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Major Incentives for IT Industry
- Preferential treatment for allotment of land to the IT industries on an ongoing basis in all industrial areas developed by state agencies.
- Continuous and uninterrupted powers supply for IT industries and shall exempt them from scheduled power cuts.
- Captive power generation sets installed by the Information Technology Industry will be eligible for total exemption from payment of electricity duty for a period of five years i.e. with effect from 1.4.2000 to 31.3.2005.
(Power Deptt. Notification No. 26/3/95/power dated 14.6.2001).
- Relaxation in FAR/Maximum Height of the building permitted for IT Units as per following.
Maximum Permissible floor area ratio (Percentage): General Industry-125, IT Industry-250
Maximum Height of the Industrial Building (In meters): General Industry-21, IT Industry-30.
The conversion charges on IT Industrial units/Parks to be established before 31.3.2003 shall be levied at zero rate.
(Town and Country Planning Deptt. Notification No. 10DP-2000/17479 dated 1.12.2000).
- Escort services and Single desk clearances and approval of various Govt. Departments shall be facilitated for the IT Industries.
- Rebate on registration and transfer of property charges and exemption from stamp duty on a tapering scale shall be given for sale/lease of built up space to the IT Industry establishing facilities in private STPs /Government STPs/IT Parks as under:-
For facilities established and sold/leased before 1.6.2001,90% rebate.
For facilities established and sold/leased before 1.6.2002, 75% rebate.
For facilities established and sold/leased before 1.6.2003, 60% rebate.
For facilities established and sold/leased before 1.6.2004, 45% rebate.
This remission would be available only for the first transaction, when the sale or lease is made by the Infrastructure Company to an Information Technology Industry for the first time.
(Revenue Deptt. Notification No. S.O.131/C.A.16/1908 Ss 78& 79/2000 dated 13.11.2000)
- Priority sector by the State Level Financial Institutions for lending assistance.
- IT Hardware(except those having electro-plating, heat treatment and painting processes) /Software industry exempted from the purview of the Haryana Pollution control Act, provided that where the number of workers in such industries exceed 300 and there exists no sewerage facilities, no exemption shall be available.
(Environment Deptt. Notification No. S.O. 83/C.A.6/1974/S. 24/2000 dated 20.7.2000)
- Exemption for the IT and Software Industry under Haryana Shops and Commercial Establishment Act., (Section 9&10), on account which any employer of an IT Industry is at liberty to run his establishment without any restriction of time schedule of opening and closing hours including the close day and Industrial Dispute Act on account which the Government is competent to declare any Establishment of IT Industry as public utility service under clause 2(n) of the Act for specific period not exceeding six month at a time .
(Labour Deptt. Notification Nos.6/15/2000-1 lab dated 13.6.2000).
- The State Government is also contemplating to exempt the IT Industry from the operation of section 30 of the Haryana Shops and Commercial Establishment Act with a view to encourage the employment of women by allowing the employer to have the services of women workers during 24 hours.
- The State will declare awards of excellence for outstanding performance in exports/domestic segment/employment generation.
- Local Area Development Tax(LADT) exempted for importers of goods of IT Industry.
- Customized package of special incentives for prestigious projects with investment of Rs.30 Cr. and above. A high powered committee under the Chairmanship of Chief Minister has been constituted to decide the package in individual case.
- No change of land use permission is required if an existing industrial unit converts into an IT Industry if the same is located in the industrial area. However, such permission will be required if a unit is sought to be set up in the Industrial Zone and the ground coverage, FAR, height and parking restrictions stipulated for IT industry shall be applicable.
Two level basement has been permitted for IT units, Cyber Parks, IT Parks for adequate parking.
- Sales Tax Concession to new units and for expansion/diversification will remain same as already provided for in the Industrial Policy, 1999. The maximum extent of sales tax concession to Information Technology/Software units will be 300% of the fixed capital investment.
(IT Policy document page 48-50).
- The State Government has announced its Right of Way (ROW) Policy and has permitted putting up of Communication Backbone in private sector.
To promote IT & Software exports in the State, the Government has entered into a MoU with Software Technology Parks of India (STPI). The STPI office/earth station is being set up in Gurgaon.
DOT has established reliable networks upto Block level.
- The Government in order to catalyze IT investments on a large scale in the State, has formulated liberal norms/guidelines for setting up of intelligent buildings, Cyber Parks & Cyber Cities in private sector.
- Cyber Parks/IT Parks would be allowed to be located either in the Industrial areas or in the residential areas. The minimum size of the Cyber Parks shall be 10 acres. However, for Cyber City the minimum size would be 100 acres. Further, commercial component for incidental commercial activities like restaurant, banks, insurance offices etc. restricted to maximum 4 percent.
(Town & Country Planning notification No.CCP(NCR)/GDP-111/2000/1923 dated 22.11.2000).