Information Technology Policy

Salient features of Incentive Policy for 'IT' Industry in Gujarat

The Information Technology Policy announced by the Government of Gujarat has emphasized the need to accelerate development of IT Industries in the State of Gujarat which has potential to create large scale employment opportunities. Information Technology Industry in India is a fast growing segment of the Indian economy, with growth rate exceeding 40% per annum. Incentive Policy for IT Industry is to take into account the specific characteristic of this industry. Therefore, these incentives would be applicable anywhere in the State of Gujarat. Since the investment in tangible assets tends to exceed the investment in intangible assets, this policy has also defined intangible assets and incentives have been given to these as well so as to enable faster growth of IT industry and greater proliferation of IT culture in the State. This 'IT Incentive Policy' would be subject to review after a period of two years in view of rapid technological changes in this sector.

Capital Subsidy at a rate of 25% for Eligible new IT units on total eligible capital investment.

Special Incentives in the form of Capital subsidy to large units on a graduated scale.

IT units would be eligible to a Turnover Incentive at a rate of 5% of the elgible annual turnover with a ceiling of Rs. 50 lakhs.

Sales Tax holiday on all IT Software in the next 5 years.

Incidence of Sales Tax on Computer Hardware, Peripherals, etc., would be reduced.

A special Connectivity Incentive where Government would subsidise leased line rental upto 500 Kms., to an extent of 50% of the lease rentals.

IT units would be completely exempted from power-cuts.

In Gandhinagar, Technology Parks and Infocities would have 50% higher FSI.

A new Commissioner of IT for administering this Scheme.

A State Level Committee to interpret and decide the decisions regarding incentives.

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