Cyber Security, Prevention of Cyber Crimes and IT infrastructure will be established.

6.2 Promotional Initiatives:

Approach

• Participation in International / National events to position Tamil Nadu as the DOC will be encouraged with DOC Fund for these initiatives.

• Potential areas in ITES will be given preference so as to effectively increase exports from Tamil Nadu. A specific policy for ITES sector will be brought out.

• A 30 % subsidy will be allowed in respect of the stall rent payable by the participating SME units subject to conditions. A separate policy with industry specific incentives to attract hardware investments to the State will be formulated.

• With the passage of IT ACT 2000 by Government of India, sufficient enabling mechanism including training for the law enforcing authorities will be put in place to deal with cyber crimes.

• Computer Education programme in the Government schools will be extended to enable the youth to pick up adequate computer skills down to 6th standard in a phased manner. Specialised training required for ITES employment will be built into the colleges training programme.

Infrastructural Initiatives

• Knowledge Industry Townships (KITs) will be created in the IT highway in Chennai through a Public Private Partnership program.

• A Special Purpose Vehicle (SPV) will be created to own and take forward the initiatives to position Coimbatore, Madurai, Trichy, Tirunelveli and Salem as the best Tier II cities for IT investments.

Physical Initiatives

• Enabling mechanism will be created so that existing Infrastructure in industrial estates like Perungudi / Maraimalai Nagar / Ambattur could be put into use in a cost effective manner by IT Companies.

6.3 Human Resources Development Initiatives :

• Basic training in computers will be introduced in all schools from the high school level. The endeavor will be to cover all schools within a 5-year period.

VIVEK HARINARAIN
SECRETARY TO GOVERNMENT

/True Copy/

Section Officer