Thiruvananthapuram —Kerala’s upcoming IT policy for 2023 aims to encourage private land developers and investors to prioritize the hiring of local candidates. The draft policy suggests that investors providing 50% of jobs to individuals from Kerala will be eligible for special incentives based on their investment levels.
According to the draft, these incentives will be determined by the investment range, starting from Rs 100 crore and going beyond Rs 1,000 crore. The minimum direct employment generation required to qualify for these incentives ranges from 1,000 to 5,000 jobs.
The government plans to offer capital subsidies based on the investment ranges and locations for new or expanded IT/ITeS/BPO units across Kerala. These subsidies, which will be back-ended, will be contingent on investments in Eligible Fixed Assets (EFA).
Rathan U Kelkar, the secretary of Kerala’s Electronics and Information Technology department, mentioned that the draft policy is currently open for discussion and is expected to be finalized within a month after considering inputs from various stakeholders.
In addition to job-related incentives, the draft policy outlines various measures to support large-scale co-developers in establishing facilities within IT parks. This includes phased payment options for leasing government-owned land, such as a 99-year land lease, making land available without encumbrances, and flexible payment terms.
Other proposed incentives encompass SGST reimbursement, power tariff extensions, stamp duty exemptions, waiver of registration charges, and benefits for units employing women, differently-abled individuals, and the third gender. The draft policy also suggests reductions in land conversion charges, quality certification incentives, and special subsidies for green campus initiatives and 5G street infrastructure development.
The policy’s goal is ambitious, aiming to capture 10% of the country’s IT market share in the next five years, creating a minimum of 500,000 new jobs in the IT and allied sectors within Kerala. It also seeks to boost the number of startups operating in the state to 20,000.
For IT/ITES organizations with 25 employees or more operating from a leased built-up space in a government-owned IT park, the policy proposes salary reimbursement as a rent discount for one year if they provide permanent employment to transgender persons on the campus.
Similar financial aid is applicable for neurodivergent individuals and differently-abled people. Organizations employing more than one category of people can compound the financial aid provided for each category.
The state government envisions setting up small-format co-working spaces in neighboring towns and supporting startups and small-scale entrepreneurs through its Fostering Technologies in Rural Area (FOSTeRA) scheme. These initiatives aim to promote inclusivity, diversity, and economic growth within the IT sector in Kerala.
