Under the proposed data centre scheme, there will be a specified percentage of incentive given to companies deploying domestically manufactured servers. The scheme is going to be an affirmative influence and will boost the growth of the Indian wire and cable industry.

August 25, 2021

The Government of India is planning to introduce an ambitious incentive scheme worth about INR 12,000 crore that will motivate companies to initiate data centres across the country. As part of this data centre scheme, the government is aiming for an investment of INR 3 lakh crore in the next five years. Besides, the companies will be given an incentive of 3 to 4 percent of capital investment, in addition, to support in terms of real estate and ease in clearances.

As per a news report, the government officials asserted that the vision behind this hyper-scale scheme is to elevate the positioning of India as a global data centre hub. The officials also pronounced the goal of the scheme as the biggest till now pertaining to its envisioned investment over a period of five years.

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Presently, the proposed scheme is being considered for inter-ministerial consultations. Thereafter, the policy is going to be shared with the Cabinet for approval once it is finalized. The financial range of the incentive is being talked about and it could be between INR 10,000 crore to 12,000 crore.

Very recently, leading technology corporations like Google, Microsoft, and Amazon have initiated their respective data centre regions in India. Also, homegrown companies including Hiranandani Group and Adani Enterprises have also talked about their ambitious plans of establishing data centres in Noida.

The said schemes headed by the Ministry of Electronics and IT will also spur the domestic production of high-end servers. Also, there will be an incentive given of stated percentage on the purchase of servers that are domestically manufactured which can be installed at the data centres.

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The setting up of hyper-scale data centre regions in the country will promote the adoption and installation of superior quality equipment and systems. In view of the advanced environment at the data centre, it will necessitate the demand for wires and cables on an enormous level. Consequently, the proposed forward-looking scheme is going to bring promising growth prospects for the wire and cable industry in the country.