New AP Policy Will Fuel IT Growth: AP DTILF

The new IT policy for 2024-29 with comprehensive incentives will propel growth. The policy will be a major game-changer for strengthening the IT landscape across Andhra Pradesh - Sreedhar Kosaraju, founder-convener, AP DTILF, tells Bizz Buzz

Visakhapatnam: AP Digital Technology Industry Leadership Forum (AP DTILF) has warmly welcomed the newly announced IT policy, which it believes will be a transformational step for the IT industry in Andhra Pradesh.

“On behalf of the industry, we express our heartfelt gratitude to Chief Minister N Chandrababu Naidu and IT and Electronics Minister Nara Lokesh, for their visionary leadership and unwavering support to the IT ecosystem.

Stating that the new policy for 2024-29 with comprehensive incentives will propel growth, forum founder-convener Sreedhar Kosaraju told Bizz Buzz that the policy will be a major game-changer for strengthening the IT landscape across Andhra Pradesh.

He said the policy encompasses a robust framework of incentives categorised under three major areas like for IT & GCC companies, IT infrastructure developers and skill development.

It offers key incentives for IT & GCC companies such as net e-Employment Incentive, for entry-level jobs, six months’ CTC or Rs1.5 lakh, whichever is lower. For senior leaders: it has a provision for six months’ CTC or Rs3 lakh, whichever is lower.

Additional support for women and SC/BC/ST employees: 100 per cent EPF reimbursement for an extra six months, rental subsidy.

of Rs2,000 per seat for two years, providing significant support to operational costs. The policy offers direct incentive for employees in the form of HRA up to Rs1 lakh per employee for three years, paid directly to employees. This initiative is expected to attract and retain talent within the State, he said.

Kosaraju said as rent exemption in government buildings, IT companies can avail a 5-year rent exemption, enabling startups and growing businesses to flourish in a cost-effective manner.

On key incentives for IT infrastructure developers, he said the policy offers capital subsidy up to 50 per cent of the project cost and support for co-working spaces. Rs2,000 per seat subsidy for co-working space developers is being offered in addition to fostering growth of collaborative ecosystems.

Towards skill development initiatives, the policy also underscores a strong commitment to skilling, upskilling, and reskilling initiatives to create a future-ready workforce. While promising concepts have been outlined, we anticipate further details on specific incentives through an addendum soon.

While the policy is highly encouraging, he wanted to seek clarity on a few points such as incentives for expanding companies: operational guidelines should detail how existing companies expanding their footprint can benefit.

“We request the government for clearing pending incentives: A phased resolution of pending incentives will instill confidence and accelerate adoption of the new policy,” he stated.