The Hindu Business Line : Cabinet panel nod for IT investment regions

In a bid to fuel the growth of electronics hardware manufacturing in the country, the Government on Thursday approved a policy to create information technology investment regions (ITIRs).

These regions are specifically-notified zones that would include IT/BPOs, electronics hardware manufacturing units, public utilities, residential area, social infrastructure and administrative units.

The Cabinet Committee on Economic Affairs today cleared the policy for setting up such ITIRs, each having an area of at least 40 sq km.

These regions would attract investment, create employment opportunities, propel economic growth and simultaneously reduce the pressure on existing urban centres.

The ITIRs would be much larger than an IT SEZ. “The State Government would ensure that all physical infrastructure and utilities including power, water, roads, transportation, sewerage and effluent treatment facilities are provided. The Central Government would facilitate the development of national highways, airports and rail link to the ITIRs,” an official statement said, adding that such regions could include new integrated townships, SEZs and industrial parks, amongst others. The minimum processing area would be 40 per cent of the total area of the ITIR.

Through PPP

These regions would be developed in a phased manner through public-private partnership route, and the State Governments would select the developers and co-developers of such projects.

When contacted, an official in the Department of IT said that the ITIRs would not offer any tax sops or fiscal incentives per se, but provide an excellent infrastructure and investor-friendly policies.

“These regions would focus completely on IT and electronics manufacturing activities. Unlike an SEZ which offers fiscal incentives, these regions would represent a balanced development. However, SEZs could be located within an ITIR, itself,” they pointed out. In the first phase, 2-3 such ITIRs could come up, they added.

For instance, in case of a semiconductor ITIR, such region could have various chip-making facilities and other ecosystem units (those involved in specialty gases or toxic chemicals treatment) in close proximity to each other.

The ITIR policy has been conceptualised on the lines of the existing petroleum, chemicals and petrochemicals investment regions framework.

Related Stories:
Centre urged to come out with hardware policy

More Stories on : Hardware | Infrastructure | Policy

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page