GoM’s new IT policy targets 10 lakh jobs

MUMBAI, INDIA: The Maharashtra government has unveiled a new information technology (IT) policy.

Unveiled by Chief Minister Devendra Fadnavis, the new policy titled: IT and Enabled Services Policy (ITESP) is aimed at attracting Rs 55,000 crore in investments, and generating more than 10 lakh jobs in the state.

"Three cities such as Chennai, Hyderabad and Bengaluru are leading in attracting IT-enabled services, and we have to compete with them, so we are taking these measures," said Fadnavis.

Some incentives to attract the IT industry:

The state may exempt IT/ITeS units from paying stamp and electricity duty. Besides, it would levy power bills at industrial and not commercial rates.

Other incentives include subsidy on electricity tariffs, property tax at residential rates, exemption from octroi, entry tax, Local Body Tax (LBT), concession on Works Contract Tax and VAT.

In addition, the government has also proposed an additional FSI of up to 200 percent by charging a premium in the new IT policy.

Other beneficiaries:

The CM said that besides ITeS, the state will offer an impetus to the animation industry by dropping the entertainment tax for companies involved in producing animation, provided they fulfill some key conditions.

One, at least 50 percent of the animation should be done out of Maharashtra, and

Two, the entertainment duty would be waived off for a maximum of Rs 2.5 crore for each project.

Fadnavis said that the land cost in Mumbai was too prohibitive for IT companies to set up units and hence the state is focusing on giving more FSI and other incentives to companies that set up units in Navi Mumbai, Pune and Thane.

Promoting the tier-3 and -4 cities:

Industries secretary Apurva Chandra said that Maharashtra would reimburse property tax to those IT companies which set up units in rural areas. He added that in order to encourage IT companies to set up base in rural areas, they have proposed giving higher FSI to IT companies setting up business process outsourcing units in Class-A, -B and -C category of municipal councils.