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Gujarat IT/ITeS Policy 2022-27
25% CAPEX
Up to ₹200 Cr Ceiling (Mega Projects)
₹25k Cr
Annual IT Export Target
1 Lakh+
New IT/ITeS Jobs Targeted
5 Years
OPEX / EPF / EDI Support Period
Gujarat IT/ITeS Policy 2022-27
The Gujarat IT/ITeS Policy 2022-27 is a landmark five-year framework notified by the Department of Science and Technology. Operating under a unique CAPEX-OPEX incentive model, the policy is designed to propel Gujarat into the top five performing Indian states in the IT sector, targeting over one lakh high-skilled jobs and an annual IT export leap from ₹3,000 crore to ₹25,000 crore. It provides tailored assistance for new units, expansions, Mega Projects, IT Cities/Townships, Data Centers, and Cable Landing Stations.
Notified vide G.R. No. ITP/10/2021/583612/IT, dated 07/02/2022. Operative till 31st March 2027 under the administration of the Directorate of ICT & e-Governance (DIT).
Establishing Gujarat as a global destination of choice
Policy Vision
To transform the IT landscape of Gujarat by becoming one of the leading states in terms of world-class IT infrastructure, availability of high-skilled resources, and innovation in Emerging Technologies.
Core Objectives
- •Act as a catalyst in the growth of the local IT/ITeS ecosystem.
- •Enable the creation of ready-to-occupy co-working office spaces on PPP and empanelment models.
- •Establish Gujarat as a hub for Emerging Technologies, including AI, Blockchain, Quantum Computing, and Cybersecurity.
- •Generate large-scale employment through special customized packages for Mega Projects.
Five-Year Milestones
| Milestone Metric | Policy Target |
|---|---|
| Annual IT Exports | Grow to over ₹25,000 Crore (from ₹3,000 Crore base) |
| New High-Skilled Employment | Generate more than 1,00,000 direct IT/ITeS jobs |
| National Ranking | Place Gujarat in the top 5 performing IT states |
| Infrastructure Centers | Become national leader in Tier-III/IV Data Centers & Innovation Centers |
Target unit categories and payroll criteria
IT/ITeS Unit Classification
| Unit Category | Eligibility Criteria |
|---|---|
| New Unit | Setting up or commencing operations in Gujarat during the policy period, with a minimum of 10 payroll employees. |
| Expansion Unit | Existing state unit increasing total payroll headcount by 50% or 1,000 employees (whichever is lower), with minimum 15 employees after expansion. |
| Mega Project | Project with a minimum Gross Fixed Capital Investment (GFCI) of ₹250 Crore, or generating at least 2,000 direct payroll jobs. |
Key Policy Definitions
- •IT Software & Enabled Services (ITeS): Call centers, BPOs, KPOs, medical transcription, web development, GIS, and deep tech (cybersecurity, Big Data, AI, ML, Blockchain). Excludes IT/telecom hardware manufacturing.
- •Gross Fixed Capital Investment (GFCI): Cumulative cost of building construction (capped at ₹3,000/sq. ft.), computers, software, and networking assets. Excludes cost of land.
- •IT City / Township: Land area of minimum 10–50 acres (Township) or above 50 acres (City) where at least 50% of the built-up area is developed as IT office space.
- •Data Center: Greenfield Tier-III or higher facilities with a minimum built-up area of 4,000 sq. ft. and minimum 150 racks.
The CAPEX-OPEX assistance model and employment top-ups
CAPEX-OPEX Assistance Slabs
| Investment Category | CAPEX Support (One-Time) | OPEX Support (Annual, for 5 Years) |
|---|---|---|
| Category I (GFCI < ₹250 Crore) | 25% of eligible CAPEX, capped at ₹50 Crore (disbursed in 20 equal quarterly instalments). | 15% of eligible OPEX, capped at ₹20 Crore per year (quarterly disbursement). |
| Category II / Mega Projects (GFCI ≥ ₹250 Crore or ≥ 2,000 jobs) | 25% of eligible CAPEX, capped at ₹200 Crore (disbursed in 20 equal quarterly instalments). | 15% of eligible OPEX, capped at ₹40 Crore per year (quarterly disbursement). |
Early Mover Advantage: The first three eligible Mega Projects with a GFCI of ₹100 Crore or above will be treated as Mega Projects.
Eligible Expenditure Heads
- •CAPEX: Stamp duty & registration fee refunds on lease/sale of office space, and captive renewable energy equipment costs.
- •OPEX: Office lease rent (capped at ₹50/sq. ft./month), bandwidth cost from licensed ISPs, cloud rentals from India-registered platforms, and patent filings (up to ₹5 Lakh per patent, max 10 patents/year).
Special Incentives for IT/ITeS Units
| Incentive Type | Support Quantum & Ceilings |
|---|---|
| Employment Generation Incentive (EGI) | One-time grant per new job retained for 1 year: ₹50,000 per male and ₹60,000 per female employee. |
| Interest Assistance on Term Loans | 7% interest subsidy (or actual interest, whichever is lower) capped at ₹1 Crore per annum for 5 years. |
| Atmanirbhar Gujarat Rojgar Sahay | Employer EPF contribution reimbursement for 5 years: 100% for female and 75% for male employees (up to 12% basic+DA). |
| Electricity Duty Incentive (EDI) | 100% electricity duty reimbursement paid to the Government for 5 years from operation start. |
Work from Home: IT/ITeS units can claim EGI and EPF benefits for incremental employees working from home within Gujarat.
Co-working spaces, Cable Landing Stations, and Data Centers
Rental Support for Co-working IT Seats
| Period of Support | Rental Subsidy Percentage | Monthly Seat Ceiling |
|---|---|---|
| First & Second Year | 50% of seat rental | ₹10,000 per seat |
| Third to Fifth Year | 25% of seat rental | ₹5,000 per seat |
Cable Landing Stations (CLS)
- •CAPEX Support: 25% of eligible civil works and hardware cost, capped at ₹20 Crore (excluding sub-sea cable laying).
- •OPEX Support: Power tariff subsidy of ₹1/unit for 5 years.
Data Center Incentives
- •CAPEX Support: 25% of eligible capital expenditure, capped at ₹150 Crore.
- •OPEX Support: Power tariff subsidy of ₹1/unit for 5 years.
Three-tiered talent upskilling framework
Tier I — Gujarat AI School & Center of Excellence
Established in partnership with national and international research academic institutions (IIT, IIIT, etc.) to serve as an incubator and advanced training center for AI, 5G, cybersecurity, and cloud tech.
Tier II — Upskilling Course DBT Concessions
Direct Benefit Transfer (DBT) support for working professionals and graduates completing certified ICT courses. Provides up to ₹50,000 or 50% of the course fee (whichever is lower) for empanelled MOOC and technical platforms.
Tier III — Grassroots Digital Literacy
Large-scale state campaigns and workshops directed at school-level students to foster early programming skills and basic computer literacy.
Equipment grants, self-certifications, and land facilitation
Educational R&D Lab Support
AICTE-recognized institutes establishing R&D centers in computer science can claim a one-time 60% CAPEX grant up to ₹5 Crore for purchasing machinery, server hardware, and COTS licenses (provided they hold CSIR/DSIR recognition).
Ease of Doing Business & Non-Fiscal Support
- •Zoning & FSI: Liberal FSI regulations for IT/ITeS parks and townships, including door-step utility connectivity.
- •Self-Certification: Eligible units can submit self-certifications under the Factory Act, Maternity Act, and Minimum Wages Act, bypassing regular physical inspections.
- •Preferential Government Procurement: Special opportunities for state-registered IT units to bid for public government IT tenders.
HPC and SLEC approval committees
Governing Committees
| Governing Committee | Authority & Composition |
|---|---|
| High Powered Committee (HPC) | Approves all Mega Projects and special packages. Chaired by the Chief Secretary of Gujarat; includes Secretaries of Industries, Revenue, Energy, and Finance. |
| State Level Empowered Committee (SLEC) | Approves all Category I IT/ITeS applications. Chaired by the ACS/PS/Secretary of the Department of Science and Technology. |
Applications, progress declarations, and quarterly instalment releases are processed digitally via the single-window DIT portal.
Crucial deadlines and operative period
| Key Milestone / Event | Date or Duration |
|---|---|
| Policy Effective Date | 07 February 2022 |
| Application Submission Deadline | On or before 31 March 2027 |
| Commencement of Operations Deadline | On or before 31 March 2028 |
| Fiscal Support Window | 5 years from commercial operations date |
| CAPEX Disbursement Installments | Reimbursed in 20 equal quarterly instalments |