The planned district reportedly aim to establish an ecosystem for [blockchain] startups and research institutes. Whereas it’ll seek to draw in a number of various blockchain projects, the initiative reportedly has a specific focus on those operations to develop blockchain apps for the banking sector, financial services and insurance, pharma and health-care, logistics as well as supply chain management and solutions for the govt. sectors.
As per the reporting media, the main strategy to determine the district will be to provide substantial concessions and advantages, together with tax relief, state-sponsored cloud storage subsidies along with the monetary grants.
These will embrace relief from the state’s part of India’s Good and Services Tax [GST] for a time frame of 3 years, a 75% subsidy in travel expenses when project founders attend world conferences and a about 25% compensation in internet costs. Additionally, projects can expect to receive a one-time grant of ₹10 lakh rupees [around $14,400 USD].
An anonymous senior level State IT Ministry official is cited by the native reporting media stating that “for mega Blockchain projects, separate packages will be devised.”
The blockchain district policy – revealed in draft from last week and about to be cleared after India’s forth-coming ‘cabinet expansion‘ – will also aim to determine a co-working space, a global liaison office, an incubator for early-stage blockchain start-ups, a restrictive sandbox and an R&D institute in Telangana, the report adds.
Plans for the district were initially green-lighted in an agreement with Indian multinational IT giant ‘Mahindra’ last year, the report notes. The policy will additionally aim to devise blockchain courses in cooperation with the Telangana Academy for Skill and Knowledge and prime figures within the industry.
Also last year, the state of Telangana ‘signed‘ many MoU [Memoranda of Understanding] with blockchain companies with the vision of implementing the technology within the state applications.
Moreover, the status and the ‘future‘ of cryptocurrencies in India still remains ‘extremely complex‘, prompting many major domestic exchanges to ‘shutter‘ services due to the existing regulatory pressure.