Establishment of

Data Center

IT & ITeS
Government of Gujarat
Contents

Project Concept 3
Market Potential 6
Growth Drivers 9
Electronics and IT SEZ in Gujarat 11
Gujarat – Competitive Advantage 12
Project Information 14
- Location/ Size
- Infrastructure Availability/ Connectivity
- Raw Material/ Manpower
- Key Players/ Machinery Suppliers
- Potential Collaboration Opportunities
- Key Considerations
Project Financials 19
Approvals & Incentives 20
Key Department Contacts 23

Page 2
Project Concept
Datacenter Overview

What is a Datacenter?
 The data center is the department in an enterprise that houses and maintains back-end
information technology (IT) systems and data stores—its mainframes, servers and databases.
 For a small organization, the datacenter may represent a small closet that houses one or two
servers
. and a network patch panel.
 For many larger organizations, the datacenter represents a major, centralized environment that
houses the majority of IT systems to support enterprise-wide applications.
 There are four functional requirements of a datacenter which includes location (a place to locate
computers, storage and networking devices), power (to maintain the devices), HVAC
(temperature controlled environment within the parameters needed) and structured cabling
(connectivity provided to other devices both inside and outside).

Classification of datacenter

Tier I Tier II Tier III Tier IV

 99.671% uptime  99.749% uptime  99.982% uptime  99.995% uptime

 28.8 hours  22 hours downtime  1.6 hours downtime  2.4 minutes
downtime per year per year per year downtime per
 No redundancy (N)  Partial redundancy  N + 1 fault tolerant year
 Must be shut down in power and  72 hour power outage  2N + 1 fully
completely to cooling protection redundant
perform preventive  Single path of power  Enables preventative  96 hour power
maintenance and cooling maintenance without outage protection
disrupting computer
hardware operation

Components of a datacenter
 It refers to the usable raised floor
environment which can be a few
hundred to a hundred thousand
square feet.
White
space
 It refers to the additional space and
equipment required to support
datacenter operations which includes
chillers, UPS, power transformers,
Support
generators, remote transmission
infrastruct
ure units, air distribution systems.

IT
 It includes the racks, cabling, equipment Operations
 It ensures that the systems (both IT
servers, storage, management and infrastructure) are properly
systems and network gear required operated, maintained, upgraded and
to deliver computing services to the repaired when necessary.
organization

Page 3
 Project Concept

Ongoing transition to a next generation data center

Next-generation data center
Step3 Workload assignment based on infrastructure
pattern analysis; dynamic optimisation with
cognitive learning; proactive approach to
threats and opportunities

Software-defined data center

Automatic workload assignment to best-fit
Step2 resources; software-defined optimisation;
proactive approach to threats and
opportunities
Traditional data center
Step1 Workloads assigned manually to
server, storage and networking;
manual IT optimisation; reactive
approach to scenarios of threats and
opportunities

Key requirements for setting up the datacenter

Tax incentives

Basis of customer’s
Net generation of
occupation
electrical power

Construction cost
index Design and delivery

Climate Key
(temperature and requirements Environment
average rainfall) for setting up liability and
the taxes
datacenter
Population
demographics (total
population, median Clarity of
income, and education scope/service
levels) levels
Proximity to internet
exchanges Clarity of price

Primary source of energy

Page 4
Project Concept

Data center architecture

Page 5
Market Potential

Global Market Overview- Global data centers spending to reach US$175

billion by 2016

 Global data center IT infrastructure Global data center spending (US$ billion)
investments, including total spending
on servers, storage, networking,
security and virtualization, reached
US$170 billion in 2015, growing at a 171 174
CAGR of 9.3% from 2011 and is
expected to reach US$174 billion by
2016.
 The market is largely driven by 120
strong growth in the server markets in
Greater China and Western Europe,
and a strong refresh cycle in the
North American enterprise network
equipment market.
 Investments on large data centers are
expected to increase on an average
by 8% over 2016-2017, which will be
largely driven by cloud computing and
analytics. 2011 2015 2016
Source: Gartner

Market share in spending

 In 2015, the Americas region dominated the (2015)
global data center market with a share of 40%
(US$68 billion) followed by Europe and Russia
together at 32% or US$54 billion. The APAC 32%
market grew rapidly with a 25% market share at
US$42 billion and lastly, the Middle East and
Africa (MEA) region had a share of 3% with
nearly US$6 billion in investments.
25%
 APAC accounts for a quarter of the global 3%
investments on the data center and is expected
to be the fastest growing region over the next five
years. Within APAC, China and India will be the
leaders in data center spending.
 On the other hand, in 2015, mature data center
markets have slowed down and are expected to 40%
remain sluggish, North America (3.8%, a down
from 2012 levels), Western Europe (3%, a point
up from 2012).
America MEA EU+Russia APAC
Source: Data center Dynamics Intelligence 2015

Page 6
Market Potential

Indian Market Overview- Indian data centers market expected to reach

US$2.29 billion by 2018
India data center IT infrastructure growth by technology (US$ million) 2,228
1,929

892 944
656 658
382 426

Servers Storage Enterprise networking Total

Source: Gartner 2014 2015

 The data centre IT infrastructure investments, including total spending on servers, storage,
networking, security and virtualization reached US$2.2 billion in 2015 and is expected to
reach $2.29 billion by the year 2018, primarily driven by cloud and mobility.
 Within the Indian data center IT infrastructure market, server growth reached US$658 million
in 2015 a marginal increase over 2014 levels. Enterprise networking was the biggest segment
with revenue reaching US$944 million at 5.5% growth rate over 2014 and storage reached
US$426 million in 2015, a 10% growth over 2014.
 BFSI, social media, entertainment, e-commerce and telecom industry likely to drive the
increased demand for outsourcing of data center requirements.
 High opportunity cost of reliable power supply as well as real estate is increasingly tipping the
scale in favour of third party data centers.

 In 2015, India contributed 1.2% to the India’s share in APAC region (2015)
world data center IT infrastructure
spending and 5.23% in the APAC
region. Key drivers include explosion of
data through smartphones, social
networking sites, ecommerce
companies and government initiated
projects.

 According to the Gartner, India was the

second largest market for data center 5.2%
infrastructure and second fastest India size
growing market in Asia Pacific region
after China in 2015.

Source: Data center Dynamics Intelligence 2015

Page 7
Market Potential

Increasing government focus on data, data flows and data centers

 Focus on data and, consequently, dataflow is not just restricted to the private sector.
Governments are increasingly reliant on IT-intensive services to improve their performance
and organize the Government to Citizen (G2C) delivery platforms—including e-forms, public
service grievance redressal.
 For instance, the National eGovernance Plan (NeGP) had more than 31 mission mode
projects in its initial years; the NeGP itself requires several data centers and needs yet more to
support the various Business to Citizen (B2C) services.
 The Government has a vision of making all services accessible to common man to achieve the
citizen centric service delivery goal with three core infrastructural NeGP pillars:
 State Wide Area Network (SWAN)
 State Data Centers (SDCs) and
 Common Service Centers (CSCs)
 Digital India – Default Cloud, Mobile First

Existing and planned investments in the Indian data center market

Company Existing investment

Microsoft Launched three data centers in Mumbai, Pune and Chennai in 2015

IBM Launched cloud data center in Chennai in 2015

CtrlS CtrlS has three data centers, one each in Mumbai, Hyderabad and Delhi

Company Planned investment

Planning to set up a tier-||| data center worth INR350 crore in GIFT city,
Infibeam
Gujarat

Alibaba Group Aiming to set up a local data centers in India

Vodafone Planning to invest INR1,000 crores in setting up a data center in India

Invest INR2000 crores in setting up two centers, one each in Mumbai

Netmagic Solutions
and Bangalore, by 2018
Planning to invest INR300 crores to set up a data center at
Ricoh
Gandhinagar, Gujarat

Cyfuture Planning to build new data center in Noida worth INR50 crores

Page 8
Growth Drivers

Major sectors driving the demand for data centers

Banking, Financial Services and Insurance
 Indian financial services sector which is projected to grow at CAGR 12-15% in next five years, is
1
the predominant demand driver. It already has the highest penetration in the data centers market,
and will be maintaining its leadership.
 Technology is playing an important role in new banking licences (payment banks and full-service
commercial banks) as entrants seek to reduce costs through cloud-based services.

Telecom
 Driven by increasing mobile penetration and usage, telecom service providers are augmenting
network infrastructure to meet growing data demand and maintain quality of service.
 M-Governance – a government initiative about mobile-based public services involves state owned
data centers for cloud-based offerings which is creating demand for the spending on the data
centers.

IT and IT-enabled services

 The demand in IT and IT-enabled services is creating the need for new data centers. Additionally,
third-party data centers are also gaining attraction from the ITeS sector due to their low costs and
efficiencies.
 Enterprises network solutions’ is the focus area. Airtel partnered with Amazon Web Services (AWS)
to offer private network solutions which was recently launched in June 2016.
 IBM and Microsoft recently opened their data centers in India in 2015.

Anticipated demand from the Digital India scheme

Key features
 Rural broadband connectivity of 100 Mbps
through common service centers at capex
of US$5 billion by December 2016.
 Virtual network operators for urban
broadband.
 Mobile services to 55,669 unpenetrated
villages and upgradation of 150,000 post
offices which will further create demand for
data centers.
 Electronic delivery of public services (e-
governance), electronic databases and
workflow automation in government
department.
 Digital locker – a sharable private space on
public cloud system to safely store e-
documents and certificates.
Key projects
JAM (Jan Dhan Yojna + Aadhaar + Mobile)
Aadhaar
 World’s largest unique ID project – so far
generated 903 million IDs
 Outlay of US$2.13 billion for 2009-17
Prime Minister Jan Dhan Yojna
 World’s largest financial inclusion project.
 Universal access to financial services
 210 million accounts till February, 2016
Mobile
 Mobile Number Portability focuses on
establishing the Trinity of JAM to transfer
benefits in a leak age-poof, targeted and
cashless mode through the Governments
Direct Benefit Model.

Page 9
Growth Drivers

 According to Gartner, Indian public cloud

Public cloud services services spending is expected to grow at a
spending (US$ million) CAGR of 29.5% from US$968 million in
Growing 2015 to US$3,528 million in 2020.
adoption of 3,528  Adoption of cloud and new data-
public cloud 968 distribution models has led to boom in
services data center industry.
2015 2019

 Indian internet of things (IoT) market is

expected to rise to US$15 billion by 2020
from US$6 billion in 2016, growing at a
Internet of things market CAGR of 21.8% over 2016-20.
(US$ billion)  The rise of the IoT will in turn lead to an
Growth in the
increase in the demand for data center
internet of 15
services.
things (IoT) 6
 According to IDC, data center capacity
2016 2020 utilized by IoT workloads is expected to
increase nearly 750% between 2014 and
2019.

 Big data and business analytics revenues

Big data and business are expected to rise to US$4 billion in the
analytics market (US$ billion) next three years from the present of US$2
Growing big billion in 2016, growing at a CAGR of
data and 25.9% over the period 2016-2019, driven
business 4 primarily by IT and software sector.
2  Consequently this will create large demand
analytics
for storage space.
2016 2019

Page 10
Gujarat - Competitive
Advantage
Market opportunity
 The size of IT industry in Gujarat was estimated at around US$880 million in FY15.
 The state has formulated the IT Policy (2016-2021) to attract investments:
 To generate US$15 billion from IT sector in Gujarat
 To increase the current investment in IT/ITeS sector by ten times
 To increase IT exports from the state up to US$2 billion
 To promote and develop employment opportunities in the IT and ITeS and provide direct
employment to 1 million people

Gujarat IT export revenues (US$ million)

190
170
160

FY10 FY13 FY14

Current market and infrastructure

 More than 1,500 electronics and IT-ITeS companies are registered in Gujarat, of which more
than 400 are members of the Gujarat Electronics & Software Industries Association (GESIA).
 Ready infrastructure is available at various locations in Gujarat such as Garima Park -
Gandhinagar, GNFC Infotower, Astron IT Tech Park –Ahmedabad, Creative Infocity at
Gandhinagar and L&T Technology Park in Vadodara.
 The stretch between Ahmedabad and Gandhinagar is being developed as a knowledge corridor.
Land has been allotted and several IT parks and centres of excellence are taking shape here.
 India’s only global Financial and IT hub, Gujarat International Finance Tec-City (GIFT
City) is under construction.
 Nine major Special Economic Zones planned specifically for IT/ITeS are coming up in Gujarat.
 One IT/ITeS SEZ has been approved in Valsad (Mexus Corporation Pvt Ltd).
 Four SEZs are notified and functional in Gandhinagar (Aqualine Properties Private
Limited, Tata Consultancy Services Ltd), Vadodara (Larsen & Toubro Ltd) and
Ahmedabad (Ganesh Infrastructure Pvt. Ltd).

Page 11
Gujarat - Competitive
Advantage
Ease of doing business
 Gujarat ranked first in ease of doing business as per DIPP report 2015.

 Only state which comply 100% with the environmental procedures.

 Gujarat ranked No. 1 in terms of setting up a business, allotment of land and

obtaining a construction permit.
 Gujarat ranked No.1 in e-transactions for government services.

Flourishing economy
 Gujarat contributes 7.2% of the Nation GDP and shows leadership in many areas of
manufacturing and infrastructure sectors. Gujarat’s GSDP (Gross State Domestic
Product) at current prices registered a growth of 11% during the year 2014-15.

 Gujarat has attracted cumulative FDI worth US$12 billion from April 2000 to March
2015.

 Gujarat contributes around 19.1% to India’s total exports of goods in 2014-15.

Strategic location and better infrastructure

 Located on the west coast of India, Gujarat is well connected to the major cities of
the India and to the rest of the world by air and sea routes.

 The state has 40 ports, 13 domestic airports and 1 international airport in addition to
an extensive rail and road network.

 Gujarat is the one of the power surplus states in the country. This helps it in
attracting huge amount of investment from the industries and tagged as preferred
investment destination in the country.

Favourable labour policy

 The Gujarat government has recently passed the Labour Laws Bill (December 2015),
to give an impetus to industrialization. The key reform includes a provision for out-of-
court settlement to speed up the process labour related dispute resolutions.
 The state prides itself in quality work force and peaceful work force accounting for
only 0.5% of man days lost while having contributed 16% of India’s industrial
production.

Better social infrastructure

 Gujarat has one of the lowest cost of living amongst the Indian states and is
relatively less congested and less polluted, offering better standards of living to the
inhabitants and providing a better environment to work.

Gujarat is front runner in providing electronic services to the citizens, hence thrust is more in
setting up right, scalable and sustainable ICT infrastructure across the state.

Page 12
Electronics and IT SEZ
in Gujarat
IT/ITeS and electronics regions
 Gujarat Government enacted the Special investment regions (SIR) act in 2009 with the objective
of creating large size investment regions in the state and develop them as global hubs of
economic activity supported by world class infrastructure.
 The state has three SIRs for electronics manufacturing.

 SEZ are special duty free enclaves for the purpose of trade. These zones are self-contained and
integrated, having their own infrastructure and support services. Apart from state-of-the-art
infrastructure and access to a large skilled work force, the SEZ also provides enterprises with
attractive incentives.
 The state has one electronics SEZ at Gandhinagar and 14 IT/ITeS SEZs - six at Ahmedabad,
four at Gandhinagar, three at Vadodara and one at Valsad.

Ahmedabad

Gandhinagar

Viramgam
Halol-Savli
Vadodara
Tourist Navlakhi
Electronics SIR flow*
IT/ITeS SEZ
Electronics and IT/ITeS SEZ Valsad

Promotion of IT/ITeS and electronics industries

 Gujarat Government introduced a new IT policy to provide a proactive and industry-friendly
climate for the IT industry. Incentives and assistance would be provided in allotment of land,
development of IT/ITeS parks, stamp duty concession, electricity duty exemption and capital
assistance on lease rentals.
 The policy also intends to establish the state as a preferred IT destination for micro, small and
medium enterprises (MSMEs) by providing assistance on quality certification, technology
acquisition fund, skill enhancement, patent assistance, simplification of labour laws, subsidy
on bandwidth for connectivity and exemption from zoning regulations.
 Gujarat Government introduced new Electronics policy with the aim of establishing a self-reliant
ESDM industry that caters to needs of domestic and international market. The policy includes
development of human resources, creation of local demand for electronics products, creation of
eco-system for innovation and R&D, and incentives such as VAT/CST subsidy, single window
clearance, uninterrupted power supply, registration and stamp duty concession and interest
subsidy.
 Gujarat Government, recognising the need for additional support for Electronics & IT/ITeS start-
ups and keeping this at the centre of its strategy as recognized by the Government of India,
through ‘Start-up India initiatives and to supplement efforts in that direction has decided to come
up with a focused policy for Start-ups in Electronics & IT/ITeS sector.
Page 13
Project Information

Location suggested: Gujarat International Finance Tech – City

(GIFT), Gandhinagar

Why GIFT city?

Globally benchmarked First of its kind development in Central business hub
international financial center scale, scope and quality 0.5 million jobs directly and 0.5
million jobs indirectly

Targeting financial services Centrally located in the state

and IT/ITeS sectors of Gujarat in Gandhinagar State-of-the-art infrastructure

Key highlights
 GIFT has a total land area of 886 acres, of which 67% is for commercial use.
 Tata Communications already has a data center in GIFT city and Infibeam has proposed to
develop one by the end of 2016.
 GIFT has power distribution license for GIFT area and planned to implement a multi-level parking
(MLP) at an estimated cost of INR350 crore.
 Companies will save 24% on building management system, 4.5% on total building cost and 36%
saving on operational expenditures.
 It has a next generation water and waste management, district cooling system. These cooling
systems are introduced for the first time in India for any commercial use. It helps in reducing
energy and maintenance cost, reduce noise and vibration and improves air quality.
Infrastructure Platforms Services

 High speed fibre  Financial extranets  Data

GIFT network  Wi-Fi
 CUG to exchanges
occupants  Diverse local and
would  Voice  Data centers
international
have connectivity  Industry specific  Business continuity
access to platforms
following  Pervasive wireless  Security
ICT and mobile network  City e-portal  High speed internet
services  Data centers  Sensor networks access
 IPTV internet  Monitoring
gateway

Page 14
Project Information

GIFT is the only approved IFSC in India

Manhattan
London
Paris Tokyo
Shanghai
Dubai
Hong Kong
GIFT city Singapore

Global benchmarking
Paris Tokyo London Pudong GIFT
Land area (sq km) 1.60 1.60 1.05 1.70 3.58
Construction scale (in mn sq m) 2.50 1.60 1.10 4.50 8.50
Greenbelt (in thousand sq m) 40 120 50 363 1183
Height (m) 200 250 250 490 410

Some prominent office buildings in GIFT

Bombay Stock Exchange

State Bank of India

Life Insurance Corporation of

India Tata Communications Data Center World Trade Center

Awards and recognition

 GIFT city has been awarded for “Best Implementation of ICT in urban development” by Indian
Express Group in 2015.
 GIFT city has been awarded with I.C.O.N.I.C IDC insights awarded 2014 for excellence in
innovation in government vertical by International Data Center (IDC).
 It is the recipient of “Innovative Solution for Smart Cities,” an accolade that recognizes stand-out
organizational contributions in driving change through technology.
 It has been conferred as “Smart City of Future” by Cisco Technology award 2014.

Page 15
Project Information

Infrastructure availability

Logistics & Connectivity

Rail Road

 The GIFT project envisages a modal split of

 Access to metro rail transport system.
 GIFT is 8 Km from Gandhinagar which is
well connected to the metropolitan cities of
Western India. Many trains with Mumbai as
their destination pass through
Gandhinagar, which facilitates an easy flow
of tourists from all over the western India.
10:90 between private and public transport.
 The GIFT area will be accessible from NH-8
(Delhi to Mumbai).
 Access to six arterial roads (connecting to
various areas of Ahmedabad and
Gandhinagar)

Air Port
 Sardar Vallabhbhai Patel International
 Gandhinagar is connected to the
Airport located in Ahmedabad is 12 km
following ports:
away from GIFT city and provides
connectivity with domestic flights to the  Dahej – 262 Km
metropolitan cities and other major cities  Kandla – 306 Km
of India. It also offers international flight  Mundra – 367 Km
connectivity to major countries across
the world.

Utilities

Water Power

 Water resources:  GIFT project ensures 99.999% power

 Narmada main canal
 Recycling and reuse of waste water
 Rainwater harvesting
 It boost a 24*7 water supply
 It has a concept of zero discharge city
 It has access to perennial water front
through construction of three barrages
on river Sabarmati
 Proposed landscape promenade at the
river bank along GIFT.
reliability, which means outage of 5.3
minutes per annum.
 Total estimated demand for power is
~740 MW
 It has underground cabling for power
distribution within GIFT
 It has a dedicated green service corridor
which is easy in maintenance and safe
in operations

Page 16
Project Information

Leading players in India

Third Disaster Managed

Company Captive Storage Server Security
Party recovery services
Netmagic
9 9 9 9 9 9
Solutions
Sify
9 9 9 9
Technologies
CtrlS
9 9 9 9 9
Datacenters
Trimax 9 9 9

Net4 India 9 9 9

ESDS Software
9 9 9 9 9
Solutions
Reliance 9 9 9 9 9 9 9
Tata
Communicatio 9 9 9 9 9 9 9
ns
BSNL 9 9 9 9 9

Bharti Airtel 9 9 9 9 9 9
Spectra
9 9
Solutions
Cyfuture 9 9 9 9

Data Galaxy 9 9 9 9

Aride Ocean 9 9 9

Potential collaboration opportunities

 Various government and private telecom operators

 Various government and private banking, financial services and insurance
 Many upcoming and expanding IT&ITeS enabled services
 Central government projects like Adhar and Prime Minister Jan Dhan Yojna`

Page 17
Project Financials

Project cost
The total project cost of establishing a data center at GIFT city, Gandhinagar, will be ~INR190
crores for 1080 number of racks.

Project specifications INR crore % of overall cost

Land (5,000 sq mt @ INR4,480 per sq mt1) 2.2 1%
Building cost (@1000 per sq ft) 5.4 3%
Construction cost (including engineering, power 140.7 74%
construction, HVAC assets, building access system
and other cost)
IT equipment 12.5 7%
Telecom charges (including internet, fibre and loop 5.0 3%
charges)
Contingencies (transport, insurance, repair and 22.8 12%
maintenance)
Preliminary and preoperative costs 1.1 1%
(company formation, interest during construction)
Total cost 189.7 100%

The estimated project cost has been calculated based on the capital requirement/investment of a
Tata communications data center (based in GIFT city) and a typical data center unit. However, it
may vary by individual project.

Manpower requirement

Designations Particulars Number

Data Centre Manager (Project Manager) 1
Database Administrator 1
System Administrator 1
Network Support Staff 2
Technical Support Services 4
Help Desk Services 2
Administration/HR 1
Total 12

Note: 1) Land rate based on Gandhinagar IT SEZ (nearby to GIFT city).

Page 18
Approvals & Incentives

Approvals
For project approvals, the project report should be submitted to respective District Industries
Centres (DICs). DIC will forward the proposal to Industries Commissioner who will submit the
report to State Level Approver Committee (SLAC) for final approval.

License requirements

 Data centers currently need an ‘Other Service Provider’ (OSP) license from the government.
 OSPs need to mandatorily register for every data center at every location, even if the data
center is a part of the same single network or offering.
 OSPs are required to provide the call data records of all the specified calls handled by the
system at specified periodicity, as and when required by the security agencies.
 The term ‘security agencies’ has not been defined, leaving it open to interpretation, which is an
impediment for a data center operator.
 “DOT and the local term cell granting the registration, reserve the right to modify at any time the
terms and conditions of the registration, if, in its opinion, it is necessary or expedient to do so in
public interest or in the interest of the security of the State or for the proper conduct of the
telegraphs.
 Data centers also need access to broadband through ISPs in order to link-up data centers inter-
se or to the outside world. Currently, there appears to be a lack of clarity on data centers being
able to receive broadband connectivity without an ISP license or some other telecom license
apart from the OSP registration.

Incentives from Government of Gujarat

Government of Gujarat introduced IT/ ITES Policy for Gujrat State (2016-21) in order to establish
Gujarat as a preferred destination for Global Knowledge Workforce and IT/ITES Industry with a
turnover of US$15 billion by 2021 to create employment opportunities for 1 million people by 2021.
In addition to the assistance available under any of the schemes of the Government of India,
eligible IT/ITES units will be entitled to the following assistance from Government of Gujarat:

Incentives to the IT/ITeS Park

Capital assistance
Admissible Maximum limit
Eligible area
assistance (INR million)
Horizontal IT/ITeS Parks 25% of fixed capital investment in 250
buildings and infrastructure
Vertical IT/ITeS Parks INR 300 / sq. feet for built-up area 250
Stamp duty and registration fee reimbursement
• Developers of IT/ITeS Park will be entitled to 100% reimbursement of the stamp duty as well as
registration fee paid by them to the Government of Gujarat, towards lease/sale/transfer of land
for the IT/ITeS Park.

Page 19
Approvals & Incentives

Incentives to the IT/ITeS Units

Capital subsidy
Eligible IT/ITeS units will be entitled to capital subsidy @ 25% of capital expenditure for one time
purchase of computers, networking and related hardware, subject to a ceiling of INR10 million.

Lease rental subsidy for five years to the eligible IT/ITeS units
Scale Admissible subsidy Maximum limit
Up to 20 employees INR 8 / sq. feet
Lease rental subsidy
Above 20 but less than 100 employees INR 5 / sq. feet shall not be more than
the actual lease rental
Above 100 employees INR 3 / sq. feet

Interest subsidy for a maximum period of five years to the eligible IT/ITeS units
Admissible Maximum limit per annum
Borrowings
subsidy per annum (INR million)
Up to INR100 million 7% 10
Above INR100 million but INR10 million + 2% of borrowings in 50
up to INR10 billion excess of INR100 million
Above INR10 billion INR50 million + 1% of borrowings in 100
excess of INR10 billion
Power tariff subsidy to IT/ITeS Parks
• Power tariff subsidy will be given at INR1 per unit in the billed amount for a period of five years
as promotional incentive on reimbursement basis. The subsidy will be applicable only when
electricity will be purchased from the state electricity / power distribution licensee.
• IT/ITeS Park will be given 100% reimbursement for electricity duty paid for a period of 5 years
from the date of approval of IT/ITeS Park.
Reimbursement of stamp duty and registration fee
• Eligible IT/ITeS units will be entitled for reimbursement of 100% of stamp duty and registration
fee paid to the Government of Gujarat for lease/sale/transfer of land for the first transaction.
VAT/CST incentives: (subject to change after the introduction of GST)
• The eligible IT/ITeS units will be provided reimbursement of net tax paid under Section-13 of
Gujarat Value Added Tax Act and 100% of Central Sales Tax (CST) for domestic sales outside
Gujarat, limited to a ceiling of 90% of the GFCI made by the unit, for a period of 10 years.
Other exemptions
• Eligible IT/ITeS units will be given power tariff subsidy at the rate of INR1 per unit in the billed
amount and 100% reimbursement for electricity duty, for a period of five years.
• Eligible units will be given the benefit of reimbursement of the EPF contribution made for their
employees for a period of five years subject to overall ceiling of INR10 million per annum.
• Patent Assistance at the rate of 50%, subject to a ceiling of INR0.2 million per patent for
domestic patents and INR0.5 million per patent for international patents, for meeting the
expenditure for obtaining patents.

Page 20
Approvals & Incentives

Gujarat Industrial Policy 2015

Government of Gujarat has announced an ambitious Industrial Policy, in January 2015, with the
objective of creating a healthy and conducive climate for conducting business and augmenting the
industrial development of the state.
Approvals
• Registration of the industrial undertaking
• Industrial Entrepreneur Memorandum or Udyog Aadhar
• Non-agriculture land permission and purchase deed registration
• Consent to Establish from Gujarat Pollution Control Board
Quantum of incentives
% of eligible fixed
Category of % of Net VAT % of Net VAT to be
capital investment Incentive period
Project Location reimbursement to paid to
entitled for (no. of years)
(Taluka) the unit Government
Incentive
1 100 90 10 10
2 80 80 20 10
3 70 70 30 10
Net VAT incentives
Net VAT incentive will be reimbursed to the industrial undertaking in one financial year will not
exceed one-tenth of the total amount of eligible incentive.
Classification of the Project Amount (in INR crore)
Ultra Mega Industrial Unit 500
Mega lndustrial Unit 400
Large Industrial Unit 150
Micro, Small or Medium Industrial Unit 50

Electronics & IT/ITeS Start-up Policy 2016-21, GoG: Incentives

Particulars Details
Stamp Duty & Registration Fee
100%
Reimbursement
Lease Rental Subsidy 50 sqft per employee at the rate of INR15 per sqft per month
Interest Subsidy 9% per annum (ceiling of INR 2 lakhs per year)
75% of cost of obtaining patent (ceiling of INR 2 lakhs
Patent Assistance
Domestic Patent and INR 5 lakhs international patent)
Bandwidth Subsidy 70% of annual charges (ceiling of INR 20000 for 2 years)
INR5000 per skill certification per person (INR 1 lakhper
Skill Certification Grant
annum)
Marketing & Product
Onetime assistance of INR 1 lakh and INR 1 lakh for marketing
Development Assistance
25% of raised equity capital from Gujarat Venture Finance
Matching Equity Support
Limited (GVFL) (ceiling of INR 5 crores)
Page 21
 Department of Science & Technology, Government of Gujarat
http://www.dst.gujarat.gov.in

Gujarat Informatics Ltd.

http://www.gujaratinformatics.com
Gujarat Electronics and Software Industries Association

http://www.gesia.org/
Gujarat Industrial Development Corporation
www.gidc.gov.in

Office of Industries Commissioner

www.ic.gujarat.gov.in

Industrial Extension Bureau

www.indextb.com

This project profile is based on preliminary study to facilitate prospective entrepreneurs to assess a prima facie scope.
It is, however, advisable to get a detailed feasibility study prepared before taking a final investment decision.

Department of Science and Technology

Block No.7, 5th Floor,
New Sachivalaya, Gandhinagar
Phone / Fax : 079-23259999
Email: secdst@gujarat.gov.in
https://dst.gujarat.gov.in/index.htm