IT in Gujarat Gujarat has always been center of attraction by investors in various industries as well as infrastructure projects. Gujarat is also good location for IT industry. There are several big IT software companies like TCS, PCS, NIIT to name a few in Gujarat. To boost the IT sector further, the Government of Gujarat has come out with new IT Policy and IT incentive policy.

Salient features of IT Policy:
Government has set up IT Department for implementation of IT Policy and Gujarat Informatics Ltd. As its corporate arm.
To ensure proliferation of IT, the department has decided to create the "information corridor ". The core of this corridor would be connecting the State capital right upto Taluka headquarters.
One percent of the State Government budget would be committed to IT related activities which is expected to rise to 3% in the year 2005 AD.
Private sector participate would be encouraged in (1) creation of ‘information corridor’ (2) in setting up of information kiosks (3) provision of services for creating of database oriented services to be provided by the Government depts.(4) and setting up of other Info-infrastructure.
IT Plan submitted by National Task Force has targeted one PC per 50 persons by 2008. State Government shall endeavor that this target is achieved by the year 2005 AD.
State Government would set up venture capital fund for development of IT services, IT software and IT products. This fund would seek support from national fund for IT venture development as proposed by National Task Force.

The salient features of IT Incentive Policy are:
This scheme shall become operative with effect from 01-04-99 and shall remain in force for a period of 5 years, from that date.
Eligible new Information Technology unit will be entitled to avail capital subsidy @25% of eligible total capital investment or Rs.25 lakhs whichever is less.
There will be Special Incentives scheme for the projects with large capital base.
An eligible IT unit and eligible New IT Unit would be entitled to a turnover incentive, to be given annually.
Unit set up in Information Technology sector Services will be considered eligible to be exempted from power cuts.
It is proposed to provide subsidy on the leased lines obtained either from department of Telecom or from other authorised/licensed vendors.