New gaming, animation policy to develop basic infrastructure in AP

The State Government has formulated a new gaming, animation and entertainment policy for 2014-2019 extending a slew of incentives, including stamp duty and VAT rebate, to encourage players across these sectors.

The much-awaited policy seeks to develop initial support infrastructure while providing for various incentives. These include reimbursement of production cost of an animation film or gaming product (based on set guidelines /stipulations) up to a maximum of Rs 5 lakh per film.

This includes production costs including manpower, materials and print and professional services.

It offers 25 per cent subsidy on lease rentals up to Rs 5 lakh a year for a maximum period of up to three years, built up office space ranging from 500 sq. ft to 15,000 sq. ft lease by animation and gaming companies.

The policy seeks to extend 100 per cent 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 allowed if the land is allotted by the Government.

There is also provision for 100 per VAT reimbursement. The Government will collaborate with leading MNCs such as IBM for outsourcing the productions content for companies based here.

An animation and gaming city will be set up initially in Hyderabad offering plug and play facility and later in other major cities.

Minister for Information Technology & Communications, Ponnala Lakshmaiah, said the 8 lakh square foot GAME (Gaming, animation, media and entertainment) City coming up at Rayadurgam here, would be up and running by August 15.

The plug-and-play space, the Minister said, will be complete with facilities that will allow even small companies to carry out their projects. It has been designed to serve as a foundation for the growth and prosperity of the industry, he added.

Hyderabad is fast becoming synonymous with creativity, innovation and talent in the animation industry, he said.

However, connectivity is not available and this is the gap that the Andhra Pradesh government is trying to bridge, he said.

The animation and gaming industry contributed to just one per cent of the US $ 100 billion software exports, worldwide, Mr. Lakshmaiah said, speaking at the inaugural of Creative Mentors Animation & Gaming College that claims to be the State s first virtual online facility, here.

President of the Animation, VFX, Comic & Gaming Industry of A.P., K. Basi Reddy, said according to NASSCOM (National Association of Software and Services Companies), there was a shortage of 3 lakh skilled workforce in the animation and gaming industry.

The production facility at GAME City apart, there is a need for the government to provide software, motion control and capture facilities too, he added.