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Telangana IMAGE Policy 2016 (Animation, Visual effects, Gaming and Comics)

Telangana's dedicated AVGC policy, issued by the Information Technology, Electronics and Communications Department, Government of Telangana, and signed by the Secretary to Government. Incentives are administered by a Consultative Committee on Animation and Gaming Industry (CCAGI) drawn from government and industry, with operational guidelines to be issued separately. The core package is a one-time 25% capital investment subsidy up to ₹25 lakh on investment above ₹5 crore creating 50 or more jobs, and production cash back of 20% of project cost conditional on 80% of production spend being incurred in Telangana using Telangana talent: up to ₹10 lakh per animation film of 90 minutes or more, ₹5 lakh per cartoon series of 25 episodes or more, and ₹5 lakh per game. It adds lease rental subsidy up to ₹5 lakh a year, recruitment assistance of ₹15 lakh for 100 employees, stamp duty reimbursement, industrial power tariff, and bandwidth, certification and exhibition reimbursements. SC/ST and women entrepreneurs get a separate schedule, with production cash back at 40% and a capex ceiling of ₹35 lakh. Infrastructure runs through TSIIC and a planned Telangana Animation and Gaming (IMAGE) City in RR District, Hyderabad, with skilling through TASK. The document states no total outlay, sets no end date, and says it is in force from the date of issue of the Government Orders without printing them.

Key figures

Capital investment subsidy ceiling, per company: up to₹25 lakh; Per Information Technology, Electronics and Communications Department, Government of Telangana: Telangana IMAGE Policy 2016 (policy booklet, 28 pages), published on telangana.gov.in (archived).
Capital investment subsidy, minimum investment: ₹5 crore; Per Information Technology, Electronics and Communications Department, Government of Telangana: Telangana IMAGE Policy 2016 (policy booklet, 28 pages), published on telangana.gov.in (archived).
Animation film grant ceiling, per film per year: up to₹10 lakh; Per Information Technology, Electronics and Communications Department, Government of Telangana: Telangana IMAGE Policy 2016 (policy booklet, 28 pages), published on telangana.gov.in (archived).
Animation series grant ceiling, per series per year: up to₹5 lakh; Per Information Technology, Electronics and Communications Department, Government of Telangana: Telangana IMAGE Policy 2016 (policy booklet, 28 pages), published on telangana.gov.in (archived).
Game production grant ceiling, per game per year: up to₹5 lakh; Per Information Technology, Electronics and Communications Department, Government of Telangana: Telangana IMAGE Policy 2016 (policy booklet, 28 pages), published on telangana.gov.in (archived).
Lease rental subsidy ceiling, per yearthree years: up to₹5 lakh; Per Information Technology, Electronics and Communications Department, Government of Telangana: Telangana IMAGE Policy 2016 (policy booklet, 28 pages), published on telangana.gov.in (archived).
Recruitment assistance, per company: up to₹15 lakh; Per Information Technology, Electronics and Communications Department, Government of Telangana: Telangana IMAGE Policy 2016 (policy booklet, 28 pages), published on telangana.gov.in (archived).
Quality certification reimbursement ceiling: up to₹4 lakh; Per Information Technology, Electronics and Communications Department, Government of Telangana: Telangana IMAGE Policy 2016 (policy booklet, 28 pages), published on telangana.gov.in (archived).
Exhibition and delegate fee reimbursement ceiling, per year: up to₹5 lakh; Per Information Technology, Electronics and Communications Department, Government of Telangana: Telangana IMAGE Policy 2016 (policy booklet, 28 pages), published on telangana.gov.in (archived).
Internet bandwidth reimbursement ceiling, per yearthree years: up to₹2 lakh; Per Information Technology, Electronics and Communications Department, Government of Telangana: Telangana IMAGE Policy 2016 (policy booklet, 28 pages), published on telangana.gov.in (archived).
Capex subsidy ceiling, SC/ST and women entrepreneurs: up to₹35 lakh; Per Information Technology, Electronics and Communications Department, Government of Telangana: Telangana IMAGE Policy 2016 (policy booklet, 28 pages), published on telangana.gov.in (archived).
Film grant ceiling, SC/ST and women entrepreneurs: up to₹15 lakh; Per Information Technology, Electronics and Communications Department, Government of Telangana: Telangana IMAGE Policy 2016 (policy booklet, 28 pages), published on telangana.gov.in (archived).
Series grant ceiling, SC/ST and women entrepreneurs: up to₹10 lakh; Per Information Technology, Electronics and Communications Department, Government of Telangana: Telangana IMAGE Policy 2016 (policy booklet, 28 pages), published on telangana.gov.in (archived).
Game grant ceiling, SC/ST and women entrepreneurs: up to₹10 lakh; Per Information Technology, Electronics and Communications Department, Government of Telangana: Telangana IMAGE Policy 2016 (policy booklet, 28 pages), published on telangana.gov.in (archived).
Lease subsidy ceiling, SC/ST and women entrepreneurs, per yearthree years: up to₹8 lakh; Per Information Technology, Electronics and Communications Department, Government of Telangana: Telangana IMAGE Policy 2016 (policy booklet, 28 pages), published on telangana.gov.in (archived).
Certification ceiling, SC/ST and women entrepreneurs: up to₹5 lakh; Per Information Technology, Electronics and Communications Department, Government of Telangana: Telangana IMAGE Policy 2016 (policy booklet, 28 pages), published on telangana.gov.in (archived).
Exhibition ceiling, SC/ST and women entrepreneurs, per year: up to₹10 lakh; Per Information Technology, Electronics and Communications Department, Government of Telangana: Telangana IMAGE Policy 2016 (policy booklet, 28 pages), published on telangana.gov.in (archived).
Bandwidth ceiling, SC/ST and women entrepreneurs, per yearthree years: up to₹3 lakh; Per Information Technology, Electronics and Communications Department, Government of Telangana: Telangana IMAGE Policy 2016 (policy booklet, 28 pages), published on telangana.gov.in (archived).
Strategic/Mega project, minimum investment proposal: ₹50 crore; Per Information Technology, Electronics and Communications Department, Government of Telangana: Telangana IMAGE Policy 2016 (policy booklet, 28 pages), published on telangana.gov.in (archived).
Tier-II land allotment, minimum turnover over two years: ₹15 crore; Per Information Technology, Electronics and Communications Department, Government of Telangana: Telangana IMAGE Policy 2016 (policy booklet, 28 pages), published on telangana.gov.in (archived).

Incentives & provisions

Classification: SME is an AVGC company with turnover between INR 10 lakh and INR 20 crore; large scale between INR 20 crore and INR 50 crore; Strategic/Mega is turnover over INR 50 crore with an investment proposal above ₹50 crore. SC/ST and women entrepreneur categories require more than 51% shareholding.
Administering body: A Consultative Committee on Animation and Gaming Industry (CCAGI), a joint committee of government and industry representatives, administers and disburses the incentives; applications are placed before CCAGI. Operational guidelines setting eligibility criteria and procedures are to be issued separately.
Capital investment subsidy: 25% capital investment subsidy limited to ₹25 lakh, one-time, for fresh investments made after declaration of the policy, on an investment above ₹5 crore creating 50 or more new jobs, subject to the company having been in operation for the last two financial years.
Production grant, animation films: 20% cash back of project cost where 80% of the production cost is incurred in Telangana using Telangana talent, for animation theatrical released films of 90 minutes and above, up to ₹10 lakh per film for one company per annum, for own-brand work. Allowable costs are manpower, materials and print, and professional services.
Production grant, animation series: 20% cash back on the same 80%-in-state condition for animation cartoon series of 25 episodes and above made for and telecast on a TV channel, up to ₹5 lakh per series for one company per annum, for own-brand work.
Production grant, games: 20% cash back on the same 80%-in-state condition for online, mobile or console games, up to ₹5 lakh per game for one company per annum, for own-brand work. The unit must show 2 lakh collective downloads on iOS, Google Play or Windows, or the game must be award-winning or nominated at a national or international gaming conclave.
Lease rental subsidy: 25% subsidy on lease rentals up to ₹5 lakh per annum for up to three years, for built-up office space of up to 25,000 sq ft. Eligibility as per operational guidelines.
Stamp duty and registration: 100% reimbursement of stamp duty, transfer duty and registration fee on the first transaction and 50% on the second, on sale or lease deeds. Available to Mega Projects; not available where government land is allotted.
Power: Industrial power category tariff admissible, available to Mega Projects. Companies may take renewable energy under open access after a nominal fixed cost to DISCOMs, capped at one third of total power requirement. Power category conversion and open access also extend to dedicated AVGC training institutions certified by TASK or affiliated to listed state universities.
Recruitment assistance: ₹15 lakh for employing a minimum of 100 employees within two years of commencement of commercial operations, paid telescopically: INR 7.5 lakh in the first year for 50 employees and INR 7.5 lakh in the second for 50 more. 50% of those recruited must be of Telangana origin.
Entertainment tax exemption: A full-fledged animation VFX theatre film produced and released in Telangana is entitled to entertainment tax exemption. Available to Mega Projects.
Quality certification: 20% of expenditure on quality certification (ISO, Indian and international patents, CE, CCC and AVGC-specific certifications recommended by the industry association or CCAGI), limited to ₹4 lakh.
Exhibitions: 50% of exhibition stall rental limited to 9 sq m of space, and delegate registration charges, for notified national or international AVGC conferences and exhibitions, up to ₹5 lakh per annum across single or multiple events.
Internet bandwidth: Up to ₹2 lakh per annum for three years, across multiple Telangana locations under a single company name, based on actual charges paid to an ISP.
Mega projects: A special incentives and subsidies package is to be worked out for Mega Projects and projects of strategic importance. The document does not state its terms.
SC/ST and women entrepreneurs: A separate and more generous schedule: capex subsidy of 25% up to ₹35 lakh; production cash back raised to 40% with ceilings of ₹15 lakh per film, ₹10 lakh per series and ₹10 lakh per game per company per annum; lease subsidy 50% up to ₹8 lakh a year; second-transaction levy reimbursement 75%; certification 40% up to ₹5 lakh; exhibition rentals 100% up to ₹10 lakh a year; bandwidth up to ₹3 lakh a year.
IMAGE City: A Telangana Animation and Gaming (IMAGE) City is to be set up in RR District, Hyderabad, by the Telangana State Industrial Infrastructure Corporation (TSIIC), which is also nodal agency for AVGC infrastructure and the land bank. It is to offer plug-and-play space at subsidised rates to first-generation technocrat entrepreneurs and SMEs, common facility centres for sound and video editing and motion capture, an incubation centre, and reliable power with exemption from statutory power cuts. The government is also to facilitate a render farm service on a cloud computing model with industry-standard licensed software on a shared basis.
Land allotment, Hyderabad: Government land may be allotted against an employment obligation of 250 AVGC professionals per acre and construction of 25,000 sq ft of office space per acre, both to be met within three years of taking possession.
Land allotment, Tier-II cities: In Warangal, Karimnagar, Mahboobnagar, Khammam and similar cities the applicant must have operated for the last two financial years, recorded a turnover of ₹15 crore over that period and have 100 employees on its payroll at the date of application; the obligation is 100 professionals per acre and 15,000 sq ft of office space per acre within three years.
Talent pool: An AVGC Academy is to be set up with industry involvement; skill development runs through the Telangana Academy for Skill and Knowledge (TASK), including apprenticeships, campus placements and Train-the-Trainer programmes. A Digital Content Commission and a Media and Entertainment Skill Development Council are also envisaged, and AVGC is to be introduced into fine arts degree courses and the ITI curriculum.
Incubation and venture capital: An incubation centre dedicated to AVGC start-ups has been created with STPI. The government is also to create a venture capital funding mechanism with stakeholders to extend seed capital to first-generation entrepreneurs, start-ups and SMEs in the sector.
Regulatory relief: Companies registered under the ROC are exempt from statutory power cuts and from the Pollution Control Act except for power generation sets, and are exempt from inspection under the Factories Act 1948, the Shops and Establishments Act 1988, the Contract Labour Act 1970, the Payment of Wages Act 1936, the Minimum Wages Act 1948 and the Employment Exchanges Act 1959, filing self-certificates instead. Three-shift operation including women at night is generally permitted subject to state police safety norms, and the companies are declared essential services.

Source: Information Technology, Electronics and Communications Department, Government of Telangana: Telangana IMAGE Policy 2016 (policy booklet, 28 pages), published on telangana.gov.in. Terms are structured from the primary source and updated as the policy changes — this page always reflects the latest known version. (archived copy)