India’s Southern state of Telangana has unveiled plans that should see it establish the first blockchain district in the country.
Local news outlet The Hindu Business Line reports that the blockchain district is targeted at creating an ecosystem that will cater to blockchain startups.
Although the idea is to accommodate various blockchain projects, reports state that the district will mainly look to have projects whose technology targets the applications designed for sectors like banking and other financial services, insurance, healthcare, and logistics and supply chain management.
Projects working on solutions aimed at transforming the key government sectors will also attract a lot of attention.
It is expected that the state’s main plan involves attracting major players by offering substantial concessions as well as other benefits. Startups could, therefore, enjoy financial grants, tax relief and other subsidies like access to cloud storage facilities.
Projects would, for example, qualify for a three-year relief from the Goods and Services Tax (GST) that would otherwise be levied at the state level. There will also be a 75% subsidy allowed to project founders as travel expenses when they attend global conferences.
Projects will also be reimbursed 25% of their internet costs, on top of a potential one-time grant expected to be ₹10 lakh ($14,400).
The Hindu Business Line also cites an unnamed senior state official as saying that the initiative will set up “separate packages” to cater to any “mega Blockchain projects.”
According to the publication, the state’s blockchain district policy should get clearance after the cabinet is expanded in coming days. The policy will seek to put in place infrastructures like working spaces, incubator, and an international liaison office.
Also to be established will be a regulatory sandbox and a Telangana-based R&D institute. Apart from that, the policy will seek to have blockchain courses available at the Telangana Academy for Skill and Knowledge.