The New Information Technology (IT) and Information Technology Enabled Services (ITeS) Policy of Maharashtra State-2023 is out. AVGC being the sunrise sector in Maharashtra having vast potential for wealth creation and employment generation, has received great attention alongside other emerging technologies.
The policy report states that India’s AVGC market share is estimated to grow to $ 1.5 billion, which is less than 1 per cent of the global market.
The policy aims to make Maharashtra, India’s AVGC Hub over the next five years while encouraging global companies, professionals, and students to choose the state. In addition to common incentives, key interventions proposed for the AVGC industry include customised capital assistance, market development assistance, skill development assistance, specialised infrastructure like AVGC park, production studios, digital art centers, exhibition galleries etc. and a dedicated IT/ ITeS promotion fund.
This policy focuses on bridging the demand-supply gap for people in this sector, attracting global companies in the field, capturing a larger share of outsourced international AVGC work, and facilitating the right ecosystem development. The policy envisages to promote indigenous digital content through the setting up of a dedicated task force and Center of Excellence under M-Hub.
The report states that AVGC is essentially an ITeS activity and shall be eligible for the benefits admissible to ITeS.
Fiscal support to AVGC industry
Capital subsidy: Anchor unit status will be given to the first three units with a minimum investment of Rs 50 crores and employing minimum 50 people in each unit. Anchor units will be provided a subsidy equal to 25 per cent of the fixed capital investment subject to a ceiling of Rs 25 Crores, paid over a period of five years.
Capital subsidy of 20 per cent on capital investments such as cost of hardware, equipment etc., subject to a maximum of Rs 25 lakhs paid over a period of three years for new AVGC units directly employing a minimum of 10 people in the unit.
Stamp duty exemption: If an existing AVGC unit makes minimum 25 per cent additional fixed capital investment, on or after commencement of this policy, then such a project will be considered as expansion/diversification project
and will be eligible for stamp duty exemption.
Certification assistance: All AVGC EOU’s will get refund of expenses incurred for compulsory marking like Conformity European (CE), Gaming Lab International (GLI) Certifications, etc. to the extent of 50 per cent expenses subject to maximum of Rs 2 lakhs per unit.
Skill development assistance: Reimbursement of up to 25 per cent of expenditure/fee of online courses and programs for “super specialised job roles” (as per definition 15.10 of the policy), provided by autonomous institutes in offline or online learning format. The benefit will be provided on uploading “certificate of successful completion” on MAHITI portal with a maximum ceiling of Rs 50,000 for domestic certifications and Rs 1 lakh for international certifications, whichever is lower.
Market development assistance: M-hub to host annual events and competitions in collaboration with NASSCOM, Gaming Developers and Associations, Animation Society, Maharashtra State Innovation Society, among others.
Financial support of Rs 20 Lakh for each event and competition every year
1) FICCI FRAMES & Best Animated Frames Awards-Mumbai,
2) NASSCOM – Game Developers Conference-Pune,
3) The Animation Society of India- Anifest, Mumbai,
4) ASIFA- World Animation Day – 28th Oct every year – all India
5) MCCIA- Digital Content Conference, Pune
6) NTLF – NASSCOM Technology Leadership Forum
- The category of events/competitions may subject to change as per the discretion of the M-Hub.
- The number of events and competitions are limited to one event and one competition each year.
- Mobile game developer registered in Maharashtra with more than five million downloads (iOS + Play store) and 4+ rating on mobile platforms to receive a Gaming Award and reimbursement of 20 per cent of the qualified expenditure on marketing with a ceiling of Rs 10 Lakhs per sanction per company.
Recruitment assistant: Recruitment assistance of Rs 2.5 lakh for employing 50 local students in Business Incubation Laboratory/R&D Centre for IT & ITeS operation within two years.
Infrastructure development (parks/co-working spaces/ CoEs etc.): Establishment of Maha Center for AVGC under the M-Hub including AVGC Centers-An integrated facility including production facilities, AVGC studios and space for performing arts, exhibition galleries and workplace requirement for the artist.
Non-Fiscal Support to AVGC Industry
Global joint ventures: State government will encourage joint ventures between Indian and foreign entities by signing at least 10 MoUs during the policy period.
International promotion: Support will be provided for international events related to AVGC in Maharashtra in terms of promotion
Intellectual Property (IP): IP will be protected through legal framework. The facilitation services will be provided for patents, designs, copyrights, and trademarks, as per the guidelines of National Intellectual Rights Policy, and Startup Intellectual Property Protection Scheme (SIPP), Government of India.
Read the full report here:
Mumbai is the entertainment capital of India and along with Pune, houses some of the largest global VFX studios, globally. These incentives and aids will usher in a new era for the AVGC sector in the country.