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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. |
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At present the Department of Science & Technology carries out the following
activities for the implementation of the scheme: |
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- Registration of units as ‘New’ or ‘Existing’ Unit.
- Processing of documents submitted by unit
- Other documentation work &
- Feedback reporting to the government and
monitoring
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1. What are the main benefits available under IT Policy 2006-2011? |
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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. |
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Mega IT Projects |
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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. |
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High – Tech Park |
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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 |
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URL : www.dst.gujarat.gov.in/AnnexureC.pdf |
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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.
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Stamp Duty |
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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. |
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Special Economic Zone (SEZ) |
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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: |
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URL http://imd-gujarat.gov.in/gr/notifications.htm |
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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.
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(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: |
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URL: www.dst.gujarat.gov.in/AnnexureD.pdf |
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(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. |
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(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. |
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Exemption from Power Cuts |
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IT & ITES unit will be considered eligible for exemption from power cuts.
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Waiver of NOC from GPCB |
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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. |
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Simplification of Labour Laws |
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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. |
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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. |
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(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: |
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URL : www.dst.gujarat.gov.in/AnnexureE.pdf |
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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: |
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URL http://labourandemployment.gov.in/self.doc |
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www.dst.gujarat.gov.in/AnnexureF.pdf |
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Floor Space Index (FSI) |
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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. |
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2. What is the procedure to avail any benefits/incentives under New IT Policy
2006-2011? |
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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
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3. What is the procedure for Registration? |
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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. |
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4. What is definition of New IT Unit? |
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“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. |
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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. |
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