Restore STPI scheme: CM to Manmohan

Published: 25th July 2013 11:47 AM  |   Last Updated: 25th July 2013 11:47 AM   |  A+A-

Chief Minister Oommen Chandy has proposed Prime Minister Manmohan Singh to restore the Software Technology Parks of India (STPI) scheme for the revival of the IT industry in the country.

In a letter addressed to the Prime Minister, Chandy said that the Centre should consider the revival of the scheme for five years, effective from the current financial year, at least to those units in tier 2 and tier 3 cities to help the companies tide over 'the immediate crisis'. The representation follows the members of Group of Technology Companies' (GTECH) meeting with the Chief Minister last week.

GTECH, the industry body representing the IT industry in the state, had told the CM that discontinuance of the scheme was the single biggest setback faced by the small and medium companies.

"In one stroke, by restoring the STPI scheme, the government can rejuvenate the sagging fortunes of Indian IT units in the SME sector. IT industry is the largest employer in the private sector with over 30 lakh people employed directly and another 95 lakh gaining indirect employment. Not only will this game changing initiative ensure the creation of more jobs but it would also see IT companies flock to smaller towns and cities thereby decongesting the metros," V K Mathews, chairman, GTECH, said.

According to GTECH, over 60 per cent of the entire spending of the software companies relate to employee salaries which are taxed and hence the contribution to the exchequer remains significant. The industry body reasons that additional levy in the form of corporate tax leaves very little for the IT units in the SME sector to re-invest, increase headcount and grow.

"The STPI scheme was a key contributor in the success of the Indian IT industry in its infancy. While some companies had outgrown the need for this scheme, there remain a large number of IT units for which the discontinuation of the scheme in 2011 was a heavy blow," Anoop P Ambika, secretary, GTECH, said.

Stay up to date on all the latest Kerala news with The New Indian Express App. Download now
(Get the news that matters from New Indian Express on WhatsApp. Click this link and hit 'Click to Subscribe'. Follow the instructions after that.)

Comments

Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp