MSMEs welcome Gujarat’s new IT policy; says it would woo investors

Ahmedabad, June 6 (KNN) Gujarat Chief Minister Anandiben Patel has announced a new IT and Electronics policy for Start-up which aims to be a big stride in creating optimal opportunities for start-ups.

She also said that under the new policy, 50 incubators will be prepared providing able leadership and facilities to 2000 start-ups in 5 years.

Moreover, 10 lakh sq ft space for incubation will be developed. Investment worth Rs. 7000 crore, estimated under the new policy, will create ample employment opportunities.

Under the policy, power tariff subsidy of Rs. 1 per unit will be given on electricity bill to the start-ups. 100% Electricity Duty for a period of 5 years will be reimbursed. In addition, 50% assistance for the purchase of software with upper limit of Rs. 1 crore will also be provided to the incubators associated with educational institutes.

The state government has made provisions for many incentives for start-ups in this new policy in which, 100% exemption in stamp duty and registration fees as well as lease rental assistance of Rs. 15 per sq.ft. per employee per month with upper limit of 50 sq.ft. are also announced. Moreover, there is a provision of assistance at the rate of 9% with upper limit of Rs. 2 lakh for annual interest compensation assistance.

In order to meet the cost of patent registration, provision of assistance at the rate of 75% with upper limit of Rs. 2 lakh for local patent and Rs. 5 lakh for international patent is also made in the policy. Besides, 70% reimbursement of bandwidth charges with upper limit of Rs. 20,000 for two years and provision of providing expertise assistance of Rs. 5000 with upper limit of Rs. 1 lakh annually for start-up. In addition, one time assistance of Rs. 1 lakh each will be provided under the policy for market development and product development respectively.

Reacting to this, Anupam Bhatnagar, General Secretary, Gujarat Electronics & Software Industries Association told KNN, “Today if you look at start-ups, they are getting very welcoming kind of support from the Government of India. The government has taken several good steps as compared to foreign countries. So if the Indian start-ups do technological innovations, then the country would be a global leader in IT & Electronics.”

“The IT policy would definitely boost the new generation that is focusing on innovation,” he added.

“The policy will also attract lots of investments into the state. The government is also giving a lot of subsidy support, mentorship support (Rs. 5 lakhs) and financial support (Rs 1 crore) for software buying, which would also give a boost to the sector,” Bhatnagar said.

“The software application is expensive and if for the technological innovation basic things will be provided like incubation support, man holding support and then giving support for buying a software, I am sure any IT graduate passed out from college will be very happy to jump this kind of thing,” he further added. (KNN Bureau)