The Karnataka State Government on
Wednesday introduced the Karnataka animation, visual effects, gaming and
comics (AVGC) policy 2012. With this, the government intends to make
the state a favoured destination for the animation sector along with IT
and biotech. Karnataka is the first state to launch an exclusive policy
for animation and gaming sectors in the country.
With
the introduction of the policy, we are planning to promote and bring in
investment for the animation sector and thereby create job opportunity
in the state, labour minister B N Bachegowda said.
The
global animation market is estimated to grow at a CAGR of 10 per cent
and reach $100 billion by the end of 2012. The Indian animation industry
is expected to grow at a CAGR of 22 per cent to reach $1 billion by
2012.
As
part of the policy, a separate venture capital fund has been created
for AVGC sector worth Rs 50 crore to be funded jointly by the state
government and private VCs of which, the governments contribution will
be 26 per cent.
The
government in the policy also said it would set up centre of excellence
for AVGC in Bangalore under public-private partnership with modern
facilities. For the centre of excellence, the central government will
contribute 30 per cent to the cost, while the state government and
industry-private partners will contribute 20 and 50 per cent
respectively.
Apart
from this, the CoE will have a finishing academy-cum-incubation centre
at an estimated cost of Rs 50 crore and a post production and digital
intermediary facility of Rs 30 crore.
The
policy, created in consultation with various stakeholders, also
provides various incentives to the industry. For instance, the AVGC
sector would be eligible to avail itself of all the fiscal incentives
and concession as provided in the Karnataka Industrial Policy 2009-2014.
For
creation of infrastructure, the policy also emphasises on creation of
AVGC public and private parks at the SEZ identified locations. The
government also said it planned to earmark land for the AVGC sector in
the proposed information technology investment region (ITIR) near
Bangalore international airport.
With
the new policy, the government expects the revenues of the AVGC sector
to grow 40 per cent in the next three years. At present, the state has
more than 20 training institutes imparting AVGC-related training through
over 60 campuses.
