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Department
of Industries & Commerce
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D.I.D (INDUSTRIES & COMMERCE)
G.O.Ms.No.2/2002-Ind Pondicherry, the 16/5/2002
READ:
1.
G.O.Ms.No.9, dt. 31/12/99 of Planning & Research Dept.., Pondicherry.
2.
G.O.Ms. No.78/99/F2, dt.31/12/99 of Finance Department, Pondicherry.
3.
G.O.Ms.No.24/2000 Envt.dt. 30/10/2000 of C.S.(Environment), Pondicherry.
4.
Letter No.2/Ind/IT/A8/2000, dt.23/02/2001 from the Director of Industries
& Commerce, Pondicherry.
ORDER:
The following Notification shall be published in the next issue of the State Gazette.
NOTIFICATION
Information Technology Industry is one of the fastest growing industries. It has been identified as one of the thrust areas for the industrial growth of Pondicherry. The Information Technology Policy announced by the Government of Pondicherry has emphasized the need to accelerate the development of IT industries in this Union Territory. Suitable infrastructure such as a Software Technology Park, Earth station and Electronic Industrial Estate are being set up to enable the growth of the IT industry in Pondicherry.
2. In order to accelerate the growth of IT industries in this Union Territory, the Lieutenant. Governor, Pondicherry, is pleased to grant the following incentives/ concessions to new IT industries
1. INDUSTRIES & COMMERCE DEPARTMENT:
a) Fixed investment subsidy on plant and machinery at the rate of 20% subject to a maximum of Rs.20.00 lakhs.
b). Subsidy on Captive power generation sets to the extent of 50% of the cost subject to maximum of Rs.5.00 lakhs, for new IT units which are located in authorised industrial areas but are unable to get reliable power supply.
c). Subsidy on leased line rental payable to the extent of 50% for first 3 years; 20% for fourth year and 10% for fifth year.
d). IT Software and IT Service Companies are exempted from routine inspection.
INVESTMENT CORPORATION (PIPDIC):
PIPDIC will offer the following incentives:-
PIPDIC may participate in the equity of the company to the extent of 15% of the total equity from the existing level of 10% of total equity or the amount of promoter’s contribution whichever is less.
b) Reduction in margin Money:
IT units will be able to avail loans with reduced margin money due to modification of the existing policy relating to debt equity ratio. The debt equity ratio of 3:1 will be applicable to loans upto Rs 20 lakhs instead of the present level of Rs 10 lakhs. In respect of loans above Rs 20 lakhs, the debt equity ratio will be 2:1 instead of 1.5:1
c) Reduction of interest rate:-
For the loans extended to IT industries there will be a reduction in the interest rate by 0.5% per annum from the normal rate applicable.
d)Venture capital/Seed capital assistance:-
The Corporation will formulate and implement a venture capital/seed capital assistance scheme.
3. COMMERCIAL TAXES DEPARTMENT
Sales Tax is exempted for the sale of goods manufactured by all the IT Industries located in the U.T. of Pondicherry for a period of 10 years vide G. O. Ms.No. 78/99/F2, dt 31/12/99 of Finance Dept. Government of Pondicherry.
4. TOWN AND COUNTRY PLANNING DEPT. AND PONDICHERRY
PLANNING AUTHORITY
Information technology and related industrial units engaged in software services and training are exempted from locational restrictions [orders issued by Chief Secretariat (Environment)) vide G.O Ms No. 24/2000- Envt. Dt 30/10/2000 of Chief Secretariat (Envt.)]
Relaxation of Floor Area Ratio to the extent of 50% will be given to the units set up outside the urban areas. Orders will be issued separately giving details of the areas in which the above concession would be available.
5. DEPARTMENT OF SCIENCE, TECHNOLOGY AND ENVIRONMENT
Software Industries are exempted from obtaining NOC from pollution angle as per orders issued by the Chief Secretariat (Environment Department) Government of Pondicherry, vide G.O Ms No. 24/2000- Envt., dated 30/10/2000 of the Chief Secretariat (Envt.)
6. LABOUR DEPARTMENT
Permission to run 3 shift operations for the IT Industries will be granted by the Labour Department subject to the provision of other facilities such as one day off, facilities to women workers, etc. Knowledge based industries in the U.T. of Pondicherry have been exempted from the relevant provisions of the Shops and Establishment Act and Rules, 1964 as contained in Labour Dept. G.O. Ms 6 dated 03-02-2001
7. LOCAL ADMINISTRATION DEPARTMENT.
Commercial buildings which are fully dedicated to IT Industries will be exempted from land and building Tax for a period of 5 years.
8. REVENUE DEPARTMENT.
Stamp Duty on
ii) Agreement made for availing term loans sanctioned by the PIPDIC for units located in the STP
will be exempted.
9. ESTABLISHMENT OF IT CORRIDOR
The stretch of East Coast Road starting from Siddhanandasamy Temple Junction to Ariyankuppam will be declared as an IT Corridor. The concerned departments will take necessary steps to provide necessary infrastructure facilities like road, power, water supply, telecommunication, etc. at this location.
10. ELECTRICITY DEPARTMENT
Power supply and priority in sanctioning and connecting power for IT Industries will be extended by the Electricity Department in the IT corridor and other selected areas identified from time to time for locating IT industries.
3. For the purposes of the incentives offered, under this notification IT industries will mean and include those industries manufacturing the products mentioned in the Annexure to this notification. New industries will mean and include those industries which apply for Provisional Registration /No Objection Certificate from the Industries Department, Government of Pondicherry after the issue of this notification.
4. These incentives / concessions will be available to new IT industries with immediate effect. However concessions / incentives being given to existing IT industries will continue.
5. The terms and conditions governing the extent of concessions / incentives and the procedure to be followed for extending the concessions / incentives by the various departments / organisations shall be as laid down by the departments / organisations concerned
6. The decision of the Secretary to Government of Pondicherry for the Industries Department as to the eligibility of any unit for the concessions / incentives outlined herein and the extent thereof shall be final
7. This issues with the approval of F.D vide their I.D. No. 32228/2002/F dated 4/4/2002
/By Order of the Lieutenant Governor /
(P.M. EMMANUEL)
UNDER SECRETARY TO GOVT.(IND. & COMM)
To
The Director of Stationary & Printing,
Pondicherry.
Copy
to:-
1.
All Secretariats/Head of Departments/Secy. to L.G/Secretary to C.M/P.S
to Ministers.
2. Director
of Industries & Commerce, Pondicherry.
3.
The Finance Department, Pondicherry.
4.
The Managing Director, PIPDIC, Pondicherry.
5.
The General Manager, DIC, Pondicherry.
6.
The Director, Port Department, Pondicherry.
7.
The Commissioner, Commercial Taxes Department, Pondicherry.
8.
The Chief Town Planner, Pondicherry.
9.
The Director of Science, Technology & Environment, Pondicherry.
10.
The Commissioner, Labour Department, Pondicherry.
11.
The Director, Local Administration Department, Pondicherry.
12.
The Director, Agriculture Department, Pondicherry.
13.
C.R.B.
14.
The Member Secretary, PPA, Pondicherry.
15.
The Deputy Collector(R), Pondicherry.
16.
G.O. file/ spare.
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