Andhra Govt. Approves Rs. 22,000 Cr. Incentives for Raiden Infotech’s Data Centers

Raiden Infotech India Pvt. Ltd., a subsidiary of Google Inc., has been offered incentives amounting to Rs. 22,000 crore by the Andhra Pradesh Government. These incentives will be provided for Raiden Infotech’s investment plan of Rs. 87,520 crore for setting up data centres in the state. Raiden Infotech will be establishing over 1000 MW of data centers in Visakhapatnam and Anakapalli districts with this investment.

Under these incentives, state government will offer 25% discount on land value. These data centers will collectively cover 480 acres of land; which includes 160 acres at Rambilli, 120 acres at Adavivaram and Mudasarlova, and 200 Acres at Tarluvada. Andhra government will also offer 100% exemption of stamp duty and registration charges. A 10% capital subsidy on plant and machinery for a period of 10 years will also be provided to Raiden Infotech. There will also be a 100% reimbursement of net SGST accrued to the government upto a maximum of Rs. 2,245 crore during the construction period.

The state government will also extend a power subsidy to Raiden Infotech. These data centers will be supplied electricity at a tariff of Re. 1 per unit. This power subsidy will have an incentive limit set at Rs. 4,800 crore. This incentive will be in effect for the first 10 years of operation and will be extendable by 5 more years if the project meets the key milestones set by the state government.