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Information Technology Policy of Maharashtra


With its strong HRD and state-of-the-art infrastructure, Maharashtra is well poised to take full advantage of the Information Technology revolution sweeping the globe. The state has a leading position in India, itself a nation with rare potential in the Information Technology Sector. The Centre of the Development of Advanced Computing, C-DAC, which developed India's Super Computer, as located at Pune in Maharashtra. The state also boasts of the largest number of software companies and accounts for the biggest share of India's software exports.

It is Maharashtra's Government singular commitment to strengthen the state's leading position and to make its Information Technology industry globally competitive. To give its efforts proper thrust, the Government of Maharashtra has undertaken a number of policy initiatives in the areas of HRD, Infrastructure, Incentives to the Information Technology industry and computerisation of Citizen-Government interface.

Mission Statement

In continuation of state's New Industry, Trade and Commerce Policy, 1995, whose Mission Statement was Empowerment of People at all levels, the Mission Statement of this Information Technology Policy is Empowerment through Connectivity.

We believe that access to computers, connectivity to the internet and availability of computer-based knowledge have the potential of transforming the already strong industrial base and vibrant agriculture of the state into a modern and knowledge-based economic powerhouse. Information Technology also has the potential of building a modern, computerised society. Our Mission is to empower the people of the state to realise this huge potential.

Objective: Anytime Anyhow Anywhere (AAA)

To achieve the above mission, it is necessary to ensure AAA connectivity, thereby leveraging the state's core competency in HRD to attain a leading position in Information Technology through strategic policy initiatives in different areas.


The above objective is to be achieved through the following strategy planks:

* To provide to the people of the state a world-class Information Technology Infrastructure.

* To put in place an appropriate institutional mechanism for initiatives in Information Technology sector.

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* To make the people of the state highly computer-literate and to produce top-class Information Technology professionals through strong HRD initiatives.

* To consolidate and greatly strengthen the Information Technology industry in the state including the software and hardware industry as well as Information Technology enabled Services though fiscal and non-fiscal incentives.

* To computerise the Citizen-Government interface in order to make Government more transparent and to bring it closer to the people.

Human Resources Development

Within the next five years, all the 637 Govt./Semi-Govt. Secondary Schools and Higher Secondary Schools in the state will be provided with computer labs at a cost of Rs. 15 lakhs each. The total expenditure on his programme is expected to be Rs. 960 million in five years. In the first phase, this programme will be implementedin 137 schools during the first two years.

Aided Secondary Schoolss will be encouraged to obtain private participation for setting up Computer Labs by permitting them commercial use of these facilities outside of school hours.

As and when Vidyanet, Ernet or Internet connectivity is made available, the same will be provided at government cost to Govt./Semi-Govt. secondary schools.

'Teach the Teachers' programme will be taken up in such a way that there is no lacuna between the availablity of computers and trained teachers.

Engineering instituions like degree colleges, polytechincs and other specialised teaching institutions in the state will be encouraged to expand their intake for Information Technology courses in a big way.

There is need to have a Software University to spearhead research, training and development in this area. The government will welcome establishmnet of a software university by a reputed academic institution of national or international standing.


State agencies such as MSEB (Maharashtra State Electricity Board), PWD (Public Works Department), Irrigation Department, who have rights to way will facilitate laying of fibre optic backbones by private ISPs or Telecom Service Providers. While MSEB has started the process by inviting tenders, other agencies will provide right of way to the Information Technology industry at 50% of their normal rates.

In order to encourage Public TeleInfo Centre, the government will provide land on lease for a period of at least 10 years on the same concessional terms and conditions as arre applicable to educational institutions. These centres will also be eligible for assistance under the package Scheme of Incentives.

MIDC (Maharashtra Industrial Development Corporation) will also develop plug-and-play Information Technology entrepreneurship incubation facilities at Navi Mumbai, Pune and Nagpur to encourage first generation software professionals to start their operations quickly.

A Hardware Park will be set up over an area of 400 hectares in Navi Mumbai, close to the Jawaharlal Nehru Port.

Fiscal and Non-Fiscal Incentives

A host of fiscal and non-fiscal measures will be offered to the Information Technology industry in the state to consolidate the state's leading position.

* Software industry will be allowed in residental, industrial and commercial zones.

* Software industry will be included as one of the permissible users in the No Development Zone.

* 100% additional FSI for Software Technology Parks set up by public bodies on payment of premium amounting to 25% of the market value.

* No MPCB (Maharashtra Pollution Control Board) clearance required for software units.

* Under the Package Scheme of Incentives, benefits meant for industrially backward 'D' areas will be extended to the Information Technology industry even in relatively advanced A, B and C areas. This scheme will be in operation till 2000 AD.

* Sales Tax on Hardware will be reduced to 2% on packaged and off-the-shelf software to 1% and on customised software to nil. These rates will not be raised for the next five years.

* Octroi charged by local bodies on Information Technology products will be refunded.

* Electricity Duty on power used by the Information Technology products will be waived.

* No stamp duty on property transactions within designated Software/Infotech Parks as well as on instruments of Software companies such as lease documents, issue of shares etc. Registration charges will be Rs. 1000 maximum.


The objective of use of Information Technology in government will be to imporove the quality and productivity of services rendered by government, in order to make government more transparent and to bring Information Technology to the common man.

The Warananagar Wired Villages Project will be replicated in other regions of the state.

Computerisation of government department with very high public contact will be taken up in the first phase.

Computerised Interface between citizen and goveernment by way of Bulletin Boards and Public Teleinfo Centres will ensure that people instantly interact with government and can make effective use of government programmes, policies and procedures.

Programmes to increase computer literacy and proficiency of government employees will be accelerated.

Increasing use of E-mail for internet government communication is designed as a more towards the Paperless Office.

Institutional Framework

A Directorate of Information Technology has already been set up.

The High Power Committee already set up under the Chief Secretary for sanctioning computerisation projects in government will be reconstituted and empowered to take decisions regarding implementation of the Information Technology Policy.

A Cabinet Sub-Committee on Industrial Development has already been formed. This Committee will take final decisions in respect of the Information Technology Policy.

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