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Action plan to boost IT -- Centre, States offer duty sops

Our Bureau

NEW DELHI, July 15

THE Union Government and the State Governments will allow free right of way facility, with no charge in cash or kind, to access providers to lay optical fibre networks along national highways, State highways and other roads, and only a nominal restoratio n fee will be charged for providing this facility.

This was one of the 13 action plans agreed upon at the first national conference of State IT ministers on Saturday, the Union Minister of Information Technology, Mr. Pramod Mahajan, said while briefing newspersons.

However, he added: ``If the State Governments charge the access providers, the NHAI will also charge them for doing the same work along national highways.''

The Union Government has agreed to reduce the customs and excise regime for optical fibre, IT hardware, set-top boxes and other Internet access devices, TV sets for distance education and extension programmes.

The States have agreed not to levy sales tax and other State taxes on the IT sector for the next 3-5 years.

The conference agreed to consider a special rate for Internet access to educational institutions, besides urging all ISPs to offer special rates.

ISPs may also be urged to levy a flat rate for Internet usage for all other dial-up subscribers.

The international Internet gateways already sanctioned must become operational by August 15, 2000. Further, permission may be given for utilisation of Ku band for educational, health and other Government broadcasts.

It was also agreed that the availability of bandwidth must precede demand. This is essential as there is a gap between demand and supply of the bandwidth, namely international, national long distance, last mile and satellite.

All the four elements of telecom infrastructure need to be enhanced and improved upon in terms of reliability and quality.

The accreditation mechanism for IT education will be strengthened by, among other means, decentralising the powers of the AICTE to the States.

The setting up of private Universities should be speeded up in consultation with the State Governments, Mr. Mahajan said.