CM Shri Bhupendra Patel announces significant reforms to the state’s IT and ITeS policy during Vikas Saptah

Gandhinagar : Chief Minister Shri Bhupendra Patel has introduced broader provisions and reforms in the state’s IT and ITeS policy, aiming to foster a robust ecosystem for emerging technologies and promote innovation during the Vikas Saptah celebrations. 

It has been 23 years since Prime Minister Shri Narendra Modi assumed office as the 14th Chief Minister of Gujarat on October 7, 2001. His tenure marked a new era of development in the state, characterized by technology-driven progress and remarkable success. Under the leadership of Chief Minister Shri Bhupendra Patel, the state government is commemorating 23 years of good governance through Vikas Saptah. During this week, alongside inaugurations and foundation-laying ceremonies, the state’s IT and ITeS policy has been further enhanced to align with the Prime Minister’s vision of Viksit Bharat@2047, realized through Viksit Gujarat.

The new policy incentives are designed to accelerate the growth of deep-tech startups in Gujarat, establishing it as a model of development. The updated framework now encompasses cutting-edge technologies, including Artificial Intelligence, Machine Learning, the Internet of Things, Blockchain, Big Data, and Data Science. Additionally, it provides clearer guidelines regarding IT and ITeS parks. Furthermore, the policy ensures that Gujarat’s IT sector remains connected to global technological advancements by incorporating Augmented Reality (AR), Virtual Reality (VR), Mixed Reality (MR), and Quantum Computing.

Under Chief Minister Shri Bhupendra Patel’s guidance, significant reforms have been introduced in the IT and ITeS policy. These include revised percentages for CAPEX (covering building construction, procurement, computers, software, networking-related hardware, and other fixed assets) and OPEX support (including lease rental, cloud services, bandwidth, patents, and power tariff support) available to eligible entities. The CAPEX incentives for IT infrastructure have increased from 25% to 30%. OPEX support and special incentives will also be available to all eligible institutions. Special incentives provided in the policy include assistance of up to ₹60,000 for each new and unique job created in the state, interest subsidies of up to 7% on term loans, and reimbursement of up to 100% of the employer’s statutory contribution under EPF payments made under Atmanirbhar Gujarat. Additionally, employment assistance and 100% reimbursement of electricity duty are included.

The revisions will provide CAPEX and OPEX support to ICT and deep-tech incubators while facilitating investments for ICT and deep-tech accelerators. Moreover, assistance will be extended to ICT and deep-tech startups in areas such as R&D, prototyping, product development, patent filing, and quality certification. Lease rentals and shared infrastructure will also be included. The policy offers incentives for Global In-House Centers (GIC) and Global Capability Centers (GCC) in the IT sector. These centers will be eligible for 30% CAPEX support for IT infrastructure, 20% CAPEX support for non-IT infrastructure, and 15% OPEX support, along with additional benefits such as employment creation incentives, interest subsidies, and electricity duty exemptions. EPF support will be provided under Atmanirbhar Gujarat Employment Assistance.

To promote deep-tech development in fields such as Artificial Intelligence (AI), Machine Learning (ML), Internet of Things (IoT), Blockchain, Big Data, Data Science, Augmented Reality (AR), Virtual Reality (VR), and Mixed Reality (MR), the policy includes provisions for establishing a Center of Excellence for deep tech and quantum computing. This initiative will lead to the creation of state-of-the-art infrastructure for AI-based solutions and encourage the development of industry-ready talent.
Notably, Tier-3 and above data centers are now eligible for CAPEX support, OPEX support, and special incentives. The policy will also extend support for IT parks in terms of CAPEX and OPEX.

Aligned with Prime Minister Shri Narendra Modi’s vision for Viksit Bharat@2047, these changes in the IT and ITeS policy aim to foster a dynamic environment for new investments and comprehensive growth in Gujarat’s IT and ITeS sectors. The overarching goal is to ensure the realization of Viksit Gujarat through these enhancements.
 

Source: Information Department, Gujarat