Indian state of Telangana releases draft Blockchain Policy, seeks to attract firms, startups with incentives
Mon, 27 May 2019, 18:05 pm UTC
The government of the Indian state of Telangana has released a draft Blockchain Policy to create a conducive ecosystem for blockchain technology in a bid to position Hyderabad as one of the top 10 blockchain cities of the world.
According to the draft, the government is seeking to establish a "Blockchain District." Towards the realization of this goal, Hyderabad will house major blockchain technology companies, have a huge incubator and a world-class facility to promote research, innovation, and industry collaboration. The initiative aims to place companies based out of Hyderabad at a strategically advantageous position globally.
“Taking a giant leap in this direction, the Government of Telangana has conceptualized India’s first ‘Blockchain District’ which will be a physical area with Hyderabad and will aim to create the world’s best blockchain technology ecosystem,” the draft, released on May 17, stated.
The draft framework highlighted four main pillars that include developing talent pool, supporting infrastructure, promoting research and innovation, and enabling collaboration and building community.
Furthermore, the draft policy also plans to provide incentives and subsidies for enterprises, startups, and other entities. Enterprises will receive a 25% subsidy on lease rentals and 50% for exhibition rentals. Startups will enjoy 100% reimbursement of State Goods and Services Tax and 75% for blockchain-related conferences travel, 10% R&D grant, and one-time startup grant to 10 blockchain startups per year. Sponsorship will also be offered for organizations planning to conduct blockchain-related events or conferences.
According to the draft, blockchain is anticipated to generate a massive $3 trillion per year in business value and could power between 10% and 20% of the country's global economic infrastructure.
Once approved, India will soon join the growing list of crypto-friendly countries for businesses, including the United States, Switzerland, Japan, Singapore, and Luxembourg.
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