The Hindu Business Line : STPI to focus on tier-II, III cities

The Software Technology Parks of India (STPI), an autonomous society under the Ministry of Communications and Information Technology, plans to set up more centres in tier-II and tier-III cities and is working on creating more incubation centres.

The Director-General of STPI, Mr S.N. Zindal, said STPI now has over 47 centres spread across the country. Speaking to Business Line during his visit to Hyderabad, Mr Zindal said

"A new incubation centre has come up in Bangalore and another one coming up at Hyderabad, one more is set to be operational within three months. STPI is exploring opportunities for more such centres and now has about 50,000 sq ft of incubation space."

"The IT industry has the potential to garner a larger chunk of the total outsourcing pie of about $300 billion. Since we account for barely $30-35 billion, there is potential to grow by 7 to 10 times. We are on course to achieving the $60-billion target in IT exports, and 32 to 35 per cent growth during 2006-2007," he said.

Interestingly, about 48 per cent of the overall business is contributed by the small and medium-sized enterprises, which include companies with revenues up to $100 million.

However, when it comes to hardware, STPI is working to attract more companies and investments through Electronic Hardware Technology Parks.

Asked if the STPI scheme would be extended, Mr Zindal cited the Union Information and Technology and Communications Minister and said that a Cabinet note is under preparation and would be presented for approval. This would in effect mean extension of STPI benefits. There are no issues with SEZs as they would complement the STPI.