IT thrust area in Karnataka Budget

BANGALORE: The Karnataka state Budget for 2000- 2001, which

is also the maiden budget of the Congress government, has proposed a host of

measures, without hurting the common man. The Karnataka chief minister S.M.

Krishna has laid stress on the information technology (IT) area and has also

identified a few other knowledge-based industries, as thrust areas for

development.

The chief minister also announced a five-year tax stability for these

industries. The CM, who has information technology close to his heart, announced

"tax stability" for this sector for five years. That only meant that his

government would stick to the recent reduction in the sales tax on hardware, in

spite of the neighboring states objecting to it. Expressing excitement on this,

the Association of Information Technology Leslie J. Lean said, "The state

budget is really good and the tax stability for five years is also excellent. To

stabilize an industry its tax also should be stable." He further added,

"In fact this was one of our recommendations that we submitted to Mr

Krishna and we are really glad that he announced the tax stability for five

years based on our recommendation." Mr Krishna has also proposed a scheme

to provide IT training to rural youth, called "Yuva.com". The CM sought a

vote on account for four months for the budget proposals that will come into

effect from April 1.

He also announced the setting up of state council for IT education and

training and increase in the number of students graduating in IT from 9620 to

20,000 and is also planning to set up two incubation centres for information

technology. Infosys Technologies Ltd. president, managing director and chief

operating officer Nandan M. Nilekani reacting to the Government of Karnataka

budget proposals said, "We welcome the various measures announced for the

knowledge-based industries, which should help further in IT penetration. The

need of the hour is to increase the pool of software professionals. The

government has taken the right steps by encouraging new colleges in IT and

actively supporting creation of private IT universities by professionals. The

Government's intention to increase the number of students graduating in IT from

9,620 to 20,000 will be welcomed by the industry. The setting up of the State

council for IT education and training should compliment the efforts initiated in

increasing the IT graduates. The setting up of IT incubation centres should

enhance the growth of a large number of small software companies."