Capex support of up to Rs 200 crore in Gujarat IT/ ITes Policy

rawan239

2 years ago

A major bonanza is in store for IT companies here as the announced theGujarat IT/ ITes Policy 2022-27.

Gujarat chief ministerBhupendra Patelunveiled the policy document at a ceremony held at GIFT City Gandhinagar.

As part of the new policy, the state government has announced a Capital Expenditure support of upto Rs 200 crore for upcoming IT companies in the state, which was upto Rs 1 crore in the previous policy. This new policy will be in force for five years i.e. from 2022 to 2027.

The policy introduces a unique concept of Capex-Opex model. As part of this, Capex support of 25% upto Rs 50 crore will be extended for small to medium-sized projects and Rs 200 crore for mega projects will be provided.

The policy envisions Capex support of 25% up to Rs 50 crore for normal projects and Rs 200 crore for Mega Projects. Under the OPEX model, the government will provide support of 15% up to Rs 20 crore per year will be extended to boost IT investments in Gujarat, the state government said in a statement.

In an effort to boost IT EMPLOYMENT in Gujarat, the policy also provides two special employment generation incentives to upcoming IT companies. A one-time Investment upto Rs 60,000 per employee to be provided by the state government to upcoming

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IT companies and 75-100% of reimbursement of employers contribution to employee provident fund will also be provided for a period of five years.

The state government will also continue providing interest repayment at 7% on term loans upto Rs 5 crore and 100% reimbursement of Electricity Duty to all eligible IT/ITeS units.
Gujarat IT/ ITes policy also proposes to establish aGujaratAI School / AI Center of Excellence with a view to provide Industry-ready skilled talent for the IT Industry.

Setting up of a cable landing station (CLS) will also be facilitated with a 25% Capex support of up to Rs 20 crore in addition to a power tariff subsidy of Rs 1 for a period of five years.