Preferential allotment of land for IT industry :

The State Government shall give preferential treatment for allotment of land to the IT industries on an ongoing basis in all industrial areas developed by State agencies.

Continuous – uninterrupted power supply for IT industry :

The State Government shall endeavour to provide continuous and uninterrupted power supply for IT industries and shall exempt them from scheduled power cuts. Encouragement to captive power generation in IT Parks/IT locations shall be given.

Facilities on Generator Sets:

Captive power generation sets installed by the Information Technology Industry will be eligible for total exemption from payment of electricity duty without any time limit.

Liberal change of existing industry to IT :

The State Government shall permit setting up of IT Software units/ IT Parks in urban areas and change of existing industry to IT/IT Parks.

Change of land use :

No charges for change of land use [CLU] shall be levied for the IT industry/IT Parks for 3 years i.e., up to 31.03.2003.Permission for sale/ leasing/subleasing in constructed buildings and open spaces shall be permitted for optimum utilisation of infrastructure. Licences for setting up STPs shall be given liberally on easy payment terms.

Floor Area Regulation (FAR) :

Relaxation in FAR shall be permitted up to 100% for IT units and in all IT Parks.

Clearances and Support :

Escort services and Single Desk Clearance for obtaining easy clearances and approval of various Government Departments shall be facilitated for the IT industries. On-line Clearance & Support Network (OCSN) will be established linking all the related Departments/organizations. The Secretariat for IT shall coordinate approvals and facilitation.

Registration and Stamp Duty :

Rebate on registration and transfer of property charges and exemption from stamp duty on a tapering scale shall be given for sale/ lease of built-up space to the IT Industry establishing facilities in private STPs/Government STPs/IT Parks as under:

i. For facilities established and sold/leased before 1.6.2001, 90% rebate

ii. For facilities established and sold/leased before 1.6.2002, 75% rebate

iii. For facilities established and sold/leased before 1.6.2003, 60% rebate

iv. For facilities established and sold/leased before 1.6.2004, 45% rebate

The rebate would be applicable on the combined levy of registration fee, stamp duty and transfer of property duty and no total exemption of stamp duty would be extended. This concession would be available only for the first transaction, when the first sale by the infrastructure company is made to an IT industry.

Sales Tax Concession:

Sales Tax Concession to new units and for expansion/diversification will remain same as already provided for in the Industrial Policy, 1999 as given a Annexure- 3

Applicable rate of Sales Tax :

IT Software Industry will be totally exempted from payment of sales tax. The applicable rate of sales tax on computers and computer peripherals shall be reduced to 0.25%.

* Definitions : Definitions of IT Industry, Software, Computers and Computer peripherals for the purpose of sales tax concession and applicable rate of sales tax as mentioned above are given at Annexure-2

IT as priority sector for lending:

IT Software and IT Services shall be considered as a priority sector by of the State Level Financial Institutions for lending assistance.

Exemption from Pollution Control :

IT Software industry shall be exempted from the purview of NOC and consent regime of the Haryana State Pollution Control Board, except in respect of power generation sets of more than 10 KVA Capacity.

Self-certification/exemption from various Acts :

Self-certification/exemption for the IT Software Industry shall be permitted as far as possible regarding requirement of the Factories Act, Employment Exchange (Notification of Vacancies Act), Payment of Wages Act, Minimum Wages Act, Contract Labour (Regulation and Abolition) Act , Workmen Compensation Act , Haryana Shops and Establishments Act ; and Employees State Insurance Act.

Awards of excellence :

The State will declare awards of excellence for outstanding performance in exports/domestic segment/employment generation.

Strengthening telecom and communication infrastructure :

The State shall pursue with DOT for establishing reliable, adequate and efficient telecom and communication infrastructure including Internet nodes in all districts of Haryana.

Special Incentives for Mega Projects :

Customized package of special incentives will be permitted for prestigious projects having an investment of Rs. 30 crores and above. A High Powered Committee under the chairmanship of Chief Minister will be constituted to decide the package in individual cases.

ANNEXURE – 2

Categories of Industries included in the scope / definition of Information Technology Industry

A) Computing devices including:
Desktop
Personal Computer
Servers
Work-station
Nodes
Terminals
Network P.C.
Home P.C.
Lap-top Computers
Note Book Computers
Palm top Computer / PDA

B) Network Controller Cards / Memories including:

Network Interface Card (NIC)
Adaptor – Ethernet / PCI / EISA / Combo / PCMICA
SIMMs – Memory
DIMMs – Memory
Central Processing Unit (CPU)
Controller – SCSI / Array
Processors – Processor / Processor Power Module / Upgrade

C) Storage Units including:

Hard Disk Drives / Hard Drives
RAID Devices & their Controllers
Floppy Disk Drives
C.D. ROM Drives
Tape Drives – DLT Drives / DAT
Optical Disk Drives
Other Digital Storage Devices

D) Others

Key Board
Monitor
Mouse
Multi-media Kits

E) Printers and Output Devices including:

Dot matrix
Laserket
Inkjet
Deskjet
LED Printers
Line Printers
Plotters
Pass-book Printers

F) Networking products including:

Hubs
Routers
Switches
Concentrators
Trans-receivers

G) Software including:

Application Software
Operating system
Middleware / Firmware

H) Power supplies to Computer Systems including:

Switch mode power supplies
Uninterrupted Power supplies

I) Networking / Cabling & related accessories (related to IT Industry)

Fibre Cable
Copper Cable
Cables
Connectors, Terminal Blocks
Jack panels, patch cord
Mounting cord / wiring blocks
Surface mount boxes

J) Consumables including:

C.D. ROM / Compact Disk
Floppy Disk
Tapes DAT / DLT
Ribbons
Toners
Inkjet Cartridges
Inks for Output devices

K) Electronic Components:

Printed Circuit Board / populated PCB
Printed Circuit Board / PCB
Transistors
Integrated Circuits / ICs
Diodes / Thyristor / LED
Resistors
Capacitors
Switches / (On / Off, Push button, Rocker, etc.)
Plugs / sockets / relays
Magnetic heads, Print heads
Connectors
Microphones / Speakers
Fuses

L) Telecommunication Equipment including:

Telephones
Videophones
Fascimile machines / Fax cards
Tele-Printers / Telex machine
PABX / EPABX / RAX / MAX – Telephone Exchange
Multiplexers / Muxes
Modems
Telephone answering machines
Telecommunication Switching Apparatus
Antena & Mast
Wireless datacom equipment
Receiving equipments like Pagers, Mobile / Cellular Phones, etc.
VSATs
Video Conferencing Equipments
Including Set Top Boxes for both Video and Digital Signalling.

M) IT Enabled Services:

IT Enabled Services are business processes and services, the end products/services of which are: -

• Delivered outside India.
• Delivered over communication networks, and
• Either externally contracted (out-sourced) or provided by a remote subsidiary of the same company (out-located).

Note:

Services which would not be included are: -

1. Remote production/manufacturing units
2. The Corporate offices of companies or their local branches
3. Virtual business on Internet.

 

Following services which meet the above criteria would be included: -

1. Back-Office Operations
2. Call Centres
3. Content Development or Animation
4. Data Processing
5. Engineering and Design
6. Geographic Information System Services
7. Human Resource Services
8. Insurance Claim Processing
9. Legal Database
10. Medical Transcription
11. Payroll
12. Remote Maintenance
13. Revenue Accounting
14. Supports Centres and
15. Web-site Services.

ANNEXURE-3

Sales Tax Concessions

The benefit of sales tax concessions would be available to new units on graded scale or on fixed slab scale at the option of the eligible unit. For the purpose of granting sales tax concession incentive, the State shall be divided in 3 categories:

Category 'A' Areas within the municipal limits of Gurgaon Town, Gurgaon Block of Gurgaon district (except Manesar), the municipal limits of Faridabad Municipal Complex, Faridabad and Ballabgarh Blocks of Faridabad district.

Category 'B' Controlled areas of Kundli, Bahadurgarh and Panipat towns, IMT Manesar and Panchkula urban estate.

Category 'C' Rest of the State except those mentioned above.

The maximum limit of sales tax concession to new units in SSI units and L&M units and the maximum period of exemption for which the benefit would be available is as under: -

Note 1: The benefit of sales tax concession will not be admissible to units falling in the negative list
. (Annexure II)

Note 2: All new industrial units in category 'B' and 'C' after availing the benefit of sales tax exemption shall continue their production atleast for the next five years not below the level of average production in preceding five years.

Note 3: New industrial units falling in category 'B' and category 'C' can opt for the scale of concession on fixed slab scale as applicable to units in category 'A'. In case of this option the condition in Note 2 above shall not apply.

Note 4: The eligible units will be allowed to collect applicable sales tax and retain the permissible benefit as State subsidy.

Note 5: The investment in land and building shall not exceed the investment made in plant and machinery for the purpose of calculating fixed capital investment.

Note 6: The maximum extent of concession to agro based units shall be 250% of fixed capital investment and for information technology / software / electronics will be 300% of fixed capital investment.

Note 7: The existing industrial units availing sales tax exemption / deferment under previous policies would have the option to availtax incentives as per this policy for the balance entitlement/period.

Sales Tax Concessions on Expansion/Diversification

Industrial units under going expansion/diversification would be given the benefit of sales tax exemption as per the above scale only on the investment in plant & machinery. The benefit will be restricted to the 50% fixed slab scale and will be given for five years.