Why in news?

The Tamil Nadu government announced a revised Information Communication Technology Policy 2018 after a decade.

What are the objectives of the Policy?

• The last IT policy was rolled out during the DMK’s rule in 2008.
• It will cater to information technology (IT) and information technology-enabled services (ITeS).
• The policy focuses on three main areas:

1. Incentivizing investment, employment and intellectual capital creation
2. Integrate it with initiatives of Vision 2023, Tamil Nadu’s New Industrial Policy.
3. More attention to start-ups and micro, small and medium enterprises (MSMEs)

What are the features of the policy?

• The Chairman and Managing Director of Electronics Corporation of Tamil Nadu Limited (ELCOT) will be responsible for the implementation of the policy at the field level.
• Periodically reports will be sent to the government.
• Mega projects involving investments ranging from Rs.200 crore to Rs.500 crore and above will be eligible for a structured package of incentives on a case-to-case basis.
• IT/ITeS firms present in Tamil Nadu for over 10 years will be given benefits if they intend to expand their operations in the State.
• Companies which are ready to invest in tier II and tier III cities such as Coimbatore, Madurai, Trichy, Salem, Tirunelveli and Hosur, as well as in rural locations, will be given more perks.
• The Perks would include capital subsidy and electricity tax exemption on power purchased from the Tamil Nadu Generation and Distribution Corporation Limited (Tangedco).
• The policy mentioned that approvals had been given to establish a start-up warehouse in Coimbatore, similar to the one in Chennai.

What are the new ingredients of the policy?

• The policy would encourage new verticals including animation, gaming and digital entertainment
• Emphasis would be placed on areas like social, mobile, analytics and cloud (SMAC), massive open online course content (MOOC) and business intelligence software and analytics to strengthen the IT/ITeS sectors

What does the policy offer the IT professionals?

• The policy would emphasis more on skill development.
• The policy also states that the government will evolve appropriate mechanisms for ensuring the job security of IT professionals.
• The interventions will include

1. encouraging movement away from services to product-based industries
2. reskilling of middle-level employees
3. creating ecosystems for start-ups and angel investments

Source: The Hindu