New IT Policy of Gujarat: Government has implemented new IT policy, the sector will get a boost

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New Delhi. Gujarat Chief Minister Bhupendra Patel has announced a new IT and ITeS policy to give a rapid boost to the state’s IT sector. This new policy will be applicable for five years i.e. from 2022 to 2027. The objective of this policy is to revolutionize the IT sector of the state and to give it a new direction. The Chief Minister announced the new policy in Gandhinagar in the presence of Minister of Education and Science and Technology, Shri Jitubhai Vaghani. The Chief Minister said, “I am sure that this policy will help us in making a significant contribution to one of the eight dreams of Hon’ble Prime Minister Narendrabhai Modi – unemployment free, employable.” He said that the objective of this policy is also to realize the vision of ‘Atmanirbhar Gujarat to Atmanirbhar Bharat’ in the information technology sector.

Features of the new policy
1. The policy introduces a unique concept of CAPEX-OPEX model which is first of its kind in the entire country: The policy envisages 25% CAPEX support up to INR 50 Cr. and INR 200 crores for general projects. Under the OPEX model for mega projects, the government will provide 15% assistance up to INR 20 Cr. and INR 40 crores per annum for general projects. per annum for mega projects 2. In an effort to boost IT employment in the state, the Gujarat government has envisaged two special incentives in the policy: Employment Generation Incentive (EGI) up to Rs.60,000 per employee b. Atmanirbhar Gujarat Rozgar Sahayak 100% reimbursement of employer’s EPF contribution through 3. Support for interest repayment @ 7% on term loans up to INR 5 Crore. 4. 100% reimbursement of electricity charges to all eligible IT/ITES units. 5. Establishment of Gujarat AI School / AI Center of Excellence for the IT industry with an aim to become a leading source of industry ready skilled talent. 6. Financial assistance up to INR 50,000 per person through Direct Benefit Transfer (DBT) to graduate students and working professionals for skill development. 7. Large-scale Information, Education and Communication (IEC) program targeting school children and general public to improve digital literacy and increase awareness of information technology. 8. To encourage development of IT cities/townships with capex support up to Rs.100 crore. and relaxation in regulatory and FCI norms. 9. To facilitate creation of world class co-working spaces to enable any IT company to fast track its IT operations in the state. 10. Rental subsidy @ 50% up to Rs.10,000 per seat per month to IT companies set up under Government Facilitated Infrastructure Scheme. 11. Recognizing the importance of cloud technology, the government has taken significant steps towards improving cloud infrastructure: A. Data Center: CAPEX support of 25% up to INR 150 Crore. and electricity tariff subsidy of INR 1/unit for a period of 5 years. B. Cable Landing Station (CLS): CAPEX support of 25% up to Rs.20 crore. and electricity tariff subsidy of Re 1/unit for a period of 5 years.

[Attribution to NBT]

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