Lok Sabha Question No. 1576 (UNSTARRED), answered on 2018-12-19
Subject: Development of Electronics and IT Sector
Ministry: ELECTRONICS AND INFORMATION TECHNOLOGY
Asked by: R.K. BHARATHI MOHAN, R. VANAROJA, PR. SENTHILNATHAN, V. SATHYABAMA

## GOVERNMENT OF INDIA MINISTRY OF ELECTRONICS AND INFORMATION TECHNOLOGY

## LOK SABHA UNSTARRED QUESTION NO.  1576

TO BE ANSWERED ON:

19.12.2018

## DEVELOPMENT OF ELECTRONICS AND IT SECTOR

## 1576. SHRI BHARATHI MOHAN R.K.: SHRIMATI VANAROJA R.: SHRI P.R. SENTHILNATHAN:        SHRIMATI V. SATHYABAMA:

Will the Minister of ELECTRONICS AND INFORMATION TECHNOLOGY be pleased to state:

- (a) whether  the  Government  has  any  special  projects,  schemes  for  development  of Electronics and Information Technology sectors in Tamil Nadu and if so, the details thereof;
- (b) the total amount allocated and disbursed in the last three years in this regard;
- (c) whether  the  Government  has  taken  any  effective  steps  to  support  and  develop  the large number of small and medium-sized IT and ITES companies in Tamil Nadu; and
- (d) if so, the details thereof?

## ANSWER

## MINISTER OF STATE FOR ELECTRONICS AND INFORMATION TECHNOLOGY (SHRI S. S. AHLUWALIA)

(a): The Government has launched an India BPO Promotion Scheme (IBPS) under Digital India  Programme.  IBPS  provides  employment  opportunities  through  promotion  of investment in IT/ ITeS sector across the country including Tamil Nadu.

The  IBPS  incentivises  setting  up  of  48,300  seats  for  BPO/  ITeS  operation  through financial support up to Rs. 1 lakh per seat in the form of Viability Gap Funding (VGF) towards Capital and Operational expenditure. The Scheme also provide special incentives to the units for promoting employment to women and especially abled persons, setting-up of  operations in locations other than the State Capitals, generating employment beyond target, and promoting local entrepreneurs, within the overall Viability Gap Funding of Rs. 1 lakh per seat. Till now, in the State of Tamil Nadu 45 units have been approved to setup BPO/ITeS operations for a total of 6370 seats, Out of which 26 units for a total of 4120 seats have started operations across 17 locations.

Electronic  manufacturing  Modified  Special  Incentive  Package  Scheme  (M-SIPS)  has been  launched  by  the  Government  in  2012.  The  Scheme provides  20-25%  subsidy  for investments in capital expenditure for setting up of new electronic manufacturing facility or expansion  of  the  existing  electronic  manufacturing facility.  These  incentives  are available  in  any  industrial  area  notified  by  Centre/  State/  local  authorities  across  the country.

(b): The total outlay of the IBPS scheme is Rs. 493 crore of which till now Rs. 1.68 crore has been disbursed/ approved to BPO/ ITeS units in Tamil Nadu.

Under the M-SIPS, 9 applications with proposed investment of Rs. 4,547 crore have been approved for the State of Tamil Nadu of which Rs. 43.67 Cr. has been disbursed.

(c)    and    (d)  In  addition  to  IBPS  and  M-SIPS,  Government  is  implementing  Software Technology  Parks  (STP)  scheme  and  the  Electronics  Hardware  Technology  Parks (EHTP) scheme for the promotion of  IT/  ITeS/  Hardware industry including SMEs. A total  of  58  STPI  Centres  have  been  established  in  the  country,  out  of  which  5  STPI Centres are operational in the State of Tamil Nadu.

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