Indian conglomerate, Larsen & Toubro Ltd has signed a Memorandum of Understanding with the Gujarat government to set up an IT and IT-enabled Services (ITeS) Park in Vadodara at an investment of ₹7,000 crore.

The agreement between L&T and the state government was signed in Gandhinagar in the presence of Gujarat Chief Minister Bhupendra Patel on Wednesday, said a state government release, adding that the company will invest ₹7,000 crore over a period of five years to develop this IT-ITeS Park in the district.

The park, being set up under the recently announced IT/ITeS policy of the state government, would create nearly 10,000 direct and indirect employment opportunities during the next five years, it said.

According to the release, nearly 2,000 engineers would get jobs in the first year of establishment.

In February, CM Bhupendra Patel had launched an IT/ITeS policy with an aim to generate one lakh 'high-skilled jobs' in the next five years.

With entrepreneurs showing a keen interest, the state government has signed MoUs, having proposed investment of ₹2,400 crore, with 13 major IT players within six months of announcing the policy, the release said.

The new policy, which will remain in force till 2027, offers a range of financial incentives to new investors wanting to set up IT or ITeS units in the state.

The new IT/ITeS policy aims to increase Gujarat's IT-ITeS exports from the current ₹3,000 crore annually to ₹25,000 crore over the next five years, an eight-fold growth, it stated.