Notification of Haryana State Data Centre Policy, 2022

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Notification of Haryana State Data Centre Policy, 2022

Tejasvi

@tejasvi

July 15, 2022

Public Policy

350

As you may be aware, the Haryana Government recently notified the Haryana State Data Centre Policy, 2022 (Policy) with the vision to make Haryana a preferred destination for Data Centre Industry and establish the state as a global data centre hub.

As per the Policy, data centre refers to “a data centre unit or data centre park as per the eligibility defined under the Policy and is defined as a physical facility that organisations and cloud service providers use to store and manage their business-critical applications and information on a network of IT servers. The facility typically comprises of data centre server room that has server racks, storage racks, and networking equipment, network operator centre room, centralized building management system, help desk area and testing/ lab room, electrical room, telecom room, UPS, battery room, air handling units and fire suspension system.

Eligibility Criteria:

The policy is applicable to data centres units/ parks operating in the state of Haryana and fulfilling the following conditions:

Data Centre Parks with at least 20 MW of power (data centre power only) and a minimum of 20 acres of land area;
Data Centre Units with minimum of 01 MW of power (data centre power only) and a minimum of 4 acres of land area;
Commence commercial production/ operations post notification of the policy to avail incentives under the policy.

Other conditions:

This Policy is valid for 7 years from the date of notification or date of any new policy/ amendment, whichever is earlier.
Incentives availed during the policy will be valid for defined incentive period as per the policy and the new policy/ amendment will not have any retrospective impact on existing units that are availing incentives under the policy.
Benefits can be availed under one policy only in the State viz HEEP 2020 or MSME or IT & ESDM or Data Centre Policy or any other State policy.
All benefits to data centre are subject to maximum of 100% of fixed capital investment.

Nodal Authority:

Department of Information Technology, Electronics and Communication, Haryana (DITECH) is the final authority for clarifying/ resolution of doubts relating to the interpretation of the Policy.

Incentives: The Policy is designed to provide the following incentives:

Land and Infrastructure – Government shall endeavor to provide land on a sale/ lease basis for setting up of data centres. The draft policy earlier mentioned that land will be provided by the government on lease basis. This is in line with NASSCOM’s suggestion to Haryana Government wherein we had requested them to provide for an option that enables purchase of land by the data centres. Key incentives include the following:

Stamp duty reimbursement – 100% reimbursement of stamp duty paid on sale/ lease deeds on first transaction for setting up data centre park/ unit.
Haryana Building Code – Haryana Government will include data centre related infrastructure as a separate entity under the Haryana Building Code providing relaxed FAR and building design requirement norms.
Infrastructure Industry – Haryana Government will declare data centre as a separate infrastructure industry.

Power supply – Government shall ensure continuous availability of quality power through dual grid power supply network of data centres. Key incentives include the following:

Electricity duty exemption – 100% exemption from electric duty for captive consumption and power sourced from the grid for a period of 20 years from the date of commencement of commercial operations of data centre.
Power bill reimbursement – Power bill reimbursement for energy consumed from DISCOMs of Haryana up to 25% of NET SGST for 3 years from the date of commencement of operations of data centres, provided that data centre shall provide a hosting facility (including power, network, compute and storage, etc) of equivalent value (up to reimbursement of power bill) to government of Haryana entities through DITECH in lieu of this facility. The Haryana Government entities may avail this facility over a period of 10 years from the date of commencement of operations of data centres.
Energy Intensive Industry – Haryana Government will declare data centre as an energy intensive industry.

Water supply - Government shall endeavor to provide 24X7 water supplies to data centres.

Communications and Connectivity – Fiber - Government shall endeavor to provide redundant last mile high speed connectivity to data centres. Key incentives include the following:

Fiber connectivity – Right of Way (RoW) – RoW will be provided as per the guidelines under State Communication and Connectivity Infrastructure Policy, 2017 or any other related policies. Application for permission of RoW will be processed online through single roof clearance system and necessary permissions for RoW should be extended in a time bound manner.
Dial Before You Dig (DBYD) – Government will implement DBYD Policy that would allow authorities responsible for carrying out construction work to access information about the underlying network cabling infrastructure before digging in order to minimize cable breaks.

Additional fiscal/ regulatory benefits - Key incentives include the following:

Net SGST Reimbursement – The policy allows for 50% net SGST reimbursement for 10 years in “A” and “B” category blocks and 75% net SGST reimbursement for 10 years in “C” and “D” category blocks.
Property Tax – Property tax for such data centres will be at par with industrial rates.
Employment generation subsidy – Data centres will be eligible for employment generation subsidy of INR 48,000 per year per employee (in case of direct employment on payroll with valid ESI/ PF number and a total monthly remuneration of up to INR 40,000) for a period of 10 years for capacity building of persons (skilled/ semi-skilled/ un-skilled) having Haryana Bonafide Resident Certificate.
Pre-Commencement and Commencement Approvals – All applications for setting up and operationalisation of data centres will be processed in time-bound manner through existing single roof clearance system of Haryana Enterprise Promotion Board

Pre-commencement – All approvals related to construction of data centre (e.g. building plan approval, temporary power connection, fire-fighting scheme, and consent to establish amongst others) to be given within 10 working days of acceptance of the application
Commencement – Approvals for commencement of business (e.g. permanent power connection, occupation certificate and consent to operate, amongst others) to be given within 15 working days of acceptance of the application.

Essential Services – Government will declare data centres as an essential service under Haryana Essential Services Maintenance Act, 1974.

We hope you will find the update useful. Copy of the Policy is attached for your reference.

In case you need any further information, please write to tejasvi@nasscom.in

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