Karnataka's thriving IT industry is mostly concentrated in and around Bangalore. The Information Technology in Karnataka state has become one of the main pillars of economy. Majority of IT activity in Karnataka is concentrated in Bangalore. Lately, other parts of Karnataka have also seen a growth in IT related activity. Some recent developments regarding the industry in Karnataka are described below.
In 1992 Bangalore was the first city in India where a satellite earth station was set up for high speed communication services to facilitate software exports.
Subsequently, in 1999 STPI established earth stations in Mysore and Manipal.
The state made a giant forward leap in the Information Technology sector when Union Minister for IT Mr. Pramod Mahajan inaugurated the country's first 'extended facility' of the international gateway and network operations center at the Software Technology Parks of India (STPI) in the Electronics City.
In August 2000, a Cyber Park - Technology Incubation Centre, another first of its kind, was set up in Bangalore to promote the growth of the IT sector.
On 19th September 2002, a software technology park, IT Park Hubli, was inaugurated at Hubli by Mr. Pramod Mahajan, Union Minister for Information Technology.
Information Technology Policy in Karnataka State Government gives a thrust to the Information Technology sector and encourages units to setup their operations in the state of Karnataka. Under this policy, several infrastructural facilities are proposed in Mysore, Hubli, Manipal and Mangalore apart from Bangalore to help the development of the IT industry. The facilities include providing training to engineers and others as well as providing employment opportunities.
The setting up of IT industries under this policy will help earn valuable foreign exchange through software exports. It also will help in increasing the tax base of the state.
Bangalore is the silicon valley of India. In fact majority of the IT related activities in the state are surrounded around Bangalore. The foundation for good IT industry in Karnataka was the result of education system of the government. It has a number of engineering institutes along with research centers like IISC and so on. The presence of telecom industry also helped in laying the foundation of this sector.
Karnataka government has supported in development of the IT sector. Software Technology Park in 1991 at Bangalore. It has 6 New Private Technology Parks with Built up area of 6 Million Sq. ft. State to start Indian Institute of Information Technology. A specialized Electronic City at Bangalore & Mysore. Software Technology Parks at Mysore, Hubli & Mangalore with High Speed Data Communications Facilities. Best Telecom Infrastructure in the Country. There is a proposal for establishing a Bangalore Mysore I.T. corider.
This has resulted in the increase in the number of companies, thus an increase in the revinue. The state earned 7,475 Crores as revinue in the year 2000-01 through sales. The state attracts on an avrage of 3 to 4 foreign equity companies every fortnight.
Many companies prefer Karnataka to start business opperations. Many MNC's like HP, IBM, Intel, AMD, Cisco, Kyocera, Oracle etc
This has made Karnataka a first choice for IT investments...
Software Technology Park of Karnataka, a registered society will implement the IT development policy across the state of Karnataka. STPs have been set up in Mysore, and Manipal, while Hubli and Mangalore have been identified for future development.
Companies registered under the Software Technology Park (STP) scheme obtain several benefits including those mentioned below:
IT Infrastructure Telecommunication Infrastructure in Karnataka
Single window government clearance
100% foreign equity permitted;
Complete duty free import;
Corporate income tax exempted up to 90%;
Dedicated data communication links
Custom bonding and export certification provided at single point.
An extensive transmission infrastructure of optic fiber cable and digital microwave routes has been planned through out Karnataka with the involvement of three major organisations.
Department of Telecommunications (DOT)
The Department of Telecommunications through Karnataka Telecom Circle connects 1200 locations in Karnataka including towns and cities with stable media.
Videsh Sanchar Nigam Limited (VSNL)
VSNL has put India on the information highway of the world by offering more than 370 Mbps international Internet connectivity. Find out more about VSNL’s activities.
STPI is a society under the Ministry of Information Technology, Government of India. It was set up in 1991 to promote the software exports industry in India. STPI has the license to provide international high speed data communication services to the IT community and is a category ‘A’ Internet Service Provider (ISP) in the country. Learn more about the communication facilities at STPIand other details
Benefits to Investors
The Karnataka Government offers special assistance, incentives and concessions for the Information Technology industries which have investments in fixed assets upto Rs. 100 Crores. The explosive growth of IT in Karnataka has been helped in no small measure by the progressive policies of the Government. Some of the benefits that the Government offers investors in the Information Technology sector in Karnataka are listed below.
Entry Tax Exemption
Information Technology industries will be exempt from payment of Entry Tax on computer hardware, computer peripherals and other capital goods including captive power generation sets, during implementation stage which can be extended upto 5 years from the date of commencement of implementations.
Power Tariff Concessions
•Software industries will be treated as industrial (and not commercial) consumers and electricity tariff applicable to the industrial consumers will be levied on such industries.
•Software industrieswhich need electrical power upto 5 KVA, will be permitted to be established without any local restrictions and will be made eligible for all incentives and concessions.
•As continuous uninterrupted and quality power supply is one of the prime requirements of sustenance and growth of Information Technology industries, these industries will be given priority in the sanctioning and servicing of power. The IT industries will also be exempt from power-cuts without any time limit.
•Captive power generation sets installed by the Information Technology industry will be eligible for the following incentives:
•Total exemption from payment of electricity tax without any time limit.
Quick Clearances from Pollution Control Board
Karnataka State Pollution Control Board has simplified the procedure for seeking clearances under the Air Act and the Water Act for the software companies that use captive DG Sets.
Concessions on Company Registration Charges
IT companies taking up expansion, diversification, and modernisation get concessions on registration charges.