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Home/Business/IT in Hyderabad/The Govt. in IT

The Govt. in IT

The Chief Minister's Vision 2020 program visualizes Hyderabad as a knowledge hub and seeks to run an electronic government. And indeed, the single most important factor in the recent growth in this industry is credited to the proactive role of the state government. The effective initiatives taken by the government in the development of industry are multifarious : offering concessions and incentives, taking an active part in promoting IT, creating a market for IT applications, and enlarging the use of IT in all spheres of governance.

A very significant aspect of IT growth in the state is the use of IT in the Government. The government has been taking rapid  steps to put into practice e-governance, which has immense potential for transparency and efficiency. Employment exchanges, District Rural Development Agencies, and the departments of treasuries and accounts, revenue, transport, commercial taxes, social welfare and marketing have started using computers extensively. The department of registration and stamps has pioneered a unique Computerized Administration of Registration Department (CARD) project to be launched shortly. The first sign the technology-friendly government has sent out is a comprehensive State Home Page on the Net (the first state government in the country to do so). 

The efforts of various government departments to make use of information technology have led to the increase of the IT market in the state. When the Government with its voluminous requirements enters a market, the result is an explosive demand-led market. There is a growing demand for PCs, software packages, printers, modems, UPS systems, training, support systems, optical fibre connectivity et al.

The motive behind the efforts of various departments is the Andhra Pradesh Technology Services (APTS). This State government organization endeavors to improve government-citizen intractability, courtesy IT. It wants to offer access to information to every citizen on a single backbone network. 

The projects envisaged to achieve this include AP State Wide Area Network (APSWAN) connecting all the district headquarters with the capital, State Wide Video Conference facility, Secretariat Campus Network, electronic kiosks and computerization up to the mandal level. 

Hyderabad is perceived as an alternative location for many IT related firming India and abroad. " The quality of manpower, geographic location, real estate prices, city infrastructure, and government commitments are some of the factors favorable for multinational or companies to start their second operations from Hyderabad" says Naidu. According to him if companies are heading for Hyderabad and preferring it over Bangalore and other places, is because the government is creating an infrastructure, educational system and the market - generating potential to do business. That is why the industry is convinced that the government means business.

Hyderabad has got a very positive work culture and there are quite a few IT- related firms in Hyderabad. Dewang Mehta, executive director, of NASSCOM has announced setting up of their second office in the city after Delhi. Moreover being one of the larger states with a committed government, and dedicated services being provided by the government agencies, the HI-TEC City is expected to become the major center for computer technology related activities in India.

Intelligent  Implementation

Government organizations like the National Informatics Centre and Andhra Pradesh Technology Services (APTS) are pushing the envelope to make the city and state customer-friendly. APTS is a state government undertaking and a trailblazer in the country. It was registered under the Companies' Act in 1986 and kept under the administrative control of the Finance and Planning Department. But consequent to the creation of a separate department for Information and Technology and computers in Finance and Planning in 1997, APTS has been brought under the administrative control of this department. It identifies areas where services can be upgraded through the use of IT.

The Objectives

  • To provide consultancy services to government departments/agencies in purchase of computer hardware and other modern office equipment, their maintenance and the preparation of site for the installation of all such equipment. 
  • To provide consultancy services for the upgradation of computers and other electronic systems.
  • To undertake timely software development appropriate to the needs of user agencies.
  • To provide adequate and the right kind of technical services and manpower.
  • To ensure maximum spread of computer awareness and provide training to user agencies at various levels.
  • Turnkey project implementation and application for software development.
  • To undertake feasibility studies to identify applications for software development.
  • Fix up of hardware configuration.
  • System study, analysis and design.
  • Software development, testing, documentation
  • Training of user department personnel
  • Implementation and manpower support

Govt. unveils package for IT sector

Dated: 14-05-1999 

The Andhra Pradesh Government has announced a package of incentives for the information technology industry to bring the State abreast of other States such as Tamil Nadu where such benefits have already been given.

The package, valid for three years, was unveiled by the Revenue Minister, Mr. T. Devender Goud, on behalf of the Chief Minister, Mr. N. Chandrababu Naidu, after a Cabinet meeting here on Thursday. Rebate in cost of Government lands being allotted to IT units at the rate of Rs 20,000 for each job created for a person of Andhra Pradesh origin for an emoluments of Rs 5,000 for a period not less than two years, and reduction in registration charges and stamp duty if the unit is planned on private lands, are among the incentives.

The IT/ IT infrastructure/IT services industry will be exempted from the purview of the Andhra Pradesh Pollution Control Act except in the case of power generation sets. Industrial power tariff and all other admissible incentives and concessions applicable to industries will be allowed to IT/IT infrastructure and IT services units. These three categories have been exempted from zoning regulations for the purpose of location. The Government will simplify the compliance- procedures with a self- certification facility for exemption where possible from the provisions of the various regulatory Acts and rules.

General permission will be given to the three categories to run three-shift operations. Those incentives allowed to industries in general under the Industrial Policy Document 2000 AD will also be applicable to the IT units. Rebate on cost of the land will be given at the rate of Rs. 20,000 for job created subject to the condition that the land is given by the State Government or the Andhra Pradesh Industrial Infrastructure Development Corporation. It will be restricted to Rs 20,000 per job created or the cost of the bare land (without development cost) subject to a ceiling of three acres per 1,000 jobs created. On the areas in excess of this limit, no concession will be allowed.

The minimum number of employees to be hired by a company in order to avail itself of the concession on land cost has been fixed at 100. The minimum gross salary for a job considered to have been created would be Rs. 5,000 per month. The period for which the such employment would have to be sustained would be two years.

For those IT units coming up on private lands, concessions would be in the form of rebate on registration and transfer of property charges and exemption from stamp duty on tapering scale of sale/lease of built-up space to IT/IT service companies. The rebate would be 90 per cent for the facilities sold/leased before April 1, 2000, it would be 70 per cent for those done after this date but before April 1, 2001, and 50 per cent in the case of those done after this date. The concessions would be available only to IT parks notified by the Department of Information Technology and which would provide minimum facilities like uninterrupted/backup power, reliable telecom links. Rebate would be applicable to the combined levy of registration fee stamp duty and transfer of property duty. No total exemption of stamp duty would be allowed.

The document made it clear that the concessions would be allowed only for the first transaction when the IT industry was first established.

Those IT infrastructure companies coming up outside the limits of the Municipal Corporation of Hyderabad, its nine peripheral municipalities and Gaddiannaram gram panchayat, relaxation would be given in the floor space index to the extent of 50 per cent. For example, if the normal FAR is 1.5, the FAR allowed in such cases would be 2.25. This would also be subject to the condition that facilities such as uninterrupted back-up power, reliable telecom links were ensured. This would not be allowed to those coming up on lands given by the Government and APIIDC.

 

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