Unmatched connectivity at economic rates, excellent human resource pool and a relaxed environment has made Kerala a dream destination for IT entrepreneurs to set up shop.
Opportunities in IT sector
Kerala is poised for a boom in the IT industry sector and it has become a favourite IT destination. The State is home to more than 500 IT companies of varying size that employ close to 50,000 people and have clients across the globe. The significant growth in the sector is reflected in the fact that the total turnover of the companies operating in Technopark, Thiruvananthapuram has crossed Rs. 2000 crore in 2012-2013.
Kerala has about 200 engineering colleges which produce more than 35, 000 engineering graduates a year. Kerala pioneered the concept of dedicated infrastructure with the setting up of Technopark, Thiruvananthapuram. The Centre has notified Technopark Phase-3 and Technopark, Kollam as special economic zones besides the existing Technopark Phase I and II SEZs. Between them, they host as many as 400 companies.
Infopark at Koratty has come into being and internationally well-known companies have moved in there attracted by the easiest bandwidth accessibility and other State-of-the-art facilities developed in the zone. Another four projects have been accorded SEZ status for IT industry.
Technocity at Thiruvananthapuram, Infopark at Kochi and electronic hub at Kochi are also on the anvil. All put together, there about 2000 acres of land under development at various stages, dedicated to host IT and ITES units across the State.
Incentives and concessions
Fixed Capital Investment subsidy subject to a limit of Rs. 15 lakhs for companies located in Thiruvananthapuram and Ernakulam districts. For companies located outside the districts of Thiruvananthapuram and Ernakulam, the applicable Standard Investment Subsidy will be 40% of Fixed Capital Investment, subject to a limit of Rs. 25 lakh.
Grant will be made available for proposals for research & development in the area of IT as well as applications of electronics in various sectors. The total grant for a single proposal is limited to Rs. 5 lakh.
An entrepreneur will have to get the following clearances before setting up a unit manufacturing electronics hardware, such as Pollution control, Fire and safety, Building permit and Professional tax registration.