IT Activities In Tripura


Tripura IT Policy-2017

“Development of infrastructure and human capital for one-stop-service delivery in a simplified and convenient manner for the benefit of citizen and catalyzing IT based employment generation by positive interventions”


To foster excellence in e-governance by positioning ICT as a solution provider through:

a.    Improvements in government structures and processes.

b.    Promoting citizen-centric simplified governance services

c.    Innovations in end to end e-Governance workflow services.

d.    Documentation and dissemination of goode-Governance practices.

e.    Positioning the State as an attractive location for Investment at IT/ITeS

f.     Positioning the State as an attractive location for Investment at IT/ITeS Segment

There are four strategic thrust areas supported by various e Governanceactivities. The four areas include Digital Transformation of Government Services, Development of Digital Infrastructure, IT Education and Promotion of IT Industry. The vision and mission statements clearly articulatefour major key themes for the State. The directions are:

1. Digital Transformation of Government Service:

The Government of Tripura is focusing with the vision of providing all Government Services in an integrated manner at the doorstep of the citizen, at an affordable cost. One of the models for delivery of “Web-enabled services Anytime, anywhere access” to information and services in rural area under the project Common Services Centers (CSCs).

1.1 To engage and map all the government organizations for digitizationwith end to end online citizen centric services through a common workflow environment.

1.2 To establish the process for the secured and structured digital repository for all the departments at the SDC.

1.3 To go for Paper Less Office through e-Office, e-File, in all the Government organizations. Digital signatures / eSignature will be provided to all the officials for this purpose.

1.4 To integrate e-Payment service to all the government organization through a common platform.

1.5 The State Government plans to adopt e-Auction facility in all the government organization.

1.6 The State Government plans to adopt e-Procurement facility to all the Government organizations.

1.7 Government will encourage use of digital lockers, digital certificates and will identify existing certifying authorities and service providers and strive to keep the prices affordable for common use.

1.8 The State Government shall ensure at least one CSC is being functional at every Gram Panchayat (GP) Level to facilitate citizen centric services

1.9 The State Government targets to adopt the Mobile Governance in various Government organizations.

1.10 The State Government targets to promote the GPR activities (Government Process Reengineering)at State level so that the IT/ITeS framework layer can be more efficient by eliminating unwanted checkpoints and activities.

1.11 The State Government targets to adopt the Aadhaar-based Direct Benefit Transfer of various schemes in all the 8 districts

1.12 The State Government targets to adopt and integrate the public grievance and redressal module (PGRM), also known as Helpline, an e-governance interventionset up as the single window clearance and grievance redressal system for timely resolution of grievances at higher authority and regulatory level.

2. Development of digital Infrastructure:

Creation of a connectivity backbone is the foundation on which the building blocks of e-Governance initiatives will be placed within the state. A State-Wide Area Network (SWAN) is already in place for connectivity across the state with 71numbers of POPs across the state.
2.1 State targets to provide the high-speed internet broadband connectivity to all the government organizations.
2.2 State targets to achieve high speed internet broadband connectivity till Gram Panchayat (GPs) level.
2.3 State targets to provide the Infrastructure as a Service (IaaS) to all the government organization in the state through the state’s private cloud infrastructure.It will enable automatic scale-up and scale-down of services hosted in the cloud to ease Infrastructure Management, Application Management, consolidate resources, agnostic to the underlying hardware, storage, network, operating system, hypervisor and interoperable across multiple enclosures.

3. Capacity Building, Training and Skill Development:

Government of Tripura shall focus upon creating an IT driven and knowledge based society in the state through building core competencies in human resource development and government departments with substantial IT knowledge. This mechanism shall nurture the necessary skills in IT space to open up new horizons of opportunity and improve standard of life for all citizens of Tripura.

3.1 Government of Tripura will promote IT Education in the Schools and Colleges. Computer education shall be provided to the High Schools, Higher Secondary Schools and Colleges
3.2 Government of Tripura shall encourage existing skill development institutions like Agartala NIT, Polytechnic and ITI’s to collaborate with reputed institutions for capacity building and skill development.
3.3 Govt. of Tripura shall focus on Capacity building in ICT using state of the art eLearning by inviting the top publications in Tripura for developing online content in local as well as English language.
3.4 The State Government targets to provide online skill assessment and online recruitment platform by the year.

3.5 Government of Tripura shall develop a database of IT experts and trendsetters in Tripura and forecast IT manpower demand.

3.6 Adequate training of government officials shall create a competitive advantage in integrating the various departments knowledge bureau at common platform to leverage agile and modular approach of e-Governance

3.7 In Skill Development, IT awareness programmes shall be launched to cover all the sections of the society especially rural areas with the help of Panchayati Raj institutions and District administration.

3.8 Innovative tools like touch screens, Interactive Voice Response Systems (IVRS), etc. shall be used for training programmes, government-citizen interfaces

3.9 IT vocational training shall be given for unemployed youths for meeting the market demands.

4. Positioning Tripura as an attractive location for investment in IT/ITeS Segment

To develop an enabling ecosystem for IT/ITeSIndustry within the state, the government is focusingon creation of necessary IT infrastructure, development of human resources, and effective implementation of IT/ITeSpoliciesto enhance the quality of life of citizens of Tripura state.

4.1 To position Tripura state as an attractive investment hub for IT/ITES industry development by providing Industry friendly environment, proactive industry development approach, supporting ICT infrastructure and facilities, providing pool of skilled manpower at affordable cost, by setting up the single window clearance and grievance redressal system for timely resolution of the issues.

4.2 Incentivize theIT/ITeSpromotional schemes for promoting STPI within the state. This will create IT/ITeS investor friendly environment within the state and also will encourage the employment of the local talents within the state.

4.3 To setup the Rural BPO for the generation of employment in rural and semi urban areas by leveraging the strengthened CSCs across the state.

4.4 A Software Technology Park (STP) cum IT Complex was constructed at Indranagar, Agartala with minimum floor area of approximately 8295 square meters. This STP Park entails most of the cutting edge technological IT Infrastructure like Optic fiber connectivity, Broadband connectivity, Wi-Fi access, Video Conferencing and various other incubation facilities.

4.5 The STP Park area shall be dedicated for IT activities by IT and ITeS companies to have 24x7 operations (to run in three shifts) and employment of women in all three shifts. STP Park shall be operated on independent reliable feeders to receive uninterrupted power supply from Tripura State Electricity Corporation.

4.6 Also, this IT Complex shall house the Tier III State Data Center (TSDC) based on Government of India guidelines and TIA-942 standards, Agartala City Area Network (ACAN), Offices of IT Directorate and Tripura State Computerization Agency (TSCA) etc.

5. Proposed Promotional Schemes for IT and ITeS Industries(IT/ITeS Incentive Scheme 2017)

The Government of Tripura recognizes the potential of the IT and ITeS industry to transform the economy of the State. The Government also realizes the need to accelerate the growth of this industry by offering an incentive package that is simple to participate in, and that which rewards excellence in operations, marketing, human resources development, and process quality.For promotion of IT/ITeS Industrial Investment, Govt of Tripura has decided to introduce IT/ITeS Incentive Scheme 2017, which is detailed bellow.

IT/ITeS Incentive Scheme 2017

5.1 Commencement and Duration

Unless specifically mentioned against the respective items of incentives sanctioned under IT/ITeS Incentive Scheme 2017, it shall come into effect from the first day of April, 2017 in the whole of Tripura and shall remain in force for a period of five years ending on the thirty-first day of March, 2022. Provided that wherever an incentive is being allowed to an enterprise for a specified period reckoned from the date of commencement of commercial production of the enterprise or any other prescribed date, such benefit will continue to be available till the expiry of the specified period for that particular enterprise, even beyond the thirty-first day of March, 2022.

5.2 Definitions In IT/ITeS Incentive Scheme 2017, unless the context otherwise requires:

1.    "IT" means Information Technology.

2.    "ITeS" means Information Technology Enabled Services.

3.    "ESDM" means Electronic System Design and Manufacturing.

4.    Documentation and dissemination of goode-Governance practices.

5.  "BPO" means Business Process Outsourcing.

6.    "STP" means Software Technology Park.

7.    "ISO" means International Organisation for Standardisation.

8.   "CCMi" means Capability Maturity Model Integration.

9.   "BIS" means Bureau of Indian Standard.

10. "STQC" means Standardisation, Testing and Quality Certification.

11. ""EPF" means Employees Provident Fund.

12. "ESI" means Employees State Insurance.

13. "MSME" means Micro Small and Medium Enterprise.

14. "ESI"means Employees State Insurance.

5.3 Applicability of the IT/ITeS Scheme 2017:

5.3.1 The IT/ITeSScheme2017 shall be applicable to all micro, small, medium and large IT/ITeSenterprises which commence their commercial production in the State, on or after the first day of April 2017, but before or on thirty-first day of March 2022, in the private sector, co-operative sector, self-help-groups, joint sector and also companies owned or managed by the State Government.

5.3.2 Wherever an incentive under IT/ITeSScheme2017 is being allowed to an enterprise over a period of 5 years reckoned from an appropriate date, such benefit will continue to be available till the expiry of such period for that particular incentive for that particular enterprise, even beyond the thirty-first day of March, 2022. Provided that if a newly set up enterprise is sold or otherwise transferred to a new owner during the period of five years, the benefit of the incentive, shall be available to such transferee or the new owner, only for the un-expired portion of the said period of five years.

5.4 Non-applicability of the IT/ITeS Incentive Scheme2017:

Unless specifically mentioned otherwise, the IT/ITeS Scheme 2017 shall not be applicable to the enterprises that have commenced commercial production, prior to the first day of April 2017. Such enterprises shall continue to be governed by the Tripura Industrial Investment Promotion Incentive Scheme, 2012.

Eligibility for Incentives under the IT/ITeS Incentive Scheme 2017 5.5.1 Any industrial enterprise to which the IT/ITeS Incentive Scheme 2017 applies shall be considered for grant of incentives as per the IT/ITeS Incentive Scheme 2017 only on securing an “Incentives Eligibility Certificate” in such format and from the competent authority to be notified by the State Government. The Incentives Eligibility Certificate shall not be issued unless:

a) The project is covered by necessary industrial approval already received in the form of industrial license or letter of intent or IEM or registration certificate, as the case may be, under the Industries (Development and Regulation) Act, 1951; or a Secretariat for Industrial Approval (SIA) reference number or an Acknowledgement of Entrepreneur’s Memorandum (Part-II) issued by the Directorate of Industries & Commerce of the State Government;

b) In respect of enterprises/ industries identified as compulsorily licensable or on any other restricted list as may be notified by the Central Government or the State Government from time to time, the required clearance/ licence from the notified authorities has been obtained by the enterprise.

c) The unit has gone into commercial production.

5.5.2 The enterprises issued Incentives Eligibility Certificate shall be liable to submit such documents as may be required by the designated authority to enable consideration of the claims for incentives under IT/ITeS Incentive Scheme 2017.

5.5.3 All incentives payable under IT/ITeS Incentive Scheme 2017 shall be paid through the Financial Institution financing the project or in case of self-financed projects, into a bank account; the requisite account and other formal arrangements for which have to be tied up by the entrepreneurs in agreement with the concerned financial institution or bank and intimated to the Department of Industries & Commerce.

5.5.4 The eligibility of enterprises for incentive under any Clause of IT/ITeS Incentive Scheme 2017 shall, unless otherwise be specified, be limited to the amount calculated as per the respective Clause of IT/ITeS Incentive Scheme 2017 reduced by the amount of incentive subsidy or grant received by the enterprise under any operative Scheme outside the IT/ITeS Incentive Scheme 2017 operated by a Ministry or Department of Government of India or its agencies/ boards/ authority, or under any Scheme operated by the North-Eastern Council, for promotion of industrial projects/ investments.

5.5.5 The issue of an Incentives Eligibility Certificate in favour of any enterprise shall not entitle the enterprise to claim the release of incentives under the IT/ITeS Incentive Scheme 2017 as a matter of right, which shall, inter alia, be subject to the unit having submitted their claims as per the format, the procedure and within 2 years of the period to which the claim relates and further subject to the unit being in operation.

Incentives available under Tripura IT/ITeS Incentive Scheme 2017 are: 5.6 The Capital Investment Subsidy:

Capital Investment subsidy will be provided in IT/ITeSat the rate of 30% on fixed capital investment in land, building, plant and IT/ITeSequipment’s subject to an aggregate ceiling of Rs.60 lakhs per enterprise. For allowing subsidy on construction expenses for boundary wall, it is proposed that no subsidy for constructing boundary wall shall be considered in case of residences located within the factory area fenced by boundary walls. Payment of subsidy both in case of new units and units gone for substantial expansion shall be released in single instalment.

Wherever an IT/ITeSenterprise is eligible for Capital Investment Subsidy under any other Schemes of the State or Central Government, the amount of subsidy to be provided under this Clause shall stand reduced to the extent of subsidy entitlement under the Schemes of the State or Central Government. In case of revival of the NEIIPP Scheme of the Central Government w.e.f. 01stApril, 2017 or any other scheme at any later date, the provision under the IT/ITeSScheme, 2017 shall be suitably modified, if deemed necessary.

5.7 Partial Reimbursement of Floor Space Rental for STPIncubation Space :
Upto 250 Sqtr Ft.60% reimbursement on giving direct employment to 10 nos. or more people

Upto 500 Sqtr Ft.: 50% reimbursement on giving direct employment to 20 nos. or more people

Upto 1000 Sqtr Ft.: 40% reimbursement on giving direct employment to 40 nos. or more people

Above 1000 Sqtr Ft.: 30% reimbursement on giving direct employment to 50 nos. or more people

5.8 Procurement Preference:

Procurement Preferenceon all IT/ITeS Products/Services through tenders by State Government Agencies on products /Service in Tripura by eligible IT/ITeS enterprise:

In cases where after comparison of the landed price of all eligible tenderers, the first lowest tenderer is an enterprise from outside the State; but the price of one or more local IT/ITeS enterprise(s) is not over 15% of the price quoted by the first lowest tenderer, the local IT/ITeSenterprise, who quoted lowest among local IT/ITeS enterprises shall be eligible to get supply order for 100% of the tendered quantity of the item being procured by the State Government.

5.9 Industrial Promotion Subsidy: IT/ITeS entrepreneur shall receive tax incentive upto the limit of its 100% investment in IT/ITeS/ESDM plant and machinery with an aggregating ceiling of Rs.60 lakh per annum. Industrial promotion subsidy (re-imbursement of VAT and CST) shall also be allowed @ 25% of Tripura Value Added Tax (net of input tax) and Central Sales Tax actually paid by the units after 5 years of their operation. The subsidy shall be provided for a further period of 5 years’ subject to the condition that the aggregating payment of subsidy to any unit from the date of its commencement of production shall not exceed to the amount of 100% of investment in plant and machinery. On the introduction of the proposed Goods and Service Tax regime by the Government of India, the related tax benefit shall be suitably revised.

5.10 Partial Reimbursement of Power Charges: Eligible IT/ITeS units will be given power tariff subsidy at the rate of 25% per unit in the billed amount of the utility as promotional incentive for initial 5 (Five) year subject to the maximum of 12 Lakhs per year. Power subsidy shall also be provided @ 15% of actual power charges paid by IT/ITeS enterprises after 5 years of operation. The incentive shall be for the next 5 years and subject to upper ceiling of subsidy of Rs. 6 lakhs for enterprises on employment in the range of 20 to 50 persons, Rs. 9.00 lakhs on employment in the range of 51 to 100 persons and Rs. 12 lakhs on employment of more than 100 persons. If an IT/ITeS enterprise installs Multiple Tariff (variable rate) Meter for recording the time of consumption of power during non-peak hours like from midnight to dawn, in that case the entire cost of the installed device shall be reimbursed.

5.11 Partial Reimbursement of Interest on Working Loans:

Interest incentives at the rate of 4% on working capital loan availed would be provided for a period of 5 years subject to a ceiling of Rs. 3.00 lakhs per year per enterprise.

5.12 Re-imbursement of standard certification charges:
Reimbursement of 100% of the total cost for getting Standard certificates like ISO:9000, ISO 20000-1, ISO 27001, Software Engineering Institute (SEI) certification, CMMi and Quality Assurance Institute (QAI), STQC certification,ISO-14000 Environmental Management System, ISO-18000 Occupational Health and Safety Standards, BIS Certification, Green Energy Certificate, Bureau of Energy Efficiency Certificate, etcfor the local IT/ITeS/ESDM units. All eligible enterprises will be allowed one-time full reimbursement of fees/ charges/ other expenses on account of obtaining a standard certification.

5.13 Employment Cost Subsidy: 100% re-imbursement of expenditure for MSME units on account of contribution towards ESI and EPF Scheme for a period of 5 years subject to employment of 20 and more people skilled and semi-skilled workers who are domiciled of the State. 50% re-imbursement for large enterprises on account of contribution towards ESI and EPF Scheme subject to employment of more than 50 skilled and semi-skilled workers who are domiciled of the State. Employment cost subsidy in the form of re-imbursement of employer contribution towards payment of EPF and ESI to Regional Provident Fund Commissioner shall be provided @50% of payment made by MSME units with employment of 20 or more persons for a further period of 5 years. For large units with employment 50 or more, the employment cost subsidy shall also be re-imbursed @ 50% for a further period of 5 years.

5.14 Subsidy for participation in fares, exhibition etc.:
Reimbursement of a part of the travelling expenses and the transport cost incurred to participate in State and National levels IT trade/ industry fares and exhibitions held outside the State. For participation of fares, exhibitions etc. in Bangladesh, the benefit of reimbursement shall be provided as well. Reimbursement of expenditures on travelling charges paid for one person of the participating industrial enterprise and transportation cost (to-and-fro) of goods for display or sale @ 50% of the actual expenditures incurred and subject to an upper ceiling of Rs. 50000/- per IT/ITeS enterprise for its each participation. Reimbursement of expenses shall be further subject to a maximum participations in 2 fares, exhibitions etc. in a year.

5.15 Wages Subsidy:
Wages subsidy will be provided to the IT/ITeS enterprises @ 20% of the actual wages paid on employment of 20 or more persons by them after 5 years of operation. The subsidy shall be for the next 5 years period. The upper ceiling of payment of wages subsidy shall be Rs. 2.50 lakhs per enterprise per annum.

5.16 Exemption of Earnest Money and Security Deposits:
Local IT/ITeS enterprises will be exempted from payment of earnest money and security deposits to participate in any tender floated by the State Government/ Agencies (including undertakings/ Corporations/Autonomous Bodies of the State Government).

5.17 Subsidy on fees paid for Credit Guarantee Trust Fund for Micro and Small Enterprises (CGTMSE) :

It is proposed to allow 100% reimbursement of one time guarantee fee and service fees paid every year by Micro and Small enterprises for CGTMSE coverage taken on loan granted by Banks/ NBFCs shall be provided for 5 years.

5.18 The developer of IT/ITeS Park will be eligible for 50% reimbursement of Stamp Duty/Registration Fee/Conversion Fee paid on sale/lease/transfer of land and office space for first transaction.

5.19 Bandwidth cost subsidy: Reimbursement of 30% charges on Internet Bandwidth connectivity to IT Services up to 2 Mbps paid to ISP shall be available for a period of 3 years from the date of going into commercial production/operation subject to a maximum of Rs. 5.00 Lakhs per annum.

5.20 Incentive for promoting local entrepreneurs in IT Services:Special Incentive (5% of eligible capital support) for units setting up BPO/ITES operations as a consortium with localentrepreneur (Domicile of the State where BPO/ITES operations are being established).

5.21 Clarification and Interpretation: In case of any doubt or dispute regarding the provisions of this policy,only the State Government shall be competent to clarify or interpret these andsuch clarification or interpretation shall be final and binding on all concerned.

5.22 Power to amend and repeal any or all provisions: Notwithstanding anything contained in any of the provisions of the policy, the State Government may at any time:

a) Make any amendment to this policy or repeal it, but the commitmentsalready made for an eligible enterprise shall not be affected by anysuch amendment or repeal;
b) Issue instructions and guidelines to facilitate implementation, toremove anomalies and to clarify the interpretations of the provisions ofthis policy.
5.23 The existing mechanism in Industries & Commerce Department, Govt. of Tripura for processing claim and disbursement of incentives shallbe applicable for the Tripura IT/ITeS Incentive Scheme 2017. The definitions of Tripura Industrial Investment Promotion Incentive Scheme, 2017 shall apply mutatis mutandis for this scheme also.

In Tripura, IT activities were initiated in a serious manner in April, 1999 with setting up of a separate department- Directorate Information Technology (DIT) and Tripura State Computerisation Agency (TSCA).