The Hindu Business Line : `Regulatory norms not helpful for small IT cos'

A regulatory mechanism like STPI (Software Technology Parks of India) is required in the country, said Mr T.V. Mohan Das Pai, member of the board and Head — HRD and Education & Research, Infosys Technologies, at the announcement of the company's first quarter results on Wednesday.

Calling the current regulation regime unfair on small and medium businesses, Mr Pai said that Special Economic Zones (SEZs) were favouring large companies and real estate businesses. "We grieve for smaller companies. It is a serious matter of concern. The regulation regime will stifle innovation," he said.

"SEZs will lead to a number of restrictions and the real estate people owning the space will demand high rent. This may result in a serious threat to small time IT companies," he opined. IT companies, he added, were generators of incremental employment and had to be given a helping hand by the governments. But SEZs were not the solution.

He proposed an STP-like (Software Technology Park) regulatory mechanism that would offer SEZ benefits such as incremental investments.

The company has 1,00,32,611 sq. ft. across the country to accommodate 48,656 employees. Another 46,70,130 sq. ft. is under completion, which is capable of accommodating 16,250 employees. Of this, only 2,750 sq. ft. are in Bangalore, said Mr Pai, indicating that the company had reached a saturation level for expansion in the city. The company incurred a capital expenditure of Rs 193 crore during the quarter.

Mumbai blasts impact

The Mumbai blasts will not have an impact on the Indian IT industry, assured the CEO and MD, Mr Nandan Nilekani. Praising the fortitude of citizens of Mumbai, which rocked under a series of blasts late on Tuesday evening, Mr Nilekani said, "The blasts were a shameful tragedy. Terrorism is occurring across countries. There will be no impact of it."

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