Maharashtra cabinet okays new IT policy; more FSI for companies

The information technology sector will be able to create integrated IT townships as well as start rural BPOs with the new ITES (Information Technology Enabled Services) policy in place. The sector will now enjoy an FSI (Floor Space Index) of 3, up from the current 2, while setting up companies, in addition to many other benefits.

The state cabinet on Tuesday gave its nod for the new policy that aims at an investment of Rs50,000 crore along with employment generation to the tune of 1 million jobs. The policy is aimed at doubling the exports in IT-enabled services from the current Rs50,000 crore to Rs1 lakh crore. The cabinet also gave the nod for allocation of Rs25 crore for the current year for effective implementation of the policy.

Chief minister Devendra Fadnavis told media persons after the cabinet meeting that this was the fourth IT policy in this field, after the 1999, 2003 and 2009 policies.

Principal secretary to the department of industry Apurva Chandra said that the new policy has simplified the procedures with crystal clear definition of IT-enabled services. Chief secretary Swadheen Kshatriya informed that the definition by the Central Board for Direct Taxes for IT-enabled services was accepted by the state government while framing the policy.

Fadnavis said that the concept of integrated IT townships has been introduced in this policy with minimum area of 10 hectares (25 acres). He added that for making the state competitive vis-a-vis Andhra Pradesh and Karnataka, the new policy provides more FSI for ITES, and that for integrated townships global FSI would be given, which means there is no restriction on using the FSI.

For starting rural BPOs, subsidy up to Rs25 lakh will be provided, in addition to help from the state government, for training of 50 people from the local villages.

In the field of animation and gaming, the new policy will provide waiver of entertainment tax to animation films which complete 50% of animation work in Maharashtra. Similarly, films with special effects and VFX will be provided with 50% subsidy with a cap of Rs2.5 crore. Fadnavis said that the government will be providing incentives for attracting investments in data centres.

The chief minister cautioned that if investors start an IT-enabled services industry and later misuse the benefits, heavy penalty, to the tune of 0.3% of the investment per day, would be imposed. He said that the new policy has clearly stated the negative, as to what kind of activities, including malls and theatres, are not allowed in the IT-enabled services premises. He also said that building houses and selling those in the plots availed for IT-enabled services won't be allowed either and stringent measures will be adopted to deal with such cases. The ITES will be provided with benefits in stamp duty, electricity bills, property tax on par with residential rates, electricity supply at industrial rate, and benefits in VAT.

Fadnavis said that the policies in 2003 and 2009 resulted in generating employment of 7.48 lakh, with an export of Rs3.24 lakh crore. It also resulted in creating 465 private and 37 public sector IT parks.