State curb gone, now Vidarbha can host AI data centres

Nagpur: Vidarbha and the rest of Maharashtra can now host green integrated data centre parks, with the state govt scrapping the Mumbai-Navi Mumbai only restriction. A GR issued on Wednesday also raised the cap on such parks from three to 20.The govt had received proposals for setting up integrated green data centre parks from outside the Mumbai Metropolitan Region (MMR), prompting the policy's geographical expansion.Regarding increasing the number of AI data centres to 20, govt said it factored in the target of developing 30 to 40 gigawatts of green-energy-based data centre capacity by 2047 under the Viksit Maharashtra-2047 programme, and the scale of investment and employment such parks could draw. Ashish Kale, president of Association for Industrial Development, welcomed the move, stating that traditional IT hubs such as Mumbai and Pune are facing capacity constraints, making emerging cities like Nagpur attractive destinations for growth. "Nagpur already has a strong IT ecosystem, along with the necessary infrastructure and skilled talent pool to support Global Capability Centres (GCCs). In partnership with the state Industry Department, we will organise a GCC conference in Nagpur in July to promote the city as a preferred GCC destination," said Kale, adding that CM Devendra Fadnavis and Union minister Nitin Gadkari are expected to inaugurate the event.Rina Sinha, president of Vidarbha Economic Development Council, said they pitched this idea to Mike Hanke, US Consul General, when he came to Butibori. Sinha said, "We highlighted the geo advantage and availability of raw material in terms of talent; and why Nagpur is the best place. We are confident that if GCC come here, then it will be the biggest boost. And the way the IT segment has boomed, this is the next big thing. Vidarbha is ready for it. This will stop the exodus of our talent to Pune." Investment thresholds that require a park to commit a minimum of Rs30,000 crore and a capacity of 500 megawatts to qualify were retained. The govt also relaxed the green-energy requirement for core data centre activities from 100% to 51%, and scrapped the rule reserving 2% of park land for incubation centres. Power tariff concessions were sharpened to scale with investment. A park with Rs 30,000 crore investment will get a Re 1 per unit electricity rate concession for 10 years. Parks with investment of Rs 60,000 crore or more will get the same Re 1 per unit subsidy stretched to 20 years, an industrial promotion subsidy of 75% of eligible fixed capital investment, and a 4% interest subsidy on term loans, capped at Rs 25 crore per year for 10 years. The state has also allowed the combined investment of the owner, developer and units to be counted towards the qualifying threshold, instead of only the developer's investment earlier. The amendments will apply to all green data centre parks already issued offer letters by the state and to those cleared in future, with existing offer letters to be amended as required.