Software exports from Gujarat top Rs 100 crore

Software exports from Gujarat have exceeded Rs 100 crore in 2002-2003 from a meagre Rs 6 crore in 1997-1998, a rise of over Rs 94 crore.

The turnaround follows Gujarat's IT Industry Incentive Scheme 1999-2004, which was launched to accelerate infotech development in the state.

The policy offered a capital subsidy at 25 per cent of eligible capital investment or Rs 2.5 million, whichever is lower for new units, subsidy between Rs 2.5 million to Rs 10 million for units with a large turnover.

The scheme also offered a turnover incentive of 5 per cent in the first accounting year and, subsequently, on incremental turnover, subject to a ceiling of Rs 5 million.

Up to 50 per cent connectivity incentive of lease line rentals is provided under the scheme, while sales tax holiday on all software for five years and incidence of sales tax on computer hardware, peripherals have been reduced.

Government subsidy for leased line rental up to 500 kilometres is given up to the extent of 50 per cent. Stamp duty and electricity duty is exempted and units are spared of power cuts.

The state is rapidly progressing towards becoming a digital state as the Bharuch way, which has become a model for widespread replication. The digital revolution involves a single cable connection offering cable TV, Internet and internet telephony.

Moreover, the complete digitisation of Bharuch and Ankleshwar, the twin cities including government and private infrastructure in progress.

'Mahitishakti' model for rural connectivity emerged as an e-governance initiative of the state government. The project entails dissemination of information and services through internet kiosks.

The success of this model is to be replicated in several other rural areas of the state. The state government's 'Gyan Ganga Yojana' extends connectivity to villages from existing level of each taluka to rope in 6000 villages in the first phase.

The movement of digitising the state has resulted into a massive demand of IT products and services and has opened up a huge captive market for IT companies in the state. The successful example of taking IT to the masses includes Amul, Mahitishakti-the citizen services portal and AMC- Citizen convenience centre.

Making IT happen

• State offers a capital subsidy at 25 per cent of the eligible total capital investment for new units
• Sales tax holiday on all software for five years
• Up to 50% subsidy for leased line rentals up to 500 kms
• Stamp duty and electricity duty exemption for new units
• 'Gyan Ganga Yojana' extends connectivity to villages