The Hindu Business Line : Maran for extension of STP scheme

The Communications and IT Minister, Mr Dayanidhi Maran, on Wednesday threw his weight behind IT industry's demand to extend the Software Technology Park (STP) scheme beyond the stipulated period of 2009-10.

"IT companies and the National Association of Software and Services Companies (Nasscom) have sought the extension of STP scheme. We support the extension of the scheme. We have already taken up the issue... Information Technology has been a success story, and we will try to look into the demand," Mr Maran said at a conference here, but did not spell out specific details.

At present, the units located under the STP scheme enjoy sops, including income-tax holiday as per section 10A of the Income Tax Act; 100 per cent customs duty exemption on imports of capital equipment; and import of equipment on a loan or lease basis. Under the STP scheme, units can virtually be set up anywhere and still enjoy these benefits. About 4,000 software companies, including 3,000-3,500 small and medium companies, are currently registered under the STP scheme, contributing nearly 80-90 per cent of the overall software exports.

Announcing the thrust areas for his Ministry, Mr Maran said that the Government would create an ubiquitous platform for integrated delivery of e-governance services consisting of State Wide Area Networks in all States by 2007; 100,000 community service centres spread over all 6000 blocks in the country by end 2007; data centres for all States by 2007; and call centres to assist individuals in availing themselves of e-governance services for all States by 2007.

He exuded confidence that the proposed semiconductor policy entailing a special package of incentives for setting up `Fabs' in the country would be announced by early June.

"The IT Department has prepared a draft policy proposing a special package of incentives for modern technology for setting up semiconductor Fabs, Solar cells, flat panel displays, storage devices. The discussion with the Finance Ministry is on, and I am confident that the policy will be announced by the first week of June," he said.

It may be recalled that the Finance Minister, in his budget speech this year proposed to use vehicles of `viability gap funding' and India Infrastructure Finance Company for providing equity participation in new projects pertaining to manufacturing of semiconductors and high end technology IT products.