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Information Technology, Electronics
& Communications Department
Government of Telangana
IoT
POLICY
2017
Telangana State, despite being the newest state in the country, has
earned widespread recognition and acclaim for its agility to adopt
new and emerging technologies in different spheres of activities.
World over, research institutions, private companies, and startups
are creating more and more sophisticated technologies that help
us use our devices in newer ways and help us navigate everyday life
processes in an efficient and superior manner. It is estimated that
there are 6.4 Billion number of connected devices in the world today
and this is only going to become larger in the days to come. It is not
considered science fiction anymore to imagine that as soon as you
reach your home your phone has already spoken to your air
conditioner, your car to your garage, and your wearable gadget to
your home security system.
What began to be spoken as Internet of Things is soon going to
encompass a new dimension of Internet of Everything. All such path
breaking developments also provide a huge opportunity for
Governments to ensure that the best of IoT and smart technologies
are made available to benefit its citizens. The approach of
Telangana Government is to ensure that all such potential
developments get translated into concrete action through the
means of a facilitating policy. I am very happy to share with you a
dedicated policy on IoT, which becomes the 9th of the domain
policies under the umbrella of ICT Policy Framework. As with the
other 8 policies, the present policy explains the support the
government will provide to the private sector including private
companies, startups, R&D institutions to manufacture their IoT
devices in the state, to develop corresponding algorithms and other
software, and to achieve an integration of the hardware and the
software. The policy also explains about how the government
proposes to set up a comprehensive ecosystem for IoT, and how
the government intends to use these technologies through its
multiple departments and agencies.
Sri K. Taraka Rama Rao
Message
Hon'ble Minister for IT, MA&UD
Industries & Commerce, Public Enterprises
Sugar, Mines & Geology, NRI Affairs
Government of Telangana
Telangana State, despite being the newest state in the country, has
earned widespread recognition and acclaim for its agility to adopt
new and emerging technologies in different spheres of activities.
World over, research institutions, private companies, and startups
are creating more and more sophisticated technologies that help
us use our devices in newer ways and help us navigate everyday life
processes in an efficient and superior manner. It is estimated that
there are 6.4 Billion number of connected devices in the world today
and this is only going to become larger in the days to come. It is not
considered science fiction anymore to imagine that as soon as you
reach your home your phone has already spoken to your air
conditioner, your car to your garage, and your wearable gadget to
your home security system.
What began to be spoken as Internet of Things is soon going to
encompass a new dimension of Internet of Everything. All such path
breaking developments also provide a huge opportunity for
Governments to ensure that the best of IoT and smart technologies
are made available to benefit its citizens. The approach of
Telangana Government is to ensure that all such potential
developments get translated into concrete action through the
means of a facilitating policy. I am very happy to share with you a
dedicated policy on IoT, which becomes the 9th of the domain
policies under the umbrella of ICT Policy Framework. As with the
other 8 policies, the present policy explains the support the
government will provide to the private sector including private
companies, startups, R&D institutions to manufacture their IoT
devices in the state, to develop corresponding algorithms and other
software, and to achieve an integration of the hardware and the
software. The policy also explains about how the government
proposes to set up a comprehensive ecosystem for IoT, and how
the government intends to use these technologies through its
multiple departments and agencies.
Sri K. Taraka Rama Rao
Message
Hon'ble Minister for IT, MA&UD
Industries & Commerce, Public Enterprises
Sugar, Mines & Geology, NRI Affairs
Government of Telangana
PAGE
Index
Vision 7
Objectives 7
Focus Areas of the State within IoT 10
Pillar 1: Develop World Class Infrastructure to promote
development of IoT Products
T-Works: 13
Pillar 2: Promote Manufacturing and Procurement
of IoT Based Solutions 15
Pillar 3: Provide Support to Startups in raising Capital 17
Pillar 4: Create a ready-to-employ Talent Pool in the State 19
Pillar 5: Partnerships and Tie-Ups to develop Know-how 21
Incentives 22
Incentives to IoT Device and Hardware Manufacturers
Incentives to IoT Software Applications and Analytics Solution Developers
Customs Facilitation Cell
Procurement of Components used to Manufacture IoT Devices
Government Procurement of IoT Products/Services
Earmarked Area for conducting PoCs
PAGE
Index
Vision 7
Objectives 7
Focus Areas of the State within IoT 10
Pillar 1: Develop World Class Infrastructure to promote
development of IoT Products
T-Works: 13
Pillar 2: Promote Manufacturing and Procurement
of IoT Based Solutions 15
Pillar 3: Provide Support to Startups in raising Capital 17
Pillar 4: Create a ready-to-employ Talent Pool in the State 19
Pillar 5: Partnerships and Tie-Ups to develop Know-how 21
Incentives 22
Incentives to IoT Device and Hardware Manufacturers
Incentives to IoT Software Applications and Analytics Solution Developers
Customs Facilitation Cell
Procurement of Components used to Manufacture IoT Devices
Government Procurement of IoT Products/Services
Earmarked Area for conducting PoCs
• To create an atmosphere conducive for IoT specific
businesses and manufacturing units to thrive in the State
• To position Telangana as a test bed for IoT solutions
Vision
• To attract investments worth 10,000 Cr and generate
direct employment to 50,000 people in the next 5 years
• Create 5 zones each in Hyderabad, Warangal, and
Sircilla districts for deploying PoCs in the IoT Space
Objectives
1. Develop World Class Infrastructure to promote development of IoT Products
2. Promote Manufacturing and Procurement of IoT Based Solutions
3. Provide Support to Startups in raising Capital
4. Create a ready-to-employ Talent Pool in the State
5. Enter into Partnerships and Tie-Ups to develop Know-how
To achieve the objectives set for
the State, the Government plans
to take a 5-Pillared Approach
IoT POLICY 2017 | 7
• To create an atmosphere conducive for IoT specific
businesses and manufacturing units to thrive in the State
• To position Telangana as a test bed for IoT solutions
Vision
• To attract investments worth 10,000 Cr and generate
direct employment to 50,000 people in the next 5 years
• Create 5 zones each in Hyderabad, Warangal, and
Sircilla districts for deploying PoCs in the IoT Space
Objectives
1. Develop World Class Infrastructure to promote development of IoT Products
2. Promote Manufacturing and Procurement of IoT Based Solutions
3. Provide Support to Startups in raising Capital
4. Create a ready-to-employ Talent Pool in the State
5. Enter into Partnerships and Tie-Ups to develop Know-how
To achieve the objectives set for
the State, the Government plans
to take a 5-Pillared Approach
IoT POLICY 2017 | 7
FOCUS
AREAS
OF THE
STATE
WITHIN
IOT
FOCUS
AREAS
OF THE
STATE
WITHIN
IOT
The global digital landscape has been at the receiving end of a major transition on the
technical, social and economic fronts, thanks to Internet of Things, commonly
addressed as IoT. The advent of IoT has led to direct advancements in development of
consumer products, automobiles, industry components and sensors, to name a few.
Further, the NASSCOM report on IoT in India states that the IoT market in India is poised
to reach USD 15 billion by 2020 accounting for a little over 5% of the total global market,
which is estimated to reach USD 262 billion.
IoT exhibits a unique promise of not only simplifying implementation of mechanisms in
various fields but also transform multiple aspects of the way we live. The Government of
Telangana understands the strong potential IoT possesses, and envisions to transform
specific priority areas that are linked with the strengths of the state. These areas include,
but are not limited to, the following:
Focus Areas of the State within IoT
The Government of India has embarked on an ambitious plan to develop smart cities
across the nation, leading to a massive expansion and adoption of IoT in the country.
Further, with the advent of Digital India program, digital initiatives in multiple sectors have
been launched with the aim of ‘transforming India into a digitally empowered society and
knowledge economy’. IoT will be crucial in developing smart cities with the following
aspects:
Smart City Solutions
• Smart Parking
• Smart Lighting
• Intelligent Transportation
• Intelligent Logistics Management
• Citizen Safety
10 | IoT POLICY 2017
• Smart Power Management
• Smart Waste Management
• Smart Environment
• Smart Control Centre
• Connected Home
Hyderabad is home to several major pharmaceutical companies and R&D centres in the
biotechnology space. The city houses several multinational life sciences’ giants such as
DuPont, AMRI, Sanofi Aventis, Novartis, Dr. Reddy’s, Aurobindo Pharma, etc. Also, the
innovation drive in Hyderabad is perennially high due to the presence of world renowned
academic and research institutes such as IICT and CCMB, and a large number of
super-speciality hospitals.
Also, Hyderabad has a dominant position in the Pharma sector as the leader in
manufacturing drugs in the country. With about 40% of the total Indian bulk drug
production and 50% of the total bulk drug exports happening from the state, Industrial
manufacturing, with focus on pharmaceuticals, is one of the key areas that could be
transformed by IoT.
In addition to industrial IoT in the Pharma Sector, there has been a trend of people
increasingly adopting wearable tech to monitor vitals and some bodily functions.
Telangana wishes to ride on this growth and facilitate the development of newer and
more advanced technologies in this area. A dedicated park for medical devices is also in
the pipeline to enable this.
Medical / Health IoT
The logistics industry in India, dominated by unorganized players is plagued by low
utilization rates primarily due to absence of free information exchange across industry
participants. Shared Logistics and Warehousing platforms connecting transportation
and warehousing companies in real-time with logistics customers addresses the
challenge of empty backhauls and low utilization rates. These logistics platforms by
providing real time information enable logistics companies to enhance utilization rates
leading to higher profits.
With a larger share of the industry becoming organized, through use of IoT based smart
solutions, the Government will benefit from higher tax realization, consumers benefit
from lower costs, and the broader society benefits from reduced emissions and traffic
congestions.
Smart Logistics
One of the key focus areas under the Digital Telangana program is agriculture. The
Government of Telangana is working with ICRISAT to develop a platform for the
Agriculture Extension System to extract maximum output from farmers by connecting
them with advanced research, weather information system, pest identification system
etc. Moving forward, the Government would like to adopt agriculture IoT solutions that
will increase farm output and efficiency of the markets.
Agri-Tech4
IoT POLICY 2017 | 11
The global digital landscape has been at the receiving end of a major transition on the
technical, social and economic fronts, thanks to Internet of Things, commonly
addressed as IoT. The advent of IoT has led to direct advancements in development of
consumer products, automobiles, industry components and sensors, to name a few.
Further, the NASSCOM report on IoT in India states that the IoT market in India is poised
to reach USD 15 billion by 2020 accounting for a little over 5% of the total global market,
which is estimated to reach USD 262 billion.
IoT exhibits a unique promise of not only simplifying implementation of mechanisms in
various fields but also transform multiple aspects of the way we live. The Government of
Telangana understands the strong potential IoT possesses, and envisions to transform
specific priority areas that are linked with the strengths of the state. These areas include,
but are not limited to, the following:
Focus Areas of the State within IoT
The Government of India has embarked on an ambitious plan to develop smart cities
across the nation, leading to a massive expansion and adoption of IoT in the country.
Further, with the advent of Digital India program, digital initiatives in multiple sectors have
been launched with the aim of ‘transforming India into a digitally empowered society and
knowledge economy’. IoT will be crucial in developing smart cities with the following
aspects:
Smart City Solutions
• Smart Parking
• Smart Lighting
• Intelligent Transportation
• Intelligent Logistics Management
• Citizen Safety
10 | IoT POLICY 2017
• Smart Power Management
• Smart Waste Management
• Smart Environment
• Smart Control Centre
• Connected Home
Hyderabad is home to several major pharmaceutical companies and R&D centres in the
biotechnology space. The city houses several multinational life sciences’ giants such as
DuPont, AMRI, Sanofi Aventis, Novartis, Dr. Reddy’s, Aurobindo Pharma, etc. Also, the
innovation drive in Hyderabad is perennially high due to the presence of world renowned
academic and research institutes such as IICT and CCMB, and a large number of
super-speciality hospitals.
Also, Hyderabad has a dominant position in the Pharma sector as the leader in
manufacturing drugs in the country. With about 40% of the total Indian bulk drug
production and 50% of the total bulk drug exports happening from the state, Industrial
manufacturing, with focus on pharmaceuticals, is one of the key areas that could be
transformed by IoT.
In addition to industrial IoT in the Pharma Sector, there has been a trend of people
increasingly adopting wearable tech to monitor vitals and some bodily functions.
Telangana wishes to ride on this growth and facilitate the development of newer and
more advanced technologies in this area. A dedicated park for medical devices is also in
the pipeline to enable this.
Medical / Health IoT
The logistics industry in India, dominated by unorganized players is plagued by low
utilization rates primarily due to absence of free information exchange across industry
participants. Shared Logistics and Warehousing platforms connecting transportation
and warehousing companies in real-time with logistics customers addresses the
challenge of empty backhauls and low utilization rates. These logistics platforms by
providing real time information enable logistics companies to enhance utilization rates
leading to higher profits.
With a larger share of the industry becoming organized, through use of IoT based smart
solutions, the Government will benefit from higher tax realization, consumers benefit
from lower costs, and the broader society benefits from reduced emissions and traffic
congestions.
Smart Logistics
One of the key focus areas under the Digital Telangana program is agriculture. The
Government of Telangana is working with ICRISAT to develop a platform for the
Agriculture Extension System to extract maximum output from farmers by connecting
them with advanced research, weather information system, pest identification system
etc. Moving forward, the Government would like to adopt agriculture IoT solutions that
will increase farm output and efficiency of the markets.
Agri-Tech4
IoT POLICY 2017 | 11
T-Works, a hardware prototyping centre being
set up by the Government of Telangana State
includes facilities to prototype IoT tech -
electronics section, rapid prototyping, metal,
woodworking, welding, etc. Although T-Works
is a larger entity aimed for hardware product
startups as a whole, one of the key focus
areas of T-Works is Internet-of-Things.
T-Works shall:
• Create test beds for IoT
• Tie-up with corporate and labs for
accessing testing tools and other
prototyping equipment specific to IoT
• Bring together mentors, experts, industry,
makers, funders
• Provide world class prototyping facility to
convert idea to prototypes and products
• Work with government and innovators to
identify and articulate Smart City related
IoT problem and highlight potential
solutions
Moreover, T-Works has identified primary gap
areas in the Indian hardware ecosystem
through research and groundwork. It is
estimated that filling these gaps will reduce
product development cost and time by over
50% for hardware product developers.
Develop World Class Infrastructure
to Promote Development of IoT Products
T-Works
PILLAR 1
Prototype Infrastructure: Central to T-Works is a world
class prototyping infrastructure which will reduce time
and cost of converting idea to product.
Streamlining Sourcing: Facilitate procurement of
essential electronic components by partnering
electronics distributors and supply chain service
provider and reduce shipping time and shipping cost.
Early Stage Funding: Provide funding opportunities
for startups selected into incubation program through
Telangana Innovation Fund, T-Works Electronics
Development Fund, and by facilitating crowd funding.
Mentoring and Industry Collaboration: Enable
one-to-one mentoring by co-locating industry and first-
time entrepreneurs, provide access to business
leaders, investors, system architects, collaborate with
other startups through T-Hub, connect with Silicon
Valley VCs through T-Bridge, work with defence labs
and other national and international incubators.
Service Provider Network: Facilitate a vibrant
ecosystem of service providers in engineering, design,
and business to fill all the competency gaps for startup
teams.
Manufacturing Support: T-Works shall facilitate
startups to manufacture products by building a
network of local and global manufacturers. T-Works
shall also build a business case for local
manufacturing by developing a pipeline of product
ideas. While the local manufacturing ecosystem
continues to mature, T-Works shall also establish a
bridge with global manufacturing hubs.
IoT POLICY 2017 | 13
T-Works, a hardware prototyping centre being
set up by the Government of Telangana State
includes facilities to prototype IoT tech -
electronics section, rapid prototyping, metal,
woodworking, welding, etc. Although T-Works
is a larger entity aimed for hardware product
startups as a whole, one of the key focus
areas of T-Works is Internet-of-Things.
T-Works shall:
• Create test beds for IoT
• Tie-up with corporate and labs for
accessing testing tools and other
prototyping equipment specific to IoT
• Bring together mentors, experts, industry,
makers, funders
• Provide world class prototyping facility to
convert idea to prototypes and products
• Work with government and innovators to
identify and articulate Smart City related
IoT problem and highlight potential
solutions
Moreover, T-Works has identified primary gap
areas in the Indian hardware ecosystem
through research and groundwork. It is
estimated that filling these gaps will reduce
product development cost and time by over
50% for hardware product developers.
Develop World Class Infrastructure
to Promote Development of IoT Products
T-Works
PILLAR 1
Prototype Infrastructure: Central to T-Works is a world
class prototyping infrastructure which will reduce time
and cost of converting idea to product.
Streamlining Sourcing: Facilitate procurement of
essential electronic components by partnering
electronics distributors and supply chain service
provider and reduce shipping time and shipping cost.
Early Stage Funding: Provide funding opportunities
for startups selected into incubation program through
Telangana Innovation Fund, T-Works Electronics
Development Fund, and by facilitating crowd funding.
Mentoring and Industry Collaboration: Enable
one-to-one mentoring by co-locating industry and first-
time entrepreneurs, provide access to business
leaders, investors, system architects, collaborate with
other startups through T-Hub, connect with Silicon
Valley VCs through T-Bridge, work with defence labs
and other national and international incubators.
Service Provider Network: Facilitate a vibrant
ecosystem of service providers in engineering, design,
and business to fill all the competency gaps for startup
teams.
Manufacturing Support: T-Works shall facilitate
startups to manufacture products by building a
network of local and global manufacturers. T-Works
shall also build a business case for local
manufacturing by developing a pipeline of product
ideas. While the local manufacturing ecosystem
continues to mature, T-Works shall also establish a
bridge with global manufacturing hubs.
IoT POLICY 2017 | 13
IoT POLICY 2017 | 15
Customs Facilitation Cell
Telangana Government understands the challenges in understanding customs rules
and importing parts from outside to India. In order the reduce lead times and the costs
associated with delays, a customs facilitation cell shall be set up that will handhold
companies in the process of international procurement.
Procurement of Components used to Manufacture IoT Devices
The promotions wing of ITE&C Dept. and T-Works shall facilitate electronics component
distributors to set up their distribution centres in Telangana, thereby reducing shipping
times and cost.
Government Procurement of IoT Products/Services
A formal mechanism through which the ITE&C Dept. streamlines procurement of
new-age technologies by other departments shall be established. Preference for such
procurement shall be given to players who already have a presence in Telangana. The
State is also in the process of formalizing a procurement policy that will enable
procurement of relevant new-age technologies from startups on a priority basis.
Earmarked Area for conducting PoCs
The Government of Telangana, in addition to providing necessary regulatory support to
enterprises and organizations developing innovative smart technology solutions, shall
designated zones across different cities for piloting verified solutions across various
focus areas. Five zones each shall be earmarked in the districts of Hyderabad,
Warangal, and Sircilla for conducting these PoCs. Relevant permission shall be provided
through a single-window on a priority basis for PoCs in these zones. In addition to this,
other cities being included in the Smart Cities Mission will also host relevant PoCs.
Promote Manufacturing and
Procurement of IoT Based Solutions
PILLAR 2
IoT POLICY 2017 | 15
Customs Facilitation Cell
Telangana Government understands the challenges in understanding customs rules
and importing parts from outside to India. In order the reduce lead times and the costs
associated with delays, a customs facilitation cell shall be set up that will handhold
companies in the process of international procurement.
Procurement of Components used to Manufacture IoT Devices
The promotions wing of ITE&C Dept. and T-Works shall facilitate electronics component
distributors to set up their distribution centres in Telangana, thereby reducing shipping
times and cost.
Government Procurement of IoT Products/Services
A formal mechanism through which the ITE&C Dept. streamlines procurement of
new-age technologies by other departments shall be established. Preference for such
procurement shall be given to players who already have a presence in Telangana. The
State is also in the process of formalizing a procurement policy that will enable
procurement of relevant new-age technologies from startups on a priority basis.
Earmarked Area for conducting PoCs
The Government of Telangana, in addition to providing necessary regulatory support to
enterprises and organizations developing innovative smart technology solutions, shall
designated zones across different cities for piloting verified solutions across various
focus areas. Five zones each shall be earmarked in the districts of Hyderabad,
Warangal, and Sircilla for conducting these PoCs. Relevant permission shall be provided
through a single-window on a priority basis for PoCs in these zones. In addition to this,
other cities being included in the Smart Cities Mission will also host relevant PoCs.
Promote Manufacturing and
Procurement of IoT Based Solutions
PILLAR 2
The Government has identified channels that can be harnessed to address the problem
with respect to funding. These channels include the following
a. In the Innovation Policy 2017, the Government of Telangana has announced that
access to securing financial support shall be provided through various channels
initiated by T-Hub and T-Works. In addition to providing assistance, through startup
cell, to enterprises to apply for various funding opportunities, the Government shall
also extend necessary support to startups applying to central government funds.
Eligible startups shall be provided with a certifying document from the state
government that shall amplify the startup’s chances to benefit from central
government programs.
b. In addition to partnering with VCs and other investment entities to create funds to
support innovation and entrepreneurship in the IoT space, the Government shall set
up a dedicated pavilion for IoT at investors’ meets that happen in the state. Further,
IoT, as a field, shall be showcased as one of the focus areas of the government at
investors’ meets and road-shows that the state shall participate in.
c. Local HNI angel networks - Similar to what T-Hub did, the ITE&C Department, through
T-Works, is working towards building a bustling ecosystem around hardware product
startups including IoT products, thereby creating a pool of investors and mentors who
in turn will play an active role in nurturing the ecosystem. T-Works shall work with
startups to help them create pitch decks and connect with local angel investors,
hand-holding them through the entire funding process.
d. Crowd-funding – The ITE&C Department, through T-Works, shall also assist startups
in raising money through various crowd-funding sources by helping them create an
optimal strategy for their online profile and pitch.
Provide Support to Startups in raising Capital
The Government understands that startups with relevant products
might require financial assistance mainly for the following:
IoT POLICY 2017 | 17
PILLAR 3
1. Product Prototyping
2. Product Marketing
3. Production Scale-up
The Government has identified channels that can be harnessed to address the problem
with respect to funding. These channels include the following
a. In the Innovation Policy 2017, the Government of Telangana has announced that
access to securing financial support shall be provided through various channels
initiated by T-Hub and T-Works. In addition to providing assistance, through startup
cell, to enterprises to apply for various funding opportunities, the Government shall
also extend necessary support to startups applying to central government funds.
Eligible startups shall be provided with a certifying document from the state
government that shall amplify the startup’s chances to benefit from central
government programs.
b. In addition to partnering with VCs and other investment entities to create funds to
support innovation and entrepreneurship in the IoT space, the Government shall set
up a dedicated pavilion for IoT at investors’ meets that happen in the state. Further,
IoT, as a field, shall be showcased as one of the focus areas of the government at
investors’ meets and road-shows that the state shall participate in.
c. Local HNI angel networks - Similar to what T-Hub did, the ITE&C Department, through
T-Works, is working towards building a bustling ecosystem around hardware product
startups including IoT products, thereby creating a pool of investors and mentors who
in turn will play an active role in nurturing the ecosystem. T-Works shall work with
startups to help them create pitch decks and connect with local angel investors,
hand-holding them through the entire funding process.
d. Crowd-funding – The ITE&C Department, through T-Works, shall also assist startups
in raising money through various crowd-funding sources by helping them create an
optimal strategy for their online profile and pitch.
Provide Support to Startups in raising Capital
The Government understands that startups with relevant products
might require financial assistance mainly for the following:
IoT POLICY 2017 | 17
PILLAR 3
1. Product Prototyping
2. Product Marketing
3. Production Scale-up
IoT POLICY 2017 | 19
Create a ready-to-employ Talent Pool in the State
There’s a gap between the number of IoT jobs needed to make digitization a reality and
the number of workers in the market with the necessary skills. Public and private
organizations need to become producers and consumers of talent.
To meet the Talent requirements, the Government of Telangana shall invest in the
following steps and measures:
1. Work with institutions to augment curriculum to include IoT. This effort has already
started by engaging with TASK and autonomous institutes by starting faculty
training programs
2. Work with IoT Talent consortiums to impart training in the areas of Manufacturing,
Security and Data analytics
3. Work with T-Works to provide the hands-on training needed during the TASK
instructions
4. Work with Industry to understand latest technological innovations and
incorporate them in the TASK training
PILLAR 4
IoT POLICY 2017 | 19
Create a ready-to-employ Talent Pool in the State
There’s a gap between the number of IoT jobs needed to make digitization a reality and
the number of workers in the market with the necessary skills. Public and private
organizations need to become producers and consumers of talent.
To meet the Talent requirements, the Government of Telangana shall invest in the
following steps and measures:
1. Work with institutions to augment curriculum to include IoT. This effort has already
started by engaging with TASK and autonomous institutes by starting faculty
training programs
2. Work with IoT Talent consortiums to impart training in the areas of Manufacturing,
Security and Data analytics
3. Work with T-Works to provide the hands-on training needed during the TASK
instructions
4. Work with Industry to understand latest technological innovations and
incorporate them in the TASK training
PILLAR 4
Enter into Partnerships and Tie-ups to Develop
Know-how
The Government of Telangana shall forge strategic partnerships and tie-ups with entities
engaged in innovative and breakthrough pursuits in the IoT space. The State believes in
taking a collaborative approach towards creating a bustling ecosystem, conducive for
not only developing unique solutions, but also for providing an ideal environment for
testing them.
a. Collaborating with private sector for R&D: In addition to collaborating with colleges
for R&D projects, the Government shall outsource relevant R&D projects to corporate
incorporated in Telangana.
b. IEEE and other industry forums on IoT:
1. GoT shall work on university collaborations with established IEEE chapters
2. GoT shall partner with research labs in India to enable R&D
c. IoT hackathons: Government, through affiliated partners, shall organize hackathons
to encourage development of creative solutions to tackle present day problems.
Startups incorporated in Telangana shall be provided access to relevant anonymized
data to develop solutions that can be scaled into full-scale government contracts
post performance reviews.
d. Corporate R&D centres set up on a PPP model: The Government shall set up
focused R&D centres on a PPP model to encourage innovative solutions in the focus
areas of the Government.
e. Attract global mentorship programs: The government delegations, in addition to
participating in business development activities on international visits, shall also
identify potential institutions / organizations that specialize in offering IoT specific
mentorship programs. Countries such as China, South Korea and the USA are
among the leaders with a handful of impact creating mentorship programs. The
government shall work towards bringing such programs to the state to develop the
IoT ecosystem.
f. Collaboration with Foreign Countries: The Government of Telangana shall actively
engage with countries which have established themselves in the field of IoT to adopt
and develop best practices. SATREPS, a scheme to support joint research between
Japan and foreign countries supported by JICA and JETRO (Japanese trade
organizations), is already collaborating with IIT-Hyderabad to invest 100 Cr for
research in IoT.
IoT POLICY 2017 | 21
PILLAR 5
Enter into Partnerships and Tie-ups to Develop
Know-how
The Government of Telangana shall forge strategic partnerships and tie-ups with entities
engaged in innovative and breakthrough pursuits in the IoT space. The State believes in
taking a collaborative approach towards creating a bustling ecosystem, conducive for
not only developing unique solutions, but also for providing an ideal environment for
testing them.
a. Collaborating with private sector for R&D: In addition to collaborating with colleges
for R&D projects, the Government shall outsource relevant R&D projects to corporate
incorporated in Telangana.
b. IEEE and other industry forums on IoT:
1. GoT shall work on university collaborations with established IEEE chapters
2. GoT shall partner with research labs in India to enable R&D
c. IoT hackathons: Government, through affiliated partners, shall organize hackathons
to encourage development of creative solutions to tackle present day problems.
Startups incorporated in Telangana shall be provided access to relevant anonymized
data to develop solutions that can be scaled into full-scale government contracts
post performance reviews.
d. Corporate R&D centres set up on a PPP model: The Government shall set up
focused R&D centres on a PPP model to encourage innovative solutions in the focus
areas of the Government.
e. Attract global mentorship programs: The government delegations, in addition to
participating in business development activities on international visits, shall also
identify potential institutions / organizations that specialize in offering IoT specific
mentorship programs. Countries such as China, South Korea and the USA are
among the leaders with a handful of impact creating mentorship programs. The
government shall work towards bringing such programs to the state to develop the
IoT ecosystem.
f. Collaboration with Foreign Countries: The Government of Telangana shall actively
engage with countries which have established themselves in the field of IoT to adopt
and develop best practices. SATREPS, a scheme to support joint research between
Japan and foreign countries supported by JICA and JETRO (Japanese trade
organizations), is already collaborating with IIT-Hyderabad to invest 100 Cr for
research in IoT.
IoT POLICY 2017 | 21
PILLAR 5
Incentives
To encourage and foster IOT Hardware manufacturing in the state of Telangana, all the
incentives mentioned in the Electronics Policy 2016, will be applicable for IoT device and
hardware manufacturers.
To better support IOT hardware manufacturing in the state, further incentives in the areas
of Quality Certification, Patent Filing and SGST reimbursement will be made available.
Assistance in Patent Filing: Reimbursement of 50% of the cost of filing patents, subject
to a limit of INR 5 Lakhs.
Reimbursement of Costs for Quality Certification: 50% subsidy on the expenses
incurred for quality certification limited to INR 5 Lakhs.
Incentives to IoT Device and Hardware Manufacturers
22 | IoT POLICY 2017
In addition to the common incentives mentioned in the Incentives for Expansion of
IT/ITeS Units 2016, all incentives applicable to SME and Mid-Scale Companies
according to Incentives for Expansion of IT/ITeS Units 2016 shall be applicable to
IoT Software Applications and Analytics Solution Developers.
Incentives to IoT Software Applications and
Analytics Solution Developers
Incentives
To encourage and foster IOT Hardware manufacturing in the state of Telangana, all the
incentives mentioned in the Electronics Policy 2016, will be applicable for IoT device and
hardware manufacturers.
To better support IOT hardware manufacturing in the state, further incentives in the areas
of Quality Certification, Patent Filing and SGST reimbursement will be made available.
Assistance in Patent Filing: Reimbursement of 50% of the cost of filing patents, subject
to a limit of INR 5 Lakhs.
Reimbursement of Costs for Quality Certification: 50% subsidy on the expenses
incurred for quality certification limited to INR 5 Lakhs.
Incentives to IoT Device and Hardware Manufacturers
22 | IoT POLICY 2017
In addition to the common incentives mentioned in the Incentives for Expansion of
IT/ITeS Units 2016, all incentives applicable to SME and Mid-Scale Companies
according to Incentives for Expansion of IT/ITeS Units 2016 shall be applicable to
IoT Software Applications and Analytics Solution Developers.
Incentives to IoT Software Applications and
Analytics Solution Developers
Jayesh Ranjan IAS
Principal Secretary to Government
Information Technology, Electronics
& Communications Department
Government of Telangana
D - Block 2nd Floor Room No. 315A
Telangana Secretariat Hyderabad - 500 022
P: +91 40 2345 6401 F: +91 40 2345 0103
secy_itc@telangana.gov.in
jayesh_ranjan@hotmail.com
http://it.telangana.gov.in

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Telangana IoT Policy-2017

  • 1. Information Technology, Electronics & Communications Department Government of Telangana IoT POLICY 2017
  • 2. Telangana State, despite being the newest state in the country, has earned widespread recognition and acclaim for its agility to adopt new and emerging technologies in different spheres of activities. World over, research institutions, private companies, and startups are creating more and more sophisticated technologies that help us use our devices in newer ways and help us navigate everyday life processes in an efficient and superior manner. It is estimated that there are 6.4 Billion number of connected devices in the world today and this is only going to become larger in the days to come. It is not considered science fiction anymore to imagine that as soon as you reach your home your phone has already spoken to your air conditioner, your car to your garage, and your wearable gadget to your home security system. What began to be spoken as Internet of Things is soon going to encompass a new dimension of Internet of Everything. All such path breaking developments also provide a huge opportunity for Governments to ensure that the best of IoT and smart technologies are made available to benefit its citizens. The approach of Telangana Government is to ensure that all such potential developments get translated into concrete action through the means of a facilitating policy. I am very happy to share with you a dedicated policy on IoT, which becomes the 9th of the domain policies under the umbrella of ICT Policy Framework. As with the other 8 policies, the present policy explains the support the government will provide to the private sector including private companies, startups, R&D institutions to manufacture their IoT devices in the state, to develop corresponding algorithms and other software, and to achieve an integration of the hardware and the software. The policy also explains about how the government proposes to set up a comprehensive ecosystem for IoT, and how the government intends to use these technologies through its multiple departments and agencies. Sri K. Taraka Rama Rao Message Hon'ble Minister for IT, MA&UD Industries & Commerce, Public Enterprises Sugar, Mines & Geology, NRI Affairs Government of Telangana Telangana State, despite being the newest state in the country, has earned widespread recognition and acclaim for its agility to adopt new and emerging technologies in different spheres of activities. World over, research institutions, private companies, and startups are creating more and more sophisticated technologies that help us use our devices in newer ways and help us navigate everyday life processes in an efficient and superior manner. It is estimated that there are 6.4 Billion number of connected devices in the world today and this is only going to become larger in the days to come. It is not considered science fiction anymore to imagine that as soon as you reach your home your phone has already spoken to your air conditioner, your car to your garage, and your wearable gadget to your home security system. What began to be spoken as Internet of Things is soon going to encompass a new dimension of Internet of Everything. All such path breaking developments also provide a huge opportunity for Governments to ensure that the best of IoT and smart technologies are made available to benefit its citizens. The approach of Telangana Government is to ensure that all such potential developments get translated into concrete action through the means of a facilitating policy. I am very happy to share with you a dedicated policy on IoT, which becomes the 9th of the domain policies under the umbrella of ICT Policy Framework. As with the other 8 policies, the present policy explains the support the government will provide to the private sector including private companies, startups, R&D institutions to manufacture their IoT devices in the state, to develop corresponding algorithms and other software, and to achieve an integration of the hardware and the software. The policy also explains about how the government proposes to set up a comprehensive ecosystem for IoT, and how the government intends to use these technologies through its multiple departments and agencies. Sri K. Taraka Rama Rao Message Hon'ble Minister for IT, MA&UD Industries & Commerce, Public Enterprises Sugar, Mines & Geology, NRI Affairs Government of Telangana
  • 3. PAGE Index Vision 7 Objectives 7 Focus Areas of the State within IoT 10 Pillar 1: Develop World Class Infrastructure to promote development of IoT Products T-Works: 13 Pillar 2: Promote Manufacturing and Procurement of IoT Based Solutions 15 Pillar 3: Provide Support to Startups in raising Capital 17 Pillar 4: Create a ready-to-employ Talent Pool in the State 19 Pillar 5: Partnerships and Tie-Ups to develop Know-how 21 Incentives 22 Incentives to IoT Device and Hardware Manufacturers Incentives to IoT Software Applications and Analytics Solution Developers Customs Facilitation Cell Procurement of Components used to Manufacture IoT Devices Government Procurement of IoT Products/Services Earmarked Area for conducting PoCs PAGE Index Vision 7 Objectives 7 Focus Areas of the State within IoT 10 Pillar 1: Develop World Class Infrastructure to promote development of IoT Products T-Works: 13 Pillar 2: Promote Manufacturing and Procurement of IoT Based Solutions 15 Pillar 3: Provide Support to Startups in raising Capital 17 Pillar 4: Create a ready-to-employ Talent Pool in the State 19 Pillar 5: Partnerships and Tie-Ups to develop Know-how 21 Incentives 22 Incentives to IoT Device and Hardware Manufacturers Incentives to IoT Software Applications and Analytics Solution Developers Customs Facilitation Cell Procurement of Components used to Manufacture IoT Devices Government Procurement of IoT Products/Services Earmarked Area for conducting PoCs
  • 4. • To create an atmosphere conducive for IoT specific businesses and manufacturing units to thrive in the State • To position Telangana as a test bed for IoT solutions Vision • To attract investments worth 10,000 Cr and generate direct employment to 50,000 people in the next 5 years • Create 5 zones each in Hyderabad, Warangal, and Sircilla districts for deploying PoCs in the IoT Space Objectives 1. Develop World Class Infrastructure to promote development of IoT Products 2. Promote Manufacturing and Procurement of IoT Based Solutions 3. Provide Support to Startups in raising Capital 4. Create a ready-to-employ Talent Pool in the State 5. Enter into Partnerships and Tie-Ups to develop Know-how To achieve the objectives set for the State, the Government plans to take a 5-Pillared Approach IoT POLICY 2017 | 7 • To create an atmosphere conducive for IoT specific businesses and manufacturing units to thrive in the State • To position Telangana as a test bed for IoT solutions Vision • To attract investments worth 10,000 Cr and generate direct employment to 50,000 people in the next 5 years • Create 5 zones each in Hyderabad, Warangal, and Sircilla districts for deploying PoCs in the IoT Space Objectives 1. Develop World Class Infrastructure to promote development of IoT Products 2. Promote Manufacturing and Procurement of IoT Based Solutions 3. Provide Support to Startups in raising Capital 4. Create a ready-to-employ Talent Pool in the State 5. Enter into Partnerships and Tie-Ups to develop Know-how To achieve the objectives set for the State, the Government plans to take a 5-Pillared Approach IoT POLICY 2017 | 7
  • 6. The global digital landscape has been at the receiving end of a major transition on the technical, social and economic fronts, thanks to Internet of Things, commonly addressed as IoT. The advent of IoT has led to direct advancements in development of consumer products, automobiles, industry components and sensors, to name a few. Further, the NASSCOM report on IoT in India states that the IoT market in India is poised to reach USD 15 billion by 2020 accounting for a little over 5% of the total global market, which is estimated to reach USD 262 billion. IoT exhibits a unique promise of not only simplifying implementation of mechanisms in various fields but also transform multiple aspects of the way we live. The Government of Telangana understands the strong potential IoT possesses, and envisions to transform specific priority areas that are linked with the strengths of the state. These areas include, but are not limited to, the following: Focus Areas of the State within IoT The Government of India has embarked on an ambitious plan to develop smart cities across the nation, leading to a massive expansion and adoption of IoT in the country. Further, with the advent of Digital India program, digital initiatives in multiple sectors have been launched with the aim of ‘transforming India into a digitally empowered society and knowledge economy’. IoT will be crucial in developing smart cities with the following aspects: Smart City Solutions • Smart Parking • Smart Lighting • Intelligent Transportation • Intelligent Logistics Management • Citizen Safety 10 | IoT POLICY 2017 • Smart Power Management • Smart Waste Management • Smart Environment • Smart Control Centre • Connected Home Hyderabad is home to several major pharmaceutical companies and R&D centres in the biotechnology space. The city houses several multinational life sciences’ giants such as DuPont, AMRI, Sanofi Aventis, Novartis, Dr. Reddy’s, Aurobindo Pharma, etc. Also, the innovation drive in Hyderabad is perennially high due to the presence of world renowned academic and research institutes such as IICT and CCMB, and a large number of super-speciality hospitals. Also, Hyderabad has a dominant position in the Pharma sector as the leader in manufacturing drugs in the country. With about 40% of the total Indian bulk drug production and 50% of the total bulk drug exports happening from the state, Industrial manufacturing, with focus on pharmaceuticals, is one of the key areas that could be transformed by IoT. In addition to industrial IoT in the Pharma Sector, there has been a trend of people increasingly adopting wearable tech to monitor vitals and some bodily functions. Telangana wishes to ride on this growth and facilitate the development of newer and more advanced technologies in this area. A dedicated park for medical devices is also in the pipeline to enable this. Medical / Health IoT The logistics industry in India, dominated by unorganized players is plagued by low utilization rates primarily due to absence of free information exchange across industry participants. Shared Logistics and Warehousing platforms connecting transportation and warehousing companies in real-time with logistics customers addresses the challenge of empty backhauls and low utilization rates. These logistics platforms by providing real time information enable logistics companies to enhance utilization rates leading to higher profits. With a larger share of the industry becoming organized, through use of IoT based smart solutions, the Government will benefit from higher tax realization, consumers benefit from lower costs, and the broader society benefits from reduced emissions and traffic congestions. Smart Logistics One of the key focus areas under the Digital Telangana program is agriculture. The Government of Telangana is working with ICRISAT to develop a platform for the Agriculture Extension System to extract maximum output from farmers by connecting them with advanced research, weather information system, pest identification system etc. Moving forward, the Government would like to adopt agriculture IoT solutions that will increase farm output and efficiency of the markets. Agri-Tech4 IoT POLICY 2017 | 11 The global digital landscape has been at the receiving end of a major transition on the technical, social and economic fronts, thanks to Internet of Things, commonly addressed as IoT. The advent of IoT has led to direct advancements in development of consumer products, automobiles, industry components and sensors, to name a few. Further, the NASSCOM report on IoT in India states that the IoT market in India is poised to reach USD 15 billion by 2020 accounting for a little over 5% of the total global market, which is estimated to reach USD 262 billion. IoT exhibits a unique promise of not only simplifying implementation of mechanisms in various fields but also transform multiple aspects of the way we live. The Government of Telangana understands the strong potential IoT possesses, and envisions to transform specific priority areas that are linked with the strengths of the state. These areas include, but are not limited to, the following: Focus Areas of the State within IoT The Government of India has embarked on an ambitious plan to develop smart cities across the nation, leading to a massive expansion and adoption of IoT in the country. Further, with the advent of Digital India program, digital initiatives in multiple sectors have been launched with the aim of ‘transforming India into a digitally empowered society and knowledge economy’. IoT will be crucial in developing smart cities with the following aspects: Smart City Solutions • Smart Parking • Smart Lighting • Intelligent Transportation • Intelligent Logistics Management • Citizen Safety 10 | IoT POLICY 2017 • Smart Power Management • Smart Waste Management • Smart Environment • Smart Control Centre • Connected Home Hyderabad is home to several major pharmaceutical companies and R&D centres in the biotechnology space. The city houses several multinational life sciences’ giants such as DuPont, AMRI, Sanofi Aventis, Novartis, Dr. Reddy’s, Aurobindo Pharma, etc. Also, the innovation drive in Hyderabad is perennially high due to the presence of world renowned academic and research institutes such as IICT and CCMB, and a large number of super-speciality hospitals. Also, Hyderabad has a dominant position in the Pharma sector as the leader in manufacturing drugs in the country. With about 40% of the total Indian bulk drug production and 50% of the total bulk drug exports happening from the state, Industrial manufacturing, with focus on pharmaceuticals, is one of the key areas that could be transformed by IoT. In addition to industrial IoT in the Pharma Sector, there has been a trend of people increasingly adopting wearable tech to monitor vitals and some bodily functions. Telangana wishes to ride on this growth and facilitate the development of newer and more advanced technologies in this area. A dedicated park for medical devices is also in the pipeline to enable this. Medical / Health IoT The logistics industry in India, dominated by unorganized players is plagued by low utilization rates primarily due to absence of free information exchange across industry participants. Shared Logistics and Warehousing platforms connecting transportation and warehousing companies in real-time with logistics customers addresses the challenge of empty backhauls and low utilization rates. These logistics platforms by providing real time information enable logistics companies to enhance utilization rates leading to higher profits. With a larger share of the industry becoming organized, through use of IoT based smart solutions, the Government will benefit from higher tax realization, consumers benefit from lower costs, and the broader society benefits from reduced emissions and traffic congestions. Smart Logistics One of the key focus areas under the Digital Telangana program is agriculture. The Government of Telangana is working with ICRISAT to develop a platform for the Agriculture Extension System to extract maximum output from farmers by connecting them with advanced research, weather information system, pest identification system etc. Moving forward, the Government would like to adopt agriculture IoT solutions that will increase farm output and efficiency of the markets. Agri-Tech4 IoT POLICY 2017 | 11
  • 7. T-Works, a hardware prototyping centre being set up by the Government of Telangana State includes facilities to prototype IoT tech - electronics section, rapid prototyping, metal, woodworking, welding, etc. Although T-Works is a larger entity aimed for hardware product startups as a whole, one of the key focus areas of T-Works is Internet-of-Things. T-Works shall: • Create test beds for IoT • Tie-up with corporate and labs for accessing testing tools and other prototyping equipment specific to IoT • Bring together mentors, experts, industry, makers, funders • Provide world class prototyping facility to convert idea to prototypes and products • Work with government and innovators to identify and articulate Smart City related IoT problem and highlight potential solutions Moreover, T-Works has identified primary gap areas in the Indian hardware ecosystem through research and groundwork. It is estimated that filling these gaps will reduce product development cost and time by over 50% for hardware product developers. Develop World Class Infrastructure to Promote Development of IoT Products T-Works PILLAR 1 Prototype Infrastructure: Central to T-Works is a world class prototyping infrastructure which will reduce time and cost of converting idea to product. Streamlining Sourcing: Facilitate procurement of essential electronic components by partnering electronics distributors and supply chain service provider and reduce shipping time and shipping cost. Early Stage Funding: Provide funding opportunities for startups selected into incubation program through Telangana Innovation Fund, T-Works Electronics Development Fund, and by facilitating crowd funding. Mentoring and Industry Collaboration: Enable one-to-one mentoring by co-locating industry and first- time entrepreneurs, provide access to business leaders, investors, system architects, collaborate with other startups through T-Hub, connect with Silicon Valley VCs through T-Bridge, work with defence labs and other national and international incubators. Service Provider Network: Facilitate a vibrant ecosystem of service providers in engineering, design, and business to fill all the competency gaps for startup teams. Manufacturing Support: T-Works shall facilitate startups to manufacture products by building a network of local and global manufacturers. T-Works shall also build a business case for local manufacturing by developing a pipeline of product ideas. While the local manufacturing ecosystem continues to mature, T-Works shall also establish a bridge with global manufacturing hubs. IoT POLICY 2017 | 13 T-Works, a hardware prototyping centre being set up by the Government of Telangana State includes facilities to prototype IoT tech - electronics section, rapid prototyping, metal, woodworking, welding, etc. Although T-Works is a larger entity aimed for hardware product startups as a whole, one of the key focus areas of T-Works is Internet-of-Things. T-Works shall: • Create test beds for IoT • Tie-up with corporate and labs for accessing testing tools and other prototyping equipment specific to IoT • Bring together mentors, experts, industry, makers, funders • Provide world class prototyping facility to convert idea to prototypes and products • Work with government and innovators to identify and articulate Smart City related IoT problem and highlight potential solutions Moreover, T-Works has identified primary gap areas in the Indian hardware ecosystem through research and groundwork. It is estimated that filling these gaps will reduce product development cost and time by over 50% for hardware product developers. Develop World Class Infrastructure to Promote Development of IoT Products T-Works PILLAR 1 Prototype Infrastructure: Central to T-Works is a world class prototyping infrastructure which will reduce time and cost of converting idea to product. Streamlining Sourcing: Facilitate procurement of essential electronic components by partnering electronics distributors and supply chain service provider and reduce shipping time and shipping cost. Early Stage Funding: Provide funding opportunities for startups selected into incubation program through Telangana Innovation Fund, T-Works Electronics Development Fund, and by facilitating crowd funding. Mentoring and Industry Collaboration: Enable one-to-one mentoring by co-locating industry and first- time entrepreneurs, provide access to business leaders, investors, system architects, collaborate with other startups through T-Hub, connect with Silicon Valley VCs through T-Bridge, work with defence labs and other national and international incubators. Service Provider Network: Facilitate a vibrant ecosystem of service providers in engineering, design, and business to fill all the competency gaps for startup teams. Manufacturing Support: T-Works shall facilitate startups to manufacture products by building a network of local and global manufacturers. T-Works shall also build a business case for local manufacturing by developing a pipeline of product ideas. While the local manufacturing ecosystem continues to mature, T-Works shall also establish a bridge with global manufacturing hubs. IoT POLICY 2017 | 13
  • 8. IoT POLICY 2017 | 15 Customs Facilitation Cell Telangana Government understands the challenges in understanding customs rules and importing parts from outside to India. In order the reduce lead times and the costs associated with delays, a customs facilitation cell shall be set up that will handhold companies in the process of international procurement. Procurement of Components used to Manufacture IoT Devices The promotions wing of ITE&C Dept. and T-Works shall facilitate electronics component distributors to set up their distribution centres in Telangana, thereby reducing shipping times and cost. Government Procurement of IoT Products/Services A formal mechanism through which the ITE&C Dept. streamlines procurement of new-age technologies by other departments shall be established. Preference for such procurement shall be given to players who already have a presence in Telangana. The State is also in the process of formalizing a procurement policy that will enable procurement of relevant new-age technologies from startups on a priority basis. Earmarked Area for conducting PoCs The Government of Telangana, in addition to providing necessary regulatory support to enterprises and organizations developing innovative smart technology solutions, shall designated zones across different cities for piloting verified solutions across various focus areas. Five zones each shall be earmarked in the districts of Hyderabad, Warangal, and Sircilla for conducting these PoCs. Relevant permission shall be provided through a single-window on a priority basis for PoCs in these zones. In addition to this, other cities being included in the Smart Cities Mission will also host relevant PoCs. Promote Manufacturing and Procurement of IoT Based Solutions PILLAR 2 IoT POLICY 2017 | 15 Customs Facilitation Cell Telangana Government understands the challenges in understanding customs rules and importing parts from outside to India. In order the reduce lead times and the costs associated with delays, a customs facilitation cell shall be set up that will handhold companies in the process of international procurement. Procurement of Components used to Manufacture IoT Devices The promotions wing of ITE&C Dept. and T-Works shall facilitate electronics component distributors to set up their distribution centres in Telangana, thereby reducing shipping times and cost. Government Procurement of IoT Products/Services A formal mechanism through which the ITE&C Dept. streamlines procurement of new-age technologies by other departments shall be established. Preference for such procurement shall be given to players who already have a presence in Telangana. The State is also in the process of formalizing a procurement policy that will enable procurement of relevant new-age technologies from startups on a priority basis. Earmarked Area for conducting PoCs The Government of Telangana, in addition to providing necessary regulatory support to enterprises and organizations developing innovative smart technology solutions, shall designated zones across different cities for piloting verified solutions across various focus areas. Five zones each shall be earmarked in the districts of Hyderabad, Warangal, and Sircilla for conducting these PoCs. Relevant permission shall be provided through a single-window on a priority basis for PoCs in these zones. In addition to this, other cities being included in the Smart Cities Mission will also host relevant PoCs. Promote Manufacturing and Procurement of IoT Based Solutions PILLAR 2
  • 9. The Government has identified channels that can be harnessed to address the problem with respect to funding. These channels include the following a. In the Innovation Policy 2017, the Government of Telangana has announced that access to securing financial support shall be provided through various channels initiated by T-Hub and T-Works. In addition to providing assistance, through startup cell, to enterprises to apply for various funding opportunities, the Government shall also extend necessary support to startups applying to central government funds. Eligible startups shall be provided with a certifying document from the state government that shall amplify the startup’s chances to benefit from central government programs. b. In addition to partnering with VCs and other investment entities to create funds to support innovation and entrepreneurship in the IoT space, the Government shall set up a dedicated pavilion for IoT at investors’ meets that happen in the state. Further, IoT, as a field, shall be showcased as one of the focus areas of the government at investors’ meets and road-shows that the state shall participate in. c. Local HNI angel networks - Similar to what T-Hub did, the ITE&C Department, through T-Works, is working towards building a bustling ecosystem around hardware product startups including IoT products, thereby creating a pool of investors and mentors who in turn will play an active role in nurturing the ecosystem. T-Works shall work with startups to help them create pitch decks and connect with local angel investors, hand-holding them through the entire funding process. d. Crowd-funding – The ITE&C Department, through T-Works, shall also assist startups in raising money through various crowd-funding sources by helping them create an optimal strategy for their online profile and pitch. Provide Support to Startups in raising Capital The Government understands that startups with relevant products might require financial assistance mainly for the following: IoT POLICY 2017 | 17 PILLAR 3 1. Product Prototyping 2. Product Marketing 3. Production Scale-up The Government has identified channels that can be harnessed to address the problem with respect to funding. These channels include the following a. In the Innovation Policy 2017, the Government of Telangana has announced that access to securing financial support shall be provided through various channels initiated by T-Hub and T-Works. In addition to providing assistance, through startup cell, to enterprises to apply for various funding opportunities, the Government shall also extend necessary support to startups applying to central government funds. Eligible startups shall be provided with a certifying document from the state government that shall amplify the startup’s chances to benefit from central government programs. b. In addition to partnering with VCs and other investment entities to create funds to support innovation and entrepreneurship in the IoT space, the Government shall set up a dedicated pavilion for IoT at investors’ meets that happen in the state. Further, IoT, as a field, shall be showcased as one of the focus areas of the government at investors’ meets and road-shows that the state shall participate in. c. Local HNI angel networks - Similar to what T-Hub did, the ITE&C Department, through T-Works, is working towards building a bustling ecosystem around hardware product startups including IoT products, thereby creating a pool of investors and mentors who in turn will play an active role in nurturing the ecosystem. T-Works shall work with startups to help them create pitch decks and connect with local angel investors, hand-holding them through the entire funding process. d. Crowd-funding – The ITE&C Department, through T-Works, shall also assist startups in raising money through various crowd-funding sources by helping them create an optimal strategy for their online profile and pitch. Provide Support to Startups in raising Capital The Government understands that startups with relevant products might require financial assistance mainly for the following: IoT POLICY 2017 | 17 PILLAR 3 1. Product Prototyping 2. Product Marketing 3. Production Scale-up
  • 10. IoT POLICY 2017 | 19 Create a ready-to-employ Talent Pool in the State There’s a gap between the number of IoT jobs needed to make digitization a reality and the number of workers in the market with the necessary skills. Public and private organizations need to become producers and consumers of talent. To meet the Talent requirements, the Government of Telangana shall invest in the following steps and measures: 1. Work with institutions to augment curriculum to include IoT. This effort has already started by engaging with TASK and autonomous institutes by starting faculty training programs 2. Work with IoT Talent consortiums to impart training in the areas of Manufacturing, Security and Data analytics 3. Work with T-Works to provide the hands-on training needed during the TASK instructions 4. Work with Industry to understand latest technological innovations and incorporate them in the TASK training PILLAR 4 IoT POLICY 2017 | 19 Create a ready-to-employ Talent Pool in the State There’s a gap between the number of IoT jobs needed to make digitization a reality and the number of workers in the market with the necessary skills. Public and private organizations need to become producers and consumers of talent. To meet the Talent requirements, the Government of Telangana shall invest in the following steps and measures: 1. Work with institutions to augment curriculum to include IoT. This effort has already started by engaging with TASK and autonomous institutes by starting faculty training programs 2. Work with IoT Talent consortiums to impart training in the areas of Manufacturing, Security and Data analytics 3. Work with T-Works to provide the hands-on training needed during the TASK instructions 4. Work with Industry to understand latest technological innovations and incorporate them in the TASK training PILLAR 4
  • 11. Enter into Partnerships and Tie-ups to Develop Know-how The Government of Telangana shall forge strategic partnerships and tie-ups with entities engaged in innovative and breakthrough pursuits in the IoT space. The State believes in taking a collaborative approach towards creating a bustling ecosystem, conducive for not only developing unique solutions, but also for providing an ideal environment for testing them. a. Collaborating with private sector for R&D: In addition to collaborating with colleges for R&D projects, the Government shall outsource relevant R&D projects to corporate incorporated in Telangana. b. IEEE and other industry forums on IoT: 1. GoT shall work on university collaborations with established IEEE chapters 2. GoT shall partner with research labs in India to enable R&D c. IoT hackathons: Government, through affiliated partners, shall organize hackathons to encourage development of creative solutions to tackle present day problems. Startups incorporated in Telangana shall be provided access to relevant anonymized data to develop solutions that can be scaled into full-scale government contracts post performance reviews. d. Corporate R&D centres set up on a PPP model: The Government shall set up focused R&D centres on a PPP model to encourage innovative solutions in the focus areas of the Government. e. Attract global mentorship programs: The government delegations, in addition to participating in business development activities on international visits, shall also identify potential institutions / organizations that specialize in offering IoT specific mentorship programs. Countries such as China, South Korea and the USA are among the leaders with a handful of impact creating mentorship programs. The government shall work towards bringing such programs to the state to develop the IoT ecosystem. f. Collaboration with Foreign Countries: The Government of Telangana shall actively engage with countries which have established themselves in the field of IoT to adopt and develop best practices. SATREPS, a scheme to support joint research between Japan and foreign countries supported by JICA and JETRO (Japanese trade organizations), is already collaborating with IIT-Hyderabad to invest 100 Cr for research in IoT. IoT POLICY 2017 | 21 PILLAR 5 Enter into Partnerships and Tie-ups to Develop Know-how The Government of Telangana shall forge strategic partnerships and tie-ups with entities engaged in innovative and breakthrough pursuits in the IoT space. The State believes in taking a collaborative approach towards creating a bustling ecosystem, conducive for not only developing unique solutions, but also for providing an ideal environment for testing them. a. Collaborating with private sector for R&D: In addition to collaborating with colleges for R&D projects, the Government shall outsource relevant R&D projects to corporate incorporated in Telangana. b. IEEE and other industry forums on IoT: 1. GoT shall work on university collaborations with established IEEE chapters 2. GoT shall partner with research labs in India to enable R&D c. IoT hackathons: Government, through affiliated partners, shall organize hackathons to encourage development of creative solutions to tackle present day problems. Startups incorporated in Telangana shall be provided access to relevant anonymized data to develop solutions that can be scaled into full-scale government contracts post performance reviews. d. Corporate R&D centres set up on a PPP model: The Government shall set up focused R&D centres on a PPP model to encourage innovative solutions in the focus areas of the Government. e. Attract global mentorship programs: The government delegations, in addition to participating in business development activities on international visits, shall also identify potential institutions / organizations that specialize in offering IoT specific mentorship programs. Countries such as China, South Korea and the USA are among the leaders with a handful of impact creating mentorship programs. The government shall work towards bringing such programs to the state to develop the IoT ecosystem. f. Collaboration with Foreign Countries: The Government of Telangana shall actively engage with countries which have established themselves in the field of IoT to adopt and develop best practices. SATREPS, a scheme to support joint research between Japan and foreign countries supported by JICA and JETRO (Japanese trade organizations), is already collaborating with IIT-Hyderabad to invest 100 Cr for research in IoT. IoT POLICY 2017 | 21 PILLAR 5
  • 12. Incentives To encourage and foster IOT Hardware manufacturing in the state of Telangana, all the incentives mentioned in the Electronics Policy 2016, will be applicable for IoT device and hardware manufacturers. To better support IOT hardware manufacturing in the state, further incentives in the areas of Quality Certification, Patent Filing and SGST reimbursement will be made available. Assistance in Patent Filing: Reimbursement of 50% of the cost of filing patents, subject to a limit of INR 5 Lakhs. Reimbursement of Costs for Quality Certification: 50% subsidy on the expenses incurred for quality certification limited to INR 5 Lakhs. Incentives to IoT Device and Hardware Manufacturers 22 | IoT POLICY 2017 In addition to the common incentives mentioned in the Incentives for Expansion of IT/ITeS Units 2016, all incentives applicable to SME and Mid-Scale Companies according to Incentives for Expansion of IT/ITeS Units 2016 shall be applicable to IoT Software Applications and Analytics Solution Developers. Incentives to IoT Software Applications and Analytics Solution Developers Incentives To encourage and foster IOT Hardware manufacturing in the state of Telangana, all the incentives mentioned in the Electronics Policy 2016, will be applicable for IoT device and hardware manufacturers. To better support IOT hardware manufacturing in the state, further incentives in the areas of Quality Certification, Patent Filing and SGST reimbursement will be made available. Assistance in Patent Filing: Reimbursement of 50% of the cost of filing patents, subject to a limit of INR 5 Lakhs. Reimbursement of Costs for Quality Certification: 50% subsidy on the expenses incurred for quality certification limited to INR 5 Lakhs. Incentives to IoT Device and Hardware Manufacturers 22 | IoT POLICY 2017 In addition to the common incentives mentioned in the Incentives for Expansion of IT/ITeS Units 2016, all incentives applicable to SME and Mid-Scale Companies according to Incentives for Expansion of IT/ITeS Units 2016 shall be applicable to IoT Software Applications and Analytics Solution Developers. Incentives to IoT Software Applications and Analytics Solution Developers
  • 13. Jayesh Ranjan IAS Principal Secretary to Government Information Technology, Electronics & Communications Department Government of Telangana D - Block 2nd Floor Room No. 315A Telangana Secretariat Hyderabad - 500 022 P: +91 40 2345 6401 F: +91 40 2345 0103 secy_itc@telangana.gov.in jayesh_ranjan@hotmail.com http://it.telangana.gov.in