Gujarat government announces new IT, ITeS policy, subsidies to boost sector

Gujarat government on Friday announced a new IT and ITeS (IT-enabled services) policy and an incentive scheme to boost the sector by providing subsidies to investors.

"Gujarat has been a leader in the manufacturing sector. However, with the current value creation becoming more technology-driven, the state is trying to leverage its world-class infrastructure and the quality of life to give a push to IT-led growth," state Finance Minister of state Saurabh Patel said while releasing the policy.

The policy aims to increase the current investment in IT/ITeS sector by ten times, take up the turnover from Gujarat-based IT/ITeS industry to $15 billion (nearly Rs 1.03 lakh crore), increase IT export from the state to $2 billion (nearly Rs 13,676 crore) and create 10 lakh direct employment opportunities in the sector, he said.

"The policy and associated scheme provide for the capital subsidy of Rs 25 crore for the IT/ITeS Park in addition to reimbursement of registration fees and stamp duty charges on land or office transactions, incentives on power tariff and reimbursement of electricity duty for the IT/ITeS units," he said.

The policy provides for reimbursement of Employees' Provident Fund (EPF) contribution for the new employment created during the policy period, he added.

"To link incentives with employment creation for the youths, the policy provides that units availing assistance under the IT/ITeS policy will be required to take interns at a rate of minimum one intern for every 20 employees, on payment basis," the policy said.