Gujarat IT Policy 2016

Gujarat Govt. has devised its Information Technology policy in order to create and build a vibrant and sturdy edifice of IT/ITeS Eco-system on the basis of Innovation and Knowledge Capital, to utilize huge talent pool of Young India and to contribute to the overall economy and prosperity of the State and the Nation.

Key Objectives:

1. To increase the current investment in IT/ITeS sector by 10 times.
2. To increase the turnover up to USD 15 Billion.
3. To increase IT exports from the State up to USD 2 Billion.
4. To promote and develop employment opportunities in the IT and ITeS Sector.

Period of Operation:

The scheme will be in operation for period of 5 years from 2016 to 2021.

 Eligible Units:

• Any IT/ITeS unit with minimum 10 employees on its payroll, setting up its operations in Gujarat during the operative period of this policy.
• An existing IT/ITeS unit in Gujarat undertaking expansion and/or diversification will be eligible for availing incentives under this policy.
• The minimum requirement of 10 employees will not be applied for IT/ITeS unit in the Gujarat International Finance Tech –City (GIFT).

Benefits:

Benefits will be provided in the form of incentives and interest subsidy in various categories:

1. Facilitation for Allotment of Land:

• The Govt. will facilitate allotment of land in earmarked areas or designated IT/ITeS cluster for IT/ITeS units investing in the state.

2. Incentives for IT/ITeS parks:

Following incentive would be provided to IT/ITeS Park:

• Capital Subsidy @25% of fixed capital investment in infrastructure facilities, excluding the cost of land, up to Rs. 25 Crore, for horizontal IT parks.
• Capital Subsidy of Rs. 300 per sq ft for built up area, up to ceiling of Rs. 25 Crores, for vertical IT parks.
• IT park developer will be provided 100% reimbursement of Stamp Duty/Registration Fee paid on sale/lease/transfer of land for developing IT parks.
• Power tariff subsidy at the rate of Rs. 1 per unit for a period of 5 years.
• 100% reimbursement for electric duty paid for a period of 5 years.

3. Incentives to IT/ITeS Units:

Following incentives will be provided to eligible IT units:

• Capital subsidy @ 25% of capital expenditure for one time purchase of computers, networking and related hardware, up to ceiling of Rs. 1 Crore.
• 100% reimbursement of Stamp Duty/Registration Fee paid on sale/lease/transfer of land and office space for the first transaction.
• Lease rental subsidy @ Rs. 8/sq ft for units up to 20 employees.
• Lease rental subsidy @ Rs. 5/sq ft for units with more than 20 but less than 100 employees.
• Lease rental subsidy @ Rs. 5/sq ft for units with more than 100 employees.
• Interest Subsidy @ 7% for micro enterprises with a ceiling of Rs. 25 Lakhs per annum.
• Interest Subsidy @ 5% for small and medium enterprises with a ceiling of Rs. 50 Lakhs per annum for period of 5 years.
• Reimbursement up to 90% of Gross Fixed Capital Investment (GFCI) will be provided to unit for period of 8 years.

4. Patent Assistance:

• Assistance @ 50%, subject to ceiling of Rs. 2 Lakhs per patent for domestic patent and Rs. 5 Lakhs per patent for international patent will be available to any IT unit.

5. Market Development Support:

• Assistance @ 50% of total expenditure including stall rent, catalogue/product cost and display material will be given to Industries association and any IT/ITeS unit for participation in International Trade Fairs.

6. Support to R&D Institution:

• For testing facilities, assistance up to 60% of project cost, excluding land, subject to a maximum of Rs. 50 Lakhs.
• For contract/sponsored research work conducted by AICTE approved institution, assistance up to 50% of project cost, excluding land, subject to a maximum of Rs. 50 Lakhs.

7. Quality Certification:

• IT unit or MSME will be granted assistance for a maximum of three industry standard quality certifications (CMMI, ISO, etc.), @ 50% of cost of quality certification (certification agency fee, training charges and consulting fees) within the overall ceiling of Rs. 6 Lakhs in 5 years.

8. Skill Enhancement:

• Assistance @ 50% of fee paid, subject to maximum Rs. 10,000 per employee will be provided to IT unit on obtaining industry recognized skill certification.

9. Setting Up of Finishing Schools:

• Capital assistance of up to 60% of the project cost, excluding land or Rs. 50 Lakhs whichever is lower, will be provided to IT/ITeS sector across the state for setting up of schools.

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