Move likely to generate 3.5 million job opportunities and also carry out the export up to Rs 10 lakh-crore

On May 30, the BJP- Shiv Sena-led Maharashtra Government approved a new  policy for information technology (IT) and IT-enabled services, called Information Technology and IT-enabled Services (ITeS) Policy 2023. It is for a period of 5 years, and offers the industry several relaxations.

The current policy issued in the year 2015 was lapsed in 2020. Under the 2015-policy, Maharashtra received the investment of Rs 61,872 crore at a time when the target was Rs 50,000 crore, as per the state government. It took almost 3 years to formulate a new IT policy. The reasons for the delay are well known to everyone like COVID-19, change of Government during this period. Incidentally, Maharashtra was first state in India to have its own IT policy which was released in the year 1998.

This new IT policy is developed under the guidance and suggestions of various experts in the country. Currently, the IT sector has a significant presence in the Mumbai and Pune regions and regions and a minor presence in places like Nashik and Nagpur.

The Government has set the following targets for this Policy Period:

  • To attract new investment of INR 95,000 Crore towards IT &ITES sector in the State
  • To Create new 3.5 million jobs opportunities through IT &ITES sector in the State. For that, increase the skill development by 15% per annum for developing highly employable, talented and quality manpower.
  • To achieve export of INR 10,00,000 Crore through IT &ITES sector in the State.

The policy’s mission is to ensure Maharashtra as the most preferred destination for investment and innovation among global IT&ITES enterprises through Strategic Policy Interventions, Development of Competitive Advantage and Enabling Business Environment

To achieve these targets, following incentives will be provided, under this policy:

  • IT/ ITES units will be allowed to be set up in any zone (including residential, non development zones and green zone etc.)
  • The policy also offers 50 to 100% subsidy in the stamp duty
  • It also includes waiving off electricity charges from 10 to 15 years
  • Power supply on industrial rates
  • Additional FSI and Space Utilization of IT Parks
  • Certification Assistance: 50% of the expenditure incurred for certification of CMM Level 2 upwards, IS0 27001 for security & COPC and e-SCM certification, limited to a maximum of INR 5 lakhs will be reimbursed to micro and small-scale IT units
  • Market Development Assistance, (IT & ITeS MSME unit and startups): Units shall be eligible for reimbursement of 50% exhibition participation fee (space cost/rent) for exhibitions approved or organized by NASSCOM & ITPO subject to a ceiling of INR 3 lakhs per unit and limited to two such events during the lifetime of the unit/company.
  • Patent related Assistance, MSME units: Reimbursement of 50% cost incurred on patent registration up to INR 5 lakhs per successful Indian patent and INR 10 lakhs per successful international patent, whichever is lower, during the lifetime of the unit.
  • Open Access: The state shall allow IT & ITES parks to get power through open access
  • Property tax shall be levied at par with residential rates as applicable in the relevant jurisdictions

Also, under the new policy, the following steps will be undertaken to ensure achievement of these targets:

  • Under the new policy, IT will be considered an essential service, because of which IT and ITeS units will be permitted to work 24x7x365 days without a closedown.  
  • MAHITI Portal: (Single Integrated IT Portal) The state will have a Unified and Integrated Single Window Platform for IT &ITeS – Maharashtra Information Technology Interface (MAHITI) – under one roof for time bound clearances. The portal will also act as an IT &ITeS Exports Trade Facilitation and Information center.
  • Relaxation of eligibility criteria, space utilization norms and support services to be widened to accommodate workforce trends of the future and allow for integrated working, living and social spaces for employees in IT Parks and IITTs
  • To promote employability and skills of the future, companies with employees recognized in Super Specialized job roles will be incentivized such as AI research scientists, solution architects, Data scientists, Optical scientists, embedded solutions engineers etc.
  • Financial Provisions for IT & ITeS INR 500 Crore will be allocated for establishment of M-Hub and Venture Capital Fund during the Policy period.
  • Rental Assistance: In order to provide office space at affordable rates, the Rental assistance will be provided to new entrepreneur units established under the IT/ITeS Policy-2023 in urban areas
  • The Industry, Skill and Higher and Technical education departments will come together to develop ‘Talent Launch pads’ for IT/ ITeS sector across the state. Existing colleges, skill institutes and training centers that provide skilling courses will be supported through competitions & hackathons
  • To generate investment and employment opportunities, dedicated interventions are devised to support the growth of MSMEs in tandem with large IT units to promote sustainable and balanced regional development
  •  A Chief Operating Officer (COO) under M-Hub will be appointed as the Technology Ambassador of Maharashtra to drive the policy and performance mandate from the private sector, working with industry, startups, funds and academia
  • To ensure the policy adapts to the global market dynamics, the policy performance to be reviewed by the Empowered committee annual for course correction, new provisions, adapt to the needs of the state and its sectors
  • To provide support specifically to the state’s AVGC and Emerging technologies sectors (AI-ML, Big Data, Robotics etc.) the policy lays out dedicated fiscal and non-fiscal interventions that aim to enhance the availability of skill, coworking spaces, funding, and recruitment
  • The state will actively promote a strong mix of remote workers over in office workers. This aims to decongest urban centers, allow 24X7 working for the IT/ITE sector and support work from home set ups for noncritical staff at offices.

Government is also keen to promote Data Centers. The vision is to position Zone I cities, especially the Mumbai and Navi Mumbai region, as Data Center Hubs. With highly reliable power supply, large number of under-sea cable landings and availability of trained technical man power, Zone- I is poised to grow as Asia-Pacific’s data center hub.

As per the Maharashtra government officials , this policy aims to make Maharashtra a global IT &ITES destination and the Technology capital of India, moving towards innovative, equitable, inclusive and sustainable Technology Development.

Download The Official Policy Document (PDF) For Maharashtra Information Technology and IT-enabled Services (ITeS) Policy 2023 (In Marathi and English)

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