IT Taskforce
IT Action Plan (Part II - Hardware)


1. For purposes of this policy, the following definitions shall apply:

a) IT Industry Definition given in para 19(a) of the Gazette of India (Extraordinary) Notification No. 160 dated July 25, 1998 shall be expanded as follows:

"The term IT industry shall cover development and production of IT products'. It is clarified that IT products includes IT Hardware including Digital Electronic Equipment and intermediate products thereof, specified Telecom products as per Annexure IVB, Electronic Components and IT Software and related services.

(b) 'IT Hardware related Services' shall include, IT Hardware System Integration services, IT Hardware Design services, IT Hardware Support Services, IT Hardware Test and Repair Services, IT Hardware Facilities Management Services and other IT Hardware related services including consultancy.

c) The term Electronic Components/Primary products do not include Electronic subassemblies/intermediate products.

d) Soft-bonded IT (S-BIT) Unit is defined as an IT industrial Unit which will have freedom to use its manufacturing facility for domestic sale as well as for exports. Such units will not be under physical bonding but only fiscal bond. The units will execute LUT and no Bank Guarantee will be demanded of such units.

e) An S-BIT zone is defined as a set of S-BIT Units with certain publicaly/co-operatively/privately managed common infrastructure and facilities.

f) An S-BIT Habitat is defined as a spacially contiguous habitat of S-BIT units and S-BIT zones with a common publicaly/ co-operatively/privately managed and shared municipality of infrastructure and utilities.

g) An S-BIT corridor is defined as a corridor of correlated infrastructure of Road Highway backbone,communication highway backbone, water supply backbone and power line backbone connecting several towns and cities for enabling autonomous nucleation and growth of S-BIT Habitats and S-BIT zones along such a corridor.

h) The definition of 'Manufacture' is as given in para 3.31 of the Exports and Imports Policy 1997-2002 except that an S-BIT Unit can engage in one or more of the following manufacturing or service activities either individually or in an integrated manner: IT product manufacturing; IT Sub-assembly manufacturing; System integration/Engineering; data communication system engineering; IT product design services; IT product support services; Software services; Test and Repair services and Facilities Management.

The policies which will govern the S-BIT scheme are given below in Sections II, III, IV, V, VI, VII and VIII below: