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Deadline extended for providing feedback to Draft Data Center Policy released

November 9, 2020

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Update :

Based on our request, MeitY has extended the deadline for providing feedback to 30th Nov.

Please send in your comments, if any, to NASSCOM before 26th Nov 2020.

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MeitY has on 5th November released the draft Data Center Policy for public feedback. The draft includes many proposals aimed at improving EoDB, creating a favourable ecosystem for the operations of Data Centers, promoting local technology development and institutional mechanism for policy governance.

Some of the key proposals that are part of the draft policy are listed below.

  1. Data Centre Incentivization Scheme to provide fiscal and non-fiscal incentives for the sector.
  2. States shall be encouraged to demarcate specific zones (land parcels) for setting up Data Centre parks with necessary infrastructure like road connectivity, availability of water, etc.
  3. Government of India also proposes to set-up at least four (4) Data Centre Economic Zones (DCEZ) in the country, as a Central Sector Scheme – DCEZ Scheme.
  4. Incentivize global equipment manufacturers to set up manufacturing units of IT/ Non-IT components in India, catering not only to local demands but also for export purposes.
  5. Provide ‘Infrastructure’ status to Data Centres.
  6. Notify Data Centres as Essential Services under “The Essential Services Maintenance Act, 1968”.
  7. Enable effective open access system to allow Data Centre service providers directly procure power from generation companies (including renewable power generation units).
  8. Sharing of active infrastructure by enhancing the scope of Infrastructure Providers (IP) and promoting and incentivizing deployment of common sharable, passive as well as active, infrastructure
  9. Enable and encourage Dial Before You Dig Policy (DBYDP) to allow easy access to information about the underlying network infrastructure before the commencement of digging.
  10. Common service ducts and utility corridors for enabling proliferation of Optical Fibre Cables and dark fibre for the Data Centre operations and ensuring sharp reduction in downtime due to fibre cuts.
  11. Recognize Data Centres as a separate category under National Building Code.
  12. Publish list of approvals / clearances required for operationalization of Data Centres along with the defined timelines
  13. Setup a Data Centre Facilitation Unit (DCFU) within MeitY to provide harmonized services to interested Data Centre Parks/Data Centre developers on matters related to setting up of Data Centres.
  14. An independent Data Centre Industry Council (DCIC) to act as an interface between the sector and the Government. The council will work to represent the sector’s viewpoint and engage with MeitY.

Earlier, in May 2020, NASSCOM had made its recommendations on Data Center Policy (detailed blog here). Most of the recommendation (9 out of 12) have been considered positively and included in the draft.

The deadline for the submission of feedback to MeitY is 19.11.2020. We are requesting our members to share their feedback to jayakumar@nasscom.in latest by 16.11.2020.


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