Eleven industrial parks within the city's Outer Ring Road (ORR) will soon be turned into spaces for information technology (IT).

The Government of Telangana, which had previously announced the GRID (growth in dispersion) initiative, has now provided comprehensive guidance on zones, incentives and government support to expand the IT sector to all parts of the city.

Proposed IT Clusters in Hyderabad

The industrial parks at Balanagar, Kukatpally, Moula Ali, Mallapur, Patancheru, Katedan and Sanatnagar will house IT towers, as the state government wants to move all industrial units located within ORR limits to outside the district. Furthermore, as part of dispersing IT growth in the city, an IT tower will be constructed in the northern part of the city at Kompally and an IT park in the north-western part of the city at either Kollur or Osmannagar.

The IT department has confirmed that the conversion of industrial parks into IT parks would take place in several stages. In the first level, IT parks will be built with parks chosen from the east, north and south as part of promoting IT around the city.

The areas were also chosen on the basis of several representations that came to the IT department to create IT parks around the city, particularly in the north (Kompally), east (Uppal/Pocharam/Nacharam), and south (Shamshabad and Airport area).

Proposed Government Orders (GO)

On Thursday IT, electronics and communications department released a GO for provision of various incentives including unit, anchor, developer, infrastructure creation, institutional initiatives, branding and promotional activities.

As per GO, in the industrial parks, IT and ITeS units will be eligible for GRID advantages, such as an additional power subsidy of 2 per unit on a reimbursement basis for the industrial power tariff for a period of five years, with an overall unit incentive not exceeding 5 lakh per year. After the end of each year, the power subsidy incentive amount will be given on a reimbursement basis. For a period of five years with the total subsidy for the unit not exceeding 10 lakh per year, they also get a lease rental subsidy of 30 percent.

The developer has to use at least 50 percent of the total built-up area for IT purposes and the developer can use up to 50 percent for non-IT use on land transfer concessions for industrial land under TSIIC or industrial area local authorities that are converted to IT or ITeS service.

For any reason, including commercial or residential purposes, the non-IT built-up area can be used. For the complete extent of the land, a conversion fee equal to 30 per cent of the basic registration value in the industrial development area will be paid. There is a NALA (non-agriculture land) conversion fee associated with land, but NALA charges are not applicable in the case of TSIIC and IALA land parcels.

By: Shailaja K