ee CUE aera) Ce a ay PUA Cai ter UR rashMessage from Dr. Raman Singh (Honorable Chief Minister of Chhattisgarh) The State of Chhattisgarh is fast emerging as the next big story of India, State has ‘maintained a robust Stat GDP growth rate averaging more than 11% in the last three years. The state has been consistently ranked first amongst new states and second overall on Investment Intent in the country Chhattisgarh aspires to be a knowledge society. driven by equal opportunity and social justice, with the objective of inclusive growth. Knowledge intensive technologies like Information Communication Technologies are playing critical role in shaping economics. It is our cffort that in this new era of knowledge economy, Chhattisgarh plays an important rote. ‘This IT and ITES Policy is designed to make Chhattisgarh an attractive destination for investment by IT/ [TeS investors, ‘Our government endeavors to ke strategic advantage of ICT in multi-dimensional development of the state, laying the foundation of a vibrant IT/ITES industry that hhamesses the huge talent pool of Chhattisgarh. It is my governments endeavor to eave no stone unturned in implementing this policy in letter and spirit Governance initiatives of our state have delivered significant benefits to the citizens ‘and are aimed to take government to the doorsteps of citizen particularly in far flung areas, Chhattisgarh has created required infrastructure and quality educational facilities to promote human resource development, to meet the increasing demands of Knowledge based industries. T welcome all to develop lasting ties with our State, its people, its potential and its, opportunities. (Dr, Raman Singh)GOVERNMENT OF CHHATTISGARH Information Technology and Biotechnology Department Mantralaya, RAIPUR nNOTIFICATIO! Raipur, Dated- October 26",2012 No: F 160/2012/56 :: State Government hereby notifies Information Technology and Information Technology Enabled Services Investment Policy of Chhattisgarh State 2012 — 2017 as enclosed at Annexure ~ 1 with effect from Ist November 2012, State Government has further decided that in the event of difference betweeen the Hindi and English version of the policy enclosed at Annexure~ 1, English version shall be treated as original version and shall be used for its interpretation. In the name of the Governor of Chhattisgarh and by Order YA Ek (Aman Kumar Singh) Secretary Govt. of Chhattisgarh Information Technology & Bio-Technology DepartmentIT/ ITES INVESTMENT POLICY OF CHHATTISGARH STATE (2012 - 2017)Contents 1. Emblem.. 2. Vision 3. Objectives A. Developing Eco System for Knowledge Economy in Chhattisgath.... B, Promoting Chhattisgarh as an Investment Destination, 3 4. Background Incentives... 5.1 Policy Based Incentives to IT & ITES Sector Industries. 7 5.4 Rebate in the cost of land.. 5.5 Other Incentives. 5.6 Special Incentives 6. Empowered Committee .. 7. The Nodal Agency 10 A. CONDITIONS ‘= me _ i eee = 11 B. DEFINITIONS:... Page Tati | Oepariment of lnformation Technology ana batechnology Goverment of ChhatingahIT/ITES Investment Policy of Chhattisgarh 2012 - 2017 1, Emblem Chhattisgarh is one of the fastest growing states in India. It is amongst the richest states in terms of natural and mineral resources. In today’s era of Knowledge Economy, Government of Chhattisgarh (GoCG) is committed to promote Chhattisgarh an attractive ICT (Information Communication Technology) destination. World clas \structure is being developed for the promotion and sustainance of IT (Information Technology) and ITES (Information Technology Enabled Services) business, GoCG will promote brand Chhattisgarh as a ‘Land of Opportunity’ for ICT business. Chhattisgarh proposes unique advantage of sust advantage, surplus power supply, access to ICT talent pool, synergy with established industrial set-ups in core sector (like manufacturing and mining), rich cultural diversity, good connectivity and excellent infrastructural support inable cost GoCG envisions creating better prospects for weaker and marginalised sections of the society to establish business on new opportunities unveiled in the area of ICT. This will be achieved through focused efforts towards promotion of Innovation and Entreprencurship. GoCG is committed to improving the well being of present and future generations through promotion of sustainable and inclusive development. This involves integration of economic, environmental and social components (of development) at all levels. Flow of information plays a key role in supporting such an integrated effort. Information Technology would be one of the method to create an enabling infrastructure for availability, accessibility and exchange of information to enterprising community of the state as well as for the concerned citizens. Page Dorit | Separiment of normation Tschnology ana batechno}oey, vemnment of Conatga2. Vision The State of Chhattisgarh recognizes the importance of Information and Communication Technology as a key enabler in its economic development. Accordingly, the State has prepared its IT/ TES Investment policy with a vision of establishing an information society consisting of informed, active and therefore responsible citizens — the basic tenet of a true democracy. The State's IT/ ITES Investment Policy has been designed to achieve the vision of the Government to create an ‘e’nabled society effectively contributing to the Social and Economic Development of the State. 3. Objectives Following are the key objectives, the policy document will strive to fulfill:- A. Developing Eco System for Knowledge Economy in Chhattisgarh (a) Making knowledge pool and skill-set available. (b) Making international standard ICT training faci () Making quality education easily accessible in the field of ICT. () Developing social and living environment for knowledge formation and knowledge dissemination. (e) Developing aspirations for international level excellence. ies in the state. B. Promoting Chhattisgarh as an Investment Destination (a) Making ICT entrepreneurship a viable career option particularly for weaker and marginalised section of society. (b) Developing enabled business environment for investment in diverse area, (©) Increase productivity through IT enablement. (d) Increase export through IT Services / products. (e) Creation of ICT jobs for local population Page serit | Oeparmentafinfommato mology ana bstechnology vemnment of Conatga4. Background There is scope for substantial growth of IT related industries in Chhattisgarh. The State will ensure providing appropriate institutional, infrastructural, financial and operational support to entrepreneurs intending to invest in the software and hardware industry in Chhattisgarh, ss in IT/ITES Business will have early mover’s advantage into the state, which s to be a prospective epicenter of business activities in central India. 4.1 Investment Advantages (a) ROI (Return on Investment) - Fast ROI due to low cost of operational overheads in emerging cities of Chhattisgarh. (b) Economy of Scale - Cost of technology would be rationalized by large-scale acceptance and use of IT enabled applications in the state (c)_ Synergy with Flourishing Core Sector Business — (i). 2,50,0000 crore (INR) of investment expected in the next 2-3 years (ii). Institutional Support. (iii). The trouble free industrial environment in the state. (iv). Excellent work culture and labour relations. (d) Dedicated Investment Zones for IT/ ITES Industry - (i). IT SEZ being established on 20 Hectares of land. (ii). A Ready to Occupy Constructed Building spread over 8,200 sq. mtrs for IT vendors at Urkura (Raipur) with provision for 4-5 acre land parcel to be provided adjacent to the building. (iii). Incubation Centre and Software Technology Park has been established at Bhilai. (iy). New IT parks to be developed in Raipur and Durg ~ Bhilai. (c) ITATES development in the state lead by e-Governance projects - (i). State bagged Best e-Governance State Award by CSI Nihilent twice. (ii). Chhattisgarh SWAN (State Wide Area Network): A hybrid network with a mix of wireless and wire line access supporting voice, data and video traffic. Page atit | Oepartment of formation Technology ana batechnology Goverment of Chhatingah(iii). Chhattisgarh has the largest deployment of fixed WiMAX deployments in Asia, providing access to 3,000 locations in the state, (iv). Optical fiber connectivity presently available in all block headquarters, soon all panchayats to be connected on fiber. (v). Multiple telecom service players providing excellent connectivity. 4.2, Human Resources (a) Institutions of National Repute (i). IT, IM, NIT, HLNU, AIIMS, Chhattisgarh Swami Vivekanand Techinical University, Guru Ghasidas Central University (ii). HR Development Center as extension of IIT Kharagpur (b) Technical Institutions (i). 50 Engineering Colleges (ii). Three Medical Colleges in the state (iii). 25 Polytechnic Colleges (iv). 118 ITIs (c) Universities - More than two dozen universities are operating in the state. (a) Scope for Manpower Mobilization - Large number of trained and experienced manpower hailing from different parts of the state like Bhilai, Raipur, Bilaspur, Raigarh and Korba are already contributing to the growth of all major National and International IT Centres. Professional expertises across all industrial domains are available in these industrial towns of the state. 4.3. Enhanced Connectivity (a) Air: (i). A domestic airport at Raipur (15 flights everyday connecting all the major cities) Gi). A new international airport to be operational in Raipur from November 2012 (capable of handling 1000 domestic and international passengers at peak hours). (b)Roads: The 11 National Highways of Chhattisgarh constitute 2,184 km of roads. (©) Railways: Located on East-West corridor connecting Kolkata and Mumbai, Chhattisgarh has good rail connectivity with total 1,108 kms. length of rail network. Pages aFit | Oepartment of information Technology ana batechnology, Goverment of Chhatingah1/1 tavern Pei saad bi ao 44 45 46 47 (@ Three PPP rail corridor project approved for connecting major industrial locations, Three Corridors with an investment of Rs. 4500 crore will increase railway footprints in Chhattisgarh by almost 450 km Social Infrastructure {a) Excellent Schooling Facilities available including top of the brands like - RKC, DPS, N. H Goel, Mayur (Mayo), Bhawans etc. (b) Health Infrastructure comprises of hospitals like Fortis, Narayana, Apollo and Sri Sai Sasthan etc are operational. (©) Biggest cancer hospital in central India proposed by Vedanta Group to be commissioned in 2013. (@ The State has Shopping Malls and Multiplexes with more than 15 lakh sq. feet area (€) The state has good sports facilities, 3.5 lakh sq. feet of retail area and hospitality infrastructure essential for a good quality of life and to sustain human capital. (f) The state has a favourable climate and stable law and order situation in major cities. (g) Moderate cost of living. Surplus Power and Uninterrupted Power Supply (a) Uninterrupted Quality Power 24 x 7 at very competitive rate. (b) Capacity at the end of 12® plan likely to be around 41,000 MW with addition of 30,000 MW in the 12" plan itself, (c) Chhattisgarh is the only state with zero power cut in India. Friendly Social Environment, Governance and Political Stability (a) A progressive and friendly government to support and protect the IT investment in the state (b) Single Window Clearance for investors in ITATES (©) Multi-Cultural, Multi-Ethnic Harmony in society (@) Enforceable Legislative Framework and Good Governance World Class City of “NAYA Raipur’ (New Raipur): The Capital City (a) Committed investment of Rs. 4000 crores (6) World class amenities including proposed 18-hole Golf Course, Theme ‘Township, Convention Centre, Shopping Malls and Multiplexes. pause Department of information Tecnology and Dotechnoom, Government of Owettagah1S avescen ey of Abatgart | 22-2017 {c) Five Star Business Hotel, Convention Centre with plenary hall for minimum 500 delegates (@) Township with plotted developments and multi-storied apartments (e) Support Facilities and on-site infrastructure like internal road network, parking areas, security, air-conditioning, uninterrupted power supply, water supply and rain-water harvesting, sewage treatment, solid waste management and landscaping. 5. Incentives Conditions and Definitions for the incentives given in this policy are given in APPENDIX A. 5.1 Policy Based Incentives to IT & ITES Sector Industries Classification ITATES Sector Industry Incentives 1. Interest Subsidy 75% of the total interest paid up to the period of 7 years with maximum limit of Rs. 60 lakh p.a. 2. Fixed Capital 45% of the fixed capital investment with maximum limit of Investment Subsidy _| Rs.140 lakh. 3. Electricity Duty Exemption up to 12 years from the date of commencement of Exemptions commercial production. 4. Reimbursement of — | 100% Tax reimbursement of VAT/CST or CGST for new IT VAT/CST or CGST | hardware manufacturing units, for a period of 5 years from to‘IT Hardware’ | the date of commencement of production for products Manufacturing Units | manufactured in Chhattisgarh. 5.2 While availing the benefits of article 5.1 (1) & 5.1 (2), IT & ITES Sector Industries employing minimum of 50% of workforce who are domicile of Chhattisgarh State shall be eligible for additional incentive of 5%. The cap indicated would also be enhanced by 5%. 5.3 While availing the benefits of article 5.1 (1) & 5.1 (2), companies investing and starting commercial operations by the end of Financial Year 2014-15 would be entitled for further additional incentive of 5%. The cap indicated would also be enhanced by 5%. 54 Rebate in the cost of land IT Companies establishing the facilities can avail rebate in the cost of land linked to employment. The terms for allotting land and the procedure for availing the rebate is defined below: Ser reale ‘Department of formation Technology ned Dstecwology, Governmew of ihattagamh1/1 tavern Pei saad bi ao {a) Rebate shall be applicable only on Government lands and land belonging to Government agencies. (b) The applicant companies proposing to have fixed capital investment (excluding working capital) of Rs 10 Crore and above will have the option of land at the rate of 25% of the prevalent premium, subject to availability of land and with the condition that the investment in fixed capital will be made within a period of three years. Land to such units will be allotted according to the table given below: S.No] Project Cost | Land available at concessional rates (Rs in Crores) 1 1010.20 | Maximum 10 acres as per requirement 2 200.50 | Maximum 15 acres as per requirement 3 50 to 100 | Maximum 25 acres as per requirement (©) Company taking concession will have to continue operation for atleast three years (4) Companies providing employment to more than 500 persons will be provided further concession on rate of land. The Empowered Committee formed for implementation of this policy shall take decision in this regards. (e) Land will be allotted for 33 years on lease with provision for further renewal. A minimum 60% of the total of the IT investment area will be used for IT operations and the balance 40% can be used for ancillary use and support services. The area so developed should have fucility to create at least 350 jobs per acre. () Companies investing and starting commercial operations by the end of Financial ‘Year 2014-15 would be entitled for additional rebate of 5% on land premium. 5.5 Other Incentives (a) Large Investments — Entrepreneurs investing more than 100 Crores in the IT / ITES Sector may be considered for additional incentives by competent authority on case to case basis. (6) Incentives as per Industrial Policy (2009-2014) of Government of Chhattisgarh: All IT/ITES industries will also be eligible for incentives as per Industrial Policy (2009-2014) such as: (a) Diversion in Land use (b) Quality Certification subsidy (©) Technical Patent Subsidy See Department of information Techooogy and Dotecinoom, Government feta1/1 tavern Pei saad bi ao (@) Margin Money Subsidy for Scheduled Caste/Scheduled Tribe Entrepreneur establishing IT/TTES Business in Chhattisgarh (e) Industrial Award Scheme (f) Exemption from Stamp Duty 5.6 Special Incentives (a) Industries with minimum of 500 employees working in state of Chhattisgarh which commences commercial production before end of financial year 2014-2015 would be entitled for: @. Bonus Points in Technical Evaluation limited to 5% in IT related tenders of Chhattisgarh Government. Free of cost advertising space where ever possible in Government sponsored events for industries. (iii) Direct empanelment for ITATES Consultancy Tenders of Chhattisgarh Government. In such cases the final selection of consultant can be done on the basis of financial bid from empanelled consultant. (b) Chhattisgarh State Electricity Regulatory Commission (CSERC) tariff order for the year 2012-13 provides for a special tariff for “Industries related to manufacturing of equipment for power generation from renewable energy sources” which is lowest power tariff for Industrial consumer. State shall endeavour to make this same tariff applicable to ITAITES Units in the state with the concurrence of CSERC. (©) Relaxations under Shops & Establishments Act for working hours, work shifts and employment of women. Applicability of all relaxations under the Industrial Disputes Act and Contract Labour Act to all IT and ITES units in the State on par with Special Economic Zones. (©) Notifying IT & ITES units as continuous process units. @) (© Permission to IT und ITES units for self-certification of reports and returns. (g) Blanket exemption from pollution control regulations for non-manufacturing units. 6. Empowered Committee To oversee, monitor and resolve various issues arising out of this Policy, an Empowered Committee (EC) will be constituted under the chainmanship of Chief Secretary of the State. The committee shall consist of the following members: 1. ACS / Principal Secretary/ Secretary, Finance. ITE Department of information Techooogy and Dotecinoom, Government feta1/1 tavern Pei saad bi ao 2. Principal Secretary / Secretary, Industries. 3. Principal Secretary / Secretary, Revenue 4, Principal Secretary / Secretary, IT 5. CEO, CHIPS -Member Secretary The EC may consult or invite representatives from institutions related to E- Govemance/IT-ITES sector such as NASSCOM, STPI, Private IT Parks, IM, IIT, NISG, NeGD or any such other persons. ‘The committee shall meet as and when required. The committee will deliberate and decide on the following issues: (a)To approve the plan, monitor and control the execution plan and do periodic reviews in regards to implementation of the policy ()To recommend additional incentives/concessions for large investments of more than 100 crores (©) Monitoring of single window clearance system (d) Resolution of inter-departmental issues that may arise from time to time (e) Issue clarification on any issue pertaining to this policy or extension / relaxation of timelines etc. (f) Issue single registration for all statutory requirements in the state, within 30 days, for commencement of business activities by the IT / ITES entrepreneurs (g) Any other relevant matter All decisions of EC regarding this policy shall be final and shall be binding to all the concerned parties including investors in the state. 7. The Nodal Agency CHIPS will act as nodal agency for this policy and will also provide single window clearance for all IT/ITES units for following activities: (a) Ensuring all relevant government orders are issued in a time bound manner by concemed departments in accordance with this Policy. (b) Facilitating all clearances, approvals, permissions and consents required from the State Governmentiits agencies. (c) Facilitating allotment of land by State Government or its agencies. (d) Facilitate submission of reports/ returns in electronic formats shall be made for IT /ITES Industries (Develop appropriate manpower skills and competencies by tying up with training and educational institutions. caeals Department of information Techooogy and Dotechnoom, Government fetarneerae rency ot cnaraxgare | 2032-2017 APPENDIX A A. CONDITIONS (@) The policy would be effective from 01 November 2012 for a period of $ years. (b) Only ‘new IT / ITES units’ investing / commencing commercial production / operation in the state, after the date of issue of this policy within the currency period of this policy are eligible for monetary subsidy/exemption/concessions given under the policy. (©) If the incentives / benefits mentioned in the Industrial Policy 2009-14 are lesser than the IT/ITES investment policy then incentives/ benefits mentioned in the ITATES investment policy will prevail. @ Industries would be eligible to avail incentives only net of subsidy if any subsidy etc has been obtained from Government of India. (©) ITATES units having Quality Certifications including 1SO-9001/1SO- 14001/CMM/CMM I - Level 3 or higher (or other similar national/international certificate relevant to IT/ITES Quality Excellence) are only eligible for incentives under this policy. (®) IT infrastructure developer companies having built 5 lakh sq.ft. or more of IT infrastructure with total investment exceeding Rs. 100 crore are eligible for incentives under this policy. (g) Monetary subsidy/exemption/concessions given under the policy will be given to the beneficiary units only to encourage IT/ITES investment and shall be deemed to be cancelled and recoverable with penalty if such subsidies/exemptions/concessions are misused or used for purpose other than the public stated purpose of this policy. B. DEFINITIONS: The incentives mentioned in this document will apply to companies in IT and ITES sectors, as defined below: IT Sector or IT/ITES Industry - includes IT Hardware Manufacturing, IT software, IT services and IT enabled services, Data Centre for Internet, Cloud Computing, Disaster Recovery, Business Continuity, Business / Big Data Analytics or any other such industries approved by EC. It also includes ‘IT infrastructure development companies’ which can be a real estate infrastructure developer or a builder constructing IT office space for sale / lease or for lease-cum-sale to IT industry / Financial Institutions for the purpose of IT activities by the IT industry. nena Department of information Techooogy and Dotecinoom, Government Oiettagehi Peerage ely seme State Data Centre Building eM A ee er CIE Peta ud eee adr) Cee eur Pe uy