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The Himachal Pradesh Government has taken the following policy decisions to facilitate the growth of IT in the State:

Setting-up of IT Industry :

General:

  1. Department of Information Technology (DoIT) will act as a single window clearance and will issue one single Application Form, which will be used for setting up of IT unit in the State. No more applications will have to be made to any other Department for the start-up function.
  2. IT Software and IT Services shall be deemed as manufacturing activity for the purpose of incentives for the industry in line with the approved policy of Government of India. Depreciation norms and Loan for capital investments and working capital requirements will be in line with the approved policy of Government of India.
  3. All promotional and liberalized policy instruments available to the IT Software and IT Services shall be made available to the IT enabled Services including the Information Content Industry.
  4. All IT software and service industries including Services and Training Institutions in IT will be entitled to "Industry" status. Such units shall be eligible for all concessions and incentives applicable to Industries. For the purpose of this clause, accredited Training Institutions will also be eligible to claim industry status, subject to certain norms which will enable them to obtain Term Loans and Bank Finance at industry rates.
  5. Interest subsidy scheme available to other industries would be made applicable for both computer hardware and software sectors.
  6. IT Software and Services industry will be treated as industrial consumers and electricity tariff applicable to the industrial consumers will be levied on such industries. Industrial power tariff and all other admissible incentives and concessions applicable to industries in respect of power shall be applicable to the IT industry.
  7. The State Government would encourage flow of investments including FDI and would provide full support wherever required. The State Government will offer customized package of incentives for prestigious investment proposals, e.g., projects where total investments are more than Rs. 10 Crore or a Fortune 500 company is implementing the project. All such proposals shall be received by Department of Information and Communication Technology for approval on case-to-case basis on merit. For Mega Projects, with investment exceeding Rs.100 crore, Government may consider Special Package of Incentives, on a case to case basis, based on the gestation period of projects, pioneer nature of projects, locational aspects, state-of-the-art technology, profitability, scope for further related investments, etc.
  8. HPSEB shall endeavor to ensure uninterrupted supply of power

Taxation Issues relating to trade in IT products by dealers other than IT Industry :

  • Himachal Pradesh Government is in favour of zero sales tax on software. However in keeping with the ruling of a uniform sales tax in all states, the state government shall fix the sales tax on software not above the Uniform Floor Rate. The State Government would however lobby for zero sales tax on all IT products (with other States and Central Government).
  • The Sales Tax on sale and leasing of computers and its accessories shall be fixed not above the Uniform Floor Rate. The State Government would however lobby for zero sales tax on all IT products (with other States and Central Government).
  • The rate of tax on inter-State sales of computers, parts, accessories and computer consumable shall be fixed not above the Uniform Floor Rate. The State Government would however lobby for zero sales tax on all IT products (with other States and Central Government).
  • The sales tax on CD-ROMS, Optical Disc Media or Magnetic Media containing text, data or multimedia shall be fixed not above the Uniform Floor Rate. The State Government would however lobby for zero sales tax on all IT products (with other States and Central Government).

Land and Building related Issues:

  1. As a special dispensation for IT units, the land transfer cases for setting up of such units would be decided on top most priority.
  2. For registered IT units within the declared Software Technology Park, IT habitats and Hi-tech city, relaxation of FAR to the extent of 50% of the prevailing norm will be available. In other areas (not including core/banned/restricted/green areas), FAR relaxation upto the extent of 25% would be considered in individual cases subject to considerations relating to population densities, availability of infrastructure, local geology, etc.
  3. IT Software units will be permitted to be set up in residential areas subject to load restrictions.
  4. Exemption from land and building tax will be given to the land and building within the declared STP, IT habitats and Hi-tech city.

           Financial Issues :

    1. The State Financial Institutions and the Banks, in line with the approved policy of Government of India, shall treat IT Software and IT Services as priority sector.
    2. State Financial Institutions and the banks will be allowed to invest in this industry in the form of equity in line with the approved policy of Government of India.
    3. The State Govt. will facilitate the creation of a Venture Capital fund of Rs. 20 crore in association with the State Co-operative bank, SIDBI and other Financial Institutions to meet the equity requirements of the Small and Medium Enterprises/IT Startups.
    4. The sales tax receipts from the IT industry shall be earmarked for strengthening of IT infrastructure in the State.

    Labour related Issues:

    1. IT Software and IT Services companies, being the constituents of the knowledge industry, would be exempted to the extent possible from routine inspection by the inspectors from different departments in line with the approved policy of Government of India. Moreover, the State Government agrees in principle to self-certification as far as possible for the IT Software Industry under various labour laws.
    2. General permission is accorded to run a three-shift operation to the IT Software and Services industry.

Establishing IT Institutions :

  1. The Government land will be made available at market price and thereshall be adequate safeguards to resume the land in case it is not used for the purpose it is meant for.
  2. The fee structure shall be governed by Union Government Stature/rules/ policy or as specified under Supreme Court guidelines.
  3. The concerned institution shall be required to admit at least 5% candidates on the recommendation of the State Government subject to meeting minimum eligibility conditions.
  4. The Government shall assist the developer in obtaining various clearances so that the projects can be set up with least obstacles.
  5. The centre(s) of excellence/institutions may not opt to be affiliated with Himachal Pradesh Board/Himachal Pradesh University. However, proper accreditation/certification by recognised National or International authority, body or Institution shall be insisted upon so that the alumni passing out from this institution have possibilities of advancement in a competitive environment

.

Creation of State-of-the-Art IT Infrastructure :

  1. Software Technology Park and Earth Station: A modern Software Technology Park (STP) and an Earth Station shall be established in Shimla under the Software Technology Parks of India (STPI) scheme of Ministry of Information Technology. This Park will have modern facilities including high-speed communication facilities, plug and play built up modules etc. The STP would start functioning during the year 2000-01 and would be later co-located with the Hi-Tech city to be built near Shimla. The aim is to achieve an annual target of I.T. Software and Services exports of at least Rs.2000 crore from this STP by the year 2005. The Earth Station will meet the high-speed telecommunication needs of the IT sector and will provide international bandwidth for Internet.
  2. Hi-Tech Habitats: In order to promote the growth of IT all over the State, it is imperative that hi-tech habitats are built in and around all major towns. Such space would be extremely useful to promote the growth of IT enabled services - a sector that has the promise of providing jobs to millions. The State Government shall endeavor to set up hi-tech habitats at Shimla, Solan, Hamirpur, Baddi, Parwanoo, Kullu, Mandi and Dharamshala by 2002. Hi-tech habitats would also be built at more locations (if required) in a phased manner.
  3. The State Government would encourage private sector participation in laying high bandwidth backbone in the State. The State Government would facilitate and promote the establishment of broadband digital network in the State.
  4. Government shall encourage private sector to become ISPs in the districts and set up international gateways in the State. The government shall persuade DOT and VSNL to extend earth stations/ fiber links to the districts on priority basis.
  5. The State Government would encourage Internet Access through cable TV network in line with the approved policy of Government of India. HPSEB would consider for grant of permission to ISPs for putting the cables over HPSEB's transmission line structures on mutually agreed and negotiated terms and conditions.
  6. Policy on Right of Way: The State Government will separately announce its policy on right of way along all the highways/other roads in the State for the telecommunication sector.
  7. Himachal Pradesh government will establish an international convention centre with facilities to host international IT exhibitions, seminars and conferences.
  8. Knowledge Corridors: The state government will facilitate the coming up of two knowledge corridors as follows:
    • Baddi-Parwanoo-Solan-Shimla Knowledge Corridor.
    • Shimla-Hamirpur-Dharamshala-Chamba Knowledge Corridor.

Across these corridors, high density Internet / telecom connectivity will be provided for schools, colleges, industries etc. This will encourage education, employment and investment in the state

E-Governance :

  1. Each Government Department of Himachal Pradesh shall prepare a Five Year IT Plan by March 2001. This plan shall address the extent of computerisation of its core activities, with special reference to its Citizen Interface, need for hardware and software resources, manpower requirement and training of employees.
  2. National Informatics Centre (NIC) has prepared a comprehensive E-Governance proposal for networking the State Secretariat, Offices in the State capital, District Collectorates, District level offices, etc. This proposal would be implemented as a joint venture between the State Government and NIC, Ministry of Information Technology, Government of India.
  3. The entire Secretariat workplace would be connected with a high bandwidth optic fibre. Internet facility would be provided to all the users of the rank of Deputy Secretary and above.
  4. All Districts/Departments would have video conferencing facilities and E-mail facilities with the Chief Minister as well as Chief Secretary's office to allow a quick and efficient channel of communication.
  5. Tele-CM: A special project is being launched through which the Chief Minister would be able to use convergence technology to be able to have mobile video conferencing with any part of the state.
  6. The existing training centres for Government employees, at the State and District headquarters, would be further strengthened for imparting appropriate training in IT.
  7. Knowledge of word processing would be compulsory for the category of steno-typists after 2001. For the employees already in service, suitable training modules would be prepared and training imparted accordingly. The passing of the test in computer proficiency of a specified level would be made mandatory, for some selective cadres to begin with, for confirmation and promotion. In the Annual Confidential Reports (ACRs) of government employees for whom computer knowledge is prescribed as a pre-requisite at the entry stage, a column shall be introduced regarding contribution to ‘IT utilization' in the department/organization.
  8. All major IT projects have adopted English as the medium. However, for administration to be effective and for the benefits of computerisation to reach the common man, it is desirable to adopt Hindi as the medium. The Government will appoint a committee headed by Secretary (IT) to promote the local language initiative.
  9. The creation of data warehouses, having local content, would be encouraged in each District. These centers would provide government information to citizens through information kiosks.
  10. The Government shall endeavor to computerise the process of governance, so that the citizens could file the documents required by the Government, electronically. Priority areas with maximum citizen interface will be taken up for E-Governance. These include:
    • Rural Services such as land records, acquisition of land and registration of deeds
    • Police services such as FIR registration
    • Social services such as family pension, old age pension, etc
    • Registration of licenses, ration cards, birth certificate, Death certificate, Caste/Tribe certificate, Driving license, etc.
    • Public Information/Utility such as employment exchange registration, employment opportunities, examination results, hospitals / beds availability, road transport time tables, Government notifications, Government schemes, etc
    • Agriculture/Horticulture sector- providing the information about Mandi rates in respect of identified commodities in important Mandis.
    • Electronic Filing of tax returns, state excise duty, house tax, property tax, road tax, etc.
  11. Computerization projects of Revenue earning departments and agencies having high level of public contact shall be fully operationalized by the year 2002.
  12. The Tax Departments of the Government would be fully computerized during the next three years. The various offices of the tax departments would be interconnected to allow flow of information. The staff of the tax departments would be trained in the use of information technology to increase tax collections, reduce delays and improve productivity. All assesses would be allowed the facility of filing their returns electronically. All assesses would be allowed the facility of paying their tax through electronic transfer of funds.
  13. All departments shall be encouraged to establish websites. These will be linked under an overall umbrella of State Government website. Departments, where databases are already established shall be asked to upgrade the same to provide dynamic information and use their sites as platforms for Citizen:Government interface.
  14. Electronic Kiosks: The Government would encourage setting up of internet kiosks on the lines of public telephone booths not only to serve the information needs of the citizens but also to provide employment to a large number of educated youth.
  15. In the long run, citizens must have unique identification card - the citizen ID. It would require a statutory enactment as well as amendments in many other laws to integrate the citizen database. Necessary statutory and non-statutory systems shall be established for registration of Himachal Pradesh citizens and issue them a multi-purpose card, on basis of which a citizen can receive a number of services, such as birth and death certificates, caste certificates, driving license, passport, ration card, personal income tax, property registration, electoral roll etc.
  16. Cyberlaws: Himachal Pradesh is committed to ensuring that the overall local regime is in consonance with the requirements of transactions and interactions in the electronic medium. The State Government shall examine all the state level legislations and statutes so as to ensure the necessary harmonization, with the above objective in mind. The overall objective is to provide a transparent, simple and enforceable set of laws, which shall facilitate e-business and all other IT enabled activities.
  17. As recommended in the IT Action Plan of Central Government, the State Government shall establish framework contracts with the leading and reputed IT Services vendors so as to avail a wide range of IT consultancy, specialist services and IT products at lower cost and with a shortened procurement cycle. To minimize the technological obsolescence factor and to avoid the large upfront expenditure and expenses on maintenance, procurement of computer hardware can also be done through leasing.
  18. The Government shall take initiative to establish an Inter-State IT exchange panel. Regular seminars and conferences shall be conducted where interaction with the officers of other States as well as private sector will take place.

Encouraging Computerisation of Local Industries :

  1. A campaign will be launched to encourage E-Commerce and computerisation in the local industries.
  2. The State will encourage conduct of seminars / workshops to disseminate information of IT to local industries and thus work towards increase in usage of IT in local industries.
  3. All procurements / tenders of Government of Himachal Pradesh would also be concurrently done electronically i.e. web-based tendering from 2002 onwards.
  4. State level awards will be given to IT companies with outstanding performance in exports and in domestic segment
  5. Boosting E-commerce in all activities in the State is a must for the Himachal Pradesh. This will facilitate local industries to compete in the global markets. Towards this, the Government will undertake the following initiatives:
  • Net Banking: The State Government would encourage the public sector banks in the State to start Internet based banking. Net-based banking would catalyze increase in use of Internet for e-commerce and also reduce high overhead costs for banks.
  • Encourage E-Commerce, EDI Implementation in Government Departments.
  • Encourage E-Commerce in items/goods in which the State has comparative/distinct advantage e.g. horticulture produce, handicrafts, etc
  • Regional Hub: With an extremely widespread telecommunication system, the State of Himachal Pradesh would endeavor to emerge as a regional gateway for he "North Indian" Internet, E-commerce and digital services traffic.

E-Tourism :

E-Tourism Portal: There are currently many Websites providing information in respect of the tourism sector of the State. However, a comprehensive tourism portal for the State of Himachal Pradesh would be set up with the following elements:

  • Comprehensive information on the tourism industry, hotels, locations, restaurants, adventure sports, places of religious interests etc. The idea is to not only provide basic information but also provide cyber casting, video clips, graphics etc.
  • To provide on-line reservation systems for hotels, air, rail and road transportation.
  • Cyber casting of major events in the State of Himachal Pradesh.
  • Making the portal e-commerce enabled and selling local handicrafts, agriculture/horticulture and industry products through the website.
  • The Portal would also have a revenue model of earning through on-line bookings, advertisement and brokerage from e-commerce transactions.
  1. Comprehensive computerisation of transportation system: In order to make E-tourism policy complete, it is essential to integrate computerisation of air, rail and road transportation system in the State. This is envisaged to be implemented in a phased manner and completed by the year 2002.
  2. Marketing: An aggressive marketing plan would be designed to market the State of Himachal Pradesh through the net.

Tele-Medicine :

  1. HP-Telemedicine NET: A comprehensive telemedicine network would be launched which would also ride over HPSWAN. The objective of the H.P. telemedicine net would be to provide instant medical advice and facilities to the citizens of the State, irrespective of the location. This would cover far-flung and tribal/ backward areas.
  2. A program towards IT connectivity for hospitals, dispensaries, doctors and other professionals engaged in public health State-wide would be launched and completed by 2003. This connectivity would also be extended to connect the HP - Telemedicine Net with national and international hospitals/medical websites.
  3. Government of Himachal Pradesh gives top priority to preventive medicine through public health programs. A State level health network would be developed to provide extensive information to the public on preventive medicine and other health related information.
  4. Tele-monitoring of diseases at State level to achieve higher standards of public health would be undertaken. A suitable program would be launched by 2001.
  5. Training of ‘cyberdocs' (people trained in both public health and networking) would be undertaken and completed in a phased manner.
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