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This is an archive article published on October 5, 1999

Incentives for ITES announced

VADODARA, Oct 4: In a move that is expected to boost the application of information technology in the State, Chief Minister Keshubhai Pat...

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VADODARA, Oct 4: In a move that is expected to boost the application of information technology in the State, Chief Minister Keshubhai Patel on Monday announced an incentive policy for IT-Enabled Services ITES. While inaugurating the regional conference of the National Association of Software and Service Companies, organised in association with Gujarat Informatics Ltd, Patel said that the incentive policy for IT services would extend to ITES as well.

Addressing more than 500 delegates from all over the western region at the C C Mehta Auditorium, the chief minister said an Information Technology Extension Bureau would also be set up to boost the ITES sector. 8220;The State government will have one-to-one share in the venture capital of IT software and IT products8221;, he added.

Moreover, Patel said, ITES could register themselves under the Shops and Establishments Act, which involves only the local administration, whereas the Industries Act would require the State government to play a role. 8220;The ITES can function 24 hours a day round-the-year8221;, the CM said. 8220;The State govt will ensure the safety of women working in this sector, so that they can work at odd hours.8221; According to an NASSCOM study, the ITES will employ more than 11 lakh people and generate a national revenue of Rs 81 crores over the next few years.

Promising to provide the infrastructure for the IT industry and related services, the chief minister said 1,000 of the 3,500 secondary schools in the State had been provided 15 computers each at the cost of Rs 30 crores. By next year, another 2,000 schools would be provided computers, he added. While admitting that Gujarat had fallen behind other States in the IT sector, Patel said that in the first week of December, he would go to the US to seek the support of NRIs 8212; particularly Gujaratis 8212; for the IT sector.

Later, during a presentation, Gujarat Informatics Ltd MD Jayanti Ravi said the Information Technology Extension Bureau would identify 200 US firms, which could pass on work to people and firms in Gujarat. Underlining the benefits of the IT sector, theCM said the non-polluting industry would help reduce the law and order problem arising from influx of migrant labour. While the Gandhinagar info city would take time, he said an info-centre would be inaugurated on the Gandhinagar-Sarkhej highway on October 11.

Spillover benefits
Like the IT industry, ITES will be entitled to avail capital subsidy at the rate of 25 per cent of eligible total capital investment or Rs 25 lakh, whichever is less.

  • ITES units will be exempt from power cuts.
  • Units will be entitled to 50 per cent subsidy on the lease rental for the data line.
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