Hello Readers,
Gujarat’s New IT policy was published on the 8th of February 2022, and it is published for 5 years, till 31st March 2027.
Gujarat is committed towards promoting faster and inclusive growth in the IT/ITeS sector. This Policy focuses on attracting investments and generating employment across the State along with propelling growth through incentives and facilitation. The IT/ITeS Policy (2022-27) will enable an innovative ecosystem, establish a robust infrastructure and further develop the state’s IT talent pool. The Policy will reinforce various elements of the IT/ITeS ecosystem and introduce support for co-working spaces to establish Gujarat as a ‘destination of choice’.
VARIOUS INCENTIVES CAN BE GRANTED UNDER THIS POLICY:
1. CAPEX-OPEX Model
CAPEX Support: All eligible IT/ITeS units are entitled to one time CAPEX support of up to 25% of the eligible CAPEX expenditure, subject to a maximum ceiling of INR 50 Cr.
OPEX Support: All eligible IT/ITes units are entitled to OPEX support of up to 15% of the annual eligible OPEX expenditure, subject to a maximum ceiling of INR 20 Cr. per year
2. Employment Generation Incentive (EGI)
Eligible IT/ITeS units shall be entitled to one-time support for every new and unique job created in the state. It is applicable for new local employees hired and retained for a minimum period of one year at 50% of one month’s CTC up to INR 50,000 per male and INR 60,000 per female employee for eligible IT / ITeS units.
3. Interest Assistance
Eligible IT/ITeS units are will be entitled to interest subsidy at 7% on term loan or the actual interest paid, whichever is lower with a ceiling of INR 1 Cr per annum.
4. Atmanirbhar Gujarat Rojgar Sahay
Eligible IT/ITeS units will be eligible to claim reimbursement on the employer’s statutory contribution under EPF made by them of their employee working in the offices situated within Gujarat for period of 5 year:
– 100% of female employee
– 75% for male employee
– Ceiling of incentive amount per employee will be 12% of Basic salary + DA + RA
5. Electricity Duty Incentive
Entire amount of electricity duty paid by them to the government of Gujarat.
‘Eligible Unit’ means any new unit having a minimum of 10 employees on its payroll or an expansion unit having a minimum of 15 employees on its payroll after expansion.
The government is also designing an online policy portal where registration forms and all other information will be available. This will lead to an increment in transparency, the contactless application process, enabled data verification, end-to-end digital interface, timesaving, and ease in incentive outlay. To check policy specifics, visit to https://dstpolicy.gujarat.gov.in.
Please note that, the “Information Form” must be completed by all currently operating IT/ITeS units in the Gujarat State. Throughout the implementation of the Gujarat IT/ITeS Policy 2022-27, only IT/ITeS units who register themselves on the Incentive Management Portal and complete the “Information Form” will be regarded as being eligible for expansion (2022-27).
The registration window will remain open till 5th November 2022.
Main objectives of Gujarat IT/ITes Policy 2022-27 are to transform State IT industry in next five years by creating high skilled, industry-ready IT talent pool; provide a state-of-the-art IT Infrastructure; develop a unique and simplified incentive scheme; establish a robust cloud ecosystem, encourage startup ecosystem in the state and foster research & development in new and emerging technologies such as Artificial Intelligence, IoT, Machine Learning, Quantum computing, Blockchain, etc.
Disclaimer: This article is only a knowledge-sharing initiative and is based on the Relevant Provisions as applicable and as per the information existing at the time of the preparation. In no event, RMPS & Co. or the Author or any other persons be liable for any direct and indirect result from this Article or any inadvertent omission of the provisions, update, etc if any.
