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Budget 2020 proposes to roll-out new policy for building data centre parks

The government had introduced a draft personal data protection bill in 2018 to regulate the use of individual’s data by the government and private companies. (Photo: iStock)Premium
The government had introduced a draft personal data protection bill in 2018 to regulate the use of individual’s data by the government and private companies. (Photo: iStock)

  • RBI’s data localization norms necessitate the need for setting up large data centers
  • In line with European Union’s GDPR, govt introduced draft personal data protection bill in 2018

New Delhi: Finance Minister Nirmala Sitharaman on Saturday proposed to roll-out a new policy for building data centre parks.

This comes in the backdrop of data protection bill tabled by the Bharatiya Janata Party-led government in Parliament that spells out a framework, which will include processing of personal and private data by public and private entities, among others.

Broad guidelines on collection, storage and processing of personal data, consent of individuals, penalties and compensation, code of conduct and an enforcement model are proposed to be a part of the law that has come under intense scrutiny.

This also comes at time when Reserve Bank of India’s norms on data localization necessitate the need for setting up large data centers to store and protect information.

“Data is the new oil. We will soon roll out policy to enable private sector to build data centre parks throughout the country," Sitharaman said in her speech.

Data localization refers to storing data on any device that is physically present within the borders of a country where the data is generated. Free flow of digital data, especially which can impact government operations, is restricted by some governments. Many try to protect and promote security across borders and, thus, encourage data localization.

Private equity firm Actis LLP is in talks with global information technology companies and retailers to set up data centres in India, Mint reported earlier.

In line with European Union’s General Data Protection Regulation (GDPR), the government had in 2018 introduced a draft personal data protection bill to regulate the use of individual’s data by the government and private companies.

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