|
Rajasthan’s new IT policy has several innovations and provisions that will place put state at the vanguard of country’s fast growing IT footprint. CK Mathew, Principal Secretary-- Government of Rajasthan spoke to Faiz Askari, Bureau Head North on the salient features of the new policy.
How does Rajasthan’s new IT policy differ from its predecessor?
Rajasthan floated its first IT Policy in the year 2000. We introduced a new policy this year because the IT industry has undergone dramatic change. Southern states had taken the lead in the field of IT. However, Rajasthan’s proximity to Delhi and Gurgaon has helped us position the state as a strategic IT destination. Our IT Special Economic Zone (SEZ) has captured the imagination of the industry with IT majors like GENPACT, Wipro and Infosys moving in. Last year, software exports from Rajasthan were Rs 215 crore ($52 million). Considering these developments, it was time for us to introduce a new, more attractive policy for industry and IT professionals. As far as positioning of this policy is concerned, it has three critical components - E-Governance, promoting investment in IT and ITES and skill development.
What are your plans to attract IT business set up base in the state?
We have embarked on a more aggressive and professional approach for attracting new IT companies to set up their operations in our state. We have also made the certification process less time consuming and hassle free by expanding the list of statutes and laws where self-certification is permitted. It also means that inspection by labour department is waived. We have tied up with empanelled consultancy firms on success fee basis. We also acceded to the industry’s long pending demand to operate from residential localities. Our new policy also offers 7-year exemption on electricity duty and 50 per cent exemption in stamp duty for IT/ITES units. Moreover, IT and ITES units have been declared as public utility services so that they are spared from lock outs and strikes. Among other things, Rajasthan State Industrial Development & Investment Corporation Ltd ( RIICO) is setting up an IT incubation centre at Jaipur.
The new policy also redefines mega projects. Any IT company which will employ 500 persons or 1000 persons in ITES will be termed as mega project. For them, special package of Rs 10,000 per person will be given. Other than this, concessions in cost of land have been announced. We have also announced venture capital corpus of Rs 116 crore to assist new IT entrepreneurs,
How do you propose the address the demand for skilled manpower?
Rajasthan is setting up ‘Rajasthan Knowledge Corporation’ to generate skilled manpower for the industry. This corporation will be a joint venture with Rajasthan Government, Maharashtra government and the Universities holding 30 per cent stake each and remaining 10 per cent stake with the private sector. This is going to be public limited company with a start up fund of Rs 2 crore.
From an organizational standpoint, what has been the government’s approach towards investing in IT?
Now we have a central IT budget for all the state departments. Also, we have set in place a rule whereby every department needs to spend at least three per cent of their total annual revenue as IT budget. This has simplified processes and also motivates various departments to spend on IT.
More: Q&A >>
|