Maharashtra's Information Technology/InformationTechnology

Enabled Services (IT / ITES) Policy - 2015

1. Introduction
st
The Government of Maharashtra announced its 1 IT Policy in 1998. It
was followed by the Information Technology and Information Technology
Enabled Services (IT/ITES) Policy-2003 and IT/ITES Policy-2009 to generate
employment, increase efficiency and to improve the quality of life. The IT/ITES
th
Policy-2009 came into force from 29 August 2009.

Due to the policy initiative, IT sector in the State has grown by leaps &
bounds during the last decade. The employment in IT sector across India in FY-
2004 was 8,30,000 nos. and this has increased to 31,32,000 i.e. an increase of 4
times by FY-2014. According to data of Software Technology Parks of India (STPI),
the export by IT sector in Maharashtra was Rs. 5,508 Crores in FY-2003 which has
reached to Rs.49,796 Crores in FY-2013, recording an increase of 800 percent.
The share of IT export from the State of Maharashtra is 20 % of IT export from the
country. The State ranks 2nd in IT in the country based on overall performance
according to STPI data. The statistics of exports from leading States as per STPI
data is as under -

State / Year 2007- 08 2008 - 09 2009-10 2010-11 2011-12 2012-13

Karnataka 56000 70375 67100 70241 82110 95048
Maharashtra 35704 42980 45709 49874 46262 49796
Tamil Nadu 28426 36680 26363 28290 29082 29183
Andhra 26122 32509 27666 28675 28948 34492
Pradesh
India 180155 202580 205505 215264 226712 251498

Since 2001, the concept of private IT parks has come into existence. During the
IT/ITES – 2003 policy period 253 private IT parks have obtained Letter of Intent
with a built-up space of 3.90 million square metres. During the IT/ITES - 2009
policy period 212 private IT parks have obtained Letter of Intent with a built-up
space of 8.93 million square metres. In totality, in 465 private IT parks a built-up
space of 12.83 million square metres will be available for setting-up IT/ITES units.

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 Based on the experience gained while implementing the earlier policies
and based on the recent developments in IT/ITES sector an urgent need was felt
to formulate a new policy to keep pace with the global developments and give a
fillip to the IT/ITES industry in the State.
For preparing this policy document several rounds of discussion were
held with various stakeholders. Based on the outcome of these discussions and
based on the experience of the department in implementing earlier IT/ITES
policies, following policy has been framed.

Vision
i o n
M iss
b j e c t i v e s
O

Targets

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2. Vision, Mission, Objectives and Targets
i) Vision: “Maharashtra - a globally competitive Information Technology /
Information Technology Enabled Services destination that promotes
inclusive growth and to establish Maharashtra as an intellectual and
knowledge capital of India”.

ii) Mission: To place Maharashtra amongst the most preferred investment

destinations for global investors through promotional strategies
combined with developing a competitive and sustainable investment
environment, thereby making Maharashtra as one of the most favoured
economic magnet and centre of attraction.

iii) Policy Objectives:

The objectives of the IT/ITES policy - 2015 are as follows:

To retain Maharashtra's leadership position in IT/ITES Sector.

To further accelerate investment flow to industrially underdeveloped

regions of the state.

To create more employment opportunities for educated youths of all

sections of the society across all regions.

Achieving higher level of export turnover resulting in enhanced

productivity and augmentation of Gross State Domestic Product
(GSDP).

Leveraging Information Technology as a tool for the socio-economical

development of the state.

To promote Intellectual Property creation along with original content

creation for new product and unique services offering for B to B &
B to C.

iv) Policy Targets:

In line with the policy objectives, the government has set the following
targets for the policy period
To attract an investment of Rs. 50,000 crores by the private IT parks
and the IT / ITES / AVGC units in the State
To create new jobs for 1 million persons
To raise annual exports from IT / ITES / AVGC sector from the State upto
Rs. 1,00,000 crores

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 3. Strategic Drivers of the Policy
i) Dispersal of IT industry to all parts of the State: To attract IT investments
across the State, and incentivize IT industry at all district headquarters in
the State by providing additional incentives and continue to provide
usual incentives as per the IT / ITES Policy - 2009 .
ii) Promotion of Focus Sectors: To promote the development of special
fields such as AVGC (Animation, Visual effects, Gaming and Comics) in
which the State has particular strengths. Adhaar Card based applications
/ public service delivery systems and Engineering Research and
Development to be promoted.
iii) Promotion of 'Green IT': To ensure growth of the IT sector in an
environmentally sustainable and responsible manner.
iv) Promotion of Entrepreneurship and Innovation: To promote
the establishment of Knowledge / Resource Centres and
Incubation Centres across the State.
v) Promotion of Brand Maharashtra: To position Maharashtra
as a rewarding destination for IT investment.
vi) Promotion of BPOs in Rural and Semi-urban Areas:
Business Process Outsourcing (BPO) ventures have a vast
employment potential. To enhance penetration of IT / ITES to
hinterland of the State and to provide employment to computer
literate manpower in the area of their residence.
vii) Promotion of Data Centres : Mumbai is rightly poised to be the fastest
growing Data Centre services market in the Asia Pacific Region (APAC).
Service providers are gearing up to address a strong demand
for co-location and hosting services as well as
preparing their as-a-service offerings. It
has good investment potential and job
opportunity for trained manpower.

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4. Definitions
In the context of this Policy, the Information Technology industry consists of
IT Software, IT hardware, and IT Enabled services as defined below:
i) IT Software: IT Software is defined as any representation of
instruction, data, sound or image, including source code or object
code, recorded in machine readable form and capable of being
manipulated to providing interactivity to a user with the means of a
computer.
ii) IT Hardware: IT Hardware covers products as notified by Directorate
of Industries from time to time. An indicative list is at Schedule A.
iii) IT enabled Services (ITES): IT enabled services will be as specified by
the Central Board of Direct Taxes (CBDT) under section 10A of the
Income Tax Act from time to time and are as below.
Back-office Operations
Call Centres
Content Development or Animation
Data Processing
Engineering and Design
Geographic Information System Services
Human Resource Services
Insurance Claim Processing
Legal Databases
Medical Transcription
Payroll
Remote Maintenance
Revenue Accounting
Support Centres
Website Services
The State Government will take a decision to make necessary changes
in the list of services if there are any changes in the Income Tax Act. In
cases where the Directorate of Industries or its field offices have
issued Letter of Intent or registration to an IT / ITES unit, IT Park / IT SEZ
/ AVGC Park, the incentives sanctioned will continue for the eligible
period even if there are changes in the policy period. The ITES units
carrying out activity as per above definition also will be allowed to
occupy space in existing IT parks.

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 iv) Support services / facilities: Support services means services
provided in relation to conduct of IT / ITES business, which shall
exclude -
Malls
Cinema theatres, public auditoriums and multiplexes
Residential apartments for sale to public
Showrooms for all types of merchandize except computers and
IT related hardware and software
Hospitals, nursing homes more than 10 beds
Schools, colleges, training institutes(except IT/ITES training
institutes) and hostels related to them
The support services admissibility defined above will also be applicable
to existing IT parks.
v) Animation, Visual effects, Gaming and Comics(AVGC):
· Animation is a way of making a film by using a series of drawings,
computer graphics, or photographs of two and three dimensional
objects (such as puppets, clay models or paper cutouts) that are
slightly different from one another and that when viewed quickly one
after another create the appearance of movement. Animation shall
include 2D Animation, 3D Animation, claymation, paper animation,
stop motion, shadow animation, hard surface animation etc,.
Animations can be recorded on either analogue media, or on digital
media.
· Visual effects are the processes by which imagery is created and / or
manipulated outside the context of a live action shot. Visual effects
involve the integration of live-action footage and generated imagery
to create environments which look realistic, but would be dangerous,
expensive, impractical, or simply impossible to capture on film. Visual
effects include computer generated imagery using the affordable and
user friendly animation and compositing software.
Visual Effects shall include rotoscopy, digital cleanup, VFX paint,
morphing, DMP - (Digital Matte Painting), chroma key, compositing,
tracking, pre-visualization, prep-wire removal, beauty pass, face &
body replacement, modelling, shedders, texturing, lighting,
animation, rigging, match move, FX (cloud, liquid, rain, water, dust,
smoke, wind, fire, flame, blast, snow, ice, etc.), particle simulation,
simulation - (fur, hair, cloth, crowd, destruction, etc.), background &
set creation and extension, digital environment creation, miniatures
for VFX, image processing, Digital Imaging (DI), colour correction etc..

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· A game is an electronic game that involves human interaction with a
user interface to generate visual feedback and immersive experience
on a device which shall include 2D, 3D, video, hand held devices,
mobile, virtual, console etc. .
· Comics is a visual medium used to express ideas via images, often
combined with text, voice, sound or visual information. Comics shall
include hand drawing, digital, 2D, 3D, motion graphics, motion comics.
Stereo conversion is a specialised process in animation post
production where the normal 2D or live action films are converted to
stereoscopic form for an immersive experience. Stereo conversion
shall include rotoscopy, layer painting, depth grading, tracking,
element compositing, finalling, edging, particles etc..
Virtual reality, augmented reality, motion capture, facial capture &
performance capture, 3D printing, 3D mapping, simulation, digital
streaming & content dissemination, rendering etc. shall be a part of
AVGC.

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 vi) Data Centre :
A Data Centre is a facility used to house computer systems and associated
components, such as telecommunication and storage systems. It also
includes power supplies, data communication connections, environmental
controls (eg. air conditioning, fire suppression) and security devices. The
value chain comprises of a mix of segments including real estate and
construction, hardware equipment, utilities (power, water, cooling),
networking and software and services.
IT Units are defined to include IT hardware and telecom hardware
manufacturing units, IT enabled Services (ITES), and software industries
including services. AVGC units shall be classified as ITES.

5. Policy Initiatives
The strategic drivers for the IT & ITES Policy provide direction to the State's
commitment to create long term assets through an expanding talent pool,
extensive IT infrastructure and a thriving culture of innovation and
entrepreneurship. These drivers are to be implemented through following
specific initiatives and incentives.
A Incentives & provisions for IT Parks / IT SEZs / AVGC Parks
B Incentives & provisions for IT / ITES Units
C Promotion of Audio-Visuals-Gaming and Comics (AVGC)
D Promotion of Business Process Outsourcing (BPO) ventures in
rural and semi-urban areas
E Promotion of Data Centres
F IT Incubation Facility
G Promotion of green IT
H Promotion of Brand Maharashtra
I Initiatives related to Laws for ease of doing business
J Human Resource Development
K Administrative Measures.

A. Incentives & Provisions for IT Parks/ IT SEZs / AVGC Parks

IT Park has proved to be an effective tool to develop IT sector by providing
adequate quality infrastructure to cluster of IT / ITES units. Government of
Maharashtra encourages Public as well as Private IT Parks throughout the state.
This policy will continue with following incentives & provisions.
i) Additional FSI and space utilization of IT Parks:
The availability of land is decreasing and the cost of land is constantly
increasing which is leading to high cost of built up space. The high cost of
space is proving to be a hindrance to the growth of IT Industry. To provide
built up space at affordable rates to the entrepreneurs more additional FSI
over the base FSI shall be admissible.

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 a) Upto 100% additional FSI to all registered Public and Private IT/ITES Parks
/ AVGC Parks, IT SEZs or IT Parks in SEZs and to stand-alone IT/ITES units in
public IT Park which have been approved by the Directorate of Industries,
set up under present and previous IT / ITES policies, shall be made
available with or without premium as follows:
With a premium of 10% of the prevailing ready reckoner rate for all
areas in the State other than areas in Pune, Pimpri-Chinchwad,
Greater Mumbai, Thane, Navi Mumbai, Kalyan-Dombivali, Mira-
Bhayandar, Ulhasnagar municipal corporations and Ambernath
municipal council and in No Industry Districts and Naxalism affected
areas of the State (as defined in the Package Scheme of Incentives -
2013 of the State).
With a premium of 30% of the prevailing ready reckoner rate in Pune,
Pimpri-Chinchwad, Greater Mumbai, Thane, Navi Mumbai, Kalyan-
Dombivali, Mira-Bhayandar, Ulhasnagar municipal corporations and
Ambernath municipal council areas.
b) Above 100 % and upto 200% additional FSI to all registered Public and
Private IT Parks, AVGC Parks, IT SEZs or IT Parks in SEZs and to stand-alone
units in public IT Park which have been approved by the Directorate of
Industries, set up under present and previous IT / ITES policies, and which
have an access road of minimum 15 metres width, shall be made available
with or without premium as follows:
With a premium of 10% of the prevailing ready reckoner rate for all
areas in the State other than areas in Pune, Pimpri-Chinchwad, Greater
Mumbai, Thane, Navi Mumbai, Kalyan-Dombivali, Mira-Bhayandar,
Ulhasnagar municipal corporations and Ambernath municipal council
and in No Industry Districts and Naxalism affected areas of the State (as
defined in the Package Scheme of Incentives - 2013 of the State).
With a premium of 30% of the prevailing ready reckoner rate in Pune,
Pimpri-Chinchwad, Greater Mumbai, Thane, Navi Mumbai, Kalyan-
Dombivali, Mira-Bhayandar, Ulhasnagar municipal corporations and
Ambernath municipal council areas.
c) However, no premium shall be charged for grant of additional FSI as in
paragraph 5 (A) (i) (a) & (b) for Public and Private IT Park in No Industry
Districts and Naxalism affected areas of the State (as defined in the
Package Scheme of Incentives - 2013 of the State).
d) Maximum 20% Builtup area (excluding parking area) will be permitted for

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 support services in IT Parks and additional FSI shall be made available for
support facilities in Public and Private IT Parks / AVGC Parks in Pune,
Pimpri-Chinchwad, Greater Mumbai, Thane, Navi Mumbai, Kalyan-
Dombivali, Mira-Bhayandar, Ulhasnagar municipal corporations and
Ambernath municipal council as mentioned in paragraph 5(A) (i)
(a) and (b) .
e) Maximum 40% Builtup area (excluding parking area) will be permitted for
support services in IT Parks and additional FSI shall be made available for
support facilities for areas other than those in para 5(A) (i) (d).
The above mentioned provisions in respect of additional FSI, premium and
space utilization will also be applicable to existing IT parks.
ii) Establishment of Integrated IT Township (IITT):
To meet the needs of the IT industry and the workforce there in to provide
necessary amenities and accommodation in the vicinity of the IT units,
promotion of Integrated IT Townships (IITT) is being introduced in this
Policy. (The criteria for setting up IITT are described in greater detail in
Schedule-B of this policy). Considering the global trend, the IITTs shall be
developed as 'Smart Cities”.

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 The benefits / incentives admissible to IT / ITES units therein shall be same
as in para 5 (B). The rates of premium to be charged shall be same as in para
5(A) (i) (a), (b) and (c). However, for IITTs set up in Pune Metropolitan
Region (PMR) and Mumbai Metropolitan Region (MMR) areas that are
outside corporation limits of Pune, Pimpri-Chinchwad, Greater Mumbai,
Thane, Navi Mumbai, Kalyan-Dombivali, Mira-Bhayandar, Ulhasnagar
municipal corporations and Ambernath municipal council, the premium
of 20% of the prevailing ready reckoner rate will be applicable. The IITT can
be set up in any part of the State.
iii) Electricity Tariff:
Power consumed will be charged at industrial rate for the common
facilities in the IT Park (such as lobbies, central air conditioning, lifts,
escalators, effluent treatment plant, wash rooms etc.) which are used by
the units, excluding support service areas, after the registration is granted
to the IT park by the Directorate of Industries and Development
Commissioner of the SEZ for an IT SEZ. A separate meter will have to be
provided by the developer to the individual IT / ITES units in the IT parks for
leased or purchased premises.
iv) Electricity Power/ Sub Station:
Provision of electric power / substation at minimum 6 watt per sq. ft. of
total BUA of IT Park will be essential. This provision will also be applicable
to existing IT parks.
v) Incentives for Development of Infrastructure - Creation of Critical
Infrastructure Fund for IT/ITES Industries:
State Government & Planning Authorities shall create a seperate fund viz.
“Critical Infrastructure Fund for IT/ITES Industries” from the premium paid
for availing additional FSI by the Developers of the Private IT Parks as
envisaged in para 5 (A) (i) & (ii) of the this policy. And this fund shall be
utilized only for creation of Critical Infrastructure for IT/ITES Industries.
To supplement investments by the State Government and Urban Local
Bodies, developers of private IT parks will be permitted to establish high
quality road connectivity to the highways. Upon completion, such roads will
be transferred by the developers to the urban local bodies or State PWD,
Zilla Parishad or other agency to which the road belongs.
The estimates for such roads shall be vetted by the concerned urban local
bodies or State PWD, Zilla Parishad or other agency and the investments
made by the developers would be refunded from the available funds from
“Critical Infrastructure Fund for IT/ITES Industries” subject to a ceiling of
premium paid for availing additional FSI.

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 A sub-committee under the Empowered Committee shall be formed
comprising of :
1) Principal Secretary / Secretary - Urban Development
Department 1 and 2
2) Principal Secretary, Industries Department
3) Principal Secretary, Rural Development Department
4) Secretary, PWD, Roads
5) Commissioner / Chief Officer of concerned Urban Local Body
6) Development Commissioner (Industries)
The Committee shall take decisions in respect of such road projects for
speedy clearance, execution and other related issues.
The Urban Development Department of the State shall publish the
enabling notification in respect of the process and time-period for this.
This provision will also be applicable to existing IT parks.
vi) Penalty for use of built-up space for non-IT use in the IT Park:
The Directorate of Industries will develop a web portal on which the
developer of every IT park will be bound to provide / update detailed
information about names of the units in the park, utilization of built-up area
and activities being carried out, manpower employed in the IT Park for IT / ITES
and support services on yearly basis.
If a private IT park has availed additional FSI as per the provisions of IT/ITES
policy and subsequently it is found that the built-up space in the park is being
used for non-IT/ITES / commercial activities / any other activity not permitted
as per the IT/ITES policy under which the said park was approved, a penal
action as below will be taken; the payment will be made to the concerned
planning authority and government in the ratio of 3:1.
a) The misuse shall be ascertained by physical site verification of the said
private IT park by a team of officers from the Directorate of Industries
and the Planning Authority which has approved the building plans of the
said private IT park.
b) A per day penalty equal to 0.3% (a thirteeth of a percent) of the
prevailing ready reckoner value of the built-up area that has been found
to be used for non-IT/ITES activities.
c) The penalty will be recovered from the date of issue of Occupancy
Certificate till the day non-IT use continues.
After payment of the penalty to the concerned Planning Authority which
had sanctioned the building plans of the concerned private IT park, the said

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 private IT Park will restore the use of premises to the orginal purpose for which
LOI / Registration was granted. If the private IT park fails to pay penalty and / or
restore the use to its original intended use, the concerned Planning Authority
will take suitable action under the MRTP Act against the erring private IT park
under intimation to the Directorate of Industries. This provision will also be
applicable to existing IT parks.

B. Fiscal Incentives for IT / ITES Units

All the fiscal incentives proposed in this policy will be provided through a
provision under separate budgetary head ( non - plan) for this purpose.
i) Stamp Duty Exemption:
IT / ITES units, including IT Hardware and Telecom Hardware
manufacturing units will be entitled to Stamp Duty exemption as follows:
a) 100% Stamp Duty exemption for the following transactions to new
IT/ITES units and expansions of the existing units in C, D, D+, No
Industry district areas and Naxalism affected areas of the State:
hypothecation, pawn, pledge, deposit of title deeds, conveyance,
charge on mortgage property, lease, mortgage deed and security
bond on mortgage deed.
b) 100% Stamp Duty exemption for the following transactions to new
IT/ITES units and expansions of the existing units in public IT

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 parks (including IT hardware and Telecom Exemption in
hardware manufacturing units),in A and B areas:
hypothecation, pawn, pledge, deeds, conveyance
and lease.
c) 75% Stamp Duty exemption for the following
transactions to new IT/ITES units and expansions of
the existing units in private IT parks (including IT
hardware and Telecom hardware manufacturing units), in A
and B areas: hypothecation, pawn, pledge, deeds, conveyance, lease
and public assignment lease.
d) 100% Stamp Duty exemption for the following transactions to new
IT/ITES units and expansions of the existing units in IT parks in SEZs, IT
SEZs (including IT hardware and Telecom hardware manufacturing
units), and STPI approved registered units in IT parks of A and B areas:
hypothecation, pawn, pledge, deeds, conveyance, lease and public
assignment lease.
e) 75 % Stamp Duty exemption to assignment leases of IT / ITES units
under section 60 and leave and licenses of IT / ITES under section 36 A
of the Bombay Stamp Act 1958 (to be read with a, b and c above).
f ) 75% Stamp Duty exemption on merger, de-merger and
reconstruction of registered IT / ITES units throughout the State.
ii) Electricity Duty : New IT / ITES units registered with the Directorate of
Industries will be exempt from payment of Electricity Duty from the
date of commencement of production / activity for a period of 10
years for units in IT parks (including IT hardware and Telecom
hardware manufacturing units), in A and B areas and for 15
years in other areas of the State classified as per the prevailing
Package Scheme of Incentives at the time of commencement
of production / activity of the unit.
The Electricity Duty would be exempt for IT parks developed by IT
companies for their own use, ie, single unit parks for the period
mentioned above except for the support services. The new IT / ITES units
in IT SEZs, new IT / ITES units in IT parks in SEZs, and 100 % exporting
IT/ITES units under registration of STPI or other designated competent
authority shall be exempted permanently from paying Electricity Duty.
iii) Electricity Tariff: IT/ITES units registered with the Directorate of
Industries will be supplied power at industrial rates applicable under
Maharashtra Electricity Regulatory Commission's (MERC's) tariff orders.

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 iv) Power Tariff Subsidy: New IT/ITES units located in areas other than A and
B areas classified as per the Package Scheme of Incentives and established
in registered IT Park will be eligible to get power tariff subsidy for 3 years
@ Rs. 1/- per unit consumed from the date of registration of the IT units
with the Directorate of Industries after commencement of IT/ITES activity
or equal to the investment made in IT Hardware on the date of
registration of the unit with the Directorate of Industries, whichever is
lower. The units in IT SEZs and IT parks in SEZs in these areas shall also be
entitled for this subsidy.
v) Property Tax: Property tax shall be levied on IT / ITES units registered with
the Directorate of Industries at par with residential rates as applicable in
the relevant jurisdictions. Government will issue necessary advisory to
the local bodies to give this benefit to the IT / ITES units
vi) Entry Tax: Registered IT / ITES units shall be exempt from octroi / Local
Body Tax (LBT) / entry tax / escort tax or other cess or any tax levied in lieu
of these for the import of capital goods and raw material for self
consumption by the unit. Government will issue necessary advisory to the
local bodies to give this benefit to the IT / ITES units.
vii) Works Contract Tax: Works contract tax on annual maintenance
agreements of IT / ITES units shall generally be charged at the minimum
rates recommended by the relevant Empowered Committee, at the
centre, barring certain exceptions.
viii) Setting-up IT/ITES units in any zone: IT / ITES units (except IT hardware
and Telecom Hardware Manufacturing Units) will be allowed to be set up
in any zone (including residential and no-development zones, etc.).
ix) VAT at floor rate: VAT on sale of IT products will be charged generally at
the minimum floor rate recommended by the concerned Empowered
Committee at the Centre, with some exceptions.
x) Continuous Industry Status: The IT / ITES Industry services clients
across the globe and in different time zones. This requires the
Industry to work on 24x7x365 mode. Increasingly the work done
by IT / ITES industry is mission critical for global clients it serves
and very tight deadlines are required to be adhered to.
Considering this a continuous industry status shall be granted to the
registered IT / ITES units. The IT / ITES Industry will be permitted to
work 24x7x365 days without any close down (except some exigencies
arising wherein the State / Central Government thinks it fit to keep the the
operation in suspension).

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C. Promotion of Animation, Visual Effects, Gaming and Comics
(AVGC)
1. The AVGC is a sunrise sector having vast potential for wealth creation and
employment generation. It is a healthy medium of education and
entertainment. As per the existing trend, India's AVGC market share is
estimated to grow to $ 1.5 billion, which is less than 2% of the global
market. Maharashtra has always been a leading state in industrial
growth. It has a rich and diverse heritage of art and culture and
strong presence of Information Technology and Entertainment
Industry which can help to make it an AVGC hub.
2. So far, science and technical streams were preferred avenues for
employment but AVGC will create better employment opportunities
for the arts stream. Entry of artists into the AVGC industry is regardless of
cultural and language backgrounds. Since there is a requirement of nearly 70%
of creative and artistic employees in this industry, it will lead to economic up-
liftment of large strata of economically backward sections of the society.
3. The policy will address the gap in qualified trainers through a train-the-trainer
program based on industry's needs. This policy focuses on bridging the
demand-supply gap for people in this sector, attracting global companies in
the field, capturing a larger share of outsourced international AVGC work, and
facilitating a legal framework for Intellectual Property creation and protection.
In addition, the policy envisages an environment that promotes growth of
indigenous digital content, education and entertainment for masses, and the
setting up of a Center of Excellence with state-of-the-art facilities. These
efforts will act as a catalyst for the AVGC industry.
4. AVGC is essentially an ITES activity and shall be eligible for the benefits
admissible to ITES:
i) Establishment of Private AVGC Park in Maharashtra:
Key initiative for promotion of AVGC sector is through infrastructure
development. The policy envisages promotion of private AVGC parks in
the State. All the incentives admissible to the private IT parks shall be
admissible to these private AVGC Parks. Also, the units setup in these
parks will be eligible for all the incentives at par with those admissible to
the IT / ITES units as envisaged in this policy.
ii) Establishment of AVGC Centers :
The Government will facilitate the establishment of common facilities etc.
through the promotion of AVGC centers in the State. An AVGC Centre
would be an integrated facility including production facilities, AVGC

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 studios and space for performing arts, exhibition galleries and workplace
requirement for the artist. A Committee under the chairmanship of the
Development Commissioner (Industries) for this will work out the
infrastructural requirements, revenue and operating model (such as PPP),
location, facilities etc. for the AVGC Centre in consultation with the
industry. Maharashtra Industrial Development Corporation (MIDC) / City
and Industrial Development Corporation (CIDCO) will take initiative in this
aspect.
iii) Establishment of Fine Art School/ College i.e. Digital Art Centre :
Fine art schools across the state will be identified as Digital Art Centre
(DAC) to implement digital art & animation curriculum in
collaboration with universities. DACs to be run on PPP model with
25% Govt. funding and private (promoter's) funding of 75% of total
cost subject to a cap of Rs 10 crore from the State Government.
A pool of AVGC industry professionals will be developed through
collaboration among universities, the industry and agencies such as
Maharashtra State Skill Development Corporation.
iv) Centre of Excellence:
Centre of AVGC excellence would be set up on public private partnership
(PPP) mode in Mumbai/Pune for which Govt. will provide financial
assistance towards capital expenditure and purchase of equipment.
The centre of excellence will have 1) Finishing academy–cum-incubation
centre 2) Post-production & digital intermediary facility. MIDC will take an
initiative in this aspect.
v) Venture Capital Fund:
Animation, Visual Effects, Gaming & Comic industry is a capital intensive
industry. The risk capital is based on blend of service segment and
intellectual property creation. So, there is a need of venture capital fund
to meet growing demands of domestic as well as international market.
A venture capital fund for AVGC sector would be set up with a fund of
Rs. 50 crores. This Rs. 50 crores fund will be invested through other
professionally managed funds for AVGC equity in companies/ studio's as
well as professional content development funds focused on AVGC original
content creation in Maharashtra. The Empowered Committee under the
Chairmanship of the Chief Secretary will decide on the funding on case to
case basis based on merit.

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vi) Fiscal Incentives & Concessions for AVGC units:
AVGC units will have following concessions in addition to those in para
5 A above;
a) Refund of certification charges:
All AVGC Export Oriented Units (EOUs) will get refund of expenses
incurred for compulsory marking like Conformity European (CE), China
Compulsory Certificate (CCC) etc. to the extent of 50% expenses
subject to maximum of Rs. 2 lacs per unit.
b) Capital Subsidy:
Investment promotion subsidy as per industrial policy of the State.
Anchor unit subsidy equal to 25% of the fixed capital investment for
an AVGC unit with a minimum investment of Rs 50 crores & creating
a minimum employment for 100 people. The fixed capital
investment shall include investment in land, building, machinery,
equipments, electrification, pre-operative expenses capitalized.
One Anchor Unit per district will be assisted.
c) Exemption from Payment of Entertainment Tax in the State for
animation films:
1) The animation films produced in Maharashtra and released in the
cinema halls / multiplexes in the State will be exempted from
payment of entertainment tax.
2) The films fully converted in Maharashtra from 2D to 3D in
stereoscopy and released in the cinema halls/ multiplexes in the
state will be refunded 50 % of the entertainment tax paid or
Rs. 2.5 crores whichever is lower.
3) The live action films with its final edited length without the opening
and end credits having a minimum of 50% duration of running
length created with the help of animation or visual effects & all the
said work of animation as well as visual effects if completed in
Maharashtra and the film is released in the cinema halls multiplexes
in the state will be refunded 50 % of the entertainment tax paid or
Rs. 2.5 crores whichever is lower. DI & colour correction will not be
considered as a part of visual effects or animation for this minimum
of 50% duration of running length qualification criteria.
d) Capital Subsidy for production of animation films:
The animation films produced in the State will be given a capital
subsidy equal to 50 % of the cost of production of the film subject to a
ceiling of Rs. 30 lakhs for creative art films, educational, scientific,
mythological and children's films.

19
 e) Maharashtra Government will be a host state for the following annual
events and will sponsor Rs.10 lakhs for each event every year for the
next 5 years and the events shall be exempted from paying the
entertainment tax:
[1] FICCI FRAMES & Best Animated Frames Awards-Mumbai,
[2] NASSCOM - Game Developers Conference-Pune,
[3] The Animation Society of India- Aniefest, Mumbai,
[4] ASIFA- World Animation Day - 28th Oct every year – all India
[5] MCCIA- Digital Content Conference, Pune &
[6] NILF – NASSCOM India's Leadership Forum
f) Non – Fiscal Support:
· State Government will encourage Joint Ventures between Indian &
Foreign entities.
· Support will be provided for international events related to AVGC in
Maharashtra.
· Intellectual Property (IP) will be protected through legal framework.

D.Promotion of Business Process Outsourcing (BPOs) in

Rural and Semi-urban Areas
This policy will leverage Information Technology as a tool for the socio-
economic development of the state and encourage existing BPO
units/entrepreneurs to set up their branches/BPOs in rural / semi-urban
areas.
The subsidy would be provided only for business processing units that are
located in rural / semi-urban areas (village panchayat, A,B and C class
municipalities) and its details are as follows.
i) Capital Subsidy: Capital subsidy of 20% would be provided on capital
investments such as cost of hardware, equipment etc., subject to a
maximum of Rs. 25 lakhs (Rupees twenty five lakhs only) to any Rural
BPO unit that has been directly employing a minimum of 50(fifty)
trained seats in the unit. This capital subsidy will be back ended in three
equal instalments at the end of each year. The capital investment for the
purpose of subsidy constitutes purchase of new hardware and
equipment's similar to plant and machinery in MSME sector.
ii) Training Subsidy: New BPOs require to invest in training in order to
ensure that the employees do not lack in quality of work, timely
execution and so on. More so, in a rural / semi-urban area, some
financial assistance is required to support new BPOs in training
employees.

20
 Training subsidy would be shared by the company and the
Government. An amount of Rs. 1500/- per month per person for three
months would be provided as training subsidy by the Government (as
the normal period of skill building training for BPO is three months).
Thus, a unit engaging 50 persons will benefit from Rs. 2.25 lakhs
(Rupees two lakhs and twenty five thousand only) as training subsidy
for the period of three months. This subsidy also will be back ended, to
be disbursed to the BPO unit after one year i.e. three months training +
nine months of continuous employment.
iii) Training content to be developed by recognized institutions:
Training contents for the above programs should be developed by
recognized institutes like Yashwantrao Chavan Academy for
Development Administration (YASHDA), Maharashtra Centre for
Entrepreneurship Development (MCED), Maharashtra Industrial and
Technical Consultancy Organisation (MITCON), NASSCOM and Media &
Entertainment Skills Council (MESC), etc.
iv) Transport Facility: The Government shall ensure that necessary
public transport is made available for the Rural - Semi-urban BPO
units.
v) Exemption from Payments of Security Deposit / Earnest Money
Deposit: The Government shall provide exemption from payment of
SD/ EMD as available now to the SME Sector.

E. Promotion of Data Centres

Data Centres are premises offering committed uptime of over 99.95%
certified by independent agencies like Uptime Institute, EPI and other similar
international independent agencies. Data centres are the basic infrastructure
for the new digital economy. Reliable data center offering over 99.95% uptime
are necessary for the growth of the digital world services.
Government of Maharashtra is keen to promote Data Centres with special
focus on Mumbai. The vision is to position Mumbai as the Data Centre Hub not
only for India but also for Asia Pacific region.
Mumbai with its highly reliable power supply, large number of under-sea
cables landing into Mumbai and availability of trained technical manpower is
rightly poised to become APACs hub thus encouraging investment, both
Indian and Foreign, which will global companies and service providers to bring
their servers hosted outside India into Mumbai.

21
 Data Centers of a certain minimum size are very efficient and Government
wishes to encourage energy efficient and highly reliable Data Centres. So, Data
Centres with minimum 10,000 sq ft white / raised space and 750 KVA power,
within 2 yrs of operation, and designed for Tier 2 and above level certification
by an independent agency would be considered under this policy.
The Data Centres located anywhere in the State will be eligible for following
incentives / previleges as specified in para 5 B (i), 5 B(ii), 5 B (iii), 5 B (v), 5 B (vi),
5 B (viii) - (only for import of specified goods) and 5 B (x).
The Data Centres will be covered under Essential Services and Maintenance
Act (ESMA) as an essential service considering the nature and importance of
operations involved which cannot be interrupted.

F. Promotion of Entrepreneurship, Innovation and IT

Incubation Facility
i) The Government will facilitate the establishment of a common
platform for exchange and dissemination of knowledge resources
between academic and research institutions and the IT industry and
the setting up of incubation centers particularly for small enterprises.
A committee under the chairmanship of the Development
Commissioner (Industries) will define a model and framework for
setting up such a platform and for incubation centres across the state in
Information Communication Technology (ICT) field such as embedded
software, chip, telecom technology etc.
ii) New IT Parks will be required to allocate at least 2% of the built-up area
for providing incubation facilities for new units. This area would be
treated as a part of the Park to be used for IT activities, and eligible for
additional FSI benefits accordingly.
iii) Recruitment assistance of Rs. 2.5 lakh for 50 employing local students
in Business Incubation Laboratory/R&D Centre/ IT/ITES operation
within 2 years.
iv) A registered IT/ITES MSME unit will 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 Rs. 3
lakhs per unit and limited to two such events during the lifetime of the
unit/company.
v) 50 % of the cost of filing patents will be reimbursed to micro, small and
medium IT units, subject to a maximum of Rs. 5 lakhs during the
lifetime of the unit/company.

22
G.Promotion of Green IT
i) Awards will be instituted for demonstrated, efficient natural resource
management by IT units.
ii) The development of comprehensive e-waste collection and recycling
systems and their use by the State as well as private agencies for the
disposal of IT products, will be promoted.

H.Promotion of Brand Maharashtra

i) The Government will facilitate and support International and national -
level professional conferences, exhibitions and other activities in
Maharashtra related to IT Sector generally, and to AVGC in particular.
ii) 50% of the expenditure incurred for certification of CMM Level 2 upwards,
IS0 27001 for security & COPC and eSCM certification, limited to a
maximum of Rs. 5 lakh, will be reimbursed to micro and small scale IT units
under Package Scheme of Incentives.
iii) 50% of the expenditure incurred for the promotion of AVGC international
and national - markets, conferences & events in the fiscal year will be
reimbursed to the AVGC companies registered in Maharashtra on
registration fee and travel costs limited to Rs. 3 lakhs per annum and a
maximum of Rs. 10 lakhs.
iv) The State's Information Technology Day will continue to be celebrated on
20th August of every year, when awards will be presented to IT / ITES units
for outstanding contribution and performance.

I. Initiatives related to Laws for Ease of Doing Business

i) IT / ITES Units will continue to benefit from:
a) Relaxation under the Shops and Establishment Act with regard to
working hours, work shifts and employment of women.
b) Exemption from maintaining physical records for attendance and salary.
c) Option for self-certification and filing of consolidated annual returns
under 13 Acts administered by the Labour Department.
ii) Provision for IT / ITES units to maintain employee-related records required
under various labour laws in electronic form, and acceptance of returns in
electronic form will be made in line with the progress of computerization in
the Labour Department.

23
 iii) IT/ITES units not discharging process effluent and employing less than 100
employees will be exempt from obtaining consent from MPCB. Such unit
will be required to submit annual statement to MPCB on disposal of wastes
including electronic wastes, used batteries, and used oil. The registration of
such units by the Directorate of Industries Department will incorporate
specific conditions for this purpose. These units will also have to be
connected to local sewage network.
iv) Relaxations under the Contract Labour Act which have been approved for
units in SEZs will be considered for all IT / ITES units outside also.
v) IT/ITES units (other than IT hardware and Telecom hardware manufacturing
units) will be treated as continuous process units for the purposes of power
supply.
vi) The Development Control Regulation (DCR) including of MIDC and other
guidelines for establishment of IT parks including in MIDC area shall be in
consonance with the IT / ITES policy.
J. Human Resources Development
i) Special emphasis has been given to the development of human resources for
the IT industry, particularly in new area of high potential.
ii) The Maharashtra State Board of Technical Education (MSBTE) and other
agencies will institute training-based certification and placement
programmes. They would collaborate with NASSCOM and other associations
as well as the local IT / ITES industry to understand their human resource
requirements. Based on these requirements, a merit based, defined
certification and placement procedure shall be instituted so that appropriate
manpower is created for the industry. This is particularly important for small IT
/ ITES units which are not in a position to impart the required training in-house
iii) Based on an assessment of feasibility and other details by the task force
constituted under the empowered committee, proposal will be prepared for
the establishment of centre of excellence and research and development
centres, finishing schools and other employment oriented centers.

K. Administrative Measures
Applications for permission for Right of Way for laying of cables and for
erection of towers and antennae would be approved within 30 working days
provided the application is in the prescribed format and contains required
documentation.

24
6. Management Framework for Policy Implementation
An Empowered Committee will be constituted at the State level to monitor
the implementation of this Policy, and develop procedures and modalities
where required. The composition of the Empowered Committee will be as
follows:
i) Chief Secretary - Chairperson
ii) Principal Secretary (Finance) - Member
iii) Principal Secretary (Industries) - Member
iv) Principal Secretary (Urban Development I)- Member
v) Principal Secretary (Higher & Technical Education) – Member
vi) Principal Secretary (Planning) – Member
vii) Principal Secretary (Skill Development) - Member
viii) Secretary (Information Technology) – Member
ix) Secretary (Urban Development II)- Member
x) Director, Software Technology Parks of India (STPI)- Member
xi) Nominee of NASSCOM - Member
xii) Development Commissioner (Industries)- Member Secretary
xiii) Nominee of MCHI-CREDAI - Member
The Empowered Committee may invite any Department/Organisation /
representative of Association or a person for its meeting as it may deem
necessary.

Charter of the Empowered Committee:

i) The Empowered Committee will constitute a Task Force for coordinating
and implementing the instruments in respect of the following key areas of
the policy:-
A) Incentives & provisions for IT Parks / IT SEZs / AVGC Parks
B) Incentives & provisions for IT / ITES Units
C) Promotion of Audio-Visuals-Gaming and Comics
D) Promotion of Rural Business Process Outsourcing ventures
E) Promotion of Data Centres
F) IT Incubation Facility
G) Promotion of green IT
H) Promotion of Brand Maharashtra
I) Initiatives related to Laws for ease of doing business
J) Human Resource Development
K) Administrative Measures

25
 ii) Monitor and ensure timely release of relevant Orders / Government
Resolutions / Government Notifications and amendments required.
iii) a) Approve the framework / modalities of implementation proposed by
the Task Force.
b) Set timelines and targets for each initiative proposed by theTask Force.
c) Bring about inter-departmental co-ordination in respect of matters
related to this Policy.
iv) Institute effective analysis and evaluation of IT Policy implementation on
the basis of data on key indicators.
v) Establish norms in consultation with Environment Department so as to
facilitate Green IT Parks and the units in such park to obtain permissions
relating to environment and other benefits.
vi) Resolve implementation issues at all levels.
vii) Review the list of ITES, as well as support services / facilities permitted in
IT Parks and approve the amendments as may be appropriate.
viii)Determine the premium and other terms and conditions for grant of
additional FSI within the guidelines laid down in the Policy and harmonize
the practices followed in this respect by local bodies and public bodies
such as MIDC and special planning authorities.
ix) Determine the premium and other terms and conditions for grant of exit to
the private IT park / IT / ITES unit from the obligations of the incentives
availed by it.
x) Review the best practices.
xi) The Empowered Committee shall review the implementation and
effectiveness of the policy every six months and corrective measures /
changes / amendments if required shall be done.

7. Policy Applicability and Validity

The parks / units which have been sanctioned benefits / incentives under this
policy, shall continue to enjoy the benefits for a period for which the benefits /
incentives are sanctioned even if the policy period is over. The policy will be valid
for FIVE years.

26
 Schedule -A PRIMARY PRODUCTS (IT Hardware)
Sr.No. H.S.No. Description of products
1 85.23 11) Magnetic tapes of a width not exceeding 4 m.m.
12) Magnetic tapes of a width exceeding 4 m.m. but not
exceeding 6.5. m.m.
13) Magnetic tapes of a width exceeding 6.5 m.m.
20) Magnetic discs
90) Other
2 85.31 Electrical capacitors, fixed, variables or adjustable (Preset)
10) Fixed capacitors designed for use on 50/60 Hz Circuits and
having a reactive power h. capacity of not less than 0.5 kvar
(Power capacitors)
21) Tantalum fixed capacitors
22) Aluminum electrolytic fixed capacitors
23) Ceramic dielectric, single laxer fixed capacitors
24) Ceramic dielectric, multilayer fixed capacitors
25) Dielectric fixed capacitors of paper or plastic
29) Other fixed capacitors
30) Variable or adjustable (Pre-set) capacitors
90) Other
3 85.33 Electrical resisters (including rheostats and potentiometer)
other than leading resisters.
10) Fixed carbon resisters, composition or film types
21) Other fixed resisters for a power handling capacity not
exceeding 20 w.
30) Wire wound variable resistors including rheostats and
potentiometers for a power handling not exceeding 20 W.
39) Wire wound variable resitors including rheostats and
potentiometers for a power handling exceeding 20 w or more
40) Other variable resistors, including rheostats and
potentiometers
90) Parts
4 85.36 50) Electronic AC switches consisting of optically coupled input
and output circuits.(AC Switches)
50) Electronic switches including temperature protected
electronic switches consisting of and a logic chip (Chip on Chip
technology) for a voltage not exceeding 1000 volts
50) Electromechanically snafaction switches for a current not
exceeding 11 amps.
69) Plugs and Sockets for co-axial cables and printed circuits.
90) Connection and contact elements for Wires and Cables

27
 Sr.No. H.S.No. Description of products
5 85.41 10) Diodes, transistors and similar semiconductor devices,
photosensitive semi-conductor, including photo voltaic cells
whether or not assembled in modules or made up into panel
light emitting diodes, mounted piezo electric crystals.
Diodes, other than photosensitive or light emitting liodes.
22) Transistors other than photosensitive transistors with a
dissipation rule of less than 1 w.
29) Transistors other than photosensitive transistors, with a
6 85.42 12) Electronic integrated circuits and micro assembles.
Cards incorporating an electronic integrated circuit
(Smart Cards)
13) Metal oxide semiconductors (Mos Technology)
14) Circuits obtained by bipolar technology.
19) Other monholithic integrated circuits, including circuits
obtained by a combination and Mos Technology
(Bionos technology)
31) Other monolithic integrated circuits
40) Hybrid integrated circuits
41) Electronic Micro assemblies
90) Parts
7 85.44 41) Other electric conductors for a voltage not exceeding 80 V,
fitted with connectors of for telecommunication
49) Other electric conductors for a voltage not exceeding 80 V,
fitted with connectors of for telecommunication
50) Other electric conductors for a voltage exceeding 80 V but
not exceeding 1000 V, fitted with connectors of a kind used
for telecommunication
70) Optical fiber cables

Schedule I (A)
PRIORITY INTERMEDIATE PRODUCTS
1. Input – Output Units including All computer peripherals: HSN 8471.60
2. Computer Keyboard: HSN 8471.60.10
3. Computer Monitors: HSN 8471.60.19.20 HSN: 8471.90.07
4. Populated PCB'SSI (All Categories): HSN 8473.10 HSN 8473.30 HSN
8473.40 HSN 8473.90 HSN 8473.90 HSN 8473.90 HSN 8473.90 HSN
8473.90
5. Smart Cards & Accessories: HSN 8542.12
6. UPS for Data Processing HSN 8504.40 Equipment: HSN 8543.80 HSN
8471.05

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7. Set-up box with communication function and accessories: HSN 8517.80
8. Internet – Box with user interface and network interface: HSN 8517.80
9. Modems and ISIN Terminals: HSN 8517.50
10. Router & Technical Services: HSN 8517.50
11. VSAT Terminals: HSN 8525.20
12. Radio Communication
13. Equipment: HSN 8525.20
14. Electronic Private Automatic Branch Exchange. (EPABX)
15. Digital Image Recorders (HSN No. 9010).
16. Adapters, Jacks & Plugs, Relays, Switches, Terminals & terminal blocks,
Sockets, Heat Sinks, Bases and Folders useful for electronics equipments
only (HSN No. 8335).
17. Video Conferencing Equipments.
18. Mobile Handsets (GPRS & CDMA) (HSN No. 8413).
19. 84.69 Word Processing Machines & Electronic Typewriters.
20. 84.70 Electronics Calculators.
21. 84.71 Computer Systems & Peripherals, Electronic Diaries.
22. 84.73 Parts & Accessories of HSN 84.69, 84.70 & 84.71 for items listed
above.
23. 85.01 DC Micro Motors / Stepper motors of an output not exceeding 37.5
Watts.
24. 85.03 Parts of HSN 85.01 for items listed above.
25. 85.04 Uninterrupted Power Supplies (UPS) and their parts.
26. 85.05 Permanent magnets and articles intended to become permanent
magnets (Ferrites).
27. 85.17 Electrical apparatus for the Telephony or line telegraphy, including
linetelephone sets with cordless handsets and telecommunication
apparatus for carries-current line systems or for digital line systems;
videophones.
28. 85.18 Microphones, Multimedia Speakers, Headphones, Earphones &
Combined Microphones / Speaker Sets & their parts.
29. 85.20 Telephone Answering Machines.
30. 85.22 Parts of Telephone Answering Machines.
31. 85.23 Prepared unrecorded Media for Sound Recording or Similar
Recording of other phenomena.
32. 85.24 IT Software on any Media.
33. 85.25 Transmission apparatus other than apparatus for radio broadcasting
or TV broadcasting, transmission apparatus incorporating reception
apparatus, digital still image video cameras.
34. 85.27 Radio communication receivers, Radio pagers.
35. 85.29 (i) Aerials, Antennas and theirs parts.
(ii) Parts of Items at 85.25 and 85.27 listed above.

29
 36. 85.31 LCD Panels, LED Panels & Parts thereof.
37. 85.32 Electrical Capacitors, Fixed, Variable or adjustable (Pre-set) and parts
thereof.
38. 85.34 Printed Circuits.
39. 85.36 Switches, Connectors & Relays for upto 5 Amps at voltage not
exceeding 250 Volts, Electronics Fuses.
40. 85.40 Data / Graphic Display Tubes, other than TV pictures tubes and parts
thereof.
41 85.43 Signal Generators and parts thereof.
42. 90.01 Optical Fiber and Optical Fiber Bundles and Cables.
43. 90.13 Liquid Crystal Devices, Flat Panel display devices and parts thereof.
44. 90.30 Cathode ray oscilloscopes, Spectrum Anlysers, Cross-talk meters,
Gain measuring instruments, distortion factor meters, Psophometers,
Network & Logic analyser and Signal analyzer

Schedule - B
Policy for Development of Integrated IT Township
(i) Applicant Application for developing Integrated IT Township can be
made by the concerned Land Owners or by their
appointed Developer or a Joint Venture Company formed
by the Land Owners with any Developer.

(ii) Area To be eligible for being declared as “Integrated IT

Requirement Township”, the area to be developed shall have minimum
15 meters wide access road. The area to be notified as
“Integrated IT Township”, shall be free, contiguous and not
be less than 10 hectares (25 acres).
(iii) Manner of On private lands and lands acquired by the MIDC under
Notification MID Act 1961, Integrated IT Township shall be notified by
the MIDC after receiving a proposal from the applicant.
Notwithstanding anything contained in the Development
Plan or the Regional plan, upon such notification, such
area shall be developed as per the DCRs framed by the
MIDC for this purpose. For this purpose, procedure under
Section 20 read with section 18 of the Maharashtra
Regional and Town Planning Act, 1966 shall not be
necessary.

(iv) Permissible Minimum 60% of the total area notified as “Integrated IT

land-uses Township” shall be used for IT / ITES activities and upto
remaining 40% area for the development of support
services, service apartments on leave and license basis

30
 and commercial activities including malls, cinema
theaters, public auditorium and multiplexes, showrooms
for all types of merchandise, hospitals, nursing homes,
schools and colleges, training institutes and hostels
related to them, hotels. The development of entire
township, ie, 60% area for IT/ITES and 40% other area can
take place simultaneously but the developer will have to
ensure that sale / lease of both areas (and only lease of
service apartments); is proportionate. To ensure this
occupation certificate for commercial, residential and
support services shall be given only after the development
of infrastructure facilities on the area earmarked for IT /
ITES activities and occupation certificate is granted by the
concerned planning authority and after 1/3 rd area kept
for IT / ITES activity is occupied.
(v) F.S.I. for The maximum permissible FSI on the gross area of the
Integrated notified Integrated IT Township shall vary as follows:
IT Township For IITT located in Pune, Pimpri-Chinchwad, Greater
Mumbai, Thane, Navi Mumbai, Kalyan-Dombivali, Mira-
Bhayandar, Ulhasnagar municipal corporations and
Ambernath municipal council limits the permissible FSI
shall be 2.5. For rest of the areas in the State, the
permissible FSI shall be 2.00. The premium chargeable
shall be as in para 5 A (ii) of the policy.
Floating of FSI shall not be permissible from the area of IT /
IT use to the area of Support Activities or vice versa, but
floating of FSI shall be permitted within the respective
areas of IT / ITES and Support Activities separately.
(vi) Planning i) The MIDC shall be declared as the Special Planning
Authority: Authority under section 40 (1) (b) of the MRTP, Act 1966
for the Integrated IT Township on private lands and under
section 40 (1) (a) on the lands acquired by the MIDC under
MID Act 1961
ii) The CIDCO shall be declared as the Special Planning
Authority under section 40 (1)(b) of the MRTP, Act 1966
for the Integrated IT Township on lands acquired by the
CIDCO under Land Acquisition Act, 1894.
(vii) DCR Prevailing Development Control Regulations of
MIDC/CIDCO shall be applicable mutatis mutandis to the
areas for which MIDC/CIDCO are declared as special
planning authority, excepting those expressly provided in
the Special Development Control Regulations framed for
the Integrated IT Township.

31
 (viii) Final approval/ Planning proposal of the entire Integrated IT
Approval of Township, shall be approved by the Director of Town
Master Plan Planning, Maharashtra State, Pune u/s 115, after
following the procedure as per the section 40 (3) & 115
of MRTP Act, 1966.
(ix) Approval of The Special Planning Authority shall approve the
Building Plans detailed building plans

(x) Appeal Anyone aggrieved by an order passed by the Special

Planning Authority may within forty days of the date of
communication of the order, prefer an appeal to the
Government in the Urban Development Department.
(xi) Special Non-agriculture permission- will be automatic and no
Concessions: separate NA permission shall be required following
notification of any area as Integrated IT Township.
(xii) Implementation Development of any notified Integrated IT Township
and shall be completed within 5 years from the date of final
Completion: sanction to the layout plan of the Area.
(xiii) Infrastructure All the onsite infrastructure in the Integrated IT
Facilities Township and access road if it does not exist, shall be
provided and maintained by the Developer. However,
it would be obligatory on the part of the Developer to
provide all basic infrastructure on at least 75% area
under the Integrated IT Township within 3 years from
the date of sanction of development proposals by the
Director of Town Planning, Maharashtra State, Pune;
otherwise the declaration made by MIDC as Integrated
IT Township shall lapse.

(xiv) Interpretation: If any question or dispute arises with regard to

interpretation of the regulations regarding Integrated
IT Township the matter shall be referred to the State
Government.

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Contacts

Principal Secretary (Industries)

Industry, Energy &Labour Department,
1st Floor, Room No. 114, Mantralaya Annex, Mumbai – 400 032.
Tel. No. 022 -22025393
Email - [email protected]

Development Commissioner (Industries)

Directorate of Industries, 2nd Floor,
New Administrative Building, Opp. Mantralaya,
Mumbai – 400 032.
Tel No. : 022- 22028616
Email : [email protected]

Chief Executive Officer

Maharashtra Industrial Development Corporation
4, 4(A), 12th floor,
World Trade Centre Complex, 1
CuffeParade,Colaba,Mumbai -400005
Tel No : 91-022-26870800 / 26870027/52/54
Email : [email protected]

Jt.Chief Executive Officer(IT)

“UdyogSarathi”, Mahakali Caves Road
Andheri(E), Mumbai-400 093
Tel No : 91-022-26871921,26871085
Email : [email protected]