A.P. woos animation, gaming firms with sops, venture capital fund

K. V. Kurmanath Updated - November 22, 2017 at 02:24 PM.

Rs 230-crore Game City to incubate start-ups

Sanjay Jaju (left), Secretary, IT and Communications, AP, and State IT Minister C. Ponnala Lakshmiah talking about the proposed animation, gaming, media and entertainment tower that will come up at Rayadurgam in Cyberabad, in Hyderabad on Saturday. — P. V. Sivakumar

Following the example of Karnataka, the Andhra Pradesh Government has proposed providing free Internet bandwidth for three years, reimbursement of production cost and Rs 15 lakh in recruitment assistance for animation, gaming and special effects companies that want to set up shop in the State.

It will also start a venture capital funding mechanism in association with stakeholders to offer seed capital assistance to first-generation entrepreneurs, start-ups and small and medium enterprises in this niche segment.

New Policy

With a view to supporting the industry that is struggling to find its feet, the State has come out with the draft AP Game (Gaming, Animation, Media and Entertainment) Policy 2013-15.

On Saturday, Information Technology Minister Ponnala Lakshmaiah and Principal Secretary Sanjay Jaju held a brainstorming session with the industry to discuss the proposals and get feedback.

Extending the facilities it announced for the software and hardware industries, the Government has proposed subsidies in power, infrastructure and stamp duty and registration payouts. It has proposed reimbursement of production of animation film or gaming product not exceeding Rs 15 lakh. Reimbursement of bandwidth charges up to Rs 10 lakh in a span of three years too will be provided.

Game City

A decade-long intention of the State to create to create an exclusive facility for gaming and animation will become a reality soon. “We are going to create a eight-lakh sq ft facility at Rayadurgam at a cost of Rs 230 crore. It will provide space even for one-two seater firms at a very affordable price. We will create common facilities to let the small companies carry out their projects,” Ponnala Lakshmaiah told Business Line after the event.

In the first phase, the Government would spend Rs 180 crore. “We will start the work on the project in a few weeks,” he said.

He also said that the State would study feasibility of setting up a common cloud-based facility (which can be accessed from anywhere using the Internet) that could provide licensed software on pay-per-use basis.

The Government would also introduce electives in animation and gaming in engineering college courses in order to create skilled manpower for the burgeoning industry.

> kurmanath.kanchi@thehindu.co.in

Published on March 2, 2013 16:45