To promote the information Technology Industry in Gujarat and attract the entrepreneurs to set up unit in Gujarat, the Government of Gujarat has declared the New IT Policy 2006-2011 vide its G.R. No. ITP-102006-942-DST Dated 1/11/06.

At present the Department of Science & Technology carries out the following activities for the implementation of the scheme:

Registration of units as ‘New’ or ‘Existing’ Unit. Processing of documents submitted by unit Other documentation work & Feedback reporting to the government and monitoring

1. What are the main benefits available under IT Policy 2006-2011?

HIGHLIGHTS OF IT POLICY 2006-2011 OPERATIVE PERIOD:- This scheme will become operative with effect from 1/11/06 and shall remain in force for a period of 5 years from that date. This scheme is applicable in the state of Gujarat only.

Mega IT Projects

On case to case basis, a special package of incentives will be offered for mega IT projects. Such projects will be defined as projects creating employment of more than 1000 in the case of IT unit and 1500 in the case of ITES unit. Alternatively, an investment of Rs.50 crores and above will be considered as a mega IT project.

High – Tech Park

Financial Assistance to high-tech park will be administered as per the Resolution No. APN-102003-1161(7)-I dated 10th June, 2004 of Industries & Mines Department. This may be downloaded from

URL : www.dst.gujarat.gov.in/AnnexureC.pdf

Salient features of this package are as follows:-

IT Park will be provided financial assistance @50% of fixed capital investment in land, buildings & infrastructure facilities upto a maximum of Rs.25 millions. The developer of Industrial park availing incentive under this scheme will not be eligible to avail incentive under any other schemes of the State Government. However, the units coming up in the industrial park will be eligible to avail incentives under separate schemes of the State Government.

Stamp Duty

The developer of IT Park, as notified by the government, will be eligible for exemption from payment of stamp duty on purchase of land. However, the IT/ITES units in the said IT park will be required to pay the stamp duty @ 50%.This exemption will be limited to first sale only.

Special Economic Zone (SEZ)

The State Government will encourage the development of Special Economic Zone (SEZ) as per Industry & Mines Department’s Notification No. GHU/2004(2)/SEZ-2003-617-G dated 15.05.2004. This may be downloaded from:

URL http://imd-gujarat.gov.in/gr/notifications.htm

Salient features of this SEZ policy are as following:

Exemption from all State taxes, fees, cess etc Exemption from Stamp Duty and Registration Fee. Exemption from Electricity Duty for 10 years from the date of production or rendering services. Single Window Mechanism for various approvals under various State Laws Flexibility to the developer to set up infrastructural facilities and to collect service/user charges in accordance with the provisions of the SEZ Act. Development Committee under the Chairmanship of Developer for carrying out development works and works related to social infrastructure. SEZ area as Industrial Township under the proviso to clause(1)of article 243Q of the Constitution. Constitution of High Level Authority for consideration of applications for setting up of Zones under chairmanship of Chief Secretary. Authority to monitor promotion development and functioning of the Zones. Electricity Duty.

(a) All new Information Technology Industry units have been exempted from the payment of Electricity Duty for a period of 5 years from the date of which the said unit commence its commercial operation vide Notification No. GHU-2000-34-ELD-1198-7578-K dated 13.10.2000 of Energy & Petrochemicals Department. This may be downloaded from:

URL: www.dst.gujarat.gov.in/AnnexureD.pdf

(b) The captive power unit set up by eligible IT / New IT & ITES units will be exempted from payment of electricity duty as per provision of section 3 of Bombay Electricity Duty Act, 1958.

(c) In case of IT/ITES units State Government would pursue with Gujarat Electricity Regulatory Authority to change applicable category of tariff from Commercial to Low Tension Industry category.

Exemption from Power Cuts

IT & ITES unit will be considered eligible for exemption from power cuts.

Waiver of NOC from GPCB

IT/ITES units engaged in provision and production of “IT services and IT Software” will not have to seek no-objection certificate from Gujarat Pollution Control Board. This, however, will not be applicable for those units engaged in production of Information Technology products.

Simplification of Labour Laws

The regulatory regime of labour laws has been simplified to suit the needs of IT & ITES companies. General Permission is granted to all IT & ITES companies to have 24x7 operations/to run in three shifts. The barriers pertaining to employment of women at night have been removed.

The Bombay Shops & Establishment Act,1948 have already been amended & new entry at Sr.no.120 in Schedule II of the said act has been added giving exemptions under sections 13,14,18 & 33 of The Bombay Shops & Establishment Act,1948. These sections pertain to opening and closing hours of commercial establishments, daily and weekly hours of work in commercial establishments, holidays in a week in commercial establishments and employment of young persons and women to work beyond the prescribed hours. These amendments would enable the IT & ITES units to run three shift operation on all seven days of the week, have flexi time operations, & would also enable employment of women after 7.00 p.m. and before 6.00 a.m.

(These amendments have been made by Labour & Employment Department vide Notification No. GHR-2003-78-FAC-1099-44-12-M3 dated 24th June, 2003 in respect of IT & ITES companies. This may be downloaded from:

URL : www.dst.gujarat.gov.in/AnnexureE.pdf

The Self Certification-cum-Consolidated Annual Returns Scheme has been issued by Labour & Employment Department vide GR No. FAC-2003-3043-M(3) dated 05.12.2005 and the same has been extended from 01.01.2006 for five years vide GR No. FAC-2003-3043-Part-3-M(3) dated 20.03.2006. The details of the GR may please be downloaded from:

URL http://labourandemployment.gov.in/self.doc

URL www.dst.gujarat.gov.in/AnnexureF.pdf

Floor Space Index (FSI)

In order to facilitate adequate availability of floor space to IT/ITES units in the urban centers, government will permit more than permissible FSI to IT Parks subject to payment of premium of such additional FSI at market rate. For this purpose relaxation of building height would be considered subject to state government’s prior approval and NOC by Airport Authority of India.

2. What is the procedure to avail any benefits/incentives under New IT Policy 2006-2011?

Under the New IT Policy 2006-2011, the unit, which would like to avail the benefits of the policy has to register itself with the Department of S&T as per the prescribed procedure. For registration and granting of the benefit the implementation plan consists:

Registration Sanction Monitoring

3. What is the procedure for Registration?

The application forms for the new and existing unit for registration as well as format of registration certificate have been worked out and these application forms are available on website www.dst.gujarat.gov.in as well as www.gujaratinformatics.com and on receipt of them due verification is made as per the checklist and thereafter registration certificates are issued.

4. What is definition of New IT Unit?

“The “Eligible New Information Technology Unit” means a new unit in IT industry set up after the cut-off date i.e. 1/11/2006. It should also fulfil the following criteria.

The New project should have obtained SSI registration from concerned District Industries Centre or obtained the Letter of Intent, Letter of Approval or obtained receipt against filling of Industrial Entrepreneur Memorandum.