The Hindu Business Line : `Earmark part of IT profits for education, healthcare'

FELICITATING TIME: Mr A. Sivasailam, Chairman, Amalgamations Group, being felicitated by industrialists Mr N. Sankar and Mr M. V. Subbiah at a function in Chennai on Friday on the conferment of Padma Shri by the President. — V. Ganesan .

Chennai June 22 The Chairman of the Amalgamations group of companies, Mr A Sivasailam, today suggested that IT companies should earmark a part of their profits to setting up schools and hospitals for the poor.

"We believe it should even be made mandatory to earmark a portion of the profit as many of these companies are already enjoying substantial tax advantages," Mr Sivasailam said, at a function organised by the Associated Chambers of Commerce and Industry (Assocham) to felicitate him on the conferment of Padma Shri by the President.

The felicitation function was held on the day of the chamber's 171st annual general meeting that was held here today.

Mr Sivasailam observed that it was widely known that most of the IT companies "really record fairly large level of profit".

He said that this sector "should take the responsibility of contributing to both school, collegiate education and health care of children who are not able to afford such expenses."

He also suggested that a portion of the gains arising out of trading in shares should also be diverted "for health care and education for the poorer sections of the people by offering tax-free status to such diverted profits."

Mr Sivasailam praised the Tata group saying that "right from Jamshedji Tatas the group believed in collective ownership as also distribution of income".

He also mentioned that many other groups such as Mafatlals, Bajaj, TVS and of Pollachi Mahalingam had "supported worthwhile causes".

"For our part, at a remote village, Alwarkurichi, in Tirunelveli district, we have set up extensive facilities for school and collegiate education and an Institute for Environmental Sciences leading upto Ph.D," he said.

Earlier, many industrialists of Chennai, including Mr M V Subbiah of the Murugappa group, Mr N. Sankar, Chariman of Sanmar group ,and Mr N Srinivasan, Chairman and Managing Director, India Cements Ltd, felicitated Mr Sivasailam, calling him a great visionary and a benevolent employer.