The proposed scheme would provide incentives on purchase of domestically manufactured servers, and is said to be in line with the Draft Data Policy currently awaiting cabinet approval. An incentive scheme of Rs 12,000 crore is being proposed by the Indian government to encourage companies to set up data centres across the country, as per an Economic Times report. According to the report, the government is expecting an investment of ₹3 lakh crore, from domestic and international companies, in the next five years as a part of the hyper-scale data centre scheme and is planning to provide other incentives such as three per cent to four per cent of capital investment, along with real estate support and faster clearances. The government's move to provide incentives for setting up data centres in India might be in tandem with the government's recent push for data localisation like the Reserve Bank of India's data localisation guidelines for payment companies. As per the RBI guidelines, payment companies are mandated to store all user data in India and data that is processed overseas needs to be localised in under 24 hours. Key details about the incentive scheme The ET report shared the following details regarding the incentive scheme: The scheme is being proposed by the Ministry of Electronics and Information Technology (MeitY) to promote the domestic manufacturing of high-end servers. There will be an incentive of a specific percentage on the purchase of servers from domestic manufactured sources which can be deployed in the data centres. …
