Mumbai: In a push for the digital economy, the state government has unveiled new incentives offering long-term and permanent electricity-duty exemptions to Information Technology (IT) firms, Information Technology Enabled Services (ITeS) and data centres, a move aimed at attracting fresh investments and expanding digital infrastructure across the state.
The benefits, notified by the industries department on June 22, are part of the state’s Information Technology and Information Technology Enabled Services Policy, 2023, and the Integrated Green Data Centre Parks Policy.
Under the new policy, eligible IT and ITeS units will receive electricity duty exemptions ranging from 10 years to permanent waivers, depending on their category and location. Data centres have emerged as the biggest beneficiaries, with the state granting a 20-year electricity-duty exemption to all eligible new and existing facilities registered under the policy.
According to a notification, all new and existing IT units operating in special economic zones (SEZs), IT parks within SEZs, standalone SEZ units and 100% export-oriented units registered with the Software Technology Parks of India (STPI) or other competent authorities will receive a permanent exemption from electricity duty.
“New IT and ITeS units established in public or private IT parks and registered with the Directorate of Industries will be eligible for an electricity duty exemption for 15 years. Similarly, new IT and ITeS units set up in public and private IT parks will be eligible for the exemption for 10 years,” the notification further adds.
{{/usCountry}}“New IT and ITeS units established in public or private IT parks and registered with the Directorate of Industries will be eligible for an electricity duty exemption for 15 years. Similarly, new IT and ITeS units set up in public and private IT parks will be eligible for the exemption for 10 years,” the notification further adds.
{{/usCountry}}Officials said the move is aimed at strengthening Maharashtra’s position as a leading destination for technology and data-centre investments at a time when states are competing aggressively to attract digital infrastructure projects.
Maharashtra is currently home to more than 1,200 software units, 37 public IT parks, 577 approved IT parks and over 600 animation, visual effects, gaming and comics (AVGC) studios.
The state is also pursuing an ambitious plan to transform the Mumbai Metropolitan Region into India’s leading data-centre hub. Apart from the 20 operational data centres, 28 projects worth ₹7.77 lakh crore are under implementation, while another 16 projects involving investments of ₹8.91 lakh crore are in the planning stage.
“The electricity duty exemption will take effect from the date on which the eligible unit commences production or begins rendering services, as certified by the industries department,” a senior state industries department official said.
Officials said the initiative aligns with the state’s broader goal of contributing significantly to India’s ambition of becoming a $5-trillion economy by 2047, with digital infrastructure expected to be a major driver of economic growth.
Stay updated with all the Breaking News and Latest News from Mumbai. Click here for comprehensive coverage of top Cities including Bengaluru, Delhi, Hyderabad, and more across India along with Stay informed on the latest happenings in World News.
Stay updated with all the Breaking News and Latest News from Mumbai. Click here for comprehensive coverage of top Cities including Bengaluru, Delhi, Hyderabad, and more across India along with Stay informed on the latest happenings in World News.