Glimpse of Andhra Pradesh GAME (Gaming, Animation, Media & Entertainment) Policy

Great days are ahead; for AVCGI (Animation, Visual Effects, Comic and Gaming Industry) after a long journey of 15 years, today we have a ray of hope from the Central & State governments of INDIA coming forward to recognize this as a potential industry and framing Policies accordingly to strengthen the Industry.

Andhra Pradesh has set a bench mark in IT, Film making and Technical Crafts (Having the largest Productions houses with a vast number of employed artists pertaining to Animation, Gaming & VFX). Adding to the existing glory recently the AP government has taken a revolutionary step by announcing GAME (Gaming, Animation, Media & Entertainment) Policy – 2013.

As quoted by the honorable IT & C Minister for AP state Mr.Ponnala Lakshmaiah- INDIA is contributing 12% of the global exports in IT but unfortunately we have only occupied 1% of the global market in Animation & Gaming, where we see a tremendous growth opportunity of catering the rest 99% in this sector. We will develop a ‘Media City’ spread in 30 Acres land identified in Raidurgam Hyderabad, by the Government through AP Industrial Infrastructure Corporation (APIIC). The Andhra Pradesh Game City will be constructed in 7,00,000 Sft. with the best and most sophisticated technology and infrastructure. The ultimate objective is to make Hyderabad the “animation capital of the world”. We have framed the GAME Policy to encourage the small and medium creative entrepreneurs.

He also appreciated and Felicitated Saraswathi Balgam, Director of Rhythm & Hues India on winning Oscars for the Film “LIFE OF PI” in the presence of media & industry representatives from Animation, Visual Efects, Comic & Gaming industry of Hyderabad. Also the whole industry of Hyderabad applauded her with a standing ovation.

Adding to this Mr. Sanjay Jaju, IAS – Secretary IT said that we have done an enormous research on various policies followed by Singapore, Korea, Malaysia, Taiwan , Canada, Maryland US, Australia, France, UK & New Mexico and have personally visited Manchester UK, Dubai UAE – Media City and Montreal (Canada) to understand the dynamics of the global Media & Entertainment industry. After sequel discussion with the Hyderabad based Animation, Gaming and VFX companies we have come up with the plan to establish THE MEDIA CITY which will be a world class facility that will provide COMMON FACILITIES SUCH AS Studios, Processing Labs, Transit office facilities, Post-production facilities, Television & Media Wing, Production Wing, Outsourcing Wing. It shall offer space for Production houses, academic institutions, Incubation Centre, where state of the art “walk to work” and “plug and play” built up office space for the first generation technocrat entrepreneurs.

ANDHRA PRADESH GAME POLICY 2013-2018 (Proposed – Draft stage)

Fiscal Incentives

Reimbursement of production cost of an animation film or gaming product, upto a maximum of Rs.15 lakhs per company subject to prescribed guidelines, incurred for two animation or gaming films produced by an Gaming, Animation, Media and Entertainment company, which set up their operations after the issue of this Policy, The allowable production costs are Manpower cost, Materials & Print and Professional Services.
25% subsidy on lease rentals up to Rs.5 lakhs per annum maximum up to a period of three years, built up office space ranging from 1000 sft to 10,000 sft, leased by Animation & Gaming Companies
100% reimbursement of stamp duty, transfer duty and Registration fee paid by Gaming, Animation, Media and Entertainment companies on sale/lease deeds on the first transaction. This incentive is not available in case Government land is allotted.
50% reimbursement of stamp duty, transfer duty and Registration fee paid by Gaming, Animation, Media and Entertainment companies on sale/lease deeds on the 2nd transaction. This incentive is not available in case Government land is allotted
Admissibility of Industrial Power category tariff.
25% power subsidy on power bills for a period of 3 years or Rs.40 lakhs which ever is earlier, from the date of commencement of commercial operations.
Rs.15 Lakhs as recruitment assistance for employing minimum 100 employees within one year of commencement of commercial operations.
Reimbursement of 20% of expenditure incurred for obtaining quality certifications for CMM Level 2 upwards. Reimbursement will be limited to a maximum of Rs.5 lakhs.
25% investment subsidy limited to Rs.25 Lakhs
10% Interest subsidy on term loan and working capital loan subject to a maximum of Rs. 5.00 Lakhs per year for a period of 5 years for units.
50% Exhibition stall rental cost will be reimbursed for participating in the notified national/international exhibitions limited to 9 sq.mts of space.
Reimbursement of Internet Bandwidth charges for a period of three years or Rs. 10 Lakhs whichever is earlier.
100% reimbursement of Input VAT / Sales Tax/ CST/APGST, for a period of 5 years or Rs.10 Lakhs whichever is earlier from the date of commencement of production for products/Films/ Services made in AP.

“The vision of the Andhra Pradesh Government is to develop a futuristic digital city that will serve as an epicentre of research and development as well as production of animation and gaming-related technology in the Indian subcontinent, said the minister at a workshop on animation and gaming organized by the state IT&C Department.

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