Driving businesses with incentives, infrastructure, and skilled talent through Gujarat IT/ITeS Policy 2022–27
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat.
Where Technology Meets Opportunity
The Gujarat IT/ITeS Policy 2022–27 is one of a kind support that is planned to position Gujarat as a leading destination for IT and technology-enabled services. It aims to encourage investment, employment, and innovation through a number of incentives and facilitation options that can work in the favour of the entrepreneurs. The policy supports both CAPEX and OPEX expenditures, offering capital support up to ₹50 crore for standard units. It also has option to support strategic incentive up to ₹200 crore for mega projects, along with operational expenditure support of up to ₹20 crore (₹40 crore for mega projects) annually.
There are some key incentives that include employment generation support (which could be up to ₹60,000 per employee), Atmanirbhar Gujarat Rojgar Sahay (EPF reimbursement), interest assistance on term loans, and 100% electricity duty reimbursement for all the eligible units.
The policy also encourages skill development (DBT up to ₹50,000 per person) along with a number of benefits such as rental subsidies for co-working spaces, and support for IT cities/townships. It will also incentivize the establishment and works of GCCs, R&D centres, data centres, and deep tech incubators. The overall idea is to bolster the state’s technology along with the talent pool.
Key Benefits of the IT / ITeS Policy 2022–27
- Capital support for IT/ITeS units, which includes large and mega projects
- Employment generation assistance based on a per-employee basis
- OPEX support which will cover all the rentals, utilities, as well as the operational costs
- EPF reimbursement
- Electricity duty exemption
- Incentives for skill development
Incentive / Subsidy Benefits
| Sr. No. | Particulars | Quantum of subsidy |
|---|---|---|
1. | Capital Expenditure Subsidy | 25.00% of capital expenditure receivable in 20 quarterly instalments |
2. | Operating Expenditure Subsidy | 15.00% of operating expenditure receivable in quarterly instalments |
3. | Interest Subsidy | Up to 7.00% and up to 10 million per annum |
4. | Employers’ contribution to Provident Fund | 100% in Case of Female Employees / 75% of Male Employees |
5. | Electricity Duty | 100% Reimbursement of Electricity Duty |
6. | Employee Salary | 15 days salary up to 50k for male and 60k for female employees |
7. | Working from Empanelled Co-Working Space | – 50% of monthly seat rent or INR 10,000/ seat for first two years – 25% of monthly rent or INR 5,000/seat for next three years |
Capital Expenditure includes
- Constructed office building, computers, software, networking related hardware and other related fixed assets;
- Stamp duty and registration fees for lease / purchase of office and land; and
- Purchase of renewable energy equipment for captive use.
Operating Expenditure includes
- Office Lease Rent
- Bandwidth Charges
- Cloud Rental
- Power Tariff and
- Patent Expenses
FAQs
Have Questions About Something?
Office 517, Iconic Shyamal, Shyamal Cross Road, Satellite, Ahmedabad - 380015, Gujarat.
Start Today with H Square Advisors
H Square Advisors offers tailored solutions in finance, government subsidies, taxation, and more. We provide expert consultancy to help businesses thrive, ensuring they receive the support they need to grow.
