Re-imagining Gujarat through its IT Policy (2014-2019)

Gujarat is one of the most developed and investor-friendly states in India and has always paved way for new ideas and innovations to stride in. In recent times, the state has taken a few significant steps in the field of Information Technology. The new IT policy of Gujarat for 2014-2019 aims to create a vibrant eco-friendly IT/ITeS industry to enlarge their income capital as well as employment. The policy facilitates Medium, Small and Micro Enterprises as key drivers for growth in Research & Development, in Innovation, and excellence in entrepreneurship.

Objective:

• To increase the turnover up to $15 billion
• 5 times amplification of the present investments in It/ITeS sector
• Promotion of employment opportunities as well as providing direct employment opportunities to 10 lakh people in the IT /ITeS
• To increase IT exports up to $1 billion
• Special focus on Financial Services, Mobile Applications, Animation, 3D-Gaming and Digital Entertainment

Main Highlights:

• Land will be allotted by the government to IT/ITeS units those are investing in the state.
• To create employment for more than 1,000 people in IT sector or 1,500 people in the ITeS unit with new investment worth Rs 50 crore and above will be sanctioned for Mega IT/ITeS projects.
• Financial assistance of 2.5 crore will be provided to build IT/ITeS Technology Park
• Performance based Lease rental subsidy of 25% will be provided for the plug and play built up work place in IT parks. This assistance will be provided in two stages wherein the first phase a maximum 10 lakh will be provided and in the second phase after 5 years of operations, another 25 lakh will be provided to each eligible unit.
• Eligible units are entitled to a reimbursement of the Employers’ PF Contribution of a maximum Rs 5 lakh per unit.
• Eligible units after commencing their commercial operations are entitled to 100% exemption on Electric Duty.
• Gujarat government will help eligible IT/ITeS parks to obtain SEZ (Special Economic Zone) status.
• An interest subsidy will be provided to eligible enterprises of IT/ITeS MSME sector for a period of 5 years. The Interest subsidies are- 7% for micro enterprises with a ceiling of Rs. 25 lakhs per annum, 5% for small and medium enterprises with a ceiling of Rs. 35 lakhs per annum,  1% additional interest subsidy to the youth less than 35 years of age in case of first project or to SC/ST/Women/Differently- abled person with a ceiling of Rs. 35 lakhs per annum.
• Any IT/ITeS unit registered under Gujarat government will be permitted for a maximum of 3 industry standard quality certifications like CMMI, ISO etc at a rate of 50% with a maximum amount of Rs 6 lakh for a period of 5 years.
• Technology Acquisition Fund Assistance for acquisition of appropriate technology of MSME units will be provided 50% grant with a ceiling of Rs 1 crore per technology.
• MSMEs with a minimum 20 payroll employees will be given adequate assistance for enhancing skills at the rate of 50% with a ceiling of Rs 10,000 per employee on attaining industry recognized certification. The total assistance will be of Rs 1 lakh per unit annually.
• Special support will be provided for Research and Development to set up institutions in the state.
• Patent assistance, market development support, setting up finishing schools are special features of this policy.

For detailed information on Gujarat’s IT policy CLICK HERE