THIRUVANANTHAPURAM, INDIA: Technology companies based at the Thiruvananthapuram Technopark, under the aegis of the Group of Technology Companies (GTech), have charted out a slew of demands for the Kerala government to look at and take action.

GTech is the strategic association of IT companies based at the Technopark in the Kerala capital.

Calling for parity in cost structures with other states, operational flexibility and freedom to run businesses, the tech companies plan to urge the Kerala Government to support the industry in retaining its operational viability in difficult times such as the current one so that the industry can continue to provide employment and contribute to state's progress.

In a bid to sustain the current levels of business, the companies, with GTech in the forefront, will urge the government to re-examine the rental regime in the Government-run IT parks and ensure the rentals are harmonized with the recent trends in other metros.

The IT players consider that a rental reduction of about 25 per cent is warranted to retain their competitive advantage.

Besides, the companies look forward to the government for removal of restrictions on electricity consumption and rollback the recent tariff hike, saying that as electricity is the only and most vital raw material consumed by the industry.

The list of demands charted out by the IT players include seeking Essential Service status to Technopark, so that events such as hartals and bandhs do not disrupt the functioning of companies.

"We seek clarifications as to the exact legal framework under which Technopark companies operate. When new legislation or legal frameworks are to be created, we request that this is done with industry participation," GTech officials said.

"These apart, while the Government retains the right to examine compliance of companies to the applicable laws, we request that a mechanism for this be instituted within Technopark itself. In particular, we request that the government does not go public or to the media with such issues in the context of any one or more companies".

Adding that it would request that the current policy regime of the IT Department be suitably modified so as to enable Technopark companies that possess certain minimum requirements to take up e-Governance projects for the state of Kerala, GTech officials pointed out that Kerala should also take up with the Government of India measures to extend the STPI Scheme by three more years.

Other demands include making sure that concessions made to Special Economic Zones be made available to the Technopark as well, withdrawal of tax on computer software and the like.

IT Industry in Kerala is estimated to employ a workforce of over 60,000, which includes both highly-skilled professionals as well as non-technical personnel, with Technopark employing approximately half of this workforce, they pointed out.

They added that the technology sector in the state had an approximate annual turnover of Rs 1500 crore last year, with Technopark contributing about Rs 1200 crore.

"The global economic meltdown has begun to impact Kerala's IT Industry. The magnitude of impact and its timing will vary between companies. However, the growth rate of the industry is likely to be seriously impacted for the next 1-2 years. In particular, the year 2009 is expected to be the most impacted period," they said.

Stressing that the industry will be forced to take a series of steps in order to tide over the slowdown, GTech officials added that the measures that may need to be taken include reduction in operational expenses, reduction or stagnation of remuneration, reducing employee intake, and in rare cases, termination of services of personnel.

Pointing out that the world over, governments are coming out with a slew of measures to help their industries tide over the present crisis, GTech officials said that they would like the Kerala government and also the Centre to adopt supportive steps to help the IT and ITES industries cope with the economic slowdown.