Kerala Govt promises single window clearance, subsidies to attract investors in AVGC-XR sector

Thiruvananthapuram: The Kerala government offers several subsidies and other financial assistance in order to attract new investors to the AVGC-XR (Animation, Visual Effects, Gaming, Comic) Sector. 

To turn the state into a major player in the sector, the Kerala Government has formulated a draft policy on AVGC-XR (Animation, Visual Effects, Gaming, Comics).

The plan is to generate at least 15 per cent of the national revenue in the sector within the next five years. The policy will try to integrate and incorporate IT, cultural, industrial, commercial, educational, financial, and tourism sectors and film academies.

Applicants will receive approval for AVGC-XR parks within 15 days through a single window clearance system. The government will construct the roads to such parks. It will also set aside 25 per cent of land in the IT parks for the private investors. Similar relaxations will also be provided to the investors in the digital entertainment sector in the industrial parks under KINFRA. The developmental works in private lands to follow public–private partnership (PPP) model.      

Grants and other relaxations

• The Kerala govt will bear 25 per cent of the expenditures of the technical side of the AVGC-XR companies registered in the state. The cap is set at Rs 10 lakhs for each company every year.
• The companies could also earn Rs 15 lakhs each for coming up with fresh ideas.
• The 20 per cent of the total expenditure of every single international project undertaken by studios in the state will be reimbursed (a maximum of Rs 5 crore will be allotted to each company every year in this regard).
• Similarly, every extended project worth over Rs 15 lakhs will also be eligible for 20 per cent reimbursement.    
• The developer of a game with more than two lakh downloads will have 20 per cent of his expenses covered.
• Smartphone-centred projects will also be eligible for grants, other relaxations will also be provided to such initiatives.