Gujarat Govt. issues the IT/ITeS Policy 2022-2027; offers special incentives for growth of IT/ ITeS units; aims to generate new jobs in the State
Government of Gujarat has issued the IT/ITeS Policy 2022-2027 (“Policy”) with a view to attract investment and generate employment across the State of Gujarat along with propelling growth through incentives and facilitation.
The Policy shall remain in force for a period of five years till 31st March 2027 or till the declaration of new or revised Policy, whichever is earlier.
Key objectives of the Policy:
• To act as a catalyst in the growth of the IT/ITES ecosystem
• To enable the stakeholders of the IT/ITES sector to create state-of-the-art IT infrastructure in the form of ready to occupy co-working office spaces
• To enable the creation of high-skilled IT human resources in the State
• To encourage large-scale investment in the IT/ITES sector through special provisions for mega IT/ITES projects
• To establish the State as a hub for innovation in Emerging and Advanced Technologies
Aim of Policy
The proposed policy aims to achieve the following in the next 5 years:
• Place Gujarat in the top five performing states of India in IT sector
• Increase Gujarat’s annual IT exports from INR 3,000 Cr. to over INR 25,000 Cr.
• Generate more than one lakh new IT/ITES jobs in the State
• Become the national leader in terms of world-class IT infrastructure, Data Centres and Innovation Centres in Emerging Technologies.
Special incentives for IT/ ITeS Units
The Government shall provide impetus for growth of IT/ ITeS units by incentivising as follows:
• Employment Generation Incentive (EGI): Eligible IT/ ITeS units will 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 percent of one’s monthly CTC upto Rs. 50,000 per male and Rs. 60,000 per female employee for eligible IT/ ITeS units.
• Interest Assistance: Eligible IT/ ITeS units will be entitled to interest subsidy at seven percent on term loan or the actual interest paid, which is lower with a ceiling of Rs. 1 Cr. Per annum
• Atmanirbhar Gujarat Rojgar Sahay: Eligible IT/ ITeS units will be eligible to claim reimbursement on the employer’s statutory contribution under Employees Provident Fund made by them for their employees working in the offices situated within Gujarat for a period of five years.
• Electricity Duty Incentive: Eligible IT/ ITeS units may claim the entire amount of electricity duty paid by them to the Government for a period of five years from the date of start of commercial operations or in-principle approval, whichever is later.
• Incentive for supporting ‘Work from Home’: Government shall support the eligible IT / ITeS units having Gujarat based employees availing work from home when such employees operate from within Gujarat.
A copy of the Notification is hyperlinked below for ease of reference.
Source: Government of Gujarat
