The Karnataka State Government on Wednesday introduced the Karnataka animation, visual effects, gaming and comics (AVGC) policy 2012. With this, the government intends to make the state a favoured destination for the animation sector along with IT and biotech. Karnataka is the first state to launch an exclusive policy for animation and gaming sectors in the country.

With the introduction of the policy, we are planning to promote and bring in investment for the animation sector and thereby create job opportunity in the state, labour minister B N Bachegowda said.

The global animation market is estimated to grow at a CAGR of 10 per cent and reach $100 billion by the end of 2012. The Indian animation industry is expected to grow at a CAGR of 22 per cent to reach $1 billion by 2012.

As part of the policy, a separate venture capital fund has been created for AVGC sector worth Rs 50 crore to be funded jointly by the state government and private VCs of which, the governments contribution will be 26 per cent.

The government in the policy also said it would set up centre of excellence for AVGC in Bangalore under public-private partnership with modern facilities. For the centre of excellence, the central government will contribute 30 per cent to the cost, while the state government and industry-private partners will contribute 20 and 50 per cent respectively.

Apart from this, the CoE will have a finishing academy-cum-incubation centre at an estimated cost of Rs 50 crore and a post production and digital intermediary facility of Rs 30 crore.

The policy, created in consultation with various stakeholders, also provides various incentives to the industry. For instance, the AVGC sector would be eligible to avail itself of all the fiscal incentives and concession as provided in the Karnataka Industrial Policy 2009-2014.

For creation of infrastructure, the policy also emphasises on creation of AVGC public and private parks at the SEZ identified locations. The government also said it planned to earmark land for the AVGC sector in the proposed information technology investment region (ITIR) near Bangalore international airport.

With the new policy, the government expects the revenues of the AVGC sector to grow 40 per cent in the next three years. At present, the state has more than 20 training institutes imparting AVGC-related training through over 60 campuses.