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IT/ITeS Policy 2016-21 Download


Government of Gujarat has announced new IT/ITeS Policy 2016-21. Salient features of this policy are as following:

To unfold the infinite potential of the Equation :


Indian Talent + Information Technology = India Tomorrow


  • To create and build vibrant and sturdy edifice of IT/ITeS Eco-system on the basis of Innovation and Knowledge Capital
  • To utilize the huge talent pool of Young India
  • To contribute to the overall economy and prosperity of the State and the Nation


  • Leverage Global opportunities from Research in Cloud, Big Data, IoT
  • Projection of Gujarat as a preferred IT destination
  • Establishment of New IT Parks
  • Support to Educational and R & D Institutions
  • Enhancement of the quality and availability of skilled manpower
  • Reach Turnover of USD 15 billion by 2021
  • Creation of Employment Opportunities : 10+ lakhs
  • Harnessing the power of technology as a force multiplier in Employment creation and Growth
  • Connecting Skilling with Incentives – Provision for Intern intake

Incentives for IT/ITeS Park:

  • Horizontal IT/ITeS Parks: Capital Subsidy up to Rs. 25 Cr.
  • Vertical IT/ITeS Parks: Capital Subsidy of Rs 300/ sqft for built-up area up to Rs. 25 Cr.
  • Reimbursement of Stamp Duty and Registration Fee paid for first transaction on sale/lease/transfer of land for developing IT/ITeS Park.
  • Incentive on Power Tariff and Electricity Duty Reimbursement of Re.1 per unit in the billed amount and 100% reimbursement of Electricity Duty for 5 years.

Incentives for IT / ITeS Units:

  • Capital Subsidy: Up to Rs. 1 crore for one time purchase of Computers, networking and related hardware.
  • Reimbursement of Stamp Duty and Registration Fee: 100% reimbursement of stamp duty and registration fee paid on sale/lease/transfer of land and office space for the first transaction.
  • Lease Rental Subsidy: Rs. 8/Sqft to Rs. 3 /Sqft for units with up to 20 employees to more than 100 employees.
  • Interest Subsidy: 7% for Micro Enterprises up to Rs. 25 lakhs p.a., 5% for Small and Medium Enterprises up to Rs. 50 lakhs p.a.
  • VAT/CST/GST: 90% of Net VAT paid will be reimbursed for 8 years with a ceiling of 90% of Gross Fixed Capital Investment.
  • Power Tariff and Electricity Duty: Reimbursement of Re.1 per unit in the billed amount and 100% reimbursement of Electricity Duty for 5 years.
  • Reimbursement of EPF to Employer: EPF contribution made for the incremental employees operating out of offices in Gujarat for a period of five years.
  • Patent Assistance: Reimbursement of 50% of cost incurred for acquiring domestic and international patent with a ceiling of Rs. 2 lakhs and 5 lakhs respectively.
  • Market Development Support: Assistance to MSMEs and Associations for participation in International Trade fairs.
  • Support to R & D Institutions: @ 60% of the project cost up to Rs. 50 lakhs
  • Setting up of Finishing Schools: @ 60% of the project cost or Rs. 50 lakhs, whichever is lower, will be provided for setting up Finishing Schools in Colleges and Educational Institutes.
  • Quality Certification: Reimbursement of 50% of cost incurred in acquiring Quality Certification such as CMMI, ISO, etc., subject to ceiling of Rs. 6 lakhs per unit during the operative period of Policy.
  • Skill Enhancement: Assistance of 50% of cost incurred in acquiring skill by employees of MSMEs subject to ceiling of Rs. 10000 per employee per annum and Rs. 1 lakh p.a. for the unit.

IT/ITeS Policy 2016-21 Download

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  Last Updated Date: 24/11/2017  
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