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Contributed on February 2, 2021

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Draft Haryana Data Centre Policy

Blog: NASSCOM Official Blog

Govt of Haryana is considering to formulate/adopt a Data Centre Policy for the State. The key highlights of the draft policy being considered, is appended. Your views on these proposals will be important for us to finalise our feedback to the Govt. of Haryana. We kindly request you to share your comments to jayakumar@nasscom.in by 05.02.2021.

Definitions

• Data Centre Park (DCP): Data Centre  Parks  are  dedicated  land  parcels  developed  and  maintained  for  the  Data Centre industry that provide computer and data storage facilities in a multi-tenant, open access, carrier neutral and diversely connected manner.

• Data Centre Unit (DCU): Data Centre  Unit  is  defined  as  a  physical  facility  that  enterprises  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 DC Server Room that has server racks, storage racks and networking equipment, NOC (Network Operation Centre) room, Centralized   Building   Management   System   (BMS   room),   Helpdesk   area   and Testing/  Lab  room,  Electrical  Room  (Power  Supply  Room),  Telecom  Room,  UPS  and Battery Room, AHU (Air Handling Units) and Fire Suppression System. Data  Centre  Unit  shall  be  considered  as  a  Green  Data  Centre  Unit  if  it  is  certified  by Indian  Green  Building  Council  (IGBC)  and/or  the  Green  Rating  for  Integrated  Habitat Assessment (GRIHA) or Leadership in Energy and Environmental Design (LEED).

• Data Centre Clusters (DCC) :Data Centre  Clusters  are  industrial  areas  where  multiple  DCUs,  Cloud Service Providers or other allied industries exist & operate in the State.

 Eligibility

• Policy is applicable to the DCPs/ DCCs and DCUs operating in the State of Haryana.
• DCPs set up in the State with minimum area of 5 acres and at least 1.5 MW of power.
• DCUs (standalone)  set  up  in  Haryana  with  min 750KW  power  & designed  for  Tier  3 and  above  level  certification  by  an  independent  agency  would  be considered under this policy
• Certified Green  Data  Centre  (standalone)  set  up  in  the  State  with  min  500KW power and designed for Tier 3 and above level certification by  an independent agency would be considered under this policy
• Units which  will  commence  commercial  production  /  operations  post  the  date  of notification of this policy will be eligible for availing of incentives under this Policy.
• This policy will be valid for a period of 7 years or date of any new policy/amendment, introduced by Government of Haryana, whichever is earlier.
• The incentives  availed  during  the  policy  period  will  be  valid  for  the  defined  incentive period as per the policy and the new policy/amendments will not have any retrospective impact on existing units which are availing incentives under the policy.
• Benefits can  be  availed  under  one  policy  only  in  the  State    EPP  /  MSME/  IT  & ESDM/Data Centre Policy or any other State Policy.

Benefits & Incentives

Land 

• The GoH shall  earmark  around  10  acres  of  land  parcels  for  the  Data Centre Parks/Clusters in Tier-III Districts/ Cities like  Yamunanagar,  Hisar,  Panipat   or  other  locations well  connected  to National Capital through a robust road network.
• 100% Reimbursement of Stamp Duty paid on sale / lease deeds paid on the first transaction for setting up a Data Centre Park ( DCP) / Data Centre Unit (DCU).
• Capital Subsidy upto 25% of the total Project Cost (excluding land cost) capped at Rs 25 Cr per unit will be provided to DCUs set up in notified DCPs in Haryana provided that the DCU shall allocate  20%  of  end  to  end  hosting  space  (including  Power,  Network, Compute and Storage etc.) for Govt of Haryana at no additional charges.
• Data Centre infrastructure as  a  separate  entity  under  the  Haryana  Building  Code  providing relaxed FAR and Building Design Requirement Norms.
• DCUs, covered under the policy, will be declared as a separate Infrastructure Industry.
• Pre-Commencement Approvals :  All  approvals  related  to  construction  of DCP/DCU like Building Plan approval, Temporary Power Connection, Fire Fighting Scheme and Consent to Establish amongst others shall be given in to the Industry in 10 working Days of acceptance of application.
• Commencement Approvals : Approvals  required  for  commencement  of business  like  –  Permanent  Power  Connection,  Occupation  Certificate  and Consent  to  operate  amongst  others  shall  be  given  to  the  Data  Centre operational  in  DCPs  within  15  working  days  of  acceptance  of application.

Power & Water

• 100% exemption    from    electricity    duty    for    captive consumption and power sourced from the grid (if any) for a period of  20 years from the date of commencement of commercial operation for DCUs in State notified DCPs.
• Reimbursement of INR 2/- per unit for the energy consumed from the DISCOMs of Haryana  for  a  period  of  07  years  from  the  date  of  commencement  of operations of the DCUs set up in State notified DCPs.
• DCPs/ DCUs covered under this policy will be declared as an Energy Intensive Industry and considered essential  service  under  Haryana Essential Services Maintenance Act.
• 100% reimbursement   for   Transmission   and   Wheeling   charges   for   power consumption from captive renewable plant set up in the State.
• DCUs shall  be  permitted  to  consume  renewable  energy  procured directly  from  power  producers  in  the  State  through  open  access  system, without  any  restrictions  after  paying  applicable  cost  components/expenses  to DISCOMsNet Metering will be available for captive power consumed by Data Centre Units to promote the use of Renewable Energy.
• 25% capital assistance up to a maximum of Rs    for   setting   up   of   Water   treatment/recycling   plants   and   Water conservation and harvesting tanks  in/around Data  Centre  Parks/Units as a part of common Physical infrastructure to promote conservation and re-use of water.

Connectivity 

• Right of  way  will  be  provided  free  of  cost  as  per  the  guidelines  under State  Communication  &  Connectivity  Infrastructure  Policy,  2017 . Permission  of  Right  of  Way  for  DCPs  shall  be processed  online  through  Single  Roof  Clearance
• State will  implement  a  Dial  Before  You  Dig  Policy  (DBYDP)  to allow authorities responsible for carrying out construction work to access information about underlying network cabling infrastructure before digging in order to minimize cable breaks.

Fiscal Benefits 

• 75% Net SGST  reimbursement  for DCUs  operational  in  the  State for  a period of 10 years subject to maximum of 100% of Fixed Capital Investment.
• 100% property  tax  abatement  for  07  years  shall  be  offered  for  DCUs operational in the State notified Data Centre Parks.
• Data Centre Units shall be eligible for employment generation subsidy of INR 36,000 per year for SC/women and INR 30,000 for general category per year per employee (only in  case  of  direct  employment  on  payroll)  for  a  period  7  years  for  capacity building of persons (skilled/ semiskilled) having Haryana domicile.

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