TS policy to expand e-commerce to districts huge revenue from E-C during lockdown
Hyderabad: The Telangana state government has decided to promote e-commerce sector in the state in a big way. It has come up with a new policy to expand e-commerce sector to districts, which is now primarily concentrated in and around Hyderabad.
The policy has provisions for incentives in the form of land allotment at subsidized rates to e-commerce firms to construct godowns and other logistic facilities for storage and transportation of goods, single window fast-track approvals, relaxations on working hours, employment specified under the Shops and Establishments Act, power subsidy etc to encourage e-commerce sector. It also promises to accord service industry status to FMCG (fast moving consumer goods) and home appliances sectors.
The e-commerce sector contributed good revenues to the TS government through various taxes during the Covid pandemic period as people preferred online shopping during lockdowns. They continued to prefer online shopping even after the Covid restrictions were lifted.
When all other revenue-earning sectors suffered
losses, the e-commerce sector came to the rescue of the state government with total estimated business transactions of Rs10,00 crore.
The industries department therefore laid special focus on expanding e-commerce operations to major towns in districts, especially Karimnagar, Warangal and Nizamabad.
The government had earlier brought food and a few consumer goods under the Essential Services Act and imposed restrictions on their stocks. It has now exempted these from this rule.
Industries minister K.T. Rama Rao held a review meeting with officials on implementation of the new policy last week.
Officials said all approvals would be given on the fast- track mode through a single window system for e-commerce companies willing to invest up to Rs5,000 crore. Land will be allotted for these firms in industrial parks that are being set up exclusively for this purpose.
Land parcels have been identified in Karimnagar, Nizamabad and Warangal. Land will be allotted and approvals given on fast-track mode to build godowns with space ranging from 2,000sqft to 2.75 lakh sqft.
