The Hindu Business Line : Technopark cos call for policy changes for better growth

If Kerala’s IT sector is to retain its cost advantage and grow, the State Government needs to make several policy changes, said the Group of Technopark Companies (GTech).

Office-bearers of GTech, which represents companies operating at Technopark here, today presented a wish list of how the State Government can offer “proactive support” to Kerala’s IT industry to help it beat the current economic slowdown.

Key to surviving the slowdown is reducing operational costs, they pointed out. Yet, Kerala’s cost advantage over other States is eroding very quickly.

It is no longer true that Kerala is a cheaper destination for IT companies to operate in, said Mr Satish Babu, Secretary, GTech.

High rents

For instance, rents at Technopark and Infopark in Kochi, both run by the State Government, are now higher than those in Bangalore and Chennai. IT parks in other States have lowered rents in recent months, responding to the economic slowdown. In Kerala, though, there has been no corresponding reduction in rents, he pointed out.

GTech, therefore, believes that the State Government should re-examine the rental regime for Government-run IT parks to ensure that they are in sync with trends in other States.

The organisation also believes that a 25 per cent reduction in rents at Technopark will enable its members to stay competitive. Similarly, the State Government also needs to remove restrictions on electricity consumption at IT parks and must also review power tariffs, Mr Babu added.

Another suggestion put forward by GTech is that representatives of the IT industry be included in the ‘park implementation board’ and other bodies that manage the operations of Technopark.

While recognising the need for social justice and equity in employment, GTech has also requested the authorities to ensure that companies are allowed the operational flexibility needed to function effectively.

Other suggestions

The government should also clarify the legal framework under which companies in Technopark operate and should also consult the IT industry when new laws are being formulated, the organisation has suggested.

Another GTech suggestion is that Technopark be declared an essential service so its functioning is not disrupted by events such as hartals. The government should also modify its policies so that Technopark-based companies can work on e-governance projects for the State Government, the organisation said.

More Stories on : Outlook | Kerala

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