In order to boost the development of IT industry in Hyderabad, the Telangana State Cabinet has recently approved a Grid Policy (“Policy”) as per which the IT firms setting up their units in areas other than Western side of Hyderabad would receive additional incentives.
The Policy is proposed to benefit all the stakeholders including the company, the employees, the city and its denizens. As a result, the companies can reduce their operational costs like lease and transportation, while the employees too can avoid unnecessary traffic and make better use of their time. While the city will have less burden on its existing infrastructure, people in other zones also would benefit due to IT company development in their area.
As part of the incentives, the Telangana Government would allow conversion of industrial parks to IT parks where the developers can allocate 50% for developing space for IT companies and use the remaining 50% land for non-IT purposes like residential and commercial purposes. Also, the IT and ITeS companies setting up their units in these areas shall avail power at Rs 2 per unit subsidy not exceeding Rs 5 lakh per annum and also receive a 30% subsidy against the lease not exceeding Rs 10 lakh per annum. A special incentive package would be given to companies providing more than 500 jobs.
Furthermore, the Grid policy would be in force for five years since the guidelines are issued and companies who setting up their units during these five years shall avail the incentives for a five-year period.