On Tuesday, Gujarat Chief Minister Bhupendra Patel announced a new Gujarat IT and ITeS Policy to prepare for the next technological revolution.
CM Bhupendra Patel said, “The new IT Policy aims to increase Gujarat’s annual exports in the IT sector from Rs.3,000 crore to Rs.25,000 crore and create more than 1 lakh new employment in the IT and ITeS sector.”
Top Features of the Policy:
(1) CAPEX-OPEX Model: CAPEX support of 25% up to INR 50 Cr. for normal projects and INR 200 crore for mega projects.
Under the OPEX model, the Government will provide support of 15% up to INR 20 Cr. per year for normal projects and INR 40 Cr. per year for Mega Projects.
(2)Employment Generation Incentive (EGI) up to INR 60,000 per employee and Up to 100% reimbursement of employer’s EPF contribution through the Atmanirbhar Gujarat Rojgar Sahay are two other policies of the Gujarat Government
(3) Assistance for Interest repayment @7% on term loan up to INR 5 Cr.
(4) 100% reimbursement of Electricity Duty to all eligible IT/ITeS units.
(5) Gujarat AI School / AI Center of Excellence to become the foremost source of Industry ready skilled talent for the IT Industry.
(6) Financial support up to INR 50,000 per person through Direct Benefit Transfer (DBT) to the graduate students and working professionals for skill development.
(7) Information, Education and Communication (IEC) programs target school children and the general public to improve digital literacy and enhance awareness of Information Technology.
(8) Incentivizing the development of IT Cities with CAPEX support up to INR 100 Cr. and relaxations in regulatory & FCI norms.
(9) Facilitate the creation of world-class co-working spaces to enable any IT company to fast track their IT operations in the State.
(10) Rental subsidy @50% up to INR 10,000 per seat per month to IT companies setting up under the Government facilitated infrastructure scheme.
(11) Data Center and Cable Landing Station (CLS): CAPEX support of 25% up to INR 150 Cr. and Power tariff subsidy of INR 1/unit for a period of 5 years to promote data centres. CAPEX support of 25% up to INR 20 Cr. and Power tariff subsidy of INR 1/unit for a period of 5 years to promote cable landing stations.