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5K views26 pagesIt Policy
IT POLICY
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/ 26
VA AD SIC
(2022-27)
GOVERNMENT OF GUJARAT Government of Gujarat
Department of Science and Technology
G.R. No: ITP/10/2021/583612/IT
Sachivalaya, Gandhinagar
Date: 07.02.2022
PREAMBLE:
1. Introduction
A. Global IT Industry Scenario
The technological revolution powered by Information Technology (IT) and Information Technology
Enabled Services (ITeS) has changed the global economic structure permitting instantaneous
communication among the far-flung operations of global enterprises. These emerging
technologies are revolutionising sectors throughout the world and have demonstrated a significant
impact on businesses, Government and the labour market, thereby enabling even the smallest
players to compete with traditional giants.
The year 2021 saw the global IT Industry demonstrate an overall growth of 8.6 per cent. North
‘America dominated the market share at 35 per cent. Asia was the second-largest region holding
around 32 per cent, whereas Europe marked 22 per cent. Latin America and Africa accounted for
around 5 per cent market share. North America, Asia and Europe held close to 89 per cent revenue
sharein 2021
B. India Scenario
India is emerging as the hub for 'Digital Skills’. Indian T/ITeS sector is steering India's leadership
position in the global landscape in terms of employment and economic value creation. The IT
industry accounted for 8 per cent of India's GDP in 2020. Indian ITindustry is expected to contribute
10 per cent to the country's GDP by 2025. In the pre-Covid-19 years, from 2010 to 2018, the Indian
market growth was recorded at 10.71 per cent.
C.Gujarat Scenario
Gujarat is a leading industrial state in India and has been recognised nationally and globally for
offering a conducive business ecosystem, whichis supported by the various Ease of Doing Business
(EoDB) initiatives and state-of-the-art infrastructure. Spread across roughly about six per cent of
India's geographical area and home to five per cent of the national population, Gujarat accounts for
almost eight per cent of India's Gross Domestic Product (GDP). As per the 2020 Export
Preparedness Index report of NITI Aayog, Gujarat topped the index with a strong display in export
promotion Policy, business environment as wellas infrastructure The state's Policy-driven business ecosystem primarily focusses on enhancing the industrial output and
business viability of the State. However, the total share of Gujarat IT exports in FY18-19 stood at USD
422 million, which was 0.62 per cent of the total exports from Gujarat. Thus, Gujarat has @ huge
potential for increasing the share of exportsin the IT sector. 2.IT/ITeS Policy (2022-27)
Gujarat is;committed towards promoting faster and inclusive growth inthe IT/iTeS sector. This Policy
focuses on attracting invest ments and generating employment across the State along with propelling
growth through incentives and facilitation. The IT/ITeS Policy (2022-27) will enable an innovative
ecosystem, establish a robust infrastructure and further develop the state's IT talent pool. The Policy
will reinforce various elements of the IT/ITeS ecosystem and introduce support for co-working spaces to
establish Gujarat asa ‘destination of choice’.
2.1. Vision
Totransform the IT landscape of Gujarat by becoming one of the leading states in terms of world-class IT
infrastructure, availability of high-skilled resources and innovation in Emerging Technologies.
2.2. Objectives
The key objectives of the Policy are:
1) Toactasacatalystin the growth of the IT/ITeS ecosystem
2) Toenable the stakeholders of the IT/ITeS sector to create state-of-the-art IT infrastructure in the
form of ready to occupy co-working office spaces
3) Toenable the creation of high-skilled IT human resourcesin the state
4) To encourage large-scale investment in the IT/ITeS sector through special provisions for mega
IT/ITeS projects
5) Toestablish the state as a hub for innovation in Emerging and Advanced Technologies
2.3. Targets
The proposed Policy aims to achieve the following milestones in the next five years:
1) Place Gujaratin the top five performing states of India in IT sector
2) Increase Gujarat's annual IT exports from INR 3,000 Cr. to over INR 25,000 Cr.
3) Generate more than one lakh new |T/ITes jobs in the State
4) Become the national leader in terms of world-class IT infrastructure, Data Centers and
Innovation Centersin Emerging Technologies
2.4. Drivers
+ Government facilitated state-of-the-art IT infrastructure
+ Incentivising the development of IT City/Township for facilitating a Walk-to-Work culture
+ Fostering Research & Development in Emerging Technologies
+ AlSchool or Center of €xcellence— Advanced research center as a special Mega Project
+ Upskilling state-wide talent through fiscal incentives for skill upgradation courses
+ Enhancing digital literacy from the grassroots level
+ CAPEX-OPEXmodel—A unique and simplified approach towards the scheme of assistance
+ Enhanced tailor-made incentive scheme with special provisions for Mega Projects
+ Special employment generation incentives for boosting local employment
+ Enabling cloud computing by encouraging technologically advanced Data Centers and
supporting the establishment of Cable Landing Station (CLS)
* Online incentive Portal for efficient and transparentimplementation 2.5. Definitions
2
25.4,
25.5.
The ‘Operative Period of Policy’ shall come into force with effect from the date of
notification of Policy and shall remain in force till 31st March 2027 or till the declaration of
a new or revised Policy, whichever is earlier. Only eligible entities who have applied for
assistance on or before 31st March 2027 and who have commenced operation on or
before 31st March 2028 shall be eligible for incentives
‘TT software’ means any representation of instruction, data, sound and image, including,
source code and object code recorded in a machine readable form and capable of being
manipulated or providing interactivity to use through automatic data processing
machines
‘ITenabled Services (ITeS)' are construed as any service, which results from the use of any
IT software over a system of IT products for realising the value addition service rendering
through the application of IT and shall include the following
A Call centers
B. Medical transcriptions
C. Back office operation/Business Process Outsourcing (BPO)
D. Knowledge Process Outsourcing (KPO)
E. Revenue accounting and other ancillary operations
F. Insurance claim processing
G. Web/digital content development/ERP/software and application development
H. Financial and accounting processing
\.HR and payroll processing
J. Bioinformatics
K.IT-enabled banking
L. Non-banking services, including insurance, pension, asset management and market-
related services
M. Depository, security registration and dematerialisation services
N.GiS-enabled services
©. iTsupport centers
P. Website services
Q.Emerging Technologies, such as Cyber Security, Big Data, Artificial Intelligence,
Blockchain, Machine Learning, ete.
or any other related fields as updated from time to time. This does not include
companies engaged in manufacturing of hardware related to IT, telecom or fields as
mentioned above. State Level Empowered Committee (SLEC) will be the final decision-
making authority in thisregard
‘TI/MTeS industry’ includes the development, production and services related to IT
products, IT software, IT services and TeS.
*Government' means the Government of Gujarat 2.5.6.
25.7.
25.8,
25.9.
"New Uni
A~A new unitytneans, an JT/ITeS unit.that has‘or had obtained registration Uinder the
Companies Act/L1P Act/Partnerstiip/Proprietorship and is Setting up or commenced its
commercial opérations in Gujarat during the operative period of the Policy.
B. An existing unit outside Gujarat State carrying out new investment in the IT/ITeS
industry at any location in Gujarat and commences commercial operation during t
operative period of the Policy shalll be considered as a new unit.
C.Anew unit shall be eligible for assistance for maximum one-time expansion during the
operative period of the Policy.
"Existing Unit’ means any IT/ITeS unit which has been registered under the Companies
Act/LLP Act/Partnership/Proprietorship and already running its operations within the
state andis undertaking expansion in the project for carrying out activities indicated in the
Policy and begins work for such expansion during the operative period of the Policy.
"Expansion Unit’
‘A. An expansion unit means an existing unit in Gujarat undertaking expansion such that the
total headcount of employees on its payroll, increases by 50 per cent of the existing
headcount or by 1,000 employees, whichever is lower, during the operative period of
the Policy.
B. It shall be applicable for incentives only one time during the operative period of t!
Policy.
C. To be eligible for incentives, the new investment made for the expansion must be
‘ought into commercial operations during the operative period of the Policy.
‘Gross Fixed Capital Investment (GFCI)' means the expenditure made in the construction
of the building, computers, software, networking related hardware and other related
fixed assets, excluding the cost of land and expenditure on purchase of the building
required to produce products or services by the eligible unit.
2.5.10. 'Mega Project' means an investment in the field of T/!TeS with a minimum GFCI of INR 250
Cr. or generating a minimum of 2,000 direct IT employment positions on its payroll in the
state.
2.5.11. ‘Eligible Unit’ means any new unit having a minimum of 10 employees on its payroll or an
expansion unit havinga minimum of 15 employees on its payroll after expansion.
2.5.2. 'Unique Registration Number (URN) means an exclusive reference number assigned to
an eligible entity, which will be used for all communications and transactions. Any eligible
unit seeking to avail any benefits under the Policy has to apply for in-principle approval
and subsequently obtain a Unique Registration Number (URN),
2.5.13. 'Built-up Area! means the area covered by a building on all floors and isin accordance with
the relevant General Development Control Regulations (GDCR).
2.5.14. ‘IT/ITeS Park' means a site comprising multiple IT/ITeS units (at least three units for the
entire duration of the operative period of the Policy, till the time the IT/ITeS parks availing
incentives under the Policy) constructed as an exclusively described or earmarked site for
IT office space and made available on lease/rent/sale basis for IT/ITeS units, to provide
ready-to-use facilities with a minimum saleable/leasable built-up area of 1,00,000 sq. ft
out of which a minimum of 70 per cent of saleable/leasable built-up area must be
allocated to iT/iTeS units 2.5.15.
2.5.16.
2.5.17.
2.5.18.
2.5.19.
2.5.21.
2.5.22.
2.5.23.
2.5.24.
. High Powered Comi
‘Co-working space’ means an office space wherein professionals from multiple IT/ITeS
units share an office space.
‘Data Center’ means a facility that centralises computing and networking equipment to
collect, store, process and disseminate a large amount of data and applications.
Incentives will only be provided for the setting up of greenfield tier three or above Data
Centers in the state with a minimum built-up area of 4,000 sq, ft. and 2 minimum of 150
racks.
‘IT City/Township’ means an area in Gujarat wherein a developer or consortium of
developers create state-of-the-art infrastructure to support direct IT/ITeS employment
by way of dedicated IT office space in the form of IT parks, co-working spaces, etc. The IT
City/Township shall also have residential and commercial infrastructure to support the
employment created and promote the 'walk-to-work' culture. It should be spread over a
minimum area of 10 acres to 50 acres for IT township and more than 50 acres for IT city,
which may include the following facilities:
A. State-of the-art IT office space
8. Incubation Center for start-ups
C.Auditorium
D. Cafeteria and food zones
Conference halls
F. Shopping complex
G. Gymnasium and sports complex
H. Other basic utilities and their supporting infrastructure
T City/Township shall be eligible for fiscal incentives only if SO per cent of the built-up
areais developed as IT office space
‘DST’ means Department of Science and Technology, Government of Gujarat.
‘DIT’ means Directorate of ICT and e-Governance, Government of Gujarat,
tee (HPC)’ means the committee constituted by the DST and
headed by the Chief Secretary of the State, for the approval of the assistance to entities
falling under the Mega Project category.
‘State Level Empowered Committee (SLEC)' means the committee constituted by the
DST and headed by ACS/PS/Secretary of Department of Science and Technology, for the
approval of the assistance to entities other than those falling under the Mega Project
category.
'Gujarat-based Company’ means a company that is registered in Gujarat, with its
headquarters within the State itself.
"R&D Center’ means the laboratories/advanced research centers which are specially
created for R&D in the IT sector.
"Term Loan’ means loan sanctioned by the financial institution/bank (except Non-
Banking Financial Company (NBFC)) for the acquisition of GFCI of the entity. However,
only the amount actually disbursed against the sanctioned amount will be considered for
the incentive under the scheme. 2.5.25. ‘Eligible CAPEX expenditure’ means the following
A. Capital expenditure as per GFCI
GFCI made during the operative period of the Policy and up till two years after the
date of commencement of commercial operations/production shall be considered
under eligible CAPEX expenditure.
8 Stamp Duty and Registration Fees paid tothe Government for lease/sale/transfer of
land and office space.
C.Renewable energy expenditure — Expenditure incurred on the purchase of
equipment for setting up of captive renewable energy plant.
2.5.26, ‘Eligible OPEX expenditure’ means the following:
‘A. Lease rental expenditure ~ Expenditure incurred on lease rental of office space at a
property rented froma third party. IT/ITeS units are eligible to claim this expenditure
head under the eligible OPEX expenditure for a period of five years from the date of
start of commercial operations or in-principle approval, whichever is later, up toa
maximum monthly rental of INR 50/sq, ft. of built-up area or actual lease rental
expenditure, whichever is lower.
8. Bandwidth expenditure — Actual expenditure incurred on subscribing or leasing
bandwidth from the licensed Internet service provider with a valid GST number.
IT/ITeS units are eligible to claim this expenditure head under the eligible OPEX
expenditure for a period of five years from the date of start of commercial
operations or in-principle approval, whichever is later.
C. Cloud rental expenditure ~ Actual expenditure incurred on cloud rental by either
subscribing or leasing from a cloud service provider, provided that the service
providing company is registered in India and hasa valid GST number. IT/ITeS units are
eligible to claim this expenditure head under the eligible OPEX expenditure for a
period of five years from the date of start of commercial operations or in-principle
approval, whichever is later.
D. Power tariff expenditure — Actual expenditure incurred on energy units consumed
bythe IT/ITeS units. IT/ITeS units are eligible to claim this expenditure head under the
eligible OPEX expenditure for a period of five years from the date of start of
commercial operations or in-principle approval, whichever is later. Eligible IT/ITeS.
units can also avail of banking charges benefits in accordance with provisions laid
down under Section 10 of the Gujarat Solar Power Policy 2021
E, Patent expenditure ~ Expenditure incurred on the application of every successful
patent during the operative period of the Policy up to INRS lakhs per patent. Eligible
IT/ITeS units can submit claims for a maximum of 10 patents per year for five years
from the date of start of commercial operations or in-principle approval, whichever
islater.
2.6. Policy Validity
The Policy will be valid from the date of issuance of this Policy GR and shall remain in force till 31st March
2027 or till the declaration of anew or revised Policy, whichever is earlier. Incentives and Offerings
2.7, Incentives and Offerings
The incentives and offerings mentioned in this section apply to eligible entities, in addition to any
incentives that they might be entitled to avail from the Government of India. However, any applicant
claiming incentives from other policies of the Government of Gujarat is not permitted to claim
incentives under this Policy
2.7.1. CAPEX-OPEX Model
The various fiscal incentives described under this section are prudently drafted to
provide thrust to the IT/ITeS ecosystem by clearly defining the incentive support into two
distinct avenues ~ CAPEX and OPEX support. A unique incentive structure is specifically
designed to ease the complexity involved in claiming the fiscal incentives. Furthermore,
these fiscal incentives are tailored as per the need of the various categories of
projects/investments. The fiscal incentive support for IT/ITeS units is as follows: S.No.
Investment Category
Description of support
Category |- GFCI
less than INR 250 Cr.
+ CAPEX Support: All eligible IT/ITeS units are
entitled to one-time CAPEX support of up to 25 per
cent of the eligible CAPEX expenditure, subject to a
maximum ceiling of INR 50 Cr. The disbursement will
be done in twenty (20) equal quarterly installments.
+ OPEX Support: All eligible IT/ITeS units are entitled
to OPEX support of up to 15 per cent of the annual
eligible OPEX expenditure, subject to a maximum
ceiling of INR 20 Cr. per year for a period of five years,
from the date of eligibility. The disbursement will be
donein quarterly installments.
Category Il (Mega
Projects) - GCI more
than or equal to INR 250
Cr. of project generating
more than or equal to
2,000 direct IT
employment on its payroll
+ CAPEX Support®: All eligible projects are entitled to
one-time CAPEX support of up to 25 per cent of the
eligible CAPEX expenditure, subject to a maximum
ceiling of INR 200 Cr. The disbursement will be done
in twenty (20) equal quarterly installments.
+ OPEX Support: All eligible projects are entitled to
OPEX support of up to 15 per cent of the annual
eligible OPEX expenditure, subject to a maximum,
ceiling of INR 40 Cr. per year fora period of five years,
from the date of eligibility. The disbursement will be
donein quarterly installments.
+ Early Mover Advantage: To stimulate growth in the
sector, the Government has introduced a special
provision in this Policy. Through this initiative, the
Government aims to provide strategic advantage to,
first movers in the IT/ITeS sector by relaxing the
minimum investment criteria for mega projects. The
first three eligible (and only) IT/ITeS projects with
investment in GFCI of more than or equal to INR 100
Cr. will be considered as mega projects. Thereafter,
the investment criteria will increase to the specified
minimum investment in GFCIof INR 250 Cr.
+ Enhanced Incentive Components: High Powered
Committee (HPC) may include other incentive
categories or relax any of the conditions mentioned
under this Policy based on the scale of investment,
employment generation, high-value addition and
potential for attracting further investments. Such an
incentive package will be tailored in consultation
with the stakeholders involved. HPC will be the final
decision-making authority in all such cases.
10 *Note: The expenditure incurred under GFCI towards the construction of new buildings shall be capped
at INR3,000/sq. ft. of built-up area, applicable for a total built-up area computed at 60 sq. ft. of built-up
area per employee on the payroll of the eligible IT/ITeS unit. Further, the annual CAPEX assistance
disbursed shall be capped to the total annual operating expenditure of the eligible IT/ITeS Units.
2.7.2, Special incentives for IT/ITeS Units
In addition to the above-mentioned fiscal incentive support, the Government shall
provide impetus to the growth of IT/ITeS units by incentivising the major operational
expenditure heads.
S.No.
Incentive category
Description of support
Employment Generation
Incentive (EG!)
Eligible IT/ITeS units shall be entitled to one-time
support for every new and unique job created in the
State. Itis applicable for new local employees hired and
retained for a minimum period of one year at SO per
cent of one month's CTC up to INR 50,000 per male and
INR 60,000 per female employee for Eligible IT / ITeS
units.
Note: The EGI assistance is tied to each individual IT
employee and can only be claimed once for each
individual IT employee in their lifetime. Therefore, if an
IT/!TeS unit claims this incentive for any individual
IT/ITeS employee, and thereafter the same individual
IT/IeS employee moves to another |T/ITeS unit, the
subsequent IT/ITeS unit cannot claim the EGI assistance
for the same. The applicable rules to implement the EG!
assistance shall be formulated by the SLEC and released
separately.
Interest Assistance
Eligible IT/ITeS units will be entitled to interest subsidy at
7 per cent on term loan or the actual interest paid,
whichever is lower with a ceiling of INR1 Cr. per annum.
Such IT/ITeS units shall be able to claim this incentive on
an annual basis for a maximum period of five years from
the date of start of actual interest repayment.
Such eligible IT/ITeS units will be entitled to interest
assistance on actual interest repayment (excluding
principal repayment) on a term loan acquired from an
Indian financial institution approved by the Reserve
Bank of India (RBI) (excluding NBFC)
However, to avail this component, the loan shall be
availed from the Indian branch of the Indian financial
institution and the interest repayment period should
begin during the operative period of the Policy S.No.
Incentive category Description of support
Atmanirbhar Gujarat Eligible IT/ITeS units will be eligible to claim
Rojgar Sahay reimbursement on the employer's statutory
contribution under Employees! Provident Fund (EF)
made by them for their employees workingin the offices
situated within Gujarat for a period of five years. This
reimbursement would be made subject to the following
criteria
+ 100 per cent of employer's statutory
contribution under EPF amount paid in case of
female employees
+ 75 per cent of the employer's statutory
contribution under EPF amount paid in case of
male employees
+ The ceiling of incentive amount per employee
will be 12 per cent of the employee's basic salary
plus applicable Dearness Allowance (DA) and
retainingallowance
+ Foreligible expansion units, the assistance willbe
available for incremental employee count
beyond the count that existed before
undertaking expansion, occurring during the
Policy period for a period of five years for each of
such projects. For this purpose, the average
employee count of the previous year before the
commencement of operations from new set
up/expansion shall be treated as base employee
count and incremental count, which will be
computed over such base count, happening
every year during the Policy period shall be
entitled to such benefit for the duration of five
years.
Electricity Duty Incentive Eligible IT/ITeS units can claim the entire amount of
(ED!) electricity duty paid by them to the Government of
Gujarat for a period of five years from the date of start
of commercial operations or in-principle approval,
whichever is later.
Incentives for supporting ‘Work from Home!
The Government shall support the eligible IT/ITeS units having its Gujarat-based
employees availing work from home when such employees operate from within Gujarat.
Such eligible IT/ITeS units can avail EGI and Atmanirbhar Gujarat Rojgar Sahay for all such
employees. Such benefits will be available for incremental employees only. SOUT r 274,
Skill enhancement/development
The Government has envisaged a three-pronged approach to undertake massive skill
development exercises:
A. Tier-1: Gujarat Al School or Al Center of Excellence
The Government , in association with the IT industry and premier academic
institutions in the state, such as IIT, IIT and other renowned international and national
research institutions, envisions establishing an advanced Center of learning ~ The
Gujarat Al School or the Gujarat Al Center of Excellence. The prime objective of this
institution shall be to become the foremost source of industry-ready skilled talent for
the emerging technology of the IT industry in the nation. This institution shall provide
impetus to the upskilling efforts of the state Government by offering courses in the
field of emerging technologies, such as Artificial intelligence, Blockchain, Quantum
Computing, Big Data, Internet of Things, Data Enablement Technologies, Cyber
Security and the forthcoming 5G technology, etc. DST will issue separate guidelines for
thesame
B. Tier-Il:Upskilling industry-ready talent
he Government shall endeavour to upskill the graduate students and working
professionals of the state to expand their knowledge and skill sets across emerging
technologies by incentivising them. The Government will incentivise the
beneficiaries for successfully completing globally recognised courses in Information &
Communication Technology (ICT) through Direct Benefit Transfer (DBT) up to a
maximum of INR 50,000 per course or up to SO per cent of the course fee, whichever is
lower,
The detailed list of eligible courses, course fees and the scale of monetary assistance
for each course along with the list of approved institutes, Massive Open Online
Courses (MOOCs) and other such e-learning platforms administering such courses will
be published separately and shall be amended from time to time to accommodate the
trend and industry requirement during the operative period of the Policy. DST will
sssue separate operational guidelines for the same.
C.Tier—Ill: Nurturing roots by promoting IT
The Government shall launch large-scale Information, Education and Communication
(IEC) programmes targeting school students and the general public aimed towards
improving digital literacy, enhancing awareness of the potential of IT in daily life and
building a foundation for the availability of skilled IT resources in the state. IT City /Township
The Government envisions fostering the IT/ITeS ecosystem in the state by supporting the
development of a dedicated state-of-the-art IT township or IT city that will have all the
modern amenities in line with the prevailing global standards. The Government shall
incentivise developer/consortium of developers for the creation of such IT township or IT
city in the following way: In addition to the above-mentioned incentive, the Government
may provide support through the following non-fiscal incentives:
‘A. Relaxation in zoning and land use laws, such as permission for mixed land use (residential,
commercial and industrial}
B. Assistance in obtaining other necessary statutory clearances
C. Relaxation in Floor Space index(FS) norms for IT office space
D, Utilties/infrastructure support up tothe doorstep
S.No. | Incentive category Description of support
1 CAPEX Support All eligible applicants are entitled to one-time CAPEX
support of up to 25 per cent of the eligible CAPEX
expenditure, subject toa maximum ceiling of INR 100 Cr.
Such support shall be provided as a reimbursement
towards actual expenditure incurred for creating IT office
space (co-working space, IT/ITeS park) in the IT city/
township.
The disbursement will be done in twenty (20) equal
quarterly installments.
2.7.6. Facilitating Infrastructure
The State Government shall provide impetus to the IT ecosystem by supporting the
development of ready to occupy co-working space at an easy-to-commute location to
allow IT/ITeS units to immediately start their operations within the state. The
Government aims to achieve this objective by implementing the following models:
A.Government--facilitated model
The Government envisions building/leasing state-of-the-art co-working IT office
spaces on PPP/EPC mode with modern interiors, high-speed internet connection
and other services and facilities as per prevailing industry standards.
8, Empanelment model
The Government shall empanel state-of the-art co-workinglIT office spaces that are
run by private companies/developers.
The eligible IT/ITeS units opting to start their operations in co-working IT office spaces
under the Government facilitated/empanelment model shall be eligible for the following
fiscal support for a period of five years from the date of start of commercial operations or
in-principle approval, whichever is later:
Monthly rental support to Period Fiscal incentive limit per
IT/ITeS units (per seat basis) ertor seat per month (INR)
50 per cent of monthly rental First two years 10,000
25 per cent of monthly rental Three tofive years | 5,000 Applicability of Government facilitated model and empanelment model:
‘A Any IT/ITeS unit availing benefit under this section will also be eligible for assistance
under the EGI and Atmanirbhar Gujarat Rojgar Sahay. However, such IT/ITeS units
will not be eligible for any other fiscal incentives defined in this Policy.
B. In the event that any IT/ITeS unit seeks to opt out of the Government facilitated model or
‘empanelment model in between the five years, they shall be eligible for the following
incentives for the remaining period of the five years.
+ OPEX component of the CAPEX-OPEX model for IT/ITeS units,
+ EG
+ Atmanirbhar Gujarat Rojgar Sahay
For e.g. ~ If an IT/ITeS unit has availed the benefits under Government facilitated
model or empanelment model for a period of two years and then decides to opt out
of the scheme, then the IT/ITeS unit shall be eligible for only the OPEX incentives
under the CAPEX-OPEX model for the remaining period of the three years.
Additionally, the EGI and Atmanirbhar Gujarat Rojgar Sahay shall continue for the
remaining period of three years. Facilitating Cloud ecosystem 277.
Facilitating cloud ecosystem—support for Cable Landing Station (CLS)
The Government has und:
infrastructure in the state.
lertaken substantive steps towards the improvement of cloud
To promote the development activities and boost the cloud
ecosystem in the state, the Government shall facilitate the setting up of a CLS by way of
support in land identificati
ion and allotment along with necessary utility infrastructure
support at the doorstep. Further, the Government shall provide fiscal support in the
following way:
S.No.
Incentive category
Description of support
CAPEX Support
One-time CAPEX support of up to 25 per cent of the
eligible CAPEX expenditure subject to a maximum ceiling
of INR 20 Cr. The disbursement will be done in twenty (20)
equal quarterly installments.
Note: Only expenditure incurred on civil works for
constructing the building of CLS along with network
hardware (excluding expenditure towards cable laying
and network cables) shall be admissible under GFCI
OPEX Support
Power tariff subsidy of INR 1/unit for a period of five years
278.
Data Centers
Additionally, the Governmer
following manner:
nt shall support the developers of Data Center projects in the
S.No.
Incentive category
Description of support
CAPEX Support
All eligible Data Centers are entitled to one-time CAPEX
support of up to 25 per cent of the eligible CAPEX
expenditure subject to a maximum ceiling of INR 150 Cr.
The disbursement will be done in twenty (20) equal
quarterly installments.
OPEX Support
Power tariff subsidy of INR1/unit for a period of five years Ry eyePole mola ryt leat Pele) ut talg 2.7.9. Support for R&D
S.No. | Incentive category Description of support
1 Support to R&D All eligible R&D institutes can avail one-time CAPEX
Institutes/R&D support for the purchase of equipment for setting up of
Centers established R&D Center/laboratory at 60 per cent of the cost for
by educational machinery and equipment, hardware and software
institutes recognised (COTS/license) required for research for the R&D
by AICTE activities subject to a maximum of INRS Cr., provided
that the R&D institute is acknowledged by Council of
Scientific & Industrial Research (CSIR) / Department of
Scientific and Industrial Research (DSIR) for conducting
research into the desired field.
2.7.10. Non-fiscal incentives
The Government is committed towards building a sustainable, citizen-centric and
investor-friendly environment and to this effect, the Government shall undertake
various steps to ensure that all stakeholders are supported throughout their journey.
Some of the key interventions in this regard are as follows:
S.No. | _ Incentive category Description of support
1 Facilitation of
The Government will duly facilitate the allotment of
allotment of land
land for eligible projects in the state. Such allotment
shall be subject to availability and the fulfillment of
eligibility criteria as determined by the state
Government from time to time.
IT/ITeS units will be allowed self-certification without
the inspections under the act, such as Factory Act,
Maternity Act, Minimum Wages Act., etc., barring
complaints and random spot checks by the relevant
authorities.
3 Investor Facilitation + Include the industry players of the State on a common
Center platform to linkall types of industries
+ Acentralised helpdesk call center on a 24x7 basis will
be developed for query management
+ Central platform for connecting investors with
stakeholders (Government nodal agencies/financial
institutions)
+ Assist in marketing/promotion of IT/ITeS services of
companies/stakeholders
+ Ensuring effective implementation of the Policy S.No.
Investment Category
Description of support
+ Facilitating platform for enabling knowledge exchange
between registered IT/ITeS units/stakeholders
* Facilitating access to Government sector for opening
new market opportunities for IT/ITeS service providers
Preferential market
access
The Government will offer unique opportunities to the
IT/ITeS units registered in Gujarat, to tap into the
Government market by way of encouraging Gujarat-
based companies of the IT/ITeS sector to take part in
public tenders for Government-owned/funded projects
for the procurement of IT products and services as per
the discretion of the respective Government
departments and the prevailing procurement Policy of
the Government of Gujarat, as amended from time to
time