Lok Sabha Question No. 2012 (UNSTARRED), answered on 2016-03-09
Subject: Policy on ITIR
Ministry: COMMUNICATIONS AND INFORMATION TECHNOLOGY
Asked by: Shrirang Appa Barne

## GOVERNMENT OF INDIA MINISTRY OF COMMUNICATIONS AND INFORMATION TECHNOLOGY (DEPARTMENT OF ELECTRONICS & INFORMATION TECHNOLOGY)

## LOK  SABHA UNSTARRED QUESTION NO.  2012

TO BE ANSWERED ON: 09.03.2016

## POLICY ON ITIR

## 2012 SHRI  SHRIRANGAPPA BARNE:

Will the Minister of Communications & Information Technology be pleased to state: -

- (a)  whether  the  Government  is  contemplating  to  introduce  a  new  policy  on  the  Information Technology Investment Region (ITIR);
- (b)  if so, the details thereof and the time by which it is likely to be launched; and
- (c) the steps taken by the Government to make the country an information technology hub?

## ANSWER

## MINISTER FOR COMMUNICATIONS & INFORMATION TECHNOLOGY (SHRI RAVI SHANKAR PRASAD)

(a) and (b): The Information Technology Investment Region Policy Resolution, 2008 was notified in May 2008. Based on the experience gained so far in implementing the policy, the policy is being revised and is being put up for approval of Cabinet Committee of Economic Affairs(CCEA).

- (c): The Government has taken several steps to make the country an Information Technology hub.

Software  Technology  Parks  of  India  (STPI),  an  autonomous  society  under  the  Department  of Electronics  &  Information  Technology  (DeitY),  Ministry  of  Communications  &  Information Technology is engaged in the promotion and development of IT-ITES. STPI has set up 54 STPI centres across the country. Further, the Department of Commerce (DoC), Ministry of Commerce & Industry has notified 203 IT-ITES specific Special Economic Zones (SEZs). These IT-ITES SEZs are significantly contributing towards the growth of IT-ITES exports from the country.

The Government extends several incentives for Information Technology Sector. Currently, the ITITES SEZ units are eligible for tax benefits  as  per Section 10AA of the  Income Tax Act for a period  of  15  years  in  a  phased  manner.  Under  the  Software  Technology  Parks  (STP)  scheme, which is administered by the STPI, IT-ITES units are eligible for various benefits such as Customs Duty exemption on imported goods, reimbursement of Central Sales Tax (CST) and Excise Duty exemption on procurement of indigenously manufactured goods. Further, DOC, through Marketing Development Assistance (MDA) and Market Access Initiatives (MAI) Scheme assists exporters especially Small & Medium Enterprises (SMEs) for export promotion activities abroad.

In addition to the above, the Government has also taken steps to set-up an ecosystem for emerging areas of Information Technology. A Centre of Excellence on Internet of Things has been setup at Nasscom, Bengaluru to make India an innovation hub for IoT applications. Electronic Development  Fund(EDF) policy  has  been  approved  to  support  Daughter  Funds  including  Early Stage Angel Funds and Venture Funds in the area of Electronics System Design and Manufacturing, Nano-electronics and IT. The supported Daughter Funds will promote innovation, R&D and product development in above sectors within the country.

******